Sea port could support cheap, efficient shipping.

The Thunder Bay and Duluth ports, along with government agencies, have put their oars in the water with a keen interest in propelling a trans-lake shipping initiative forward.

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The Canadian Seaway Authority is testing the waters with a project aimed at bringing smaller ships into the Thunder Bay and Duluth ports, says Tim V. Heney, director of operations for the Thunder Bay Port Authority. Still in the formative stages, they are working in partnership with both ports to bring what is called short sea shipping (cross-lake shipping) to the inland ports. In this case, the distance would be 200 miles, 12 months of the year.

But vessels currently in use are too large for inland seaway transportation. So European ship building companies, known the world over for their smaller vessel design with reinforced ice breaking hulls, were called in. Together, the group will determine the economics of the initiative and the kind of vessels needed for the carriage of goods from one port to the other.

"European companies have some pretty innovative ideas on mechanized vessels for loading and unloading," Heney says.

Marine transportation is said to be one the most affordable means of moving goods long distances. Short shipping will only work if a network of companies finds a way to gather enough cargo that can be loaded and unloaded efficiently, Heney says.

"That is when costs come into play."

Along the North Shore of Lake Superior there are 3.5 million tonnes of forest products.

Most of it goes to the United States. Some Thunder Bay forest companies have already expressed an interest in shipping short distances. Like other industries, they are usually at the mercy of one railway and it is a long haul for truckers destined for the U.S., Heney says.

In the United States, there is a push to get traffic off the highways and rails and onto vessels.

The industry is already experiencing a shortage of truckers. Most do not want to travel long stints. So it would make sense to have shipments go to the ports where truckers can retrieve their daily loads, Heney says. The idea is to work "in co-operation with other modes, not in competition with them. I think it has good potential as long as the numbers work."

Should the plan go ahead, smaller vessels may be seen in the Thunder Bay port within two years.

But before the initiative gets the green light, the Thunder Bay port along with other Canadian ports will have to meet United States security requirements. The International Ship and Port Security (ISPS) code, which was implemented last July, requires ships entering American waters to visit ISPS compliant facilities. If a vessel does not meet code regulations, it will be subject to further search and delay by the United States Coast Guard.

Transport Canada has budgeted for a three-year $115 million investment program to assist ports and port facilities with security enhancements. The first round of funding saw $23.6 million dispersed amongst 69 ports and marine facilities across the country. The Thunder Bay Port Authority, Thunder Bay Terminal Ltd. and James Richardson International received $78,000, $29,837 and $21,273 respectively for parameter upgrades, surveillance equipment and training.

"There is a certain level of training to meet this code. The idea is to create security outside of the (U.S.) border so they don't have to worry as much when the ships arrive."

The ISPS standard was founded by the American government, which put vast sums of money into port security, while the Canadian marine industry has had to dig into their own pockets to catch up, Heney says. Therefore, a significant amount of pressure was put on the government to help absorb some of the costs.

Much of the marine program funds have already been spent on the container ports where security is paramount. But because Thunder Bay is a bulk port, it does not have to meet the same requirements for now.

www.thunderbay.ca

By KELLY LOUISEIZE

Northern Ontario Business