MARINETTE COLLINGWOOD OSHAWA STURGEON BAY OSWEGO TORONTO LAKE ONTARIO Prescott GREEN BAY GODERICH PORT WELLER Ogdensburg THOROLD Kingston BUFFALO HAMILTON PORT COLBORNE PORT WELLAND STANLEY NANTICOKE Midland SARNIA CANAL MILWAUKEE MUSKEGON IE ERIE Oshawa LAKE MICHIGAN R DETROIT E Collingwood E CONNEAUT KENOSHA WINDSOR K LA ASHTABULA Toronto LAKE ONTARIO Oswego TOLEDO CLEVELAND Goderich CHICAGO LORAIN Port Welland BURNS INT’L HARBOR Hamilton Thorold WELLAND Buffalo CANAL unique 3,700 PORTPort Port Colborne American. The Welland Canal links arniaSTANLEYStanley Nanticoke ARNIA = LOCKS kilometre inland E Lake Ontario and Lake Erie with a I ERIE ER E series of eight locks. The locks and chan- A waterway, the SORSeawayAK L brings cargoes to and from 15 major nels accommodate vessels 225.5 metres long, international ports and some 50 regional ports in 23.8 metres in beam, and 8 metres in draft. the industrial centre of North America. A conve- The St. Lawrence nient, environmentally friendly, energy-efficient Seaway Management and safe transportation route, the Seaway is a significant economic asset. In 43 years of operation, Corporation (SLSMC) it has carried more than two billion tonnes of Established in 1998 as a not-for-profit corpora- cargo, worth over $400 billion. Every 10,000 tion by Seaway users and other interested par- tonnes of general cargo handled by a Great Lakes ties, the SLSMC operates the Canadian assets of port contributes more than half a million dollars the St. Lawrence Seaway for the federal govern- in local economic benefits. In Canada, the Seaway ment, under a long-term agreement with supports more than 17,000 jobs, in direct and Transport Canada. As well as the Seaway locks indirect services to the transportation industry, and channels, the SLSMC is responsible for the shipping, and the Seaway itself. Saint-Louis de Gonzague Bridge, Valleyfield Bridge, Townline Tunnel, and all Seaway-relat- Marjorie The Seaway Locks ed leases and licences. McCullough, Service Person, The Seaway proper is a series of 15 locks and Our Mission greasing the connecting channels in two sections – the gears that Montreal/Lake Ontario (MLO) section, and the We pass ships through a safe and reliable operate the Welland Canal. Between Montreal and Lake waterway system in a cost-effective, efficient water control and environmentally-friendly manner to meet valves at Lock 1, Erie, the Seaway gradually rises 183.2 metres Welland Canal. (602 feet), the height of a 60-storey building our customer’s transportation needs. above sea Vision level. More Our vision is that the Seaway will become the than 255,000 transportation system of choice for those who vessels from ship cargoes to and from central North America. 50 countries To bring this about, the SLSMC and its many around the partners on both sides of the border have suc- world have cessfully embarked on a course of technical passed safely innovation and integrated long-term planning to through these increase the efficiency, reliability and capacity locks. of the waterway. The MLO section has 2001 Season Highlights seven locks – The Seaway opened to navigation March 23, five Canadian with ice conditions at the entrance to Lake Erie, and two the Port Colborne harbour, and from St. Lambert

2 to the Iroquois Lock. 24-hour navigation began opening day on the Welland Canal and April 14 on the Montreal/Lake Ontario (M.L.O.) section, where ice had delayed the installation of illumi- nated buoys. The last ships exited St. Lambert Lock and the Welland Canal on December 24, ending a navigation season of 277 days. The mild economic recessions in both Canada and the United States led to traffic and revenue reductions for the Seaway in 2001. A less active steel industry reduced movements of related commodities (iron ore, coal and steel imports), and lower Canadian and U.S. grain exports contributed to the decrease. Cargo movements on the M.L.O. section amounted to 30.28 million tonnes, 14.4% (5.11 million Despite reduced traffic and revenue, the tonnes) less than in 2000. Traffic on the Corporation has met its business plan targets Welland Canal totalled 32.48 million tonnes, a for the fourth year in a row, and increased its decrease of 11.2% (4.09 million tonnes). The notional reserve account to $12.057 million. 2001 combined Seaway traffic reached 41.71 Accordingly, the mandatory 2% toll increase million tonnes, a decrease of 10.42% from the for the 2002 season will once more be reduced 2000 total of 46.55 million tonnes. by 1.5%. Since Seaway traffic levels are affected by Financial Highlights larger economic concerns and fluctuations, A total of $22.750 million was spent on repairs SLSMC has little control over revenue. The main and maintenance under the asset renewal pro- factor in the Corporation’s success in meeting its gram. Operating costs, including staff salaries and business plan targets has been control of man- benefits, amounted to $53.216 million and rev- ageable expenses, an area in which we have enues totalled $64.495 million. The Corporation consistently done better than required for the ended the year with a $2.118 million excess of last four years. expenses over revenue.

Corporate Office Historical Traffic Results The St. Lawrence Seaway and Forecasts (million tonnes) Management Corporation Five-Year Review 202 Pitt Street Overall Total Costs WC Cornwall, Ontario (million dollars) MLO K6J 3P7 60 Actual/Budget Business Plan Maisonneuve Region actual P.O. Box 97 90 50 Brossard Station Brossard, Québec 88 J4W 3L8 86 40 Vessel location: (450) 672-4115 84 30 Niagara Region 82 508 Glendale Avenue 80 20 St. Catharines, Ontario L2R 6V8 78 Vessel location: 10 (905) 688-6462 76 actual forecast E-mail 74 0 [email protected] 72 1960 1970 1980 1990 1992 1994 1996 1998 2000 2002 2004 2006 Web site 70 www.greatlakes-seaway.com 1998/991999/00 2000/01 2001/02 2002/03* * Forecast President’s Message

ith the 2001 navigation season, the Asset renewal costs including capital asset W SLSMC concluded the fourth year of its acquisitions amounted to $24.513 million in the current five-year agreement with the Canadian 2001/2002 fiscal year, again below the allowable Government. And for the fourth consecutive business plan targets. Contracts were generally season, the Corporation controlled its costs negotiated for lower prices than budgeted but, substantially better than foreseen in the busi- in accordance with our agreement with ness plan, keeping manageable costs down to Government, some of these savings were invest- 93.6% of the allowable target. Consequently, ed back in work already identified but dis- the Corporation’s Reserve has increased by placed by the accident in the Welland Canal or $3.582 million and this primary measure of simply deferred. The excess of expenses over our success now stands at $12.057 million. revenues, before transaction costs and the spe- Again this year we are able to apply a 1.5% cial examination, is $14.625 million. This illus- rebate to the 2% increase in cargo tolls and trates clearly the negative impact the steep ship charges, mandatory under our agreement decline of traffic has had on the SLSMC, despite with Transport Canada. Our full-time equiva- a sterling performance in cost control and a lent personnel count stands at 619, appreciably navigation season of 277 days, tied for the sec- fewer than the 664 foreseen in the business ond-longest in the history of the Seaway, plan. extending from March 23 to December 24. This achievement is all the more remark- The Seaway’s traffic levels reflect the state able, given the noticeable reduction in vessel of the North American economy, which had traffic last year and a number of extraordinary been sluggish since the end of 2000, and expenses. Ice conditions persisted until the sec- became increasingly so after September 11. The ond week of April on the Montreal/Lake traffic downturn experienced in the last three Ontario section, adding to the costs of early months of 2000 continued all through the 2001 opening, and additional security costs were season, lowering toll revenues by more than incurred for the Free Trade Area of the 14% from the previous year, to which the rebate Americas Quebec Summit. The August 11, of 1.5% must be added. 2001, incident involving the MV Windoc and the Allanburg Bridge called for a massive effort Seaway Becoming a in immediate repairs and, together with the World Leader events of September 11 only a month later, Challenges notwithstanding, the 2001/2002 fis- caused a 269% rise in the Corporation’s insur- cal year proved to be eventful and productive. ance premiums. It saw the signing of a new three-year collec- The Seaway, like most North American tive agreement with the unions, the completion institutions, has been permanently affected by of a joint job evaluation for pay equity, and the events of last September 11. Security has important advances in applying information become a significant priority, with operational technologies to support the launch of our new and budgetary impacts. We have developed Web site and the successful testing of the auto- joint security plans for the Seaway with all orga- matic vessel identification system, among other nizations that have an interest, including police achievements. Concurrently, new programs forces in Quebec and Ontario, the Royal such as performance management (SMART) Canadian Mounted Police, National Defence, and the process-centred organization have Transport Canada, the two Coast Guard organi- matured and are noticeably improving how the zations, and other stakeholders in Canada and Corporation functions. Indeed, the shift in cul- the United States (U.S.). ture has become more and more evident this

4 year. If the many reviews and surveys we Seaway Web site we launched last year. It has underwent during 2001, conducted at the an increasing number of new features and is Government’s behest and culminating in a proving extremely popular, regularly getting Special Examination, have often stretched the over 70,000 hits a month. The site has become organization to its limits, they also have shown the single most comprehensive source of infor- consistently the high degree of commitment mation for commercial navigation in the and professionalism that Seaway personnel Seaway System, and we have expanded it to have attained. provide one-stop shopping for current and In many ways, the Seaway has become a potential customers with a new range of on- world leader in the use of technology to line business services. We have also introduced improve marine transportation. Of two strik- an e-mail-broadcasting feature to distribute ing examples, the first is Automatic Seaway notices and other information to users Identification System (AIS). This is a comput- electronically, rather than by mail. er-based technology that, linked with the Differential Global Positioning System, permits A Call for Long-term Change ship-to-shore and ship-to-ship communica- Nevertheless, despite such achievements, the tions and allows real-time display of vessel coming year is likely to prove the most location, speed and estimated time of arrival demanding yet for the Corporation – because (ETA). At the leading edge of technology, the we need to set some far-reaching changes in system will eventually revolutionize naviga- motion. The St. Lawrence Seaway is a key con- tion in restricted waters. The Canadian and tinental resource, strategically located, yet one U.S. Coast Guards, as well as the International that is under-utilised partly because of an out- Maritime Organisation are working to imple- dated infrastructure. While we can expect traffic ment this system across their jurisdictions by to increase somewhat as the economy picks up 2004/2005. That means AIS will soon be in speed, the seasonal nature of the waterway, the place throughout the whole Seaway/Great size and age of our locks and the comparatively Lakes basin, bringing greater safety and shallow depth of our channels will continue to greater efficiency to the entire waterway. present obstacles. The second example of customer service Lake St. Clair and the Welland Canal are through new technology is the binational currently limited to a 27’ depth, while other Expense categories in the Business Plan differ from the cat- Comparison of Actuals to Business Plan egories used in the Financial (million dollars) Statements. We have presented th Actual Business Plan (4 year) the financial results in this 100 graph for purposes of com- 80 parison with the Business Plan. 60 73.361 64.495 40 54.280 57.891 20 24.513 25.457 0 * Includes payments in-lieu of (14.298) (9.987) taxes of $1.064 millions -20 not paid by the Corporation Revenue Operating Asset Renewal Excess Total Expenses * including Capital Costs over Expenditures Revenue

5 channels in the system can accommodate ves- their capacity as well. The long-term strategy sels up to 30’. There is no doubt that thirty- would be to modernize both channels and foot channels throughout would substantially ports throughout the entire system to accom- improve the efficiency of the existing Great modate larger and larger ocean-going vessels. Lakes St. Lawrence Seaway (GLSLS) system We have a working group researching the and fleets. business case for season extension using the The length of our navigation season is set opening and closing dates of March 25 and another limiting factor. Apart from navigation January 15 at the Soo Locks. Our ultimate goal under winter ice conditions, which could be has to be 12-month navigation over the entire solved, given the progress of technology like system. AIS, the system’s aging infrastructure needs We are also proceeding with other initia- major annual maintenance. Thus the age of our tives to attract more customers. Work continues locks contributes to limiting our navigation sea- with the Maritime Associations, the Waterway son. And their size, in the long term, will contin- Strategic Issues Forum (WSIF), and other stake- ue to restrict the size of vessels we can accept, holders, from shipowners to terminal opera- even if we increase channel depth. The trend tors, to pilotage and Coast Guard organiza- today is to larger and larger ocean-going vessels, tions, to government departments, to increase and our market share is consequently shrinking. efficiency and develop a new vision. The The maintenance of the Seaway is already report A 20/20 Vision for the Future describes becoming more difficult and will become the major goals to be achieved, identifying the increasingly costly in the future. Recent studies key players. And the WSIF complemented this already recommend lock replacement instead of work with action plans to support some of the ongoing maintenance of the aging structures. conclusions. Clearly, some major investment decisions have A steering committee, under the umbrella to be made soon, of the Chamber of Maritime Commerce, is co- and if they are to be ordinating implementation of the WSIF recom- wise decisions, they mendations. A symposium last summer in must take into Thunder Bay defined some of the impediments account a great vari- and inefficiencies at the Port and drew up a ety of economic, mandate for a Logistics Study on virtual 24/7 environmental, finan- operations, and improving terminal efficiency cial and engineering and inter-agency co-ordination, among other factors. issues. We have undertak- But we have reached a watershed of sorts en channel mainte- in terms of small-scale and short-term improve- nance work to ments. To remain competitive in the long term, increase vessel draft we will soon need to make changes radical throughout the sys- enough that they must be integrated with tem by 3” in 2003, upgrades to the rest of the Great Lakes/St. while still leaving an Lawrence System. The Seaway has potential to adequate safety mar- contribute much more to the Canadian econo- gin; every inch of my and national interests than it does now. additional draft However, we cannot approach decisions from a increases the load narrow corporate or even national viewpoint. capacity of a Anything we do on the Seaway has implications Seaway-max vessel for the whole system; and the quality and by 100 tonnes. At prospects of the whole system inevitably affect the same time, our own operations. The system-wide approach Seaway ports are is essential, and long-term, carefully planned looking to increase innovation is the key.

6 And innovate we must. The principal on every other factor, and cannot be considered stakeholders in marine transportation on both in isolation. I cannot stress enough that the sides of the border must look at and address Seaway is a binational waterway, and we must numerous duplications of service to reduce be concerned with what happens in the entire costs and increase competitiveness. And we Great Lakes basin. It is essential to increase and must, together, form a co-ordinated plan to strengthen co-operation among all organisations increase the accessibility and marketability of involved in this larger system. the entire system. Our focus in the coming To help achieve this goal, we hope to year will be to lay the groundwork for the nec- launch an important study this year on the mod- essary actions. Much of what we will be able ernization and future governance of all marine to do will be dictated by our next five-year navigation services in the system. These are the business plan. services provided by the Canadian and U.S. Coast Guards, the Laurentian and Great Lakes Towards a New Pilotage Authorities, as well as the Canadian and Planning Cycle U.S. Seaway Corporations. Also par- Seaway operations are guided by a five-year ticipating in the study will be business planning cycle, based on our agreement Transport Canada and the To remain with Transport Canada. The business plan sets Department of Fisheries specific targets for operating and asset renewal and Oceans. What we competitive... we will costs, as well as anticipated revenues. Since com- hope will result is a “soon need to make mercialization in 1998, we have consistently pro- co-ordinated, changes radical enough that gressed in making the Seaway more business-like streamlined they must be integrated with and in containing our costs. In the first five years, approach that cuts our emphasis was on technology, e-business and out duplication and upgrades to the rest of initiating a system-wide approach. unnecessary costs, the Great Lakes/ The primary goal of the next business and provides efficient St. Lawrence plan, which will take effect in April 2003, will joint service on both System. have to be the sustainability of the system. sides of the border, Senior management has developed objectives throughout the entire water- and strategies for the renewal of the way basin. ” Management Agreement with Transport Canada We are also recommending that Canada that will set self-sufficiency as the Corporation’s take on a major role in the Great Lakes principal objective over the next five years. Navigation Study. This is a bi-national multi- An exploratory meeting with Transport phase review, presently managed by the U.S. Canada (TC) tested the principles and philoso- Army Corps of Engineers (USACE) under phy that would govern the upcoming plan and Congressional directive, of the feasibility of agreed on the negotiation process and improving commercial navigation on the entire timetable. TC officials are receptive to the idea Great Lakes/St. Lawrence Seaway system, of self-sufficiency and endorse a continuing including locks, dams, harbors, ports, chan- role for the Department in sharing the funding nels, and other related features. The geograph- for business development and long-term plan- ic scope of the study ranges from Duluth on ning projects like modernizing navigational ser- the west to Montreal on the east. vices. Transport Canada is also undertaking due The SLSMC and the Saint Lawrence diligence audits on various aspects of our pro- Seaway Development Corporation worked posal through Consulting and Audit Canada. closely with the USACE in the first phase of the study, the Reconnaissance Phase. So far Research Can the research suggests that a modernized Show the Way Seaway could generate important increased It has long been apparent that every factor economic development in central North in the Great Lakes/Seaway System is dependent America.

7 The next phase of research would consist balanced approach. A strong Canadian initiative of engineering and economic studies to deter- here will ensure that all alternatives are proper- mine the feasibility and cost of simply maintain- ly evaluated in a binational forum. ing existing structures for an extended period. We believe Canada’s participation is a wise This “50-Year Plan” would establish best prac- investment. The Seaway needs more work, and tices for the maintenance of the Seaway and it needs a good long-term plan to ensure that dictate the timing when structures should even- money is spent to the best advantage. This study tually be replaced and their optimum size. The offers the opportunity to achieve such a plan, remaining feasibility effort will investigate thor- one that is harmonized to conditions and needs oughly the economic, social and environmental on both sides of the border. effects of large and small-scale capital improve- The strategic importance of studies like ments and ecosystem restoration. The research these to the future of the Seaway cannot be will examine everything from small changes, over-emphasized, and neither can the joint such as better lock maintenance, to radi- Canada/U.S. participation we strongly recom- cal restructuring, such as building mend. This is vital if truly efficient transporta- entirely new and larger locks. tion is to continue to serve the economy of the The The results will include engi- heartland of North America with the right bal- research will neering and cost estimates ance between commercial and public interests. examine“ everything for maintenance of the A Final Word from small changes to existing system and future costs for various proposed Having decided to resign from my position radical restructuring, such improvements to the at the end of the next fiscal year, I have already as building entirely infrastructure; justification launched the process for identifying the new new and larger of proposed improvements President and CEO who will lead the Corpor- locks. in terms of economic bene- ation through these coming, exciting years. I fits; and an environmental believe that together we have prepared a solid impact assessment of the various foundation from which the new Chief Executive ” alternatives, the potential mitigating will be able to guide the SLSMC even further measures and their costs. along the path of success. The SLSMC strongly recommends that I would be remiss not to express my heart- Canada take the lead in continuing this study as felt thanks to the Members of the Board for the most practical method of arriving at realistic their active counselling, to my colleagues on information for enlightened decisions on future the Management Committee for their unswerv- investments in cargo marine transportation. ing support, dedication and leadership and, Provision of equal funding will give us equal most of all, to all SLSMC employees for their say, and better control of input to the study, co-operation and unfailing efforts. Your backing along with its output. While the USACE brings for the past four years has been valued and engineering expertise to the project, SLSMC can appreciated. bring the business point of view to the table, represent a wide variety of users, and ensure a Guy Véronneau

8 Operational Report

Goals and Achievements attendance and training of management and 2001/2002 supervisory personnel in leadership develop- he Corporation worked on 46 key projects ment and change management. We also plan an Trelated to the strategic objectives of the pre- Operations Centre functional study, which sent 2001/2004 Strategic Plan, of which 16 were would include such elements as remote opera- identified as “must” or “priorities”. These are tion of bridges and infrastructure monitoring. listed in the table below. A number of these are The budget makes provisions for exploring new multi-year projects, spanning more than one fis- tools in operations, as well as for AIS integra- cal year. The four projects that fall into the tion and deployment. Continued development “must” category include developing a strategy of the Web site and introduction of other new and carrying out negotiations for the next 5-year e-business opportunities are ongoing. Business Plan, follow-up on the Special In addition to monitoring goal-related pro- Examination, participation in the U.S. Army jects, the Corporation regularly assesses its per- Corps of Engineers Great Lakes Navigation formance using a wide range of computerized Study – Reconnaissance Phase and implementa- performance evaluation measures developed tion of a transition program for the future CEO, and refined over some time. These include sta- part of the succession planning program. tistics on vessel transit times, vessel incidents, Other high-priority projects deal with issues the employee safety record, response time for such as strategic operational staffing, managing various customer transactions, and many others.

Priority Projects Status

Lock crew Business Case completed; Reorganisation implementation postponed, pending safety-related decisions Strategic Operational Staffing In progress Operations Centre functional study In progress Manage/reduce absenteeism In progress Special examination (required by law) Completed Develop negotiation strategy for next Business Plan Completed New tools for tie-up In progress Develop strategy for ice management Completed Web-site enhancements and e-business applications development Completed AIS integration In progress Participate in USACE study (Reconnaissance Phase) Completed Develop model for new tariff structure Completed Develop and implement Succession Plan Completed Change management and leadership development In progress Design/implement compensation program based on job evaluation Completed Union contract negotiations Completed

9 Information Technology & The ATM network, being a packet-switching Telecommunications (IT& T) technology, is capable of integrating multiple s in most corporations, IT&T services are of types of traffic, including voice, video and data. Astrategic importance to the efficiency of the Upgrading the telecommunications infra- SLSMC. Information technology systems have structure has brought a number of benefits: now become such indispensable tools for the • Flexible, simplified management of Corporation’s daily activities that IT staff have backbone requirements been consolidated into one group with its own • Improved reliability and redundancy offices at corporate headquarters and regional • Scalable, high capacity bandwidth support facilities. The group monitors LAN/WAN • Improved application performance at efficiencies, server and application readiness, reduced cost and desktop environments, maintains the Web – Higher speed, higher volume site and the corporate Intranet, and provides – Larger variety of network applications Help Desk services for all employees. possible An updated maintenance and support – Higher quality of service approach was required for effective manage- • Consolidation of computing resources ment of the many systems deployed throughout • Lower access costs ($ per kilobit) the organization, which are ever increasing in Also in the past year, the need has complexity. IT&T developed an organizational increased for employees working outside the model for its services, based on the principles Corporation’s offices to have secure access to of customer focus, best practices, and self-mea- centralised corporate data. To create business surement and evaluation. efficiency and reduce costs, a Virtual Private Network (VPN) has been implemented. It pro- Customer Service level agreements have vides a relatively inexpensive means of extend- Focus been developed to deliver the ing the corporate networks out to mobile/ required levels of customer remote workers, replaces expensive leased lines service to both internal and with site-to-site communication, and permits external “customers”, e.g. the Traffic Management System, secure communication with business partners. E-business users, the Web site. Use of Best Ongoing identification of Traffic Management System (TMS) Practices industry standard best The TMS has been updated to integrate a practices; these are then new geographic information system (GIS). The embedded into core policies selected GIS is a commercial, off-the-shelf prod- and procedures. uct, which supports a high performance map- Self- Use tools to measure ping/graphical interface in addition to various Measurement operational activities and types of geographic mapping standards. This effectiveness (for instance, the update to TMS improves system performance, Help Desk system); work in resolves outstanding deficiencies and lowers life continuous improvement cycle costs while increasing flexibility. mode to ensure staff always has access to the most reliable and useful systems. Automatic Identification System (AIS) Telecommunications The ship-to-shore and ship-to-ship communica- During the last year the telecommunications tions system with real-time computer display of services group reviewed the corporation’s vessel location and speed is well on the way to telecommunications infrastructure. As a result of implementation. Transponders were procured in the study, the Corporation advanced the migra- February 2002, and antennas and other equip- tion of the telecommunications network to the ment at shore stations were to be installed by ATM (Asynchronous Transfer Mode) technology. the end of June 2002. Tests of the signal cover-

10 age were completed with excellent results, and operational testing will begin July 2002. Various Monthly Web Traffic tests and trials of shipboard AIS/ECDIS units by Page Requests for March–December 2001 2002 carriers will occur during the July to December 90,000 2002 period. 80,000 Mandatory AIS carriage on the Seaway has 70,000 been postponed to opening day of the 2003 60,000 navigation season at the request of Seaway 50,000 users, to give them time to obtain transponders 40,000 and equip their ships during the off-season. 30,000 The SLSMC will partner with other agen- 20,000 cies, such as the Canadian and U.S. Coast 10,000 Guards and Transport Canada to extend AIS 0 coverage to the entire Great Lakes and eventu- May June July March April ally to the lower St. Lawrence River, making August October December ours the largest application of AIS to an inland September November waterway anywhere in the world. AIS will also be integrated into the Seaway binational Web marine industry. The cargo-matching feature Our Web traffic site, permitting subscribers access to up-to-the- allows Seaway customers with empty vessels consists primarily of commercial users minute position information and other data to find cargoes, or shippers to find convenient originating from over about the progress of their vessels through the vessels. A cost calculator produces instant cus- 85 countries. waterway. tomized cost estimates for point-to-point shipping via the Seaway. Authorized ship-owners, Web Site and E-business operators or agents also have access to their The goals of the Seaway’s binational Web site, real-time vessel transit information (fed from launched last year, were to create a comprehen- AIS), as well as on-line access to their account sive, single source of information for commer- information. They can also complete and file The new all pre-clearance and transit declaration forms e-business cial navigation on the Seaway System, and to applications provide one-stop shopping for current and on-line, and may be able to eventually carry allow Seaway potential customers. The site was built in three out electronic credit checks and payment customers to transfers. complete on-line releases, and with the third release this spring is filing of pre-clear- now fully interactive. While access to the Web site and navigation ance and transit The site is innovative, and makes effective information is free, access to the e-business declaration forms, use of leading-edge technology for easy use pages will be through a paid subscription plan. and provide All applications are now ready for on-line access to up-to- and visual appeal. Release 1 provided static date account shipping and navigation information, environ- implementation. information. This mental data with water levels and wind information is restricted to speeds, and links to every organisation, port, authorized and government agency involved with the subscribers. Great Lakes and Seaway in both Canada and U.S. Release 2 added real-time information and a search engine. The current and third release brings e- business applications to a new level for the E-m@il

BROADCAST SYSTEM CLICK TO SUBSCRIBE

11 remaining in place; no special agreements were needed for late transits • The last vessel (Pétrolia Desgagnés) exited St. Lambert Lock on December 24 Five Year Review of Combined Traffic by Commodity (million tonnes) Cargo Traffic Highlights Mild economic recessions in both Canada and Grain Iron Ore Coal Other Bulk General the United States led to significant traffic and revenue reductions in 2001. A less active steel industry reduced movements of related com- 15 modities (iron ore, coal and steel imports). 10 Lower Canadian and U.S. grain exports contributed to the traffic decrease. 5 Cargo movements on the M.L.O. section amounted to 30.28 million tonnes, a 14.4% or 0 5.11 million tonne decrease from 2000. Traffic 1997 1998 1999 2000 2001 on the Welland Canal totalled 32.48 million tonnes, a decrease of 11.2% or 4.09 million The 2001/2002 tonnes. Navigation Season Combined Seaway traffic reached 41.71 mil- The Basics lion tonnes, a decrease of 10.42% from the 2000 results of 46.55 million tonnes. • Seaway opened to navigation March 23, 2001 Commodity Data • Ice conditions at the Lake Erie entrance and Grain in Port Colborne Harbour until April 7, on • Poor harvests, strong competition decreased Montreal/Lake Ontario (M.L.O.) section until Canadian grain traffic to well below April 14 Seaway’s five-year average • 24-hour navigation began opening day on • M.L.O. decrease: 10% (0.68 million tonnes) Welland Canal, April 14 on M.L.O. to 6.11 million tonnes • Draft increase from 7.92 to 8.0 M in effect • Welland Canal decrease: 9.7% (0.67 million on Welland Canal for entire navigation tonnes) to 6.21 million tonnes. season, from April 9 on the M.L.O. • American grain traffic affected by fewer • Navigation season lasted 277 days ocean vessels in the Lakes and poor harvests • Vessel transits: M.L.O. section: 2,588 vessels, compared to 2,975 in 2000; Combined Traffic by Commodity 2001/2002

average demand 9 vessels Other Bulk 32% per day General 7% Welland Canal: 3,389 vessels, Grain 28% about 40 more than 2000; Coal 12% average daily demand was Iron Ore 21% 11.9 • Seaway remained open Combined Vessel Transits 2001/2002 beyond announced closing date due to traffic demand (17 vessels Ocean-going vessels 28% transited December 21–24) • Favourable weather conditions Inland vessels 52% allowed waiver of surcharges for Other vessels 20% December 21 to December 23, with surcharge for Dec 24

12 Montreal/Lake Ontario Section (million tonnes) 10.5% (458,000 tonnes) to 4.8 million tonnes on Welland Canal. 2000/2001 2001/2002 15 Other Bulk • Despite unfavourable economic condi- 15 10 tions, there was a small increase in bulk traffic through both sections 12.5 11.2 10.1 • M.L.O. increase: 0.2% (15,000 tonnes) 8.4 5 10 to 7.30 million tonnes, with petroleum 7.2 7.3 products, gypsum and salt rising, all 5.06 3.0 0 other bulk commodities decreasing 5 .33 • Welland Canal increase: 657,000 tonnes .41 Coal General (6.8%) to 10.34 million tonnes; petrole- Iron Ore Other Bulk um products, salt, cement and stone 0 Grain increased; all other bulk products decreased • M.L.O. decrease: 12.2% (0.70 million tonnes) General cargo to 5.02 million tonnes • Lower import levels caused decreases of • Welland Canal decrease: 9.6% (0.57 million 40.7% (2.06 million tonnes) on M.L.O. and tonnes) to 5.41 million tonnes 37.5% (1.32 million tonnes) on Welland • Total grain traffic decreased by 10.7% to Canal, for total traffic of 3.00 and 2.21 mil- 11.16 million tonnes on the M.L.O. and by lion tonnes respectively. 9.5% to 11.65 million tonnes on Welland Canal Welland Canal (million tonnes) Iron Ore • Less active American steel industry reduced 2000/2001 2001/2002 15 movements from Labrador mines to American facilities in upper Great Lakes by 10 36.3% (1.40 million tonnes) 15

• Movements to Hamilton from Labrador 12.8 11.6 mines increased by 0.70% (34,280 tonnes) 9.6 10.3 10 5 • Decrease of 71.0% (661,900 tonnes) in ship- 6.1 4.3 4.8 ments from Great Lakes mines to Hamilton 3.5 • Shipments to Nanticoke increased by 85.6% 5 3.5 2.2 0 (203,600 tonnes) for a total of 441,400 tonnes General Coal • Imports through Quebec City decreased by Iron Ore Other Bulk 65.4% (601,600 tonnes) 0 Grain • Total ore traffic on the M.L.O.: 8.38 million tonnes, a decrease of 17.5% or 1.78 million tonnes. • Total ore traffic on the Welland Canal: 3.49 Partnership in Action million tonnes, a decrease of 43.1% or 2.64 for Better Customer Service million tonnes. We’ve talked to our customers to find out what Coal they expect from us and, together with SLSDC, • Coal movements increased to compensate we put in place some Seaway-wide level-of-ser- for supply difficulties in 2000 and to fill vice objectives. We have performance measures additional demand by industries along the for all that we do, from transit time to how long St. Lawrence River and Maritimes it takes to respond to a customer’s request for • Traffic increased by 21.8% (73,000 tonnes) information, and everything in between. Mon- to 0.41 million tonnes on M.L.O. and by itoring the results against our level-of-service

13 Traffic to/from Canada 2001/2002

From Foreign 8% To Foreign 10% Within Canada 55% To U.S.A. 27%

Traffic to/from U.S.A. 2001/2002

From Foreign 18% Five Year Review of Combined Vessel Transits To Foreign 19% To Canada 63% Ocean-going vessels Inland vessels Other vessels

3,000 3,000 2,500 goals tells us where we need to put in 2,500 2,000 more effort to keep customers happy. 2,000 Also with our American partners, we 1,500 have a plan to help us communicate bet- 1,500 1,000 ter and more frequently with customers, 1,000 and an organised complaint management 500 500 system that is getting good reviews from 1998/1999 0 1999/2000 Seaway users. 1997/1998 2000/2001 0 We began last year to implement the 2001/2002 three-year business development plan having some success in attracting more cruise we worked out jointly with SLSDC, to promote ship traffic to the Seaway/Great Lakes system the Seaway through trade missions and at trade and its ports. shows and symposia in North America and Finally, SLSMC and its partners regularly abroad. We’re working closely with the Great invest in research to identify areas where we Lakes Cruising Coalition, and together we are can improve services to Seaway users and seek new customers. In the works for 2002: • a market growth potential study that will evaluate the economics of the Seaway sys- Total combined traffic to/from Canada tem and identify new opportunities and the U.S.A. (million tonnes) • the latest in our series of competitiveness Canada U.S.A studies, to see how the Seaway stacks up against road and rail for various types of cargo on selected routes 35 35 30 30 Opening the Seaway to Heavier Vessels 25 25 With the participation of Transport 20 20 Development Corporation and Université Laval, 15 15 Fleet Technology completed a detailed squat study in 2001 to establish the feasibility of 10 10 increasing Seaway draft. “Squat” is the extra

5 1999/2000 0 5 depth to which a ship sinks into the water at 1998/1999 2000/2001 speed. Along with the final report came a 0 0 1997/1998 2001/2002 model named the “Squat Machine”, which pre-

14 tions, either by reducing speed in shallow areas or cleaning up the channel bottom, or both. The SLSMC has begun preparations for achieving a draft increase to 26’6” (8.05 m) in 2003. Channel maintenance work to level high spots in the Hamilton and International Tangents will be carried out in the fall; the South Shore Canal and areas of the Welland Canal will also be cleaned up. We are looking at the feasibility of dredging to increase channel depth in the South Shore Canal, which would bring all Seaway channels to the same minimum depth. In addition, the squat curves developed by Université Laval will be incorporated into the Seaway’s water level spreadsheet to identify areas where a ship at deeper draft would be required to reduce speed. If favourable water levels continue in the rest of the system, and the other work is completed, new draft parame- The C.Columbus, one of several new ters could be introduced with the implementa- cruise ships plying the Seaway and tion of mandatory AIS in the 2003 season. AIS Great Lakes to the delight of passengers must be in place to monitor and enforce ship speed reductions in the shallower areas. dicts the average squat at speed for five classes of ships in both the canal and lake sections of Vessel Self-Inspection the Seaway. At the opening of the 2000 season, SLSMC The study concluded that on the lakes and introduced a program that allows ISO/ISM-certi- open waters, the ship squat measure is very fied companies to carry out their own inland close to the standard the Seaway is presently vessel inspections for Seaway requirements. using, while in some areas of the canals, squat SLSMC ship inspectors carry out random spot- at high speed can infringe on the 30 cm addi- checks of self-inspected vessels throughout the tional depth needed for ship manoeuvrability. season. At the current draft, the squat allowance leaves During the 2001 navigation season, four an adequate safety margin to compensate for companies operating 74 ships participated in variations in Seaway bottom. Draft cannot be the self-inspection program. The Seaway was increased without changing the channel condi- also used by 19 non-participating inland ships. Two inland companies, however, have suggested that, despite the con-

SHIP venience of the program, the costs DECK involved in self-inspection place SHIP them at an economic disadvantage in 23 m comparison with non-participating Static draft companies. SLSMC is reviewing the program and considering a change in 31cm squat allowance inspection frequency and procedures 30cm safety margin to provide a level playing field.

NOMINAL DEPTH

Factors used to establish SEAWAY BOTTOM under keel clearance requirements

15 Lock Operations also underway to evaluate hydraulic options in New tie-up and cast-off procedures intended place of further rehabilitating mechanical equip- for greater efficiency have been developed and ment across the system. Hydraulic equipment tested. Safety concerns about the new proce- could be more cost-effective as well as being dures were raised by the Union, and SLSMC simpler and safer to operate and maintain. invited Human Resources Development Canada Discussions with Transport Canada (TC) will (HRDC) to observe lock operations first hand in finalise the new plan over the coming year. In Maisonneuve and Niagara regions. The site the meantime, TC has hired Consulting and Audit visits took place in April and May 2001, and Canada to carry out a due diligence review of were attended also by inspectors from Trans- our proposed plan, broken down into specialised port Canada (TC) Marine Safety. areas such as geotechnical, concrete restoration Following the site visits, HRDC issued a (alkali-aggregate reaction), bridges, hydraulics, Safety Direction covering the availability of safety breakdown and equipment operation. equipment, rescue services, rescue training, and structural upkeep as it affects employee safety. Reliability and System Uptime The SLSMC Safety Committee undertook an audit The Reliability Index is a measure SLSMC has of all locks and lock walls to identify and deal used for the last four years to track the condi- with any uneven surfaces, and provision was tion of the infrastructure. The index improved made for life jackets, which employees working from 3.01 last year to 3.08 this year, showing on the locks are to wear at all times. The SLSMC continued progress under the management of has appealed the direction for ladders in the the Corporation. locks and the requirement for a signaller during While the Reliability Index deals with the mooring and casting off. SLSMC is proposing longer-term performance of the system, we alternate methods of meeting the need of lad- have put in place a short-term system perfor- ders, and testing a new tow hook that could mance measure, based on the time lost due to ensure the mooring procedure is safe regardless equipment breakdown for the current season. of the number of persons on the lock crew. This uptime indicator improved from 99.58% in 2000/01 to 99.68% in 2001/02. Maintenance and A task force was active in the past year to Asset Renewal re-map our project and contract process, aligning it to the re-organised infrastructure maintenance Asset Renewal Plan process organisation. The improved process will The five-year Asset Renewal Plan (part of streamline project planning, budgeting and man- the Management, Operations and Maintenance agement, leading to higher efficiency in asset Agreement with the government) calls for a total renewal. Building on the success of the project expenditure of $126 million to safeguard day-to- process, another task force was launched in the day operations and the long-term integrity of the latter part of last year to review the internal Seaway’s infrastructure and equipment. $24.5 maintenance process. The team is expected to million was spent in 2001/02, the fourth year of complete its mandate by late fall of 2003. this plan, bringing the expenditure so far to $99 million or just under 80% of the overall total. Bridge 11: Swift, Effective As part of preparations for the next five- Response to Emergency year business plan, SLSMC has identified its In the evening of August 11, 2001, the freighter future asset renewal requirements to ensure that Windoc came into contact with Bridge 11 on the the objectives of both the Corporation and the Welland Canal, causing substantial damage both government are met. Among other issues, we to the ship and to the bridge. The Windoc came have identified the need for major rehabilitation to a stop some 700 metres downstream from the of the Montreal and Beauharnois locks towards bridge. Bridge 11 was disabled and left in a near- the end of this decade due to alkali-aggregate lowered position, blocking ship passage and reaction in the concrete. A feasibility study is heavy road traffic, some 11,000 vehicles a day.

16 With excellent co-operation from everyone trades and the Niagara Region staff for the concerned, SLSMC was able to reopen the Canal high level of skill, teamwork and dedication to ship traffic within 48 hours. Emergency shown on this project. repairs enabling the bridge to be raised and lowered safely were completed in four days. Winter Works Program To reduce hardship locally, SLSMC and the Each winter, major components of the Seaway insurance company agreed to make the final infrastructure are overhauled during the eleven- bridge repairs immediately. week shutdown period. Unlike the winter of The job was complex and difficult, 2000, the weather had a positive influence on demanding meticulous planning, timing and costs and schedules. execution. Among other constraints, the bridge More than 40 projects were completed by had to remain operational to permit workers, contract over the course of the winter, at an materials and equipment to reach the work under-budget cost of $15 million. Seaway area, while not interrupting ship traffic. To employees carried out a number of winter maintain bridge balance, all concrete, steel, works projects as well, in addition to regular debris, equipment, scaffolding and other mate- preventive maintenance and inspections. rials removed or brought on the bridge had to be weighed. The lightweight concrete used in Major Winter Projects the original structure had to be replicated Maisonneuve Region through a series of tests. • Gate quoin rehabilitation and re-tensioning of The repairs started on Tuesday, October 9. gates at Côte St. Catherine Lock Vessel traffic was delayed only twice during the • Grouting of cracks in Beauharnois Locks five weeks of construction by approximately • Repairs to piers and counterweights of one hour, for placement of concrete and asphalt Bridges 2 and 3 on the deck. A total of 15 tonnes of structural • Replacement of ice flushing valve at Côte St. 3 steel, 25 m of lightweight concrete, 3 tonnes of Catherine Lock reinforcing steel, 10 tonnes of asphalt, and 220 • Replacement of electric control panels at St. 2 m of steel decking were used. Lambert Lock The work was completed a full week Niagara Region ahead of schedule and the bridge opened to • Bank stabilisation in Reach 2 and Long Reach road traffic on November 16, 2001. SLSMC • Gate painting and repair at Lock 8 thanks Diamond Stonebridge Contracting, • Concrete repair to lock wall at Lock 4 Blenkhorn-Sayers Structural Steel, the other • Mechanical rehabilitation of lock gates and Damages to Bridge 11 valves • Rehabilitation of mechanical drive of Bridge 21 • Replacement of substations at Lock 1 and Bridge 11 • Replacement of operator interface system on the Flight Locks System Security and Emergency Planning In March 2001, SLSMC completed a corporate threat and risk assessment. The report identified the areas where protective measures should be applied and priorities for the development of such measures, as well as defining the manageable level of risk for the Corporation. As a result, a corporate security policy was formulated: “The St. Lawrence Seaway

17 Management Corporation is committed to main- duction of aquatic nuisance species in the taining a safe and secure working environment, Great Lakes/Seaway System. which is essential to the overall success of the All vessels using the Seaway must now Corporation. Therefore, the SLSMC will take comply with one of the following codes: every reasonable measure to ensure that risk to • the Shipping Federation Code of Best Practices employees, information holdings and physical for Ballast Water Management (ships that assets are minimized.” To follow through on the have operated outside the Canada-U.S. exclu- policy, a series of appropriate and cost-effective sive economic zone) safeguards were to be implemented over a four- • the Voluntary Management Practices to year period; however, the events of last Reduce the Transfer of Aquatic Nuisance September 11 have accelerated that schedule. Species Within the Great Lakes by U.S. and The security of the ships transiting the sys- Canadian Domestic Shipping of the Lake tem has emerged as an important concern since Carriers Association and the Canadian last fall. All the key system stakeholders and Shipowners Association (all other shipping) appropriate security organisations – both Seaway SLSMC’s Practices and Procedures have Corporations, Transport Canada, Transport Que- been amended accordingly, and compliance will bec, the U.S. and Canadian Coast Guards, the be monitored. pilotage agencies, the police organisations, and many others – have together developed a com- Administrative and Human prehensive marine security plan for the system. Resources Matters A non-marine enhanced security plan, with a budget estimate of $4.7 million, was submitted Labour Agreements to the government outlining our land based Collective agreements were reached with the security approach. The recommendations were aid of an HRDC conciliation officer and signed presented to Transport Canada who has a man- on November 26, 2001, with the Canadian date to co-ordinate these efforts with various Automobile, Aerospace and Transportation federal departments and agencies. The Workers, representing the Operational and December federal budget provided a level of Maintenance and the Supervisory Group Locals funding for such measures; the assessment with of the Seaway. The three-year agreements central agencies is under review. covering these 500 employees extend to Among other activities, SLSMC established a December 31st, 2003. Corporate Security Committee, which reviewed During these negotiations, new salary and and updated security guidelines and developed wage scales were introduced, based on the corporate standards for signage, fencing, and closed circuit cameras. Access control has been upgraded in all locations and a disas- St. Lawrence Seaway Employees ter recovery plan has been initiated, along (Full Time Equivalents) with a security awareness program for employees. Procedures for dealing with Actual Business Plan biological agents and bomb threats are in place. Other projects underway include 850 site mapping, a fencing upgrade, a securi- 800 ty camera upgrade and a guard tour 794 Business Plan tracking system. 750 727 Target Environmental Projects 700 681 709 671 664 The major achievement on the environ- 650 mental front last year was the adoption 650 637 of new measures developed jointly 600 619 with SLSDC to guard against the intro- 1998 1999 2000 2001 2002

18 Joint Job Evaluation system developed in the In March 2002, a survey of all SMART pro- previous years. In line with the Seaway’s succes- gram stakeholders (managers, supervisors, sion plan, it was also agreed to place more professionals) indicated that over 80% of emphasis on promotion from within the respondents “agreed or somewhat agreed” that Corporation. A technical trades subcommittee the SMART process provides a structure that will be informed of upcoming retirements with- increases employee understanding of and con- in the Seaway Trade ranks and will explore tribution to achieving corporate objectives and employee development avenues. goals.This indicates that we are on the right track in continuing to integrate the process Job Evaluation into our management practices. During the past three years, a nine-member Joint Job Evaluation Committee, with representation Succession Planning from operations and maintenance, supervisory Some 25% of Seaway employees will become and salaried groups, led by an experienced classi- eligible to retire between now and 2005. fication and compensation consultant, developed Succession planning, naturally, has become one a classification system for the SLSMC. When the of the Corporation’s chief priorities. evaluation project was completed, a consulting The principal objective of the succession firm specializing in the field of compensation was retained to develop competitive salary scales. The new classification levels and wage YEAR OF REVIEWS,TESTS scales took effect on January 1, 2002. A AND REPORT CARDS The ratings of some jobs have changed ur agreement with the Canadian as a result of the evaluation project. OGovernment requires comprehensive Employees whose jobs have been reclassified reviews of our operations before the end of at a lower level will retain their previous the first five-year business plan. In the past compensation and will benefit from future year, therefore, SLSMC has co-operated with general increases while they remain in those various government-ordered audits and positions. In addition, a review process has been put into place for employees who have examinations. concerns about their new job classification. If We are proud to say that the reports criteria for a review are met, information is have been, on the whole, very favourable. gathered from employees and the Joint Job The Acres technical review for Transport Evaluation Committee rules on the rating. Canada generally recognized the effectiveness of our systems and the expertise of our SMART Performance Management personnel. And KPMG’s comprehensive The SMART performance management system audit of all aspects of our operations identi- is one of the most important management fied no major deficiencies. tools the Corporation uses. It aligns work Of course, there are always areas for planning, execution and improvement activi- improvement, and we have received a great ties with the organization’s business process deal of useful input for our new five-year approach. Helping managers to learn how to plan. We’ll be putting more thought into risk make SMART work continued in 2001/02. management, for instance, which will Emphasis has been placed on applying the improve our strategic planning process as systematic opportunity SMART provides for well, and we will also make a priority of suc- supervisor-employee dialogue, setting direc- cession planning, training and career devel- tions and expectations, and the follow-up opment. loop of recognizing achievements and con- structively discussing improvements.

19 planning program is to ensure that the ty level for the year remains near the level of Corporation will have, at all times, at least one the previous two years. employee in its ranks suitable for promotion There was an increase in lost time acci- into each key position when it becomes vacant. dents in the Maisonneuve Region; however, the All of the key positions have now been identi- Niagara Region continued to improve both in fied, in consultation with the various manage- terms of frequency and severity. It reported ment teams, as have potential successors to three lost time accidents for the year, while these positions. We are now proceeding with Maisonneuve reported eight during the same individually tailored training plans, and looking period. No lost time injuries were reported at at integrating succession planning for the Trades Head Office during the year. into our program as well. In an effort to lessen the number and Succession planning remains a dynamic severity of accidents, a number of activities and continually evolving process; our plans are have been evaluated and a new Safety program revisited each year to ensure they remain developed for 2002. The Safestart program responsive to focuses on the individual worker’s behaviour in changing cir- completing daily tasks. The program was test- cumstances ed in the Maisonneuve Region and will be and the implemented across the Corporation. Other changing initiatives will continue and additional training needs of the sessions are planned for areas with unsatisfac- Corporation. tory records. A number of new health and safety poli- Employee cies, including investigation procedures for Health and accidents/incidents and work refusal related to Safety safety conditions, have been completed and in The frequency the majority of cases alignment has been rate for acci- achieved between operating groups in the two dents in 2001 is Regions. slightly above the results of calendar year 2000. In general, the severi-

20 Governance

he St. Lawrence Seaway Management The Human Resources Committee ensures TCorporation is governed by a nine-member the development of succession plans for all Board, which meets as frequently as necessary senior management positions, evaluates the per- to set and oversee the direction of the formance of senior executives, reviews and Corporation and review financial results. Their fixes senior management salary and compensa- ultimate responsibility is to secure the long-term tion policies, and oversees the performance of viability of the SLSMC, and of the Seaway as an the Corporation’s pension plan. integral part of Canada’s transportation infra- The Audit Committee, responsible for structure. To this end, the Board ensures that reviewing financial statements and for audit of our operations will establish credibility with cus- the Corporation, also evaluates accounting and tomers and the Saint Lawrence Seaway financial reporting policies, systems and internal Development Corporation by providing high controls. quality; efficient service to all users without preference, fostering the competitive advantages Members of the Corporation of the Seaway, and ensuring a safe environment Board of Directors for our employees and customers. 1 2 Board of Directors As part of its stewardship of the Robert J. Swenor below: Chairman Corporation, the Board has responsibility for Steel and Iron Ore Representative left to right strategic planning, risk management, succession Front row: 2 planning, communications policy, and the Marc Dulude Marc Dulude, Executive Vice-President and Chief Operating Officer Guy Véronneau, integrity of the Corporation’s internal control and IMTT- Quebec Denise Verreault, management information systems. It also defines Quebec Provincial Government Representative Robert Swenor, the limits of management’s authority, account- Alan Holt ability, and rules on any activities or expendi- W. Nick Fox Back row: Vice-President, Terminals & Eastern Operations Georges Robichon, tures, which vary from or are not foreseen in the James Richardson International Ian MacGregor, business plan or in the Corporation’s formal Grain Representative since January 17, 2002 W. Nick Fox, agreements with Government or other parties. Doug Smith Through the Governance Committee, which also admin- isters the Code of Conduct, the Board ensures that the Corporation’s annual objectives reflect its commitments under the business plan, the Letters Patent, and the Canada Marine Act, and ensures that no conflict of interest arise. This Committee also oversees and reports to the Board on the systems that manage the principal risks of the business, including environment, scheduled maintenance and occupational health and safety. Alan R. Holt 2* 4* Michel Drolet, Québec Cartier Mines N.M. Paterson & Sons Ltd., Other Members Vice-President, Montréal, Québec Thunder Bay, Ontario Representative Niagara Region and Corporate Process Leader Stelco Inc., P & H Shipping Division, Ian MacGregor 3 for Ship Transit Hamilton, Ontario Mississauga, Ontario Fasken Martineau DuMoulin LLP André Latour, Other Members Upper Lakes Group Inc. Ontario Provincial Vice-President, Human Toronto, Ontario Government Representative Resources AGP Grain, Ltd. since October 1, 2001 Minneapolis, Minnesota International Carol Lemelin, Carriers John E. F. Misener 3 Vice-President, Finance Essroc Canada Inc. Ontario Provincial and Administration Mississauga, Ontario Christensen Shipping Government Representative Corporation till September 30, 2001 Camille G. Trépanier, IMC Kalium Canada Ltd., Montreal, Québec Vice-President, Strategic and Regina, Saskatchewan Georges H. Robichon 1* Business Development Colley Motorships Limited, International Carrier Keystone Industry Co; Westmount, Quebec Representative Yvette Hoffman, Keystone Coal Company; Senior Vice-President and Counsel and Secretary Keystone Canada Inc. Fednav Limited, General Counsel Montréal, Québec Montreal, Quebec Fednav Limited Industry Members 2001/2002 Lafarge Canada Inc. Gresco Ltée Doug Smith 3 4 Hamilton, Ontario Montréal, Québec Domestic Carrier Grain Representative McAsphalt Industries ADM Agri-Industries Limited, Inchcape Shipping Services, Limited, Montréal, Québec Adrian T.C. Tew 2 Windsor, Ontario Scarborough, Ontario Grain Representative till Agricore Laden Maritime Inc. December 7, 2001 Omnisource Corporation, Montreal, Quebec Vice-President Winnipeg, Manitoba Burlington, Ontario Louis Dreyfus Corporation Alfred C. Toepfer Montship Inc. Ontario Power Montreal, Quebec Guy C. Véronneau (Canada) Ltd., Generation Inc. Winnipeg, Manitoba President & Chief Toronto, Ontario Poros Shipping Executive Officer Bunge Canada ltd., Agencies Inc. The St. Lawrence Seaway Petro-Canada Montreal, Quebec Management Corporation Québec, Québec Oakville, Ontario Robert Reford (a division of Denise Verreault 1 3* Cargill Limited, Redpath Sugars, Winnipeg, Manitoba MRRM (Canada) Inc.) Federal Government Toronto, Ontario Montréal, Québec Representative James Richardson President Sifto Canada Inc., Robin Maritime Inc., Verreault Navigation Inc. International Limited Goderich, Ontario Winnipeg, Manitoba Montréal, Québec Officers The Canadian Salt Scandia Shipping Louis Dreyfus Canada Ltd., Company Limited, Calgary, Alberta Agencies Inc. Guy C. Véronneau, Pointe-Claire, Québec Montréal, Québec President and Chief Saskatchewan Wheat Pool Executive Officer Regina, Saskatchewan Domestic Carriers Members of: 1. Governance Committee Joseph V. Contala, Algoma Central Corporation The Canadian Wheat Board, St. Catharines, Ontario 2. Human Resources Committee Vice-President, Information Winnipeg, Manitoba Technology and 3. Audit Committee Telecommunications Blue Circle Cement United Grain Growers, Toronto, Ontario 4. Capital Committee Winnipeg, Manitoba Richard Corfe, * Committee Chairman Canada Steamship Lines Inc. Vice-President, Steel and Iron Ore Maisonneuve Region and Montréal, Québec Corporate Process Leader Dofasco Inc., for Infrastructure Hamilton, Ontario Groupe Desgagnés Inc. Maintenance Québec, Québec Iron Ore Company of Canada, McKeil Marine Limited Montreal, Quebec Hamilton, Ontario

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