b.c. tugboat 2014

TUGBOAT2014

bctugboat.com

How to be a tugboat operator in Canada

Fuel tools: hedging to protect from rising costs

Federal government introduces new safety measures for tankers

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2014

B.C. Tugboat 3

DELCommunications Inc.

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Managing Editor:Shayna Wiwierski

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Melanie FrannerDon Lindsey

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PRINTED IN CANADA02/2014

Editor’s Message ....................................................................................4

Federal government introduces new safety measures for tankers ......4

BC Ferries is registered in the Certificate of Recognition program – Are you? .....................................6

Navigating the art of working on Canadian vessels Multi-nationals face strict guidelines .....................................................8

Hybrid propulsion – The new main stream! .......................................13

Kitimat: A marvel of nature and industry ...........................................16

Fuel tools: Hedging to protect from rising costs ................................18

Providing the forefront of innovation: Superior-Lidgerwood-Mundy .............................................................20

Full forward to full reverse ................................................................22

Index to advertisers ............................................................................23

COVER PHOTO COURTESY OF BCIT.

4 B.C. Tugboat | 2014

The number one question I get asked as the editor of B.C. Tugboat is “how do I become a tugboat operator in Canada?”.

The tugboat industry is a thriving one, and there are many operators all over the world who want to break into the business here in our home and native land.

The magic of the Internet is that people from all over the world can access our magazine. If you haven’t yet logged onto bctugboat.com, I highly suggest you do so and join in the conver-sation. We have had comments from South America, Africa, Europe, you name it, all with the same question – I want to be a tugboat operator/captain in Canada, how can I go about doing so? Well, dear readers, we listened and if you turn to page 8 you can find out all the details on how to break into the industry.

Unfortunately, I would love to say that anyone can hit the high waters here, but that’s not the case. Transport Canada, the government agency responsible for licensing individuals to work on Canadian vessels, requires a valid license or Canadian Certificate of Competency, as well as either Canadian citizenship or permanent residency. So that means, if you aren’t a Canadian, you unfortunately may be out of luck. But, as you will read in the story, that hasn’t stopped many people who now call Canada home, legal resident or not, from being involved in the industry.

The 2014 issue of the magazine is also filled with many other fascinating stories, including the federal government’s new safety measures for tankers, hybrid tugboats, and much more. You can even have a chance to win a prize from the British Columbia Maritime Employers Association on page 7.

I truly hope you enjoy this issue of B.C. Tugboat magazine. And as always, if you have any questions, concerns, or story ideas, feel free to pass them my way.

Shayna Wiwierski R

Every year, over 700 tankers arrive at Canadian ports and

80-million tonnes of oil move along Canada’s East and West

coasts.

The federal government has several safety measures in place

to protect Canada’s waters from ship-source pollution and to

ensure that tankers travel safety through Canadian waters.

While the current system meets today’s needs, shipments of

oil and substances, such as liquefied natural gas are growing.

As a result, Canada is developing a world-class tanker safety

system as part of a plan for Responsible Resource Development.

The system is built on four pillars: prevention, preparedness,

response, and liability and compensation.

“With a world-class oil tanker regime, our government can pro-

tect the safety of Canadians and the environment,” said Lisa

Raitt, Minister of Transport. “Our current tanker safety system

has served us well for many years, but as the transportation of

Canadian exports is expected to grow and create many high-

quality jobs in Canada, it is essential that we strengthen it to

meet future needs.”

There are eight new measures – announced in March 2012 –

coming into effect that will strengthen Canada’s tanker safety

system to protect the safety of Canadians and our environment.

These measures include:

1. Tanker inspections: The number of inspections is increasing

Editor’s MEssagEShayna Wiwierski

Federal government introduces new safety measures for tankers

B.C. Tugboat 5

to ensure that all foreign tankers are inspected on their first

visit to Canada, and annually thereafter, to ensure they com-

ply with rules and regulations, especially with respect to

double hulls.

2. Systematic surveillance and monitoring of ships: The gov-

ernment has expanded the National Aerial Surveillance

Program. This program involves three aircrafts that monitor

shipping activities over all waters under Canadian jurisdiction

using sophisticated state-of-the-art remote-sensing equip-

ment that can identify potential spills from satellite images.

3. Incident Command System: The government will establish

a Canadian Coast Guard Incident Command System, which

will allow it to respond more effectively to an incident and

integrate its operations with key partners.

4. Pilotage programs: All tanker operators operating within a

compulsory pilotage area must take on board a marine pilot

with local knowledge. The boarding pilot’s extensive knowl-

edge of the local waterway can guide the vessel safely to its

destination. We will review existing pilotage and tug escort

requirements to see what more will be needed in the future.

5. Public port designations: More ports will be designated for

traffic control measures, starting with Kitimat, B.C.

6. Scientific research: The government will conduct scientific

research on non-conventional petroleum products, such as

diluted bitumen, to enhance understanding of these sub-

stances and how they behave when spilled in the marine

environment.

7. New and modified aids to navigation: The Canadian Coast

Guard (CCG) will ensure that a system of aids to naviga-

tion, comprised of buoys, lights and other devices to warn of

obstructions and to mark the location of preferred shipping

routes, is installed and maintained.

8. Modern navigation system: The CCG will develop options for

enhancing Canada’s current navigation system (e.g. aids to

navigation, hydrographic charts, etc.).

In addition to these measures, the federal government created

a Tanker Safety Expert Panel to review Canada’s current tanker

safety system and propose further measures to strengthen it.

The panel consulted with key stakeholders to enhance the gov-

ernment’s knowledge and understanding of how well the cur-

rent system is working, review the current preparedness and

response capacity, and propose new ways to bring Canada’s

tanker safety system to a world-class status. The panel’s re-

port, A Review of Canada’s Ship-Source Oil Spill Preparedness

and Response Regime—Setting the Course for the Future, was

released in December and can be viewed at: www.tc.gc.ca/

eng/tankersafetyexpertpanel/menu.htm.

In response to receiving the report, the Honourable Lisa Raitt,

Minister of Transport, said, “I look forward to studying the re-

port, speaking with stakeholders about their views, and dis-

cussing it with my cabinet colleagues. The government will take

all necessary actions to prevent oil spills, clean them up should

they happen, and ensure that polluters pay.”

Oil has been safely transported in Canadian waters for decades,

without major incident – thanks to responsible players such

as the tugboat industry, and a strong tanker safety system –

however, every system requires review and updates over time.

The recently announced World-Class Tanker Safety System is

designed to protect our environment while promoting jobs and

economic growth– now and in the future. R


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Waterfront employers who implement health and safety management systems are rewarded through a balanced and transparent WorkSafeBC employer in-centive program. The COR program al-lows for up to a 15 per cent rebate of your WorkSafeBC premiums. The incen-tive is based on rebates of 10 per cent for the Health and Safety COR and five per cent for the Injury Management COR. When both a Health and Safety and Injury Management COR have been attained, the opportunity to receive up to a 15 per cent rebate is attainable.

Since the BCMEA COR program started in 2008, there have been 41 large em-ployers registered, and 17 are certified in the program. The COR audit process was originally intended for large employers with an employee count of 20 or more but now includes a SECOR program for small employers with less than 20 employees. The SECOR pilot program was success-fully completed in spring 2012. Since then, there have been six small employers regis-tered, and four are certified in the program.

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Since the BCMEA COR program started in 2008, there have been 41 large employers registered, and 17 are certified in the program.


Meet Arpit Baweja. At 25 years old,

Baweja already has close to five years of

cargo vessel experience under his belt.

He attained his marine license from his

home country of India and has most re-

cently worked on a contract basis with

one of the world’s largest international

container transportation and shipping

companies. He moved to Canada just a

few months ago in the hope of getting a

job within the Canadian shipping indus-

try. And in pursuance of this dream, he

has encountered more than a couple of

roadblocks.

Only in Canada

With a long history in shipping and trans-

port, Canada is well recognized as a coun-

try with strong job opportunities for indi-

viduals interested in pursuing a career on

the water. Transport Canada is the gov-

ernment agency responsible for licens-

ing individuals to work on Canadian ves-

sels. The agency requires a valid license

or Canadian Certificate of Competency

(CoC), as well as either Canadian citizen-

ship or permanent residency.

According to Jillian Glover, communi-

cations advisor, Transport Canada, the

agency issued a total of 3,500 CoCs in

the past year. These included both nauti-

cal and engineering CoCs.

“A Certificate of Competency is issued

once an individual has met all of the cri-

teria for said Certificate of Competency,”

By Melanie Franner

Navigating the art ofworking on Canadian vesselsMulti-nationals face strict guidelines

Marine Simulator at BCIT’s Marine Campus.

PHOTO BY SCOTT MCALPINE/BCIT

Marine Simulator at BCIT’s Marine Campus.

PHOTO BY SCOTT MCALPINE/BCIT

B.C. Tugboat 9

states Glover. “These criteria include

exams, training and medical fitness

evaluations.”

There are several institutions in Canada

where an individual can attain his CoC. If

said individual were to attain his license

via a traditional Canadian cadet route, the

training would typically involve a three- or

four-year diploma program from a recog-

nized entity, such as: the Fisheries and

Marine Institute in St. John’s, N.L.; the

Nova Scotia Community College (NSCC)

in Nova Scotia; the Quebec Maritime

Institute in Rimouski, Que.; Great Lakes

International Marine Training and

Research Centre in Owen Sound, Ont.;

and the British Columbia Institute of

TechnologyinVancouver,B.C.

These institutions are among the govern-

ment-approved education facilities within

Canada. Upon completion of programs

at these institutions, graduates must un-

dergo further examination by Transport

Canada before the agency will issue a

Standards for Training, Certification and

Watch Keeping (STCW) License CoC or a

domestic license CoC.

Successful completion of such programs, in conjunction with Canadian citizen-ship or permanent resident status, and the awarding of a CoC from Transport Canada, would allow an individual to work on a Canadian tugboat.

On the outside looking in

The route to working on tugboats for those individuals who have attained their CoC outside of Canada is a little more complicated and time consuming. The in-dividual must first submit his records to Transport Canada for validation and re-view. Transport Canada will compare the individual’s record against the required Canadian standards and will issue a letter informing the individual of the courses (if any) that are required in order to attain the equivalent CoC.

“Depending on the kind of Certificate of Competency and the candidate, this pro-cess can take anywhere from six months for a CoC at master, which is limited for a vessel of less than 60 gross tonnage,” explains Glover.

Of course, the other impediment to work-ing on a Canadian tugboat is Canadian

citizenship or permanent residency.

Foreign students who successfully com-

plete a marine training program at a rec-

ognized Canadian institution will not be

issued a Canadian CoC.

“All foreign students are informed that

before registering into a marine program

at a Canadian university/college that they

can complete the training program, at the

end of which they will be issued with a

course completion program certificate

from the institute, which they have to

take back to their own country for issue

of a Certificate of Competency by their

own government,” explains Glover. “A

Canadian Certificate of Competency will

not be issued by Transport Canada. By

law, a Canadian Certificate of Competency

can only be issued to a Canadian citizen/

permanent resident in Canada.”

Working within the system

Many individuals who have already at-

tained their CoC in countries other than

Canada apply to Transport Canada to at-

tain their equivalent CoC while, at the same

time, applying to Immigration Canada for

permanent residency. Unfortunately, the

Arpit Baweja.

Matt Taylor, vessel manager and Garfield Marsden, chief officer, conducting ballast tank inspections on the Barge Lambert Spirit.


latter is not guaranteed and if approved, can take several years to attain.

“Permanent residency is an immigra-tion issue,” states Captain Colin MacNeil, master mariner, marine programs co-ordinator, Georgian College, Great Lakes International Marine Training and Research Centre (GLIMTRC). “I know it can take a number of years. But it does happen. We currently have a lot of per-manent residents working on Canadian fleets.”

Of course, there is always the option of working on non-Canadian fleets.

“The world has interesting shipping re-gimes,” MacNeil explains. “A lot of coun-tries are called ‘flags of convenience’ countries. An example is Panama, where there are fewer requirements for nation-alities. Canada is one of the last flags in the world in which a ship owner will reg-ister a ship.”

Those cases in which an owner does register his ship under a Canadian flag occur because of the “Cabotage” ship-ping policy, which essentially “protects” Canadian seafarers by requiring that any cargo being transported domestically must be done on a ship registered un-der the Canadian flag, if such a ship is available.

The policy is similar to the U.S. “Jones Act”, which goes one step further by ad-ditionally necessitating the ship in ques-tion not only be registered, operated and manned in the U.S. and by U.S. citizens, but that the ship in question be built in the U.S. as well. (Of note, adds MacNeil, is that the lifting of the import duty on for-eign-built ships, which had been in place in Canada for a generation, has resulted in an immediate and ongoing fleet renew-al – which has resulted in a huge boost to Canadian shipping and potentially to seafarers themselves.)

“The Canadian tugboat industry is very re-

gional,” explains MacNeil. “The West Coast

is its own entity. The Great Lakes region,

which includes the St. Lawrence, is also

distinct. And the East Coast is another

separate area, with a lot of tugs and barges

because of the specialized equipment being

moved from place to place for project work

and also to service the oil industry.”

Canada calling

Back when Arpit Baweja first thought about

working in Canada, he was influenced by

the country’s size and reputation.

“Canada is a very big country in shipping,”

he explains. “A lot of people come to Canada

for the opportunity.”

In his previous shipping experience as a

navigating officer, Baweja worked on ships

for long, extended contracts. As such, he

ended up being away from his family in

India for as much as eight or 10 months at

a time.

“In Canada, the contracts are more like

two months on and two months off,” he

explains. “This would enable me to spend

more time with my family.”

But because Baweja doesn’t have perma-

nent resident status, his chances of getting

work as a navigational officer on a Canadian

vessel are zero. He is in the midst of sub-

mitting his records to Transport Canada to

find out what courses he would need to at-

tain his equivalent CoC, but he is well aware

that the immigration issue is another big ob-

stacle in his path. So, in the meantime, he

has made other arrangements.

“I am not a Canadian citizen, so I know that

I can’t work on a Canadian ship,” he states.

For this reason, Baweja has enrolled in

– and successfully completed the first

of two semesters – in a College Supply

Chain Management program.

Georgian College’s simulator was built and installed in 2008 for approximately $8.5 million dollars. It comprises four large full mission navigation bridges, one classroom with 12 separate part task trainer bridges and a marine engineering simulator with one large simulated full-mission engine room and an eight-station engine simulator classroom. The navigation simulator is designed by Transas USA, while the engineering simula-tor was designed by Kongsberg of Norway.

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McKeil Marine Limited’s tug Leonard M and barge Huron Spirit, transporting 10,000 T

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B.C. Tugboat 11

“I like to study and I wanted to use my sailing and logistics experience to benefit Canadian companies here,” he explains, adding that the reason for enrolling in the program in Canada is to enable him to meet Canadian standards. “But I wish the rules were more flexible so that I could be part of the sailing fleet.”

Canadian born and bred

Matt Taylor is a graduate of the Georgian College’s GLIMTRC marine program. He attained his certificate in marine technol-ogy in 2008 and went on to work with a company that specialized in shipping cargo on the Great Lakes.

“This is a bit of a second career for me,” he explains. “I took the advice of my dad and got a business degree and worked for a bit before getting the chance to try out the marine program at Georgian. I ended up loving it.”

Although Taylor relished the sense of ad-venture that came from working on the vessels, he always had the ultimate goal of working on shore. That opportunity came a bit earlier than he expected when he was asked to work in the office for McKeil Marine Limited, a long-established marine transportation and project service provider offering tug and barge services through the Great Lakes and into Eastern Canada and the Arctic. Taylor had applied to McKeil Marine during the winter months, when his regular work was laid up due to weather.

“The individual who hired me ended up with an opportunity elsewhere, so after about five months I was identified as a potential candidate to replace him,” states

Taylor. “I have now been here at McKeil for close to three years.”

According to Taylor, McKeil Marine does employ multi-nationals. But it is required by law to employ only Canadian nation-als on all of its Canadian flagged vessels. Being in the office, Taylor doesn’t techni-cally need his Canadian marine license. But regardless, he is glad that he has it and will continue to update it, as required, every five years.

“I certainly benefitted from my education at Georgian College,” adds Taylor, whose company continues to work in partnership with the institute. “I was just up there in the middle of last November to present my company to the first-year cadets. We also work with Canadian institutions through their co-op programs. McKeil had about six students come through the Georgian College co-op program last year.”

A license by any other name

For students like Arpit Baweja, gaining entry into the Canadian tugboat industry can be a very long and arduous one. Many individuals recognize this, and seeing the difficulties, set their sights elsewhere.

The chances of Transport Canada amend-ing the requirement of Canadian citizen-ship or permanent residency as a neces-sity of attaining a Canadian CoC are very small and would require changes to the actual Canadian Shipping Act.

And, in fact, according to MacNeil, al-though there is a shortage of seafarers in Canada, there are sufficient Canadian officers to work on Canadian ships or

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Guiding mariners for over

100 years.

Transport Canada is the government agency responsible for licensing individuals to work on Canadian vessels. The agency requires a valid license or Canadian Certificate of Competency (CoC), as well as either Canadian citizenship or permanent residency.


tugboats. Finding officers with relevant experience, however, is

a constant struggle for ship owners. The demand, he adds, is

from foreigners who would like to obtain a Canadian CoC.

“Licensing of foreigners with a Canadian CoC would not af-

fect Canadian jobs,” states MacNeil. “It would enable those in-

dividuals who don’t have access to domestic marine programs

to obtain a Canadian license, allowing them to work in those

countries that do not have the citizenship or permanent resi-

dency restriction.”

MacNeil goes on to cite the example of Great Britain, which ac-

cepts and issues STWC licenses to foreign students.

“In Great Britain, for example,” he says, “foreign students are

accepted into their marine programs and are issued a British

STCW license by the British maritime authorities, which en-

ables them to work on ships flying flags from countries that do

not have this residency restriction. There is a distinct difference

between a Canadian STCW CoC and a STCW marine license

from another country. A Canadian CoC is valid internationally,

enabling holders to work for foreign flags, as well as Canadian

flag ships. A non-Canadian STCW CoC, on the other hand, en-

ables an individual to work on ships around the world – but not

on Canadian flag vessels.”

In an effort to broaden the number of foreign students accepted

into Canadian marine institutions, some Canadian institutions are

researching the possibility of partnering with foreign countries.

“In this scenario, for example, countries like Nigeria would send

their students to Canada for the educational and training compo-

nents, and upon successful completion, the graduates of the pro-

gram would be issued a CoC from Nigeria instead of Canada,”

explains MacNeil.

Such a scenario would enhance Canada’s capability of helping for-

eign students – and Canadian institutions – without affecting the

rules that govern Canadian CoCs. They would also take advantage

of available placements in Canadian institutions.

According to MacNeil, for example, the GLIMTRC alone typically

has about 24 marine students in each of its marine navigation and

engineering programs.

“We’ve got two or three foreign students enrolled here,” he states.

“But we could handle 20 to 30 more if we didn’t have the CoC

restriction that discourages foreign students from studying in

Canada.”

The seas of change

For now, however, Canada remains one of the few countries in the

world to place significant restrictions on the issuing of a Canadian

CoC. Foreign students looking to attain an equivalent Canadian

CoC are still faced with the permanent residency requirement.

And although some dedicated and single-minded individuals have

successfully traversed this path, many others – like Arpit Baweja –

are forced to amend their dream of working on Canadian vessels.

“Sailing is my first choice,” concludes Baweja. “But if I can’t work

on a Canadian ship, I will be happy to work in a Canadian shipping

office.” R

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B.C. Tugboat 13

It has been five years since Foss Maritime’s Carolyn Dorothy be-

came the world’s first hybrid tugboat. When that project started

in 2007, hybrid technology was something that was only on the

radar of a very few innovative and forward-thinking companies.

Aspin Kemp & Associates (AKA) and their technology partner

XeroPoint Energy worked with the Foss Maritime team to de-

velop a propulsion system that would effectively address the inef-

ficiencies associated with a tugboat’s highly variable duty cycle.

The result was the XeroPoint Hybrid System, which was subse-

quently deployed in the ports of Los Angeles and Long Beach.

Independent third-party testing, on both of Foss’ hybrid vessels,

confirmed that the resulting hybrid technology was a very suc-

cessful means for operators to reduce both emissions and fuel

consumption.

Other innovative maritime operators, such as KOTUG,

have demonstrated a long-term commitment to en-

vironmental stewardship. Kotug, a leading towage

operator offering its innovative services to ports

and terminals on a global scale, have an active “Go

Green” policy. They see sustainability and in-

novation as a key component of their iden-

tity and have worked these values into their

business strategies. One of the most visible

demonstrations of this commitment was the

conversion of the RT Adriaan to become

Europe’s first hybrid tugboat in 2012. The success of that project has led KOTUG to build two additional “E-KOTUG Hybrids” for their growing fleet.

AKA continues to lead the marine industry in the development and deployment of their award-winning and environmentally friendly XeroPoint Hybrid technology. The continuous develop-ment and enhancement of the system’s features and capabilities has resulted in several significant milestones.

2013 was particularly noteworthy for the following reasons:

EPA verification: In July, following rigorous testing and inves-tigation, the United States Environmental Protection Agency (EPA) verified the XeroPoint Hybrid Tug Retrofit System as an emission-reducing technology. EPA verification of the hybrid

system’s emission test results is a significant achievement for both AKA and Foss Maritime, the operators of the Carolyn Dorothy and the Campbell Foss, the first two hybrid vessels. It

is further evidence that AKA is changing the way that the world thinks of marine power generation and propulsion efficiency.

Expanded patent protection: The initial XeroPoint Hybrid patent was granted in the United States

in 2011. Since then, patents have been allowed in Singapore and

By John Eldridge, hybrid team leader

HyBrid propulsioN – the new main stream!

ART 80-32 Rotor®tug - hybrid ready.


Australia and are pending in several other

regions. In late 2013, Canada became the

most recent jurisdiction to allow all of the

claims in the patent.

Caterpillar joint marketing agreement: A significant development for hybrid

technology in the last year was AKA’s

agreement with Caterpillar Marine to

work together and market Cat-Powered

Marine Hybrid Systems. This collabora-

tion ensures that clients all over the world

have access to hybrid technology through

the Cat Dealer Network, which will also

provide lifecycle service and support.

This agreement is a giant step forward

in hybrid systems being accepted as a

mainstream option.

RotorTug BV: This Dutch company, re-

sponsible for the development and mar-

keting of the innovative Rotor®tug de-

sign has embraced hybrid technology in

the development of their new “Advanced

Rotor®tug” vessels. These tugs were the

first in the world to be specifically designed

as “hybrid ready”. In essence, design ele-

ments that are necessary to facilitate these

vessels either being built as, or retrofitted

to hybrid, have been included as part of the standard package.

AKA and their industry partners remain committed to making hybrid propulsion the logical choice when designing vessels with varied duty cycles. R

RT Adriaan, Europe’s first hybrid tugboat.

Cat-Powered Marine Hybrid System.

The initial XeroPoint Hybrid patent was granted in the United States in 2011. In late 2013, Canada became the most recent jurisdiction to allow all of the claims in the patent.

RT Adriaan, Europe’s first hybrid tugboat.


Nestled at the head of Douglas Channel in Northwestern British Columbia, the District of Kitimat enjoys both natural beauty and a strong industrial heritage.

Kitimat is located in one of the few wide, flat, coastal valleys in British Columbia, with a stunning backdrop of the rugged Coast Mountains and glacier-fed Kitimat River. Carved out of the wil-derness in the 1950s, it has become a vibrant community of ap-proximately 10,000 residents. Kitimat is a tourist attraction offer-ing world-renowned salt- and fresh-water fishing, and sailing and power boating on the Douglas Channel. Skiing and hiking options abound, and the challenging 18-hole Hirsch Creek golf course offers an unparalleled golfing experience in a pristine wilderness setting. Safe neighbourhoods and ample recreational opportunities make Kitimat a welcoming community.

Throughout its history, Kitimat has had a diverse and varied economy primarily based on value-added manufacturing and natural resource processing. The town was initially built in the

early 1950s to house the employees of Alcan, an aluminum

smelter, which is set to be replaced by a new facility following

completion of the $3.3 billion (US) Kitimat Modernization Project

near the end of 2014. Now owned by Rio Tinto Alcan, this smelter

has been shipping goods globally through the Douglas Channel

since 1954. The Eurocan Pulp and Paper mill opened in 1969,

producing linerboard and kraft paper for more than 30 years until

closing in 2010. Ocelot Industries/Methanex operated from 1982

to 2005, producing 500,000 tonnes of methane and ammonia

annually. The same features that attracted Alcan, Eurocan, and

Methanex to locate their operations in Kitimat are today drawing

interest from numerous and varied proponents.

After nearly 60 years of heavy industry, the essential infrastruc-

ture, an experienced labour force and a comprehensive supply

and service sector are in place. Northwest Community College

andKitimatValleyInstituteofferindustrytrainingprogramsand

employment skills geared to the needs of local industry. Location,

a marvel of nature and industry

Kitimat is located in one of the few wide, flat, coastal valleys in British Columbia, with a stunning backdrop of the rugged Coast Mountains and glacier-fedKitimat River.

Kitimat:

B.C. Tugboat 17

harbour, growth potential, and industrial heritage make Kitimat

one of the most promising trade and manufacturing locations in

North America.

Thanks to the significant strategic advantages to attract busi-

nesses to locate here – including the ice-free, wide, deep-sea

harbour, and a seamlessly integrated international transporta-

tion network – Kitimat is bursting with new activity. Billions

of dollars in direct inward investments have been announced

and work has begun on several major projects. Kitimat LNG,

a 50/50 partnership between Chevron Canada and Apache

Canada, is the most advanced of the liquefied natural gas pro-

posals. Preparatory activities are ongoing and the Engineering,

Procurement and Construction (EPC) contract for the terminal,

to be built on Haisla Nation reserve land at Bish Cove, was

recently awarded to a joint venture involving JGC Corp. and

Fluor Corp.

Among the other projects announced is LNG Canada, a joint

venture involving Shell (40 per cent), KOGAS, Mitsubishi and

PetroChina Company (each 20 per cent) to develop a four-train

(at full build out) LNG export facility on the former Methanex site.

Three natural gas pipeline projects have also been announced.

As a result of this industrial activity, Kitimat’s economic develop-

ment office is busy fielding inquiries from various sectors. New

businesses and residents are coming to Kitimat, recognizing the

unique opportunity and potential in the region.

Kitimat is an emerging energy hub and transportation link for

Asia-North America trade. With access to Western Canada’s

natural resources and proximity to key Asian markets, Kitimat is

an increasingly popular location for manufacturing, processing

and transportation operations. Kitimat’s port is the third-largest

on the west coast of Canada, with all existing port facilities built,

owned, and operated by private enterprise. There is no federal

port authority and no harbour dues – just steady, productive lev-

els of shipping. The port has vehicle clearance to 320,000 Dead

Weight Tonnes (DWT).

The provincial and federal governments are dedicated to work-

ing with industry to make British Columbia’s ports the preferred

gateway for Asia-Pacific trade, the most competitive port system

and supply chain on the West Coast of the Americas. This com-

mitment builds on Canada’s longstanding and strong cultural and

economic ties with Asia. In the new global economy, Canada’s

Pacific Gateway is the path to the future. R

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Volatilefuelpricesareaconcernforanycompanyinthetrans-

portation business. Surcharges and volume pricing are common

lines of defence for carriers, but hedging is becoming an increas-

ingly popular tool for companies looking to stabilize input costs in

order to gain a possible competitive advantage.

Hedging is a commonly misunderstood term that covers a collec-

tion of strategies designed to offset your current risks. One way

to imagine hedging is to think of it as insuring your fuel costs

by making a “paper” investment in fuel. If a price spike in fuel

comes, then the higher prices paid at the pump will be offset by

the increase in value of the “paper” investment.

Despite the beliefs of some, hedging is not a means for compa-

nies to gamble on the price of fuel - in fact it is quite the opposite.

A company should only engage in hedging to reduce the prob-

ability that it would be negatively affected by rising fuel prices.

The benefits of a hedging strategy should be clearly understood

before entering into a hedge.

Some of the benefits of a hedging strategy are:

•Aplanputinplacetocontrolacostoverwhichyouotherwise

have no control or influence.

•Havingaprocesstoreducetheeffectfuel-pricevolatilitywill

have on your business.

•Amanagementtoolusedtocontrolacost,netrevenue,andnet

profit into the future.

•Ameansoffreeingyoutomanagethecostsandeventsyou

can influence.

•Atechniqueyoucanusetogainacompetitiveadvantage.

Hedging does not have to be independent of other risk manage-

ment strategies. When used in tandem with surcharges, hedges

can add an additional layer of protection for your profit margins.

Hedging to protect from rising costs

Point Hope Maritime345 Harbour Road, Victoria, B.C. V9A 3S2

Phone: (250) 385-3623 | Toll Free: 1-877-385-3623Fax: (250) 385-3166 | www.pointhopemaritime.com

ISO 9001:2008 Certified | ISO 14001:2004 Certified | OHSAS 18001 Certified

Point Hope Maritime's full service shipyard is strategically located on the harbour in Victoria, B.C., Canada. We repair and refit all types of Commercial and Private vessels. We work to the highest professional standards in the Pacific Northwest. Our extensive facilities include a 1200 T Marine Railway. In addition we have a 15,000 square foot climate – controlled assembly shed for specialized steel and aluminum fabrication, plus a fully equipped machine shop.

Fuel tools:

T: 604-821-1890 www.bracewellmarinegroup.com

BRACEWELLmeans

built well

Yard Services • MillworkCSI • Refits • Repower

Machine Shop • Painting

B.C. Tugboat 19

Alternatively, carriers can take advantage of the lower fuel input

costs provided by their hedging strategy to offer their shippers

compelling rates. A carrier that can deliver at a constant, predict-

able and competitive cost will often win new business.

Fuel price movements are difficult to predict (although it seems

that they are always going to go higher); however, there are sea-

sonal patterns to energy pricing. Most readers will be familiar with

the summer driving season and the painfully predictable rise in

fuel prices. A company that is proactive can take advantage of the

seasonality of fuel prices by entering contracts during periods of

what are often seasonal lows. Seasonal patterns are absolutely

not guaranteed or always accurate, but they are a useful consider-

ation during the decision-making process.

The hedging process begins with an examination of your current

fuel procurement strategy. Begin by forming a brainstorming team.

Gather your president, chief financial officer and the others most

involved. Then kick-start the session by asking these questions:•Whatistheeffectoffuelpricevolatilityonourcompany’sfinan-

cial position?•Howmanylitresoffuelarewebuyingeachmonththatarenot

billable toward a fuel surcharge?•Whichofourcustomerswouldbeinterestedinremovingfuel-

price volatility from their transportation costs?

Generally, the larger the operation, the more sophisticated the hedging strategies that are employed. In order to take advantage of risk management strategies you must buy and sell derivatives con-tracts. This can be done internally via an online brokerage account or with a licensed commodities broker. Rarely does a company have the time or sophistication to monitor their hedges in-house.

The most common hedging techniques use either a futures con-tract or an option on a futures contract, or a combination of both – ultimately, the desired outcome is to create a strategy which locks in or limits higher fuel costs for a pre-determined period of time. It is vital that the strategy is consistent with the company’s long-term objectives, price outlook and risk tolerance.

Keeping fuels costs within a predictable range protects you from unexpected changes in the price of fuel, changes that could other-wise seriously impact your budget and profit margin. R

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Do you have hedging DNA?

Imagine that you had a tank, which could hold one years worth of fuel. If prices dropped significantly from today’s costs, would you fill the tank?


For 150 years, Superior-Lidgerwood-

Mundy (SLM) has been at the forefront

of innovation for the marine sector.

Focusing on the strict Navy and USACE

standards for much of that time has giv-

en them a unique perspective to build

the longest lasting and reliable prod-

ucts in the marketplace today. In 2010,

SLM seized the opportunity to split its

resources into commercial and defense

divisions. SLM’s commercial division

initially reviewed their history to see

where their experience of designing

and building heavy-duty deck machin-

ery would fit in the commercial market-

place. Listening to customer feedback

and reviewing past successes, the

commercial team developed two stan-

dardized styles of equipment for the

commercial field: the S-Series Winch

Line, and the M-Series Deck Machinery

Line.

The S-Series winch line offers heavy-

duty gear-driven winches ranging from

10 HP to 100+ HP. While base designs

are available, they are fully customiz-

able to the application requested, ef-

fectively eliminating the cookie-cutter

approaches to winching systems. The

primary industry that the S-Series has

served since its launch has been barge

terminal applications. Their “two winch,

one joystick” approach for operation

improves safety by allowing precise and

accurate positioning of a barge along

the terminal wall. The specialized con-

trols also significantly reduce the learn-

ing curve for training new operators.

Combining modern technology with

their customizable approach to winch

systems has rapidly made SLM and its

S-Series the brand of choice for any

winch applications.

The M-series line of equipment in-

cludes the highly successful M-2000

Capstan Design. Unlike conventional

capstans, the SLM engineering team chose cutting-edge right-angle spiral-bevel speed reducers that utilize cycloi-dal technology providing quiet, reliable operation. The benefit of these gears is that they provide infinite lifecycles while achieving 94 per cent efficiency and 300 per cent shock load capacity.

providing the forefront of innovationsuperior-lidgerwood-Mundy

B.C. Tugboat 21

Building off of the success of the M-2000

Capstan, SLM recently developed their

M-Series Gypsy Winch/Anchor Windlass

to provide the market with a high-quality

low-cost more-efficient anchor-handling

winch that is readily available. Available

in double or single drum models, the

M-Series Gypsy Winch is a versatile prod-

uct that can be adapted for nearly any

situation. As with the M-2000 Capstan,

the Gypsy Winch is customizable as well,

providing explosion proof and 50 Htz

models when required. The M-Series line

of equipment provides their customers

with the unbeatable combination of high

performance and low cost.

SLM recently developed new distribution

channels to further the M-Series equip-

ment expansion into the commercial field.

Contact one of your local distributors for

more information regarding the M-Series

line of equipment.

M-Series Capstan are available through:

ACE MARINE AND RIGGING

600 Arendell Street

Morehead City, NC 28557

(252) 726-6620

BYRNE RICE AND TURNER

1172 Camp Street

New Orleans, LA 70130

(504)-525-7137

DONOVAN MARINE

6316 Humphrey’s Street

Harahan, LA 70123

(504)-729-2520

M-Series Gypsy Winch/Anchor Windlass:

DONOVAN MARINE

6316 Humphrey’s Street

Harahan, LA 70123

(504)-729-2520 R

Single-head gypsy.

Gypsy winch.

Standard winch.


Full forward to full reverse has been the cardinal sin for all workboat skippers.

Since the dawn of log towing on the mighty Fraser River, and no matter the size of the tug or how “technologi-cally advanced” the powertrain was at the time, one thing that every captain learned early on in his career was not to go from full-forward engagement to full-reverse engagement in an in-stant. Those that found themselves in the unfortunate situation of having to do so faced certain failure of the boat’s powertrain. The limitation of not having the means to suddenly slow the vessel down in an emergency situation is a sig-nificant challenge that all captains must face. What would they do if the tug was going to run aground? Or maybe out of seemingly nowhere, a barge or log boom was in the boat’s path. Or worse yet, the dreaded and sudden lurch for-ward of the boat, sensing the horrible, but yet familiar feeling of knowing that there is a break in the side stick and bundles of logs were now floating down the river. Having the ability to go from full forward to full reverse is a function that all skippers wished they had time and time again, especially those that have spent their careers battling the strong current of the Fraser River tow-ing up to 115 sections of logs with assist tugs, and navigating the many swing bridges on the river. Whether there was a “break” in the boom, or the tow was successfully navigated, there is a lot of money at stake and for most, something that money cannot buy, such as a skip-per’s reputation. A sudden stop and constant back and forth shifting has

always been a challenge for tug cap-tains. Those that found their boat in an emergency situation usually held their breath as they pulled the tugs forward levers to full reverse. The unmistakable sound of the engines revving with in-creased RPM’s, and the clanging and groaning of the transmissions as they howled due to the massive amount of stress that was being forced upon them, is enough to cause a great deal of anxiety in even the most experienced captains.

As with other industries, technology has emerged within the marine indus-try that not only gives the captain supe-rior control of his tug, but also avoids the stress that some maneuvers would put on the older systems. No longer does the captain have to worry as he pulls the levers from full forward to full reverse in anticipation of certain fail-ure. With the emergence of electronics, Twin Disc has created state-of-the-art electronic engine controls and trans-missions that integrate with today’s electronic diesel engines to provide the

boat captain with unsurpassed control.

Harnessing up to 2,000 horsepower

can be quite a challenge for some, but

for Twin Disc, it is just another day at the

office with its EC300 Engine Controls

and Electronic Quickshift transmis-

sions. With this revolutionary technol-

ogy, the captain can now go from full

forward to full reverse in a moment’s

notice and be confident in knowing that

the powertrain will perform as required.

With the older mechanical transmis-

sions, engagement time from full for-

ward to full reverse could take several

seconds. With today’s new Twin Disc

Quickshift transmissions, engagement

time is almost instantaneous with full

engagement within 1.5 seconds. This

technology has given today’s skippers

the ability to maximize the horsepower

being produced by the engines and ap-

ply it at the very instant that it is needed,

all while being confident in knowing that

the boat’s systems will continue to per-

form. How is this possible? Well, Twin

Disc has developed some very propri-

etary technology that is by far superior

to anything on the market today.

In order to properly explain how this

technology works, I would encourage

you to call your local authorized distrib-

utor- such as Mill Log Marine, and ask

for a personal visit to discuss how you

can get Twin Disc’s Quickshift technol-

ogy for your boat today.

Twin Disc’s mantra of “You’ve got to

feel it to believe it” is really the only way

that you can fully appreciate this amaz-

ing technology. R

Full forward to full reverseBy Don Lindsey, director of sales & marketing, Mill Log Marine, Burnaby, B.C.

Harnessing up to 2,000 horsepower can be quite a challenge for some, but for Twin Disc, it is just another day at the office with its EC300 Engine Controls and Electronic Quickshift transmissions.

B.C. Tugboat 23

Mill Log Marine604-879-67316741 Cariboo Rd., Unit 205Burnaby, BC V3N 4A3

Mill Log Marine425-251-343418547 East Valley HwyKent, WA 98032

www.milllog.com

Mill Log Groupof Companies

index to advertisersAspin Kemp & Associates ............................................... 15

BCMEA ..................................................................................7

Bracewell Marine Group .................................................. 18

Catherwood Towing Ltd. .................................................. 10

CMC Electronics ................................................................. 11

Cokely Wire Rope Ltd........................................................ 19

Jastram Technologies Ltd. ............................................ IFC

Mill Log Marine .................................................................. 23

North Island College ......................................................... 12

Pacific Wire Rope Ltd. ........................................................6

Redden Net & Rope/Samson Rope ...........................OBC

Roton Industries ................................................................ 17

Seacom Marine Electronics ............................................ 12

Superior Lidgerwood Mundy .......................................... 21

United Engineering ........................................................... 18

Washington Chain & Supply Inc. ......................................5

#27 - 12491 Number 2 Rd, Richmond, BC V7E 2G3Toll Free: 1-866-233-1422 604-274-1422

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b.c. tugboat 2014

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