TRANSPORTATION MARINE SPECIAL DELIVERY Atlantic Canada’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 Transport Canada, 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 Oceanex, an intermodal transportation pro- vider operating from the Ports of Montreal, 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 91% 365 on–time days a year performance We are the only daily marine transportation link (excluding weather delays, 2015–16) connecting Newfoundland and Labrador and Nova Scotia and the hundreds of thousands of people who depend on our vital link. a vital link We proudly operate each and every day to transport people, food, fresh produce, fresh fish, medical supplies and almost every other product used daily in Atlantic Canada. Every journey matters. marineatlantic.ca | @maferries Photo provided by Port of Belledune 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 Port Authority 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 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 Irving Oil 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 Port of Halifax, 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.