TRANSPORTATION MARINE SPECIAL DELIVERY Atlantic ’s ports and marine carriers are stepping up their game, providing more efficient networks and welcoming larger vessels — and becoming a key part of the global transportation business

Approximately 90 per cent of the world’s goods move by sea. That provides a host of economic opportunities for Atlantic Canada: it is strategically positioned as an entrance for goods from around the globe for dissemination across North America — and as a departure point for international exports. More than $30 billion in merchandise was shipped through Atlantic Canada in 2014, according to , and that number has no doubt increased each year since. As ocean traffic increases and container vessels increase in size, local ports and transportation companies are working together to read the trends, modernize, and reap the benefits of moving goods quickly and efficiently.

SUPPORTED CONTENT atlanticbusinessmagazine.com | Atlantic Business Magazine 47 Photos provided by Oceanex by provided Photos

Oceanex, an intermodal transportation pro- vider operating from the Ports of , Halifax and St. John’s, carries approximately half of all cargo brought into Newfoundland and Labrador.

Why by sea? “Ocean transport is by far the most economical way to move things around the world,” says Oceanex executive chair Captain Sid Hynes. “In terms of cost, it’s the cheaper method of transportation — over truck, and certainly over air — and the environ- mental impact is much less.” Hynes says the environmental footprint per container mile (the amount of emis- sions created to move a container one mile) on the road is about seven for 30 per cent of Newfoundland’s times that of a vessel. perishable food imports. Overall, Marine transport is also faster than Oceanex dispatches about half of all many might think. An Oceanex vessel cargo brought into the province. leaving Montreal, for example, can be “Our on-time performance is 99 in St. John’s 60 hours later, compar- per cent — it’s unbelievable, really — able to the time required for a truck taking into account weather delays to make the trip. It’s why Oceanex and everything,” says Hynes. “That “ Ocean transport is by far has lately focused on the “reefer” takes the right equipment, the right the most economical way (refrigerated or temperature-con- people, and the right plan.” It’s also to move things around the trolled cargo) business, and currently crucial to business survival: “As a world.” brings in about 100 containers a week privately-owned company,” says Captain Sid Hynes, executive chair, Oceanex of perishable food items, accounting Hynes, “if we don’t go, it hurts.”

48 Atlantic Business Magazine | September/October 2016 SUPPORTED CONTENT Onboard for you

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Photo provided by Port of Belledune of Port by provided Photo

The Port of Belledune, in northern New Brunswick, is ice-free year-round with both rail and highway access, making it a great alternative to the St. Lawrence Seaway’s inaccessibility during the winter months. It’s other strategic advantage? Space — it has over 1,600 acres of un- developed property.

1,000 direct and indirect employees. Locally, we play a key role in the economy. As an example, over 75 per cent of the Port of St. John’s’ revenue comes from our operations.” Successful marine transport relies While Hynes says the volume and Hynes has hit on another important on a network of highways and/or value of cargo coming into St. John’s point: historically, many of Atlantic railways to meet it at the other side. decreased in 2016 thanks to a dip Canada’s centres were built around It’s why most ports in this region in Newfoundland and Labrador’s their ports and they are still vital have easy access to land transporta- fortunes, he recognizes the crucial to a city’s culture and, importantly, tion, and Oceanex, though primarily role his company and its predeces- economy. known as a shipping company, also sors play to the residents of the prov- offers intermodal transportation ince — and have, since 1909. services (door-to-door and pier- “We focus on providing good Safe harbour to-pier) between Newfoundland service to our customers and their The Port of Belledune in northern and Labrador and the rest of North satisfaction levels are high. We have New Brunswick is a bright light in America. an experienced team with over an area hit hard by the slowdown in the mining sector. Responsible for almost 2,000 direct and indirect jobs, that port, though “underutilized,” has turned a profit in each of the past 10 UNCONGESTED SHORT-SEA-SHIPPING years, and is successfully developing its niche. DEEPWATER YEAR-ROUND-FACILITY “We are a specialized port,” says Belledune president BULK UNLIMITED STEVEDORING and CEO Denis Caron. The port has limited infrastructure to welcome INFRASTRUCTURE FLEXIBILITY BARGE containerized cargo; instead, it is well equipped for bulk and breakbulk ROLL-ON-ROLL-OFF EASTERN CANADA materials, such as coal, wood chips, wood pellets, diesel, concentrates, INTERMODAL BREAKBULK WAREHOUSING and salt. Unlike most other large ports, COMMUNITY COMPETITIVE BELLEDUNE the Port of Belledune is not located in a city centre. Its key competitive TRANS-SHIPMENT INTERMODAL advantage is space: no congestion or urban constraints, and over 1,600 acres of undeveloped land. In oper- ation since 1968, the port also boasts a positive relationship with the nearby community (“I call our brand ‘locally well-accepted,’” says Caron), and over $1 billion in infrastructure. “We’re at about 25 per cent capacity, so we have plenty of room to grow,” says Caron. “We have the assets here www.portofbelledune.ca and we are underutilized. We have to optimize what we do and develop our market.” Efforts are already working: 2015 tonnage was up seven per cent over the previous year.

50 Atlantic Business Magazine | September/October 2016 SUPPORTED CONTENT Photo provided by Port of Saint John Saint of Port by provided Photo

Anticipating growth opportunities with regards to container shipping, the Port of Saint John is undergoing a $205-million modernization of its container terminal.

For ships coming to or from the Saint Lawrence Seaway, Belledune is a natural stop, and transshipment is integral to the port’s future. “We can handle large volumes,” notes Caron. “We can receive product, store it, and ship it off through the St. Lawrence and Great Lakes in smaller volumes, or vice versa.” When the St. Lawrence is inaccessible in winter, the ice-free Port of Belledune will still be open, with strategic access to CN Rail and highways.

Bigger, stronger, deeper With the Refinery prac- tically next door, the import and export of petroleum products will always be a major source of activity for the Port of Saint John. While it has long been well equipped for bulk and breakbulk cargoes, however, the port was on the verge of missing out on another major opportunity. “We realized five or six years ago that we weren’t ready for the future with regards to container shipping,” says Andrew Dixon, senior vice-presi- dent of trade and business develop- PIZZA ment at the Port of Saint John. “Even though we have a deep harbour, deep is relative. Ships are getting larger and cranes are getting larger and require more pier strength.” About a year ago, the Port announced a $205-million modernization of its container terminal, to be completed in five to seven years. The project will increase the port’s maximum low-tide pier depth from 12.2 to 15.2 metres, and the pier strength from 200 pounds/square foot to 2,000 pounds/square foot. An intermodal rail yard able to accom- modate a 12,000-foot train will also be constructed. The Port team, led by Dixon, are also in negotiations with a worldwide terminal operator to provide new generation cranes and equipment for the container terminal.

SUPPORTED CONTENT atlanticbusinessmagazine.com | Atlantic Business Magazine 51 “We’ll be ready for larger ships and geographic location, and competitive Sheet Harbour is the destination port longer trains and bigger cargoes and rail connections, we are planning to for oversized and specialized cargo a greater amount of activity,” says grow and prosper.” (think wind turbines, sheet metal, Dixon. “The whole container terminal, and fabrication modules) not easily the acreage will be tremendously moved through a busy city. expanded.” Dual advantage At the , the Authority Saint John is the only port in Not surprisingly, Lane Farguson is the landlord, administering 260 Atlantic Canada to be served by two (communications advisor for the acres of crown land, including two competing rail lines: CP and CN. It is Halifax Port Authority) is incredibly container terminals and a long list also, says Dixon, the closest ice-free articulate when describing the port’s of real estate properties; at Sheet east-coast port to the inland market. competitive position. “Halifax is a Harbour, it is the operator, on behalf “There’s nothing but opportunities,” deep-water [16 metres], ice free-port of the provincial government. Having he says, referring to those opened by with the capacity to grow,” he says. both ports working together is just the EU-Canada trade deal. “We focus on what we do well, which part of the Authority’s mandate of “While we can connect with Europe is accommodate the big ships that are cooperation in readying for the next right now, from the standpoint of now starting to call on the east coast generation of cargo ships. transit time we’re not as competitive of North America, and work with our “Partnerships are very important as we need to be. We’re very inter- partners to grow the container busi- for us,” says Farguson. He highlights ested in expanding our container ness in Halifax and, by extension, strong relationships between carriers, shipping services specifically to have the economy of Atlantic Canada and terminal operators, CN Rail, pilots, better connections to Europe.” eastern Canada.” tug companies, and organized labour, Shipping is important to the local The Halifax Port Authority over- which are making “operations more economy, he says, but also a part of sees the ports of Halifax and Sheet efficient, thus creating value across the bigger national picture. Harbour, separated by just over 100 our port platform strengths of logis- “It’s important that Canada be well kilometres of Nova Scotia shoreline. tics, intermodal connectivity, and equipped with ports able to take part The two are complementary oper- terminal handling velocity. Supply in worldwide trade,” he says. “We’re ations: while both are equipped to chain efficiency is paramount in the delighted that we’re going to be, on- and off-load breakbulk cargo, global economy.” with this modernization, in an excel- Halifax welcomes cruise lines and the Containerized cargo volume Sheetlent Harbourposition to Ad do 2:Layout so, and with1 8/30/13 our most 7:10 modern AM Page container 1 ships, while through the Port of Halifax was up

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52 Atlantic Business Magazine | September/October 2016 SUPPORTED CONTENT Photos provided by Halifax Port Authority

The ports of Halifax and Sheet Harbour are complementary operations. Halifax welcomes cruise lines and the most modern container ships, while Sheet Harbour is the destination port for oversized and specialized cargo such as wind turbines and fabrication modules.

19.6 per cent in the first half of 2016 throughout North America. Enhance- the Midwestern U.S., Chicago. And over the same period last year. This ments to the Panama Canal also open then in reverse, we’re getting a lot of is encouraging, says Farguson, indi- opportunities for Halifax from the product from those areas that goes cating Halifax is keeping up with the other direction. through Halifax before shipping out major shipping industry transitions: “Everyone thinks Europe is our to the rest of the world.” not only are container ships getting prime partner,” says Farguson. Although containerized traffic considerably larger and requiring “Europe remains a key market, but through the Port of Halifax could more dockside depth, but travel we’re also seeing considerable triple with no significant changes to between continents is becoming growth from China and Southeast infrastructure, there is work ahead to more efficient and cost-effective. Asia via the Suez Canal.… Sixty-six per make the most of this capacity. The recent expansion of the Suez cent of what arrives in Halifax is inter- “We’ve seen over a quarter billion Canal opens a direct route for goods modal, taken off the ship and trucked dollars in investment over the last 10 to move to/from China to Halifax, and or trained into Montreal, Toronto, years into facilities in Halifax to make

Small change. BIG IMPACT. Making the Port of Halifax part of your supply chain can have a huge impact on your bottom line. See how at shiphalifax.com.

SUPPORTED CONTENT atlanticbusinessmagazine.com | Atlantic Business Magazine 53 Photos provided by Marine Atlantic Marine by provided Photos

Marine Atlantic is considered an extension of the TransCanada Highway, connecting Newfoundland and Labrador to Nova Scotia. Approximately 100,000 commercial vehicles make the crossing each year.

sure that we are big-ship ready and that we can be ahead of the industry. This includes our investment as a port authority, federal funding, and invest- ment by terminal operators including new cranes to accommodate these ultra-large vessels. Everyone is working together to make sure the pieces are in place.”

land and Canada] in 1949 say that The floating highway there is to be a freight and passenger Although Marine Atlantic is ferry service; when the Trans-Canada known as a provider of passenger Highway was finished, it needed to and commercial ferry services, it be able to carry vehicles. Before that, is perhaps more accurate to think it was railcars that came to Port aux of its route across the Gulf of Saint Basques … eventually the railway went Lawrence between Nova Scotia away and our focus became trucks.” and Newfoundland and Labrador as Because Marine Atlantic’s oper- “Our performance an extension of the Trans-Canada ations are considered a “lifeline Highway. service” committed to in the Terms of record is about “We’re a hybrid service,” says Don Union, it is subsidized by the federal 88% on-time.” Barnes, Marine Atlantic’s vice-presi- government. dent of customer experience. “The Don Barnes Today, Barnes says, about 50 per VP customer experience, Marine Atlantic terms of union [between Newfound- cent of the goods that travel to and

54 Atlantic Business Magazine | September/October 2016 SUPPORTED CONTENT from the island of Newfoundland a day without ferry service can mean “We’ve been pretty successful over do so on that ferry service; about fast-emptying grocery stores on the the past few years. We’ve lived within 100,000 commercial vehicles make island. our budget and we’ve seen customer the crossing each year. About half of “We have to have a schedule, but satisfaction from commercial cus- those cross with a driver, the other we try to ensure we have enough tomers and passengers improve.” half are “drop trailers” which are capacity available in terms of the picked up by a cab and driver on the number of crossings we plan a year other side of the crossing. to move people in a reasonable Ship to shore Marine Atlantic offers two cross- amount of time,” says Barnes. “We do As the infrastructure upgrades fall ings across the Gulf each day, year- build discretionary sailings into our into place, intermodal connections round. When passenger traffic is up schedule, in which the ship is avail- improve and reliability rates increase, in the summer months, the number able but if we don’t need it, we don’t one of the last remaining hurdles for of crossings is increased and some sail. We watch our schedule over the east-coast marine transport oper- commercial-only trips are added. In year and we change it over the course ators is getting the word out. They the low season, commercial traffic of the year.” say that people in central Canada is the mainstay of the service — The wait time for a commercial often don’t recognize the opportun- goods move on and off the island vehicle looking to cross the Gulf is ities available from their neighbouring at a reasonably consistent rate year- an average of 10 hours, Barnes says, Atlantic ports. round. Boats run, even when at less taking weather delays and cancel- The good news is that regional port than full capacity. lations into account. Overall, the operators are aware of the discon- “From a public service perspective, ferry service’s performance record is nect, and they’re working diligently we’ll have more delays and cancel- about 88 per cent on-time. Recent to deliver that message as they do lations in the winter, so keeping the efficiencies in business process and all things: as timely, efficiently and traffic moving and not allowing it communications (including an elec- effectively as possible. | to back up in advance of weather is tronic notification system for all important to us,” says Barnes. It’s a customers and a drop trailer manage- FEEDBACK balancing act, he admits, to keep ment system) and infrastructure, * [email protected] a @AtlanticBus; @portofHalifax; traffic and goods moving as effi- including new, younger vessels and @PortofBelledune; @MAferries; ciently and economically as possible terminal and dock enhancements, @OfficialOceanex; @PortSaintJohn; — even when the weather turns, and have improved that. #SupportedContent; #SpecialDelivery

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