HISTORIC LABOUR DEAL BRINGS LONG-TERM STABILITY TO ASIA PACIFIC GATEWAY

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1 the official publication of T H E A S S O C I A T I O N O F C A N A D I A N P O R T A U T H O R I T I E S CANADIAN PORTS HISTORIC LABOUR DEAL BRINGS LONG-TERM STABILITY TO ASIA PACIFIC GATEWAY Improving the resilience of Canada s bulk ports: Stakeholders perspective New Regulations for Canada s Cruise Sector Un nouveau règlement pour le secteur des croisières du Canada CPA Port Infrastructure Needs Study Raises New Questions for Canada s Prosperity MARITIME COMMERCE RESILIENCY PLANNING PLANIFICATION DE LA RÉSILIENCE DU COMMERCE MARITIME Implications of Environmental Regulations for Shipping and Ports

2 the official publication of T H E A S S O C I A T I O N O F C A N A D I A N P O R T A U T H O R I T I E S CANADIAN PORTS photo (cover and this page) : port of sept-îles (griffintown /jean brosseau) con t en t s Canadian Ports Magazine is published annually for the Association of Canadian Port Authorities. Suite Albert Street Ottawa, ON K1P 5E7 T: (613) F: (613) E: Published by Griffintown Media Inc St-Patrick On the Lachine Canal Montreal, QC H4E 1A9 T: (514) F: (888) E: Editor Jim McRae Association Editor Gary LeRoux Ad Sales Coordinator Alicia Castelli Layout & Design Alicia Castelli Judy Coffin Translation Services de traduction Myriade inc. Proofreading Judy Yelon 2011 Griffintown Media Inc. All rights reserved. The contents of this publication may not be reproduced, in whole or in part, without the prior written consent of the publisher. Printed in Canada ACPA BOARD OF DIRECTORS Chair Robin Silvester President and CEO Port Metro Vancouver Vice-Chair Sylvie Vachon President and CEO Montreal Port Authority Past Chair Bruce Wood President and CEO Hamilton Port Authority Tim Heney President and CEO Thunder Bay Port Authority Pierre Gagnon President and CEO Sept-Îles Port Authority Jim Quinn President and CEO Saint John Port Authority Karen Oldfield President and CEO Halifax Port Authority Angus Armstrong Chief of Security & Harbour Master Toronto Port Authority Brad Madelung Port Manager Port Alberni Port Authority Kevin Obermeyer (Affiliate) President and CEO Pacific Pilotage Authority 02 l e t t e r f r o m t h e c h a ir l e t t r e d u p r é s ident Robin Silvester 04 HI S T O R IC L A B O U R D E A L B R INGS L O N G -T E R M S TA B I L I T Y T O T H E A S I A PA CIFIC G AT E WAY Greg Vurdela 08 I m p r o v ing t h e r e s i l ie n c e o f C a n a d a s b u l k p o r t s : S ta k e h o l d e r s p e r s p e c t i v e Claude Comtois 14 n e w R e g u l at ion s f o r C a n a d a s C r ui s e S e c t o r Un nouveau règlement pour le secteur des croisières du Canada Gary LeRoux 18 C PA P o r t Infr a s t r u c t u r e N e e d s S t u d y R a i s e s N e w Q u e s t ion s f o r C a n a d a s P r o s p e r i t y Marc-André Roy 24 M A R I T I M E C O M M E R C E R E S I L IE N C Y P L A N NING PLANIFICATION DE LA RÉSILIENCE DU COMMERCE MARITIME Gerard McDonald 30 i M P L ic at ion s o f E n v ironmenta l R e g u l at ion s f o r S hip p ing a n d P o r t s Stephen Blank Association of Canadian Por t Authorities CANADIAN PORTS MAGA ZINE

3 L E T T E R F R O M T H E C H A I R robin silves ter l e t t r e d u p r é s i d e n t robin silves ter A S S O C I AT I O N O F C A N A D I A N P O RT A U T H O R I T I E S A S S O C I AT I O N D E S A D M I N I S T R AT I O N S P O RT UA I R E S C A N A D I E N N E S Canada Port Authorities (CPAs) have a unique mandate, one that requires them to operate on a strictly commercial basis in the pursuit of strategic public policy objectives outlined under the Canada Marine Act. While operating as CPAs over the past 10 years, the 17 Port Authorities have collectively grown their business by almost 40 percent. Last year the combined volume of goods handled exceeded $160 billion in value. Several Port Authorities had record years in both cargo handled and the increasingly growing cruise sector in Canada. This is a clear indication that Canada s major ports, involved in important domestic and international trade, are focused and competitive. Our CPAs are well positioned to support growing international trade in the gateways and corridors identified by the federal government s policy on strategic trade corridors and gateways. Our Pacific ports are closest to the vast Asian market and its dynamic emerging economies. Canada s Atlantic ports are North America s closest to Europe with its combined economies still currently 20 times larger than that of China. The St. Lawrence and Great Lakes ports are essential for the two-way trade between Canada and our largest trading partner, the United States. As more free trade agreements are signed with other countries Canada s trade will continue to grow. Canada s ports must be ready with the infrastructure capacity to support this significant trade increase. Les administrations portuaires canadiennes (APC) ont un mandat unique : celui d exercer leurs activités sur une base purement commerciale dans la poursuite des objectifs d intérêt général énoncés dans la Loi maritime du Canada. En 10 années d activités en tant qu APC, les affaires des 17 administrations portuaires ont augmenté de près de 40 p L an dernier, la valeur du volume combiné des marchandises manutentionnées a dépassé les 160 milliards de dollars. Plusieurs administrations portuaires ont connu des années record, tant au chapitre du traitement des marchandises que des croisières, un secteur en essor constant au Canada. Cela démontre clairement que les grands ports canadiens participant aux importants échanges commerciaux intérieurs et internationaux sont déterminés et concurrentiels. Les APC sont bien placées pour soutenir le commerce international croissant dans les portes et corridors identifiés dans la politique du gouvernement fédéral en matière de portes et de corridors commerciaux stratégiques. Nos ports du Pacifique sont situés le plus près du colossal marché asiatique et de ses économies émergentes. Les ports canadiens de l Atlantique sont les ports nord-américains situés le plus près de l Europe et de ses économies combinées, qui demeurent encore 20 fois plus considérables que l économie de la Chine. Quant aux ports du Saint-Laurent et des Grands Lacs, ils sont indispensables au commerce bilatéral entre le Canada et son plus important partenaire commercial : les États-Unis. De plus en plus d accords de libre-échange seront signés avec d autres pays et les échanges commerciaux du Canada continueront d augmenter. Les ports canadiens doivent être prêts à offrir la capacité d infrastructure nécessaire à cette importante croissance commerciale. 2 CANADIAN PORTS MAGAZINE 2011 Association of Canadian Port Authorities

4 The Association works on many issues in the course of a year that help underpin the movement of freight between Canada and more than 150 countries around the world. The articles in this magazine represent a sample of some of the issues we continue to tackle to ensure Canada s ports, and by extension, the Canadian economy, can sustain and grow trade via the most cost-effective and environmentally friendly mode of travel, the marine mode. We have appreciated the support of our many stakeholders over the past several years including all levels of government. We look forward to continue working with our stakeholders in the years ahead to ensure Canada s port community remains strong, viable and competitive. L Association travaille à plusieurs dossiers en une année afin de soutenir le mouvement de fret arrivant sur nos rives de plus de 150 pays. Les articles de cette revue portent sur les enjeux que nous continuons à affronter afin que les ports canadiens et, par surcroît, l économie canadienne, puissent appuyer et favoriser la croissance des échanges commerciaux par le biais du mode maritime, le mode de transport le plus respectueux de l environnement. Nous remercions nos nombreux intervenants, y compris tous les paliers du gouvernement, de leur appui au cours des dernières années. Nous sommes impatients de poursuivre notre collaboration avec eux durant les années à venir afin que la communauté portuaire canadienne demeure solide et concurrentielle. Association of Canadian Por t Authorities CANADIAN PORTS MAGA ZINE

5 HISTORIC LABOUR DEAL BRINGS LONG TERM STABILITY TO THE ASIA-PACIFIC GATEWAY by greg Vurdela, Vice President - Marketing, Customer & Government Relations, BCMEA The British Columbia Maritime Employers Association (BCMEA) is a multi-employer waterfront organization, representing 62 ship owners, agents, stevedores, container, cruise ship, bulk and break bulk terminal operators in the Asia Pacific Gateway. The BCMEA advocates on behalf of its Customer-Members for legislative and regulatory reform on issues affecting labour reliability in the Asia Pacific Gateway (APG). The Association is a service provider of labour relations, training, recruitment and dispatch of longshore employees. For many years the Asia Pacific Gateway has suffered significant commercial damage because of its global reputation for labour unreliability. To users and stakeholders of the Gateway, it seems as though some form of collective bargaining, complete with the ever-present threat of a work stoppage or disruption, is a constant feature of the waterfront landscape. Demonstrating this point is the last round of bargaining between the BCMEA and the ILWU Local 514 where the parties bargained for 22 months to achieve a threeyear collective agreement one year longer than the settlement reached between the BCMEA and ILWU Canada representing longshore workers as the Fforemen attempted to leapfrog the longshore settlement. Factoring in the Canada Labour Code provision which allows for either party to serve notice to commence collective bargaining within the four-month period prior to the expiration of a current agreement, only 10 months of absolute labour certainty was achieved during the three-year term. Global supply chains, for both import and export cargo, served by the Membership of the BCMEA have grown so familiar with this bargaining pattern that many of these chains are forced to maintain year-round alternative supply routes. That has meant Canadian import and export cargo transiting through foreign ports with the attendant loss of Canadian jobs. In terms of labour stability and reliability, our much maligned West Coast Canadian ports finally have some positive news to report in the form of an historic eight-year agreement between the BCMEA and ILWU (Canada) Longshore. The all-in cost of the 4 CANADIAN PORTS MAGAZINE 2011 Association of Canadian Port Authorities

6 agreement over its eight-year duration is percent which averages to 2.61 percent per year. The settlement includes both increases to wages and benefits and some favorable language changes that continue to ensure Canadian West Coast ports are competitively positioned with their U.S. counterparts on the West, East and Gulf coasts. With the new collective agreement expiring March 31, 2018, BCMEA is now well positioned to focus its resources on improving workforce efficiency and productivity. Innovation in the areas of longshore employee training and recruitment can be fully realized and implemented. The antiquated waterfront hiring hall process of dispatch of ILWU personnel to the ships that require them can be further streamlined and modernized to ensure employee productivity and safety metrics continue their positive trend lines. More than the nuts and bolts of the actual agreement, its length and implied labour predictability is the real win for the people of Canada and customers of the Asia Pacific Gateway. Many if not most Canadians aren t aware the Asia Pacific Gateway contributes some 12 billion (yes, with a b ) dollars to Canada s GDP and some 130,000 jobs to our economy at today s cargo tonnage levels. The stability generated by an eightyear agreement will allow industry, in partnership with the federal and provincial governments, to retail the Gateway on a global stage. In concert with ongoing private/public infrastructure investment, the term of the current agreement sends a strong message that Canada s West Coast ports are open for business. The importance of the Asia Pacific Gateway as a significant economic engine for all Canadians has not been lost on both federal and provincial governments. During this last round of collective bargaining, Federal Minister of Labour Lisa Raitt carefully monitored the state of negotiations for their duration and provided necessary leadership when the parties were unable to move the process forward. Unfortunately, at this writing, there remains one dark cloud on the Asia Pacific Gateway s ability to fully retail and benefit from the labour relations stability Association of Canadian Por t Authorities CANADIAN PORTS MAGA ZINE

7 generated by the historic eightyear collective agreement reached with approximately 4,500 longshore workers. There remains a group of 450 ILWU Foremen who have historically protracted negotiations in an effort to leapfrog the settlements reached with longshore workers. Canada s ability to fully market eight years of labour stability to overseas customers is marginalized in this environment where stakeholders must tolerate two separate rounds of bargaining with the ILWU even though the collective agreements for both bargaining units, longshore and foremen, share a common duration and expiration term. The future appears very bright for Canada s West Coast ports. Collective agreements such as the one signed between the BCMEA and ILWU (Canada) Longshore send a clear signal to existing and prospective customers that the Asia Pacific Gateway is ready, willing and able to capitalize on its tremendous growth potential. 6 CANADIAN PORTS MAGAZINE 2011 Association of Canadian Port Authorities

8 improving the resilience of canada s bulk ports: shareholders perspective by claude comtois The growth in the amount of dry bulk carried by sea and the mutation in the direction of flows are some of the major phenomena of world exchanges. Dry bulk trade underpinned by marine output is a key element in the supply chain for metallurgical producers, steel plants, aluminum industries and agrofood businesses. Production and trade of dry bulk commodities are of pivotal economic importance for Canada. Canada is a worldleading producer of minerals both in volume and value terms. Canada s global market share in the production of grain suggests that the country is an important crop exporter. The participation of Canada in world dry bulk trade will not diminish. The steady growth in the volume of bulk shipments to China and India has resulted in intensive demand for increasing bulk port competitiveness. This accumulation of wealth is the result of the development of an elaborate port system. Major dry bulk exports have selected ports of clearance. Most dry bulk terminals are specialized, occupy niche markets and are constructed to handle a single type of commodity rarely suitable for other cargo. Most dry bulk cargo arrives by rail for vessel loading. Besides, dry bulk ports handling similar commodities are characterized by inherent differences in terms of geographical setting, seasonality, network architecture, labour arrangements and competitive market environment. The capacity of maritime transport and ports to adapt to changes is a key issue in ensuring Canada s port competitiveness. The opportunities for the constituents of maritime transport to become more competitive is likely to be very important in the next decade. Paradoxically, understanding the vulnerability of maritime transport and ports, including infrastructure and supply chains,is limited. Thus, there is a pressing need to provide a knowledge base for Canadian port stakeholders. This need can be assessed through a deeper understanding 8 CANADIAN PORTS MAGAZINE 2011 Association of Canadian Port Authorities

9 of the most important issues impacting on Canada s bulk supply chains and port terminals. This will be invaluable in identifying opportunities for Canadian port stakeholders to become even more competitive and ensuring the fluidity and reliability of maritime transport from a systems perspective. Several factors may affect the vulnerability of Canada s bulk port system. Attempts to understand the resilience of Canadian bulk ports requires identifying these factors with a view to selecting adaptation strategies, realizing opportunities or moderating negative externalities. In order to underpin the role and function of benchmarking we have conducted a three-phasedsurvey. The first phase involved the pursuit of in-depth interviews with port authorities and experts in Europe, Asia and North America. The discussion was aimed at sharing an understanding of the environment of changes facing port business. The second phase implied the identification of possible key vulnerability factors applicable for dry bulk ports from field work and content analysis of the literature. The third phase required testing these factors among Canadian stakeholders involved in dry bulk transport. In the perspective of a system extracting the maximum potential from existing infrastructures, it is necessary to understand the perspective of the main stakeholders in assessing resilience. The survey was targeted at Canadian photo : griffintown ports senior managers, terminal operators, shippers and Canadian government officials. The survey identified several key findings. There is an agreement among port stakeholders about port system vulnerability. All port stakeholders are committed to increasing the resilience of bulk port infrastructure and supply chain. All stakeholders have had experience in risk management. Above all, there is a remarkable consistency of perspective among Canadian port stakeholders on the very complex nature of changes and vulnerability issues in dry bulk trade. Association of Canadian Por t Authorities CANADIAN PORTS MAGA ZINE

10 photo : griffintown Canadian dry port stakeholders have prioritized seven factors deemed essential in increasing the resilience of Canada s bulk port system. E x pa n s i o n c a pa c i t y There is very strong pressure for ports to build infrastructures to sustain increasing vessel size and growth in traffic. Often port administrations cannot adapt existing sites to the new transport environment. Port expansion through reclaimed land is often difficult on account of important negative environmental impacts involved in these proposals. Expansion on areas immediately adjacent is often impossible as port infrastructures are constrained by surrounding urban development. Relocation of port activities represents a challenge; it is difficult to find adequate land areas, the costs of transferring marine activities are enormous and these sites can break up integrated transport systems while distancing the port from its traditional local markets. Stakeholders are seeking an answer to this dilemma by searching for mechanisms to bridge the gap between economies of scale, transportation costs, land costs and their impact on freight movement, and creation of rents. C o s t c o m p e t i t i v e n e s s Port business logistical systems and practices are concerned with reducing cost and time delays for bulk supply chain. They contribute to revenue maximization and cost reduction. The complexity of globalization processes, the shifts in dr y bulk trades, emerging significant ecologica l concerns, and more importantly, the current business and economic environment require evaluation mechanisms that demonstrate 10 CANADIAN PORTS MAGAZINE 2011 Association of Canadian Port Authorities

11 t he maintenance and improvement of standards. A ll sta keholders acknowledge that any attempt to understand changes and reduce vulnerability issues in Canada s dry bulk ports requires benchmarking. The development of utilization or performance indicators has great benefit in terms of information and assessment. T hese indicators can be used during negotiations between stakeholders who share different expectations of change and various opinions on outcomes t hat can be reasonably imagined. Benchmarking legitimizes decisions prior to the full resolution of v ulnerabilities. H i n t e r l a n d a c c e s s Port access is one of the major factors that influence freight flow. Fully-fledged bulk ports depend on clusters of value-added services within a highly integrated multi-modal network. Technology helps to increase connectivity, achieve economies of scale and reduce distance decay so as to gain immediate transfer as much as possible. Ultimately, the ideal port would provide immediate transfer of everything, towards photo : griffintown any mode in all directions at market cost where distance decay would be negligible. No technology will ever allow the attainment of that objective. The long-haul trade of bulk commodities in support of Canada s economic growth has rendered supply chains ever more dependent on continental landbridges. The vulnerability problem is expressed in terms of congestion that closes or impedes access to routes or passages affecting the economy of bulk ports. Consequently, port stakeholders are seeking the introduction of technological Association of Canadian Por t Authorities CANADIAN PORTS MAGA ZINE

12 innovations associated with the addition of new infrastr uctures leading to a refashioning of existing net works. S h i f t i n g m a r k e t c o n d i t i o n s The movement of dry bulk is a derived demand. The level of service to be given along the transportation chain cannot be predetermined. All stakeholders must be prepared to have storage facilities where bulk commodities can be secured, handled or shipped. This complex inventory system is in constant state of adjustment to shifting market conditions (price fluctuations, disequilibrium in supply/demand, emerging economies, China factor). But lean trends in dry bulk logistics has rendered the economy more vulnerable to disruptions in dry bulk supply chains. For stakeholders, resilience to shifting market conditions requires the creation of buffers in the system in terms of extra inventory or excess transportation capacity with a view to mitigate potential interruptions of flow. C o r p o r at e l o g i s t i c s Transport and commodity chains have become larger and more complex. Dry bulk shipping logistics services are fragmented from origin to destination into operating units composed of suppliers, land/river-based transportation, port, ship and destination. Globalization has led to a growing control exerted by conglomerates through concentration of production in the mining and agricultural sectors and a concomitant domination over the transportation chain. Port resilience thus requires a greater understanding of the organizational structure of bulk supply chain. S e c u r i t y Competitive advantage in bulk markets is integrating production and logistics functions at hub ports with fully-fledged multimodal trunk routes. This web of nodes and corridors is providing a fresh framework for discussing security issues. Ports are attractive markets and investment sites for knowledge-intensive products and high level services. Controlling access to hub ports is a powerful incentive for increasing resilience. Multi-modal corridor issues are heightened by increasing congestion and the need to safeguard bulk movement. Economic prosperity is closely associated with network hubs within development corridors where the infrastructure endowment is correlated with high levels of accessibility. Stakeholders are concerned with the need to develop mechanisms to address accidents, terrorist threats and unlawful traffic that could interrupt marine shipping or port operations. E n v i r o n m e n ta l c h a n g e s Occupying critical sites in coastal zones and in day-to-day transport operations, port authorities have developed environmental management systems to comply with regulatory requirements. Stakeholders negotiating port sustainability standards are 12 CANADIAN PORTS MAGAZINE 2011 Association of Canadian Port Authorities

13 confronted with two opposite anthropic trajectories: the adoption of appropriate technology (evolving in symmetry with the ecosystems) or genetic engineering (transforming the ecosystems). This leads to a persistent gap between local communities focusing on sustainability issues and port authorities concerned with economic development and cost competitiveness. This gap is a major source of difficulties in elaborating the transition towards mitigation. The main challenge for port stakeholders consists in searching for compromise between protection and planning that often implies a modification of the ecological order and in developing environmental compensation mechanisms. Canada s future is likely to be compromised without an understanding of the vulnerability of bulk transport. The expected growth in bulk traffic implies that some terminals will need to be modernized while those that have infrastructure capacity reaching saturation will need to be expanded with a view to respond to vessel size increase and new standards in equipment facilities. Bulk commodities have a low value/weight (or volume) ratio implying that the efficiency of land and marine transport has an impact on value added. The survey conducted among Canada s bulk port stakeholders highlights key port resilience indicators for bulk supply chain and marine terminals that are affected by particular stresses or stimuli with a view to identifying adaptation strategies. The resilience of bulk ports is critical to remaining competitive in a changing market environment. But increasing Canada s bulk port resilience requires a system-wide perspective. This suggests that the success of individual port strategies currently being canvassed must take into consideration the important role of collaboration and information network integration. Association of Canadian Por t Authorities CANADIAN PORTS MAGA ZINE

14 new regulations for Canada s Cruise sector by Gary Leroux, acpa In March 2010, signatories to Annex VI of MARPOL, under the auspices of the International Maritime Organization (IMO), adopted the establishment of the North American Emission Control Area (ECA) to reduce ship emissions. Canada and the United States were both signatories. On the heels of this in April 2010, the U.S. Environmental Protection Agency (EPA) issued its final ruling related to the control of emissions from marine compression-ignition engines. The ruling adopted the standards for NO x and fuel sulphur limits as set forth by the IMO. Key elements of the designation for the North American ECA were of particular interest to Canada s major ports with significant cruise business, for two reasons: 1) there was a requirement for ships operating in the ECA zone to shift to a low-sulphur fuel with a maximum sulphur content of 1.0 percent in 2012 and then to a fuel with a maximum sulphur content of 0.1 percent by 2015; and 2) the requirement to establish a 200-nautical-mile boundary for the ECA off much of the Atlantic and Pacific coasts of Canada and the United States. These new requirements have raised concerns among Canadian and U.S. ports visited by cruise ships sailing on Alaska and Canada/New England itineraries. The belief is that these two itineraries are going to be at a competitive disadvantage visà-vis other North American and global itineraries. At the heart of this concern is the fact that cruise ships sailing on Alaska and Canada/New England itineraries remain within the 200-mile boundary throughout the cruise itinerary, while ships sailing on other itineraries need only operate in the ECA for a small proportion of the total itinerary. Thus whatever the incremental cost of the lower sulphur fuel, that cost will impact the entire Alaska or Canada/ New England cruise industry. The incremental cost will only impact a fraction of other North American and international cruises. This can potentially lead to a redeployment of cruise ship capacity from the Alaska and Canada/New England itineraries to these other itineraries, such as Bermuda, the Caribbean, the Bahamas, and even the Mediterranean. 14 CANADIAN PORTS MAGAZINE 2011 Association of Canadian Port Authorities

15 un nouveau règlement pour le secteur des croisières du canada par Gary Leroux de l aapc photo : port of saint john, n.b. / port de Saint john, n.-b. En mars 2010, les signataires de l Annexe VI de MARPOL, sous les auspices de l Organisation maritime internationale (OMI), ont adopté la création de la Zone de contrôle des émissions (ZCE) de l Amérique du Nord afin de réduire les émissions des navires. Le Canada et les États-Unis en sont tous deux signataires. Dans la foulée, l Environmental Protection Agency (EPA) des États-Unis a rendu sa décision finale concernant le contrôle des émissions provenant des moteurs à allumage par compression. Cette décision adoptait les normes visant les limites d oxyde d azote et de teneur en soufre dans le combustible, telles qu établies par l OMI. Les principaux éléments de la désignation de la ZCE de l Amérique du Nord présentaient un intérêt particulier pour les grands ports canadiens à fortes activités de croisières, et ce, pour deux raisons : 1) les navires transitant par la ZCE devront utiliser un carburant à faible teneur en soufre, au contenu maximal de 1,0 p. 100 en 2012, puis un carburant à teneur maximale en soufre de 0,1 p. 100 d ici à 2015; et 2) un périmètre de 200 milles nautiques pour la ZCE sera créé au large de la majeure partie des côtes de l Atlantique et du Pacifique, au Canada et aux États-Unis. Ces nouvelles exigences inquiètent les ports américains et canadiens fréquentés par les navires de croisières ayant des itinéraires en Alaska et au Canada/en Nouvelle-Angleterre. On croit que ces deux itinéraires deviendront un désavantage concurrentiel par rapport à d autres itinéraires nord-américains et mondiaux. Au cœur de cette inquiétude se trouve le fait que les navires de croisières suivant les itinéraires de l Alaska et du Canada/Nouvelle-Angleterre demeurent dans le périmètre de 200 milles tout au long de leur route, alors que les navires suivant d autres itinéraires ne transitent par la ZCE que pour une petite portion de l ensemble de l itinéraire. Par conséquent, peu importe le coût différentiel du carburant à faible teneur en soufre, ce coût aura une incidence sur toute l industrie des croisières en Alaska ou au Canada/ Nouvelle-Angleterre. Le coût différentiel n aura de répercussions que sur une fraction des autres croisières nord-américaines et internationales. Cela pourrait entraîner un redéploiement de la capacité des navires de croisières, des itinéraires de l Alaska et du Canada/ Nouvelle-Angleterre vers d autres itinéraires comme les Bermudes, les Caraïbes, les Bahamas et même la Méditerranée. Association of Canadian Por t Authorities CANADIAN PORTS MAGA ZINE

16 If this were to occur, Canada s port cities would experience a significant loss of business from the cruise sector. Canadian ports and their partners have worked hard over the past 10 years to build a viable cruise business. It must be noted that a number of Canadian ports experienced a record cruise business in 2010 despite the economic downturn. A recent economic impact study, by the firm Business Research & Economic Advisors, noted that as a result of this competitive disadvantage, the Alaska and Canada/New England markets are likely to experience a redeployment of cruise ships to other cruise markets for all or part of the sixmonth cruise season in Alaska and Canada. The report noted that: This redeployment of cruise ships will, in turn, result in a reduction in cruise-related spending, including port fees, provisioning of ships and spending by passengers and crew for tours, food and beverages and other retail goods. This reduction in direct cruise spending will also result in substantial job losses among the Canadian cruise port cities. The impact is estimated to be a loss of cruise visitors for Canada ranging from 150,000 to 390,000, which translates into an annual economic loss to Canada of up to $74 million. The corresponding job loss could be as many as 1100 jobs if a rigid regulatory approach were pursued with respect to Canadian regulations under ECA. The Environmental Protection Agency (EPA) and Transport Canada are the two bodies responsible for crafting regulations to implement the requirements under ECA as agreed to at the IMO. These regulations must be realistic and must take into account the potential, negative economic impact of ECA on the cruise sector across Canada. These regulations will be published in the Canada Gazette by the end of The Association and the many stakeholders who benefit greatly from the cruise sector in Canada are hopeful that the regulations will be drafted in such a fashion as to be fair and equitable in terms of limiting the potential impact on Canadian business. At the same time they must help provide a level playing field with other jurisdictions under ECA. The Association of Canadian Port Authorities (ACPA) represents ports and harbours and related marine interests across Canada. The Association s members contribute greatly to the local, regional and national economy of Canada with over $162 billion in the movement of cargo and cruise passengers annually. The member ports of Atlantic Canada, Quebec and British Columbia are encouraged by the direction being considered by Transport Canada with respect to the guidelines and regulations to achieve the new standards under MARPOL Annex VI (Regulation 4) for the implementation of an Emissions Control Area. The port community remains hopeful that the regulations will be considered in the context of the need to sustain Canada s growing cruise industry for the benefit of the Canadian economy. 16 CANADIAN PORTS MAGAZINE 2011 Association of Canadian Port Authorities

17 Si cela se produit, les villes portuaires canadiennes enregistreraient une importante perte d activités du secteur des croisières. Les ports canadiens et leurs partenaires travaillent fort depuis dix ans afin de bâtir un secteur des croisières viable. Soulignons que plusieurs ports canadiens ont enregistré des activités de croisières record en 2010, malgré le ralentissement économique. Une récente étude d impact économique du cabinet Business Research & Economic Advisors soulignait que ce désavantage concurrentiel pourrait faire en sorte que les marchés de l Alaska et du Canada/Nouvelle- Angleterre soient témoins d un redéploiement des navires de croisières vers d autres marchés des croisières pour les six mois que dure la saison des croisières en Alaska et au Canada. Ce rapport expliquait que : «Ce redéploiement des navires de croisières entraînerait à son tour une réduction des dépenses connexes, incluant les droits portuaires, l approvisionnement des navires et les dépenses des passagers et des équipages pour les visites touristiques, la nourriture et les boissons et autres produits au détail. La réduction de ces dépenses de croisières directes entraînera également la perte d emplois dans les villes portuaires de croisières canadiennes». On estime que l impact consistera en la perte de croisiéristes pour le Canada, dont le nombre variera entre et , ce qui se traduit par une perte économique annuelle allant jusqu à 74 millions de dollars pour le Canada. La perte d emplois correspondante pourrait se chiffrer à emplois si on maintient cette approche de réglementation inflexible en ce qui concerne le règlement canadien lié à la ZCE. L Environmental Protection Agency (EPA) et Transports Canada sont les deux organismes responsables de la rédaction du règlement pour la mise en œuvre des exigences en vertu de la ZCE, tel que convenu à l OMI. Ce règlement doit être réaliste et tenir compte de l incidence économique néfaste potentielle de la ZCE sur le secteur des croisières au Canada. Il sera publié dans la Gazette du Canada d ici la fin de L Association et les nombreux intervenants à qui le secteur des croisières bénéficie énormément espèrent que le règlement sera rédigé de façon juste et équitable, sans entraîner trop de répercussions potentielles sur les activités au Canada. Cependant, il doit aussi procurer des règles du jeu équitables avec d autres compétences, en vertu de la ZCE. L Association des administrations portuaires canadiennes (AAPC) représente les ports, les havres et les intérêts maritimes connexes au Canada. Ses membres manutentionnent plus de 162 milliards de dollars par année en marchandises et passagers de croisières et leur apport à l économie locale, régionale et nationale du Canada est considérable. Les ports membres du Canada atlantique, du Québec et de la Colombie- Britannique sont encouragés par l orientation qu envisage Transports Canada au sujet des lignes directrices et du règlement afin d établir les nouvelles normes en vertu de l Annexe VI (Règle 4) de MARPOL pour la mise en œuvre d une Zone de contrôle des émissions. La communauté portuaire espère que le règlement sera étudié en tenant compte du besoin d appuyer l industrie des croisières en plein essor au Canada, dans l intérêt de l économie canadienne. Association of Canadian Por t Authorities CANADIAN PORTS MAGA ZINE

18 CPa port infrastructure needs study raises new questions for canada s prosperit y by marc-andré roy photo : port of saint john, n.b T h e C a n a d a P o r t A u t h o r i t y I n f r a s t r u c t u r e N e e d s S t u d y wa s f u n d e d b y t h e A C PA a n d T r a n s p o r t C a n a d a a n d wa s u n d e r ta k e n b y C P C S, a m a n a g e m e n t c o n s u lt i n g f i r m f o c u s e d o n s t r at e g i c t r a n s p o r tat i o n m at t e r s. T h e n at i o n a l s t u d y, t h e f i r s t o f i t s k i n d, a s s e s s e d C PA i n f r a s t r u c t u r e n e e d s a n d p l a n s o v e r t h e n e x t 15 y e a r s, a n d wa s b a s e d o n s u r v e y s c o m p l e t e d b y C PA s. We now know the extent of infrastructure needs and plans at Canada s 17 port authorities (CPAs). A recent study commissioned by the Association of Canadian Port Authorities (ACPA) pegged total infrastructure investment needs and plans of all CPAs at $5.8 billion over the next 15 years. What does this number mean? Why is it important? And what should be done about it? Of the nearly $6 billion in total CPA infrastructure investment needs and plans, $1.9 billion (33 percent) relates to the rehabilitation of existing port assets, and $3.9 billion (67 percent) relates to future port development projects. Of the $1.9 billion investments needed to rehabilitate existing port assets, $792 million (41 percent) is needed for waterside infrastructure, $758 million (40 percent) for landside infrastructure and $358 million (19 percent) for intermodal/other infrastructure. Overwhelmingly, waterside infrastructure needs relate to wharf sub-structures and/or berth-face structures. On the whole, 8 percent of these investment needs are deemed to be critical to preventing operating failures, and 14 percent are deemed to be moderately critical, as self-assessed by CPAs. For existing waterside infrastructure, the level of urgency is even higher, with 16 percent of needs defined as critical, and 21 percent assessed as moderately critical. In short, major investments to existing 18 CANADIAN PORTS MAGAZINE 2011 Association of Canadian Port Authorities

19 port infrastructure and waterside infrastructure in particular are required to ensure continued port performance. These investments are not merely nice to have. They are necessary, and in some cases, urgent. The balance of port infrastructure investments identified in the study close to $4 billion relate to new infrastructure development projects, including facility expansions and new terminals. Close to half ($1.88 billion) relate to waterside infrastructure, including berths and wharves. Generally, these projects aim to expand freight handling capacity to meet growing demands by port customers. Capacity expansion plans in Sept-Îles to accommodate the boom in iron ore traffic originating in Quebec s north and Labrador are a noteworthy example. In many cases, new infrastructure development projects are planned over a medium or longer term horizon. Many have not yet been studied or fully defined, but remain in sight and are deemed important to seizing new business and growth opportunities. Association of Canadian Por t Authorities CANADIAN PORTS MAGA ZINE

20 Two things are clear: CPA infrastructure needs and plans amount to a lot of money; related investments are also crucial to ensuring the long-term performance and success of ports and the supply chains they serve. Why is this important and why should Canadians care? There are at least three reasons. Canada, as often stated, is one of the world s most trade-dependent nations. Over 60 percent of our gross domestic product (GDP), or over $850 billion, is tied to international trade. Marine ports, as the key node in all waterborne import and export supply chains, have a vital role in supporting Canadian trade. By value, over 20 percent of Canada s trade moves through marine ports. By weight, Canadian ports handle a much greater 40 percent of Canadian trade not surprising given the prominence of natural resources in Canadian trade or over 300 million tonnes per year. This is in addition to the more than 100 million tonnes in domestic traffic that moves through Canadian marine ports annually. Ensuring that Canadian ports continue to effectively handle 20 CANADIAN PORTS MAGAZINE 2011 Association of Canadian Port Authorities

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