Download Bryant 070605_COS_Oceans Governance

Maritime Awards Society of Canada
Oceans Governance on Canada’s West
Coast
Shipping Industry Perspective
Dunsmuir Lodge
University of Victoria
Rick Bryant
Chamber of Shipping
June 8, 2007
1
Outline
• Overview of West Coast Shipping
Activity
• Emerging Issues Drivers and Concerns
in Marine Transportation
• Governance of Shipping
2
Marine Industry Economic Impact in Canada
Source - LeCG - Estimating Economic Impact of the Canadian Marine
Transportation Industry – March 2004 – Preliminary Draft
Direct + Indirect Contribution to GDP
(3751 Million Dollars)
124
77
309
BC
BC
economic
impact
38%
Maritimes
157
1449
699
150
18 11
757
QUEBEC
NF
PEI
NS
NB
QUE
ONT
MAN
SASK
AL
BC
ONTARIO
3
Value of Trade Commodities
(Billions of Canadian dollars)
All
Marine
Modes
Trans-border
Exports
13.57
347.89
Imports
2.69
208.65
Total U.S.
Other
countries
Exports
16.26
556.54
40.57
63.68
Imports
60.67
146.06
Total
101.24
209.75
Total value of commodities shipped = $117.5B
Approximately 40% of the activity is in BC
4
Flag Shares of Shipping Volumes
Domestic shipping regulated by Coasting Trade Act
– 95% Canadian
Trans-border shipping open competition – 50%
Canadian
Percentage of Total
Import/Export open competition – 99.9% Foreign
100
90
80
70
60
50
40
30
20
10
0
4.5
40
99.9
95.4
50.2
Domestic
Canadian Flag
Transborder
US Flag
Foreign
Foreign Flag
5
Shipping and Growth in Global Trade
Key Average Global Growth Indicators
(1990 -2004)
% Change
GDP
Trade
Container volume
3.3
6.4
8.9
Source: Cosco/ Drewry
6
International Shipping in BC
Number of Voyages in BC, by
Vessel Type
General Cargo
Tanker,
267, 7%
Tanker
Cruise
Ship, 434,
12%
Motor
Vehicle
Carrier,
228, 6%
General
Cargo,
482, 14%
Misc, 22,
1%
Bulk Carrier
Bulk
Vessel,
1217, 34%
Vehicle Carrier
Container,
915, 26%
Container Ship
Cruise Ship
7
Coastal Towing
The Canadian Transportation Agency
estimates that the Canadian fleet of
tugs and barges included 328 tugs and
1,203 barges and scows
8
Ferry Services in Canada
BC Ferries: 2004
• 22 million passengers
• 8.6 million vehicles
BC MOT
• 7.2 million passengers
• 3.3 million vehicles
La Société des traversiers du
Québec
• 5.4 million passengers
• 2.7 million vehicles
Marine Atlantic
• 417,500 passengers
• 207,000 vehicles
9
Cruise Industry
Cruise Ship Passengers
1,400,000
1,200,000
1,000,000
Victoria
800,000
Prince Rupert
600,000
Vancouver
400,000
200,000
0
1999
2000
2001
2002
2003
2004
2005
2006
Drop in
Passenger
Count in
Vancouver
offset by
growth in
Victoria and
Prince
Rupert
New
opportunities
in Cruise BC
10
Marine Traffic
Vessel Density
Coast of British
Columbia 2003
Source:
Canadian Coast
Guard
11
Emerging Issues
12
Driving Factors and Concerns
• Competition; For markets, between modes
and between carriers
• Infrastructure capacity lagging trade growth
• Sub-optimum performance of inter-modal
logistics system due to lack of integration
• Fragmented marine policy and regulatory
responsibilities
• Concerns over labour continuity and labour
supply
• Threat of terrorism
• Increasing environmental concerns
• Poor public image and lack of awareness
• Slow uptake of technology and innovation
Growth in Trade
(Bigger Safer Cleaner Ships)
WESTAC commodity forecast projects
significant growth in bulk and container
shipping through 2015
• Bulk exports led by coal increase at 4%/year
– 2004 - 63 million tonnes – 1200 ships
– 2015 - 96 million tonnes – 1600 ships
– Average size 50,000 dwt to 60,000 dwt
• Containers up 300%
– 2004 1.8M TEU – 915 ships
– 2015 5.4M TEU – 1350 ships
– Average 2000 TEU to 4000 TEU
14
Environmental Footprint
National Marine and Industrial Council footprint issues
Areas Examined
–
–
–
–
–
Marine Air Pollution
Oil and Chemical Spills
Oily Wastes
Sewage Discharge
Other Wastes
Factors Considered
–
–
–
–
Aquatic Invasive
Species
Port Development
Physical Impacts
Ship Recycling
– Current status of regulations, technology and action
– Obstacles to reaching desired outcomes
– Opportunities for government and industry
15
CO2 Emissions
BC OGV Contribution to GHG in Canada
1.3
0.17%
758.0
• Canada produced 758
mega tonnes (mt)of GHG
in 2005, 2% of total global
emissions.
• OGV emissions within 50
nautical miles - 1.3 mt
• Total marine activity
approximately 1.8 mt in BC
• Growth roughly tied to
trade volume
16
North Coast Tankers
Kitimat identified as site for three new tanker trades
• LNG - 120,000 dwt tankers - 5 per month
• OIL - 5 VLCC tankers per month
• Condensate - 20 ships per year
• Safety Considerations
– Oil tankers are new with double hull and twin propulsion
and steering
– New powerful tugs for berthing, escort and firefighting
– Pilots, ships crew and tug crews trained as a team
– LNG shipping – 80,000 transits without a major incident
– World-wide tanker incidents dropped from 1000 in 1979 to
160 in 2006
17
Flags of Convenience
Port State Inspection Programs
(Reputation is worse than reality)
Excellent Performance
• Bahamas
• Bermuda
• China
• Liberia
• Marshall Islands
• Philippines
• Korea
Poor Performance
• Bolivia
• Cambodia
• Georgia
• Honduras
• North Korea
• St. Vincent
• Tonga
18
Governance of Shipping
19
Industry Expectations in Ocean Management
• Full engagement in process
• Clearly articulated expected outcomes
• Coordinated single entity inter-departmental
government action
• Best use of existing mechanisms
• Consistency for all areas and between applications
• Adequate lead time for implementation
• Clear and simple compliance requirements
• Consistency with International Convention
• Predictability of operational costs and risks
• Risks linked to international insurance practice and
available coverage
• Equity between carriers of all flags
20
International Maritime
Organization (IMO)
• IMO founded in 1958 as a specialized agency
of the United Nations responsible for
measures to improve the safety of
international shipping and to prevent marine
pollution from ships.
• Member governments create international
conventions that are enforced through
domestic law that embody the regulations in
the convention
21
Key IMO Conventions
Safety
•
•
•
•
•
Safety of Life at Sea
Load Lines
Preventing Collisions at Sea
Training Certification and Watch-keeping
Removal of Wrecks
Environment
•
•
•
•
Prevention of Pollution
Ocean Dumping
Anti-fouling
Ballast Water
Liability and Compensation
•
•
•
•
Civil Liability for Oil Pollution
International Fund for Compensation
Bunker oil Damage
HNS Liability
22
IMO Conventions
Links to Oceans Management
•
•
•
•
•
•
•
•
•
Ocean Dumping – designation of areas.
AIS and LRIT – ship tracking
Ship Routeing Systems – traffic lanes
Vessel Traffic Services – mandatory management
Removal of Wrecks – removal criteria
Places of Refuge – risk assessment and selection
Sensitive Sea Areas – designation
Areas to be Avoided – designation
Sulphur Emissions Control Area - designation
23
Particularly Sensitive Sea Area
Designation
A sea area where oceanographical, ecological and
traffic conditions exist that require mandatory
methods for prevention of pollution by oil, noxious
liquids or garbage
Criteria for application to IMO – MEPC
• Habitats of rare, threatened, or endangered species
• Ecological processes of such areas are highly
dependent on biotically structured systems
• critical spawning or breeding ground
• highly susceptible to degradation by natural events
or the activities of people.
• evidence that international shipping activities are
causing damage
24
GUIDELINES ON PLACES OF
REFUGE
Masters and Salvors
• Appraisal of the situation
• Identification of hazards and assessment of risks
• Identification of required actions
• Contacting the authority of the coastal State
• Establishment of responsibilities and communications
• Response actions
• Reporting procedures
Guidelines for actions expected of coastal States
• Assessment of places of refuge
• Event-specific assessment
• Decision-making process for the use of a place of refuge
25
Use of Termpol
TERMPOL
• a multi-agency project assessment managed
by Transport Canada that requires proponent
to identify pollution risk of new terminal
operations and to identify and implement
mitigation measures
TERMPOL could be used to create
preconditions for projects of a particular
type such as oil export terminals specifying
pilotage, tug, VTS, navigation aids and other
requirements
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