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Download Issue www.canadiansailings.ca Canadian Transp orta tion & Sailings Tra de Logistics November 20 , 2017 feature Churchill, Manitoba • Rail line out of commission • Does the port have a future? • Does the community have a future? NAFTA • Current status • Possible outcomes • Possible consequences Pub.Calendar_2017.qxp 2017-10-20 1:02 PM Page 1 CaCanadnnadiania Transportation & Sailings Trade Logistics www.canadiansailings.ca Pub.Calendar_2017.qxp 2016-11-10 3:12 PM Page 1 Pub.Calendar_2017.qxpCanadianCanadian Transp 2017-10-20ortation 1:02 PM& Page 1 Pub.Calendar_2017.qxp 2016-11-10 3:12 PM Page 1 SailingsSailings Trade Logistics www.canadiansailings.ca 2017 PUBLICATION SCHEDULE M 1390 chemin Saint-André Canadn ia Transportation & PUBLICATION SCHEDULE Rivière Beaudette, Quebec, Canada, J0P 1R0, Canadian TranspJanuaryortation February www.canadiansailings.ca CaCanadnnadiania Transportation & 2017 Sailings Sailings Trade Logistics January February March Publisher & Editor Sailingswww.canadiansailings.caTrade Logistics Joyce Hammock www.canadiansailings.ca Tel.: (514) 556-3042 Associate Editor Theo van de Kletersteeg Tel.: (450) 269-2007 Production Coordinator PUBLICATION SCHEDULE France Normandeau, [email protected] SCHEDULEApril Tel.: (438) 238-6800 20172017 Advertising CoordinatorONJanuary SCHEDULEFebruary March France Normandeau, [email protected] FebruaryA MarchM Tel.: (438) 238-6800 January February March Web Coordinator April May June Devon van de Kletersteeg, [email protected] Contributing Writers Saint John Christopher Williams Halifax Tom Peters Montreal Brian Dunn May June Ottawa Alex Binkley Toronto Jack Kohane Thunder Bay William Hryb Valleyfield Peter Gabany Vancouver Keith Norbury R. Bruce StrieglerApril May June U.S. Alan M. Field April May June April Advertising Sales: May June July August September Don Burns, [email protected] Tel.: (450) 458-5833 CIRCULATION: July August S For all inquiries concerning circulation and subscriptions, please send an email to [email protected] J ACCOUNTING: For all inquiries concerning accounts receivable and accounts payable, please send an email to [email protected] ANNUAL SUBSCRIPTION: JulyJuly AugustAugust September Quebec only $75 plus GST and QST July British Columbia, Ontario, New Brunswick,August Nova Scotia September October November December and Newfoundland $75 plus HST P.E.I., Alberta, Saskatchewan and Manitoba $75 plus GST U.S. US$375 if shipped weekly or US$195 if shipped monthly Overseas US$750 if shipped weekly or US$400 if shipped monthly GREAT WHITE P U B L I C A T I O N S I N C . PUBLICATION DATE NO PUBLICATION Home of Canadian Sailings, TransportationOctoberOctober & Trade Logistics NovemberNovember 2017 December Canadian Sailings is a registered trade name of Great White Publications Inc. October November December Revised October 20, 2017 printed by PUBLICATIONS MAIL AGREEMENT NO. 41967521 RETURN UNDELIVERABLE CANADIAN ADDRESSES TO GREAT WHITE PUBLICATIONS INC., 1390 CHEMIN SAINT-ANDRÉ RIVIÈRE BEAUDETTE, QC H9S 5J9 email: [email protected] PUBLICATION DATE NO PUBLICATION Revised October 2017 4 • Canadian Sailings • 20172017 NovemberPUBLICATIONPUBLICATION 20, 2017DATE DATE NONO PUBLICATION PUBLICATION RevisedRevised November October 20,10, 20172016 Revised November 10, 2016 CONTENTS November 20, 2017 6 A new dawn for Port of Sept-Îles 14 Cruise ship season 2017 11 Quebec Stevedoring a powerhouse in Eastern Canada 16 Sept-Îles’ 5 à huîtres maritime event CHURCHILL, MANITOBA NAFTA 17 Railway to Churchill closed 27 How a tangled as parties fight over who web of new rules should fix the flood- could transform damaged line North American 20 Churchill’s future up in the supply chains air but remains perpetually 35 OPINION – promising Further possible 24 Churchill’s history featured unintended 17 fits and starts 27 consequences 36 Tanker ban bill contrary to the Law of the Sea and ignores the reality of maritime transport 37 Coal survives in a market full of change and consolidation 39 BigLift and Rolldock to end cooperation 39 Pressure on government to reform National Shipbuilding Strategy and act to contract for second supply vessel 40 Seaway cargo up 10 per cent year to date 41 Global e-commerce boom a great opportunity for logistics and ocean freight 42 Chicago Rockford Airport targets larger rival’s ecommerce and express traffic 42 E-commerce will benefit the smaller, local forwarders that can deliver 43 Carriers tighten their grip with rate hikes underpinned by capacity cuts 44 Shipping lobby groups slammed for ‘blocking global progress’ on emissions reduction 44 Shipping lobbies hit back at claims they don’t support emissions reduction 45 Remaining South Korean lines making waves to restore faith after Hanjin crash 46 Danaos predicts choppy waters for containership charter market next year COVER 46 APL offers ‘money-back’ guarantee on premium transpacific service 47 K+N gets back to profit growth, but to hit 2017 targets, it must do better in Q4 48 DP World reaps double-digit rewards from market recovery and alliance reshuffle 49 Halterm International Container Terminal to invest $10 million in Halifax 49 Ontario awards two ferry contracts to Damen y t i r o h t 50 CP Holiday Trains will be rolling again soon u A t r o P 50 Rollie Webb receives SS Beaver Medal for Maritime Excellence s e l Î - t p e S : o t o h REGULAR FEATURES P PORT OF SEPT-ÎLES 51 Upcoming Industry Events 51 Index of Advertisers The contents of this publication are protected by copyright laws and may not be reproduced, in whole or in part, without the written permission of the publisher. November 20, 2017 • Canadian Sailings • 5 A new dawn for Port of Sept-Îles BY MARK CARDWELL Pierre Gagnon is no stranger to the cility over the past year, have Gagnon better steel products with better ef - business of mining iron ore. A mining feeling bullish about the prospects of ficiencies and less of an environ - engineer by trade, he worked several the Port of Sept-Îles in the not-too- mental footprint. years for Quebec Cartier Mining (now distant future. part of ArcelorMittal) in the town of “China buys 60 per cent of all min - Since the 1950s, when iron ore Fermont before joining Port of Sept- erals in the world,” says Gagnon. started being mined from the Îles as President and Chief Executive “But they have recently brought in Labrador Trough and shipped south Officer in 2002. Since then, Gagnon policies to reduce greenhouse gas to Sept-Îles via the Quebec North has been working to help the Port’s emissions in their steel production Shore and Labrador Railway from first major clients deal with the challenges industry.” Those policies, he adds, Shefferville, then the Wabush and of reaching global markets with the are driving up both demand and Labrador City, NL areas, the mineral 80 billion tonnes of high quality iron premiums for top-quality iron ore has been both the backbone and the like the kind that ships through his ore reserve known to exist in the lifeblood of the community on Que - Labrador Trough. port. Premiums have more than bec’s North Shore. doubled in recent years from be - “It is one of the purest iron ore Iron ore comprises more than 90 per - tween $5 and $6 USD a ton to be - sources in the world with the fewest cent of the roughly 25 million tonnes tween $12 and $15 USD a ton. That contaminants,” Gagnon says about of cargo that are shipped from the is on top of the current world price the ferrous deposits in the trough, a port each year. Though Sept-Îles is a of roughly $60 USD a ton for iron 160-kilometre-wide, sausage-shaped small player on the world stage, ac - ore, which has been quite volatile landform that starts 400 km north of counting for only 2-3 percent of world since the beginning of the year with Sept-Îles and stretches 1,200 km supply, Gagnon says that many steel- a high of $89 USD in March, com - north to Ungava Bay. “It is highly making facilities, notably in China, are pared to a low of $38 USD in late prized for its qualities, which adds a blending high-quality iron ore with 2015. Though double what it was premium value and increased price.” the lower-quality material supplied by when Gagnon joined the Port, the Quality, together with several critical world-leading producers like Australia current world price for iron ore is infrastructure developments at his fa - and Brazil. Blending helps to produce still only a third of the record $193 6 • Canadian Sailings • November 20, 2017 USD a ton it reached briefly in 2008. backed Société ferroviaire et portu - aire de Pointe-Noire (SFPPN). The lat - While he has no control over the sup - ter is a limited partnership that was ply-and-demand driven world price created to own and operate assets for iron ore, Gagnon is feeling confi - purchased from Cliff’s Natural Re - dent about the Port’s ability to both sources operating under protection maintain and enhance its role as the from its creditors. These assets in - main gateway to the global market clude rail lines, access to port facili - for Canadian iron ore producers. In ties, rail yards, a pellet plant, addition to the growing popularity administrative offices and about 1200 and environmental advantages of hectares of land. The Port itself was blending, which he says is providing successful with the acquisition of 400 “a nice bump” in revenues for the hectares of land to unlock the future Port’s current iron ore producers, growth of the sector. Gagnon says several recent and im - minent developments have set the For years, Cliff’s refusal to negotiate stage for a major upswing in the service on its rail network giving ac - Port’s fortunes in the immediate and cess to the port stymied develop - near future.
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