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Canada's Gateway Ports

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Canada's Gateway Ports PORTS & TERMINALS Canada’s Gateway Ports Title holders and contenders By Darryl Anderson, Managing Director, Wave Point Consulting and James Frost, President, MariNova Consulting ith the current sea of red ink Montreal’s biggest strength is its proximity to Canadian in the shipping sector creat- and U.S. mid-west markets. It is a one-day truck haul to 40 ing an intense competition Wamongst ports and terminals, it is not million consumers and less than two days from 70 million... hard to liken that industry to a box- ing match between current title holders and contenders. Rather than relegating to Autoroute 25. In the future, the Port indicated that “there are several factors this metaphor to an afterthought, this of Montreal plans to build a new facil- contributing to the growth.” He said, “It article will use it to review the march of ity at Contrecoeur, about 50 kilometres was during the third quarter of 2015 that Canada’s container gateway title holders downstream on the South Shore of the the O3 Alliance started calling at the and their leading contenders. St. Lawrence, where there is already a South End Container Terminal, oper- bulk-handling facility. ated by Halterm Container Terminal Title holders — Eastern and The Port of Halifax saw an active year Ltd.; and the G6 Alliance, now known Atlantic Canada in 2016. The most recent performance as THE Alliance, added an outbound Montreal is the largest container figures show a 16.1 per cent increase call at the Fairview Cove Container port in eastern Canada, handling about year-over-year of container traffic to the Terminal, operated by Ceres-Halifax. 1.44 million TEUs. The port’s biggest end of the third quarter in 2016. Such These new and expanded services have strength is its proximity to Canadian a growth rate would bring annual con- been in place for over a year now, and and U.S. mid-west markets. It is a one- tainer volumes close to 500,000 TEUs, those are certainly contributing factors day truck haul to 40 million consumers within 50,000 TEUs of the port’s record to their growth.” and less than two days from 70 million, set in 2005. While some container ports were con- and is served by two transcontinental Lane Farguson, Communications centrating on infrastructure muscle, the railways. Previously a North Atlantic Advisor with the Halifax Port Authority, Halifax Port Authority was working on trade-dependent port, its port container markets are now global — Northern Europe accounts for 41 per cent; the Mediterranean region, 20 per cent; and Asia, 17 per cent. Montreal’s strength as a container gateway competitor stems from the unique array of carriers that service the ports in regions like northern Europe, the Med, Asia, and the Caribbean. Interestingly, these carriers primarily operate outside the alliance structure and in some cases, with purpose-built vessels for this trade. Major players include MSC, Hapag-Lloyd, OOCL, Maersk and CMA CGM. Oceanex operates a short-sea service to and from Newfoundland & Labrador. A mostly flat container growth rate in 2016 has not prevented Montreal from adding infrastructure muscle. This past year, the Port of Montreal commenced construction of a 450,000 TEU-capacity terminal in its Viau sec- tion, which will expand capacity to 600,000 TEUs. Another infrastructure initiative to improve the flow of cargo The Port of Halifax. includes a new roadway linking the port 24 — BC Shipping News — February 2017 enhanced dexterity to improve its gate- “We’ve been preparing for the arrival of Ultra-class vessels way competitiveness. The web-tracking with capacity over 10,000 TEU for several years. Halifax is tool for importers and exporters (www. halifaxgetsithere.com) was updated in in an excellent position to accept these vessels...” 2016 to include several new features designed to make it easier to do busi- ness. The enhanced container tracking 400-metre Ultra-class container vessels well as relocate it across the harbour to tool allows clients to monitor a contain- at one time. either Shearwater or the former Imperial er’s movements by setting up automated The Halifax Port Authority Oil lands. email or SMS alerts. Users can enter a announced, during Port Days 2016 last How the Halifax fight card plays out single container number or upload a lar- September, that it had engaged WSP in 2017 is still a bit uncertain. Since early ger list of files and identify the specific Parsons Brinkerhoff to produce a new fall, there have been reports of either a alerts they wish to receive. port master plan. Because it is “only” merger or operating agreement between In 2017, the Halifax Port Authority 666 metres in length, plans include con- the port’s two container terminals. If the will continue to work collaboratively sidering an expansion of the South End agreement comes into effect, it could with partners and stakeholders, includ- terminal both south and northwards, as result in all Halifax container cargo ing terminal operators, labour, CN Rail, carriers, and all three levels of govern- ment to build on the positive momen- tum achieved in 2016. Farguson further remarked that “We’ve been preparing for the arrival of Ultra-class vessels with capacity over 10,000 TEU for several years. Halifax is in an excellent pos- ition to accept these vessels because of our deep harbour, our uncongested port, our connections to regional road and rail networks, our excellent partnerships, and our experienced labour.” With all of this happening at the same time, the shipping industry has signalled the need to accommodate two The Port of Montreal. The Port of Halifax. Photo: Steve Farmer The Port of Saint John. February 2017 — BC Shipping News — 25 PORTS & TERMINALS being handled at the South End terminal a budget of $205 million over seven market place,” said Matthew Hoag, (Halterm) or it being split between the years to expand the Rodney Container Operations and Commercial Director, two, whereby post-Panamax ships would Terminal to 25 acres, 667 metres in berth Americas Region. “Also there is no ques- be dealt with at Halterm and smaller ves- length, and 15.2 metres depth alongside, tion that Saint John can be a competi- sels at Fairview Cove. to accommodate larger vessels. The port tive gateway for U.S. traffic. We intend “...there is no question issued a tender for detailed engineering to develop all of these opportunities design in late 2016, and expects to award with our partners CN Rail and the Port that Saint John can be a a contract in early 2017. Authority of Saint John.” competitive gateway for DP World was named to replace As Jim Quinn, CEO of Port Saint Logistec as the operator of the Rodney John said, “the journey we began six U.S. traffic.” Container Terminal and port manage- years ago is continuing, and new partners ment is excited to have a new partner that have come to the table are helping us Port Saint John, mainly a bulk port who shares their vision for the future; realize the exciting opportunities we see with about 28 million tonnes of cargo intends to invest in new equipment; and in front of us.” moved per annum, is the largest port in aggressively market the facility. As of late Atlantic Canada and one that has been October, new post-Panamax cranes had Title holders — Pacific Region in the container fight game since 1971. been delivered and will be operational Port of Vancouver, Canada’s largest Since 1999, Tropical Shipping’s service by January 2017. Together with their rail and busiest port, trades with more than to Florida and ports in the Caribbean partners, CN and several short lines that 160 countries. It is serviced by three had been a mainstay. In 2014, it attracted connect with CP outside Montreal, Saint intercontinental Class I railways — MSC, which calls on the port when John intends to capture a bigger slice of Canadian National, Canadian Pacific transiting from Montreal to Freeport, gateway and local cargo. and Burlington Northern Santa Fe — as Bahamas, where cargo connects to a “CN is working with the Port Authority well as the Southern Railway of BC. The myriad of services in all directions. and DP World in Saint John to finalize Port offers access to the Trans-Canada Like any aspiring prizefighter, suc- agreements that will bring additional and U.S. Interstate highway systems cess does not come without taking some competitive supply chain services to the with interconnecting service provided by body blows. The port was dealt a setback hinterland of central Canadian markets major trucking lines. towards the end of 2016 when Tropical in co-operation with our new partners,” A wily veteran competitor, Shipping announced it was leaving and said Jean-Jacques Ruest, Executive Vice- would start calling at Halifax from early President and Chief Marketing Officer Vancouver ... is the January 2017. at CN. Nevertheless, Port Saint John remains “DP World is excited about operating undisputed container undaunted and has embarked on an in Port Saint John. A tremendous num- gateway heavyweight investment plan that will add heft to its ber of opportunities for cargo growth ambitions. In 2016, the port announced and logistics solutions exist within the title holder in Canada for traffic volume. IMS Marine Surveyors & Analytical Laboratories Ltd. Port of Vancouver, Canada Port activity supports an estimated Marine & Cargo Surveyors & Inspectors $9.7 billion in GDP, $20.3 billion in eco- Dry/Liquid Bulk/Containers l Ultrasonic Tightness Testing l Investigators & Expert Witness nomic output, and $6.1 billion in wages. l l l P&I Clubs H&M Pre-Purchase Superintendency On/Off Hire Condition & Bunker Vancouver has experienced continued Main commodities handled: growth in both bulk and containerized Vegetable Oils & Fats l Grain, Oilseeds, Lentils, Peas, Meal & Meal Pellets grain and agri-product businesses year- 24-Hour Service Concentrates, Sulphur & Fertilizers/Potash l Steel Cargoes, Pulp, Paper, Lumber & Logs Project Cargoes, Heavy Lifts & Yachts over-year since 2012.
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