Seaspan Helps Provide Marine Industrial Grant

By Mark Edward Nero

On June 23, Canada-based marine services corporation Seaspan, in conjunction with a US charitable foundation, announced a multi-year, multi-million dollar investment in the future of British Columbia’s marine industrial sector.

The donation has been given in support of the Industrial and Regional Benefits Policy program under Canada’s National Shipbuilding Strategy.

The commitment, totaling $2.9 million, includes a three-year, $900,000 donation by the Dennis and Phyllis Washington Foundation to three Canadian institutional trades training programs: the British Columbia Institute of Technology to support Aboriginals in trades; Camosun College to support women in trades; and the Canadian Welding Association Foundation for both new welding equipment and teacher professional development.

In addition, the commitment also consists of a $2 million investment by Seaspan to support innovative teaching and research for the Naval Architecture and Marine Engineering programs at the University of British Columbia’s Faculty of Applied Science.

“Seaspan is thrilled to honor four community and industry partners that are helping us develop and grow a shipbuilding and ship repair center of excellence in British Columbia,” CEO Jonathan Whitworth said in a statement. “Today’s announcement demonstrates an unwavering investment in attracting, training and retaining the labor force and expertise we need.”

The Foundation’s three-year commitment will extend through 2018, while UBC will receive Seaspan’s multi-million dollar investment over the next seven years.

“These investments will allow students to gain the skills they need to contribute to Canada’s economy,” Canadian Minister of Innovation, Science and Economic Development Navdeep Bains said. “They will also ensure that our shipbuilding industry will have the skilled tradespeople it needs to excel and grow.”

Dennis and Phyllis Washington Foundation is a 28-year-old Montana-based charity that has a primary mission of giving people tools to improve their lives. It furnishes grants to nonprofit organizations in the categories of education, health & human services, community service and arts & culture.

“Giving people the tools they need to succeed in life is a primary goal of the Foundation and the partnership with Seaspan to promote access to state-of-the art training in the trades is directly aligned with the mission and goals of the Foundation,” Dennis and Phyllis Washington Foundation Executive Director Mike Halligan said.

Seaspan CEO Named Vancouver Exec of Year

By Mark Edward Nero

Marine services company Seaspan announced June 13 that Chief Executive Officer Jonathan Whitworth has been named 2016 British Columbia CEO of the Year by news publication Business in Vancouver.

Each year Business in Vancouver and its partners seek nominations for British Columbia’s most outstanding business people in private and public sector companies to honor them for their achievements.

Seaspan’s Whitworth has been named the winner of this year’s Enterprise Category, the largest of all the awards. The category is open to companies with annual revenues of $500 million and above.

Upon arriving with Seaspan in 2009, Whitworth has helped transform the 130-year old company by modernizing its fleet and facilities, maturing its operations to meet international standards, and investing in technology to drive efficiency.

In addition, the Government of Canada formed a partnership with Seaspan’s Vancouver Shipyards in October 2011 to build non-combat vessels for the Canadian Coast Guard and Royal Canadian Navy.

Vancouver Shipyards is expected to build up to 17 vessels, worth $7.3 billion Canadian, over the next 10 to 15 years.

“Thanks to his past history as an officer in the Merchant Marine, Jonathan is one of few vessel owners/shipyard leaders in North America who has sailed at sea and commanded a vessel,” Seaspan Chairman Kyle Washington said. “His unique experience, combined with a highly strategic approach and passion for the industry has enabled him to focus on the tactical steps to safely and efficiently run a multi-dimensional company such as Seaspan.”

Vancouver Shipyards Lands Science Vessels Contract

By Mark Edward Nero

Seaspan’s Vancouver Shipyards has signed a $35 million contract with the Canadian division of global technology company Thales regarding the electronic systems for the construction of three Offshore Fisheries Science Vessels for the Canadian Coast Guard, Seaspan and Thales both announced May 26.

Thales in Canada is responsible for the selection, procurement and integration of the electronic systems and equipment on the vessels being constructed, including radar, communications, bridge and mission systems.

“Seaspan is full-steam ahead on the production and delivery of its first two National Shipbuilding Strategy Non-Combat vessels, and we are pleased and excited to partner with Thales’ world-class team of experts,” Seaspan Shipyards President Brian Carter said in a statement.

Seaspan on March 29 announced the start of production on the second of the three OFSVs. According to Thales, progress continues on the first OFSV with 37 of 37 blocks currently under construction. Thales has been under contract for the initial phases of the OFSV project since 2013, and is also under contract with Seaspan for initial phases of the Offshore Oceanographic Science Vessel (OOSV) for the CCG and the Joint Support Ships (JSS) for the Royal Canadian Navy.

The three Canadian Coast Guard science vessels are scheduled to be delivered before the end of 2017.

Seaspan Receives $65 Million in Shipbuilding Contracts

By Mark Edward Nero

The Canadian government on March 14 announced the signing of two new contracts valued at more than $65 million with Seaspan’s Vancouver Shipyards as part of the government’s National Shipbuilding Strategy.

The National Shipbuilding Strategy is a federal effort to renew the fleets of the Royal Canadian Navy and Canadian Coast Guard.

The contracts with Vancouver Shipyards are expected to help pave the way for future construction of the Canadian Coast Guard’s offshore oceanographic science vessel and the Royal Canadian Navy’s joint support ships at Vancouver Shipyards by enabling Seaspan to initiate early discussions with potential suppliers and purchase necessary material and equipment.

With the new contracts now in place, specialized parts such as propulsion systems, scientific equipment, generators and steel can be ordered prior to start of construction.

“Today is an exciting day for Seaspan and marks a major milestone for the National Shipbuilding Strategy as we continue to rewrite shipbuilding history in Canada,” Seaspan Shipyards President Brian Carter said. “This announcement is a strong reminder of the progress being made under the NSS. Its impact will continue to increase opportunities for Canadian companies and provide jobs for Canadians that flow from our delivery of vessels to the Canadian Coast Guard and Royal Canadian Navy.”

Seaspan’s Vancouver Shipyards says it has awarded $380 million in contracts to date to suppliers in Canada, and that over 160 Canadian companies have already benefited from the investments.

It is estimated that Seaspan’s National Shipbuilding Strategy work will create more than 2,300 direct, indirect and induced jobs annually and produce almost $290 million per year in Gross Domestic Product for Canada’s economy.

New Vancouver Shipyards VP Announced

By Mark Edward Nero

British Columbia-based transportation company Seaspan Marine said Jan. 4 that Ian Brennan has joined its subsidiary Vancouver Shipyards as Vice President, Supply Chain Management & Contracts.

As part of Seaspan Shipyard’s executive team, he’ll be responsible for and day-to-day oversight and direction of supply chain, warehousing and logistics, procurement, and contracts and subcontracts in support of new vessel construction at Vancouver Shipyards.

He joins the company from General Dynamics Mission Systems – Canada where he was chief counsel and corporate secretary. In that role, he was responsible for export/import, anti-bribery and trade restrictions compliance, intellectual property and licensing matters, design and management of procurement terms and conditions of purchase and sale, and all commercial and legal matters.

Prior to that, he was Commercial and Procurement Director for Project Management International Ltd. in the United Kingdom. Overall, he has more than 27 years of experience in the shipbuilding and heavy project construction industries.

“I am very pleased to welcome Ian to the team at Vancouver Shipyards,” Seaspan Shipyards President Brian Carter said. “Ian’s diverse corporate and shipbuilding experience coupled with his proven success in delivering on complex projects will be an asset for Seaspan’s new construction program.”

BC Ferries Receives Vessel from Seaspan

By Mark Edward Nero

BC Ferries, the contract service provider responsible for ferry service along coastal British Columbia, has officially taken ownership of a new cable ferry, the Baynes Sound Connector. The vessel’s title was transferred from Seaspan’s Vancouver Shipyards in mid-November.

According to BC Ferries, the new cable ferry met or exceeded all contract specifications, during rigorous acceptance trials and testing conducted by Seaspan, including speed and lower fuel consumption compared to the Quinitsa, the vessel currently in service on the route.

“We are very pleased with the new cable ferry’s performance,” BC Ferries’ President and CEO Mike Corrigan said. “In operational trials, the vessel exceeded its maximum design speed of 8.5 knots fully loaded, achieving a speed of 8.7 knots, with crossing times consistent with the Quinitsa.”

“All speeds have been achieved on the designed one engine operation, and the second engine is there for complete redundancy,” Mark Wilson, BC Ferries’ Vice President of Engineering, explained. “The horsepower of one engine is approximately 490, compared to the Quinitsa, which has four engines at 475 horsepower each.”

The trials indicated significantly lower fuel consumption than the current vessel, he added.

BC Ferries says it will now conduct crew training and familiarization over the next eight weeks as the company prepares for full operational service. The Baynes Sound Connector is expected to be in full operational service in early February 2016. BC Ferries says passengers will continue to be served by the Quinitsa until the Baynes Sound Connector goes into service.

BC Ferries Sea Trials

By Mark Edward Nero

BC Ferries, which provides ferry service along coastal British Columbia, has two of its vessels conducting sea trials in the Saanich Inlet from Sept. 21 to 24 in order to demonstrate the vessels’ performance for three shipyards bidding on the mid-life upgrades.

The Spirit of Vancouver Island and Spirit of British Columbia are scheduled to undergo upgrades that include conversion to dual-fuel so the ferries can operate on liquefied natural gas.

Both vessels are undergoing two days of sea trials to demonstrate the operational profiles of the ships including vessel maneuverability, acceleration and speed. The trials are to provide the shipyards with data on control system parameters as well as peak power loads in variable weather, tide or current conditions.

“This is an important step in the bidding process for the shipyards so they can measure and verify vessel performance to provide the optimal propulsive machinery arrangements they submit as part of their bids,” Mark Wilson, BC Ferries’ Vice President of Engineering, explained.

The three shipyards bidding on the project are Seaspan’s Vancouver Shipyards, Remontowa SA of Poland and Fincantieri of Italy. Over the next three months, BC Ferries says, it will negotiate with the three proponents to select the final bidder and award a contract for the Spirit Class mid- life upgrades and conversions in early 2016.

BC Ferries plans for the Spirit of British Columbia to be the first ship through the MLU and LNG conversion process and commence actual conversion from the fall of 2017 through the spring of 2018, and the Spirit of Vancouver Island to follow the next year, from the fall of 2018 through the spring of 2019.

In order to accommodate the sea trials, the Coastal Celebration is replacing the Spirit of Vancouver Island on September 21 and 22. On September 23 and 24, the Queen of New Westminster fills in for the Spirit of British Columbia.

Vancouver Shipyards Shortlisted for Ferry Upgrades

By Mark Edward Nero

BC Ferries, the government-contracted service provider of ferry service along coastal British Columbia, said July 9 that it has shortlisted three shipyards, including one in British Columbia, for its Spirit-class vessels’ midlife upgrades, including conversion to dual fuel so they can operate on liquefied natural gas.

Seaspan’s Vancouver Shipyards, Remontowa SA of Poland and Fincantieri of Italy were shortlisted from the five shipyards that responded to BC Ferries' request-for-proposals process. More than 20 national and international shipyards expressed interest in the initial stages of the procurement process.

BC Ferries said it would negotiate with the three proponents over the next three to five months to select the final bidder.

Originally, BC Ferries was planning the midlife upgrade (MLU) and LNG conversion for the Spirit of Vancouver Island to occur in the fall of 2016 through the spring of 2017 and that of the Spirit of British Columbia the following year.

However, BC Ferries says it is deferring the project for a year to ensure sufficient equipment procurement lead times, detailed engineering and necessary regulatory approvals, and perform additional financial due diligence. The one-year deferral is expected to allow BC Ferries to obtain even more technical clarity and commercial certainty, while regaining program schedule contingency.

“Due to the complexity of this major project, we need more time for engineering design to ensure we meet our own high standards for delivering major capital projects on time and on budget,” BC Ferries’ vice president of engineering, Mark Wilson, explained.

BC Ferries plans for the Spirit of British Columbia to be the first ship through the MLU and LNG conversion process and commence actual conversion from the fall of 2017 through the spring of 2018. The Spirit of Vancouver Island is expected to follow from the fall of 2018 through the spring of 2019.

BC Ferries said it expects to award a contract for the Spirit-class midlife upgrades and conversions to the successful bidder by late fall of this year.

Vancouver Shipyards Hosts Ceremonial Steel Cutting

By Mark Edward Nero

Vancouver Shipyards, a Seaspan company, has begun construction on the first ship being built under Canada's National Shipbuilding Procurement Strategy (NSPS), a Canadian Coast Guard offshore fisheries science vessel (OFSV).

On hand June 24 for the ceremonial steel cutting were Diane Finley, Canada’s Minister of Public Works and Government Services and Parliament members Andrew Saxton and John Weston.

It was also announced that the first ship is being named CCGS Sir John Franklin in honor of the Arctic explorer whose expeditions nearly 200 years ago laid the foundations of Canada’s claims of Arctic sovereignty.

The steel-cutting event follows the recent award of an incentive-based build contract to Vancouver Shipyards for the construction of three OFSVs, which are to be delivered together under a ceiling price of $514 million before the end of 2017. Following the completion of the OFSVs, Seaspan is expected to then build one Offshore Oceanographic Science Vessel (OOSV), two Joint Support Ships (JSS), one Polar Icebreaker (PIB) as well as up to five Medium Endurance Multi-Tasked Vessels (MEMTV) and up to five Offshore Patrol Vessels (OPV), with more opportunities to follow in the future.

“Seaspan is changing the course of shipbuilding history on the west coast of Canada, and today's ceremony marks the most significant milestone yet for the National Shipbuilding Procurement Strategy,” Seaspan Shipyards President Brian Carter said. “Today is day one of many years to come of planned ship production at Vancouver Shipyards for the Canadian Coast Guard and the Royal Canadian Navy.”

BC Ferries Christens World’s Longest Cable Ferry

By Mark Edward Nero

British Columbia transportation service provider BC Ferries unveiled the name of its newest vessel, Baynes Sound Connector, at a special ceremony at Seaspan’s Vancouver Shipyards on May 8. The new cable ferry is expected to join the BC Ferries’ fleet on the Buckley Bay – Denman Island route later this summer.

BC Ferries’ newest ship is named after the specific geographic area in which it will operate. The name Baynes Sound Connector reflects the channel that the ferry will be crossing, following with marine tradition for most cable ferries around the world.

The vessel measures 78.5 meters (257.5 feet) and can accommodate 50 vehicles and 150 passengers and crew. The cable ferry will operate with one drive cable and two guide cables. With a crossing of about 1,900 meters (6,233 feet) it is, for now, the longest cable ferry in the world, capable of speeds of 8.5 knots with a normal service speed of 7.5 knots.

Mike Corrigan, BC Ferries’ President and CEO, called the christening “a special milestone” and thanked the Seaspan workers for producing “a fine vessel.”

“Seaspan has a deep-rooted and established relationship working with BC Ferries to build and repair ships for the people of British Columbia, and we are proud to construct, and officially christen its first-ever cable ferry,” Seaspan Shipyards President Brian Carter said.

The plan is for Baynes Sound Connector to be towed to Buckley Bay on Vancouver Island late May. In June and July, BC Ferries’ crews are scheduled to undergo training and familiarization on the cable ferry in preparation for passenger and vehicle service. After receiving certification from Transport Canada and classification society Lloyd’s Register, the cable ferry should enter service by late summer.

Victoria Shipyards Names New VP/GM

By Mark Edward Nero

Joe O’Rourke has joined Victoria Shipyards as its new vice president and general manager, the company said Feb. 19. O’Rourke is replacing long-serving vice president and general manager Malcolm Barker, who’s retiring this spring after more than 21 years with the company.

O’Rourke has nearly 30 years of experience in positions of leadership and senior management throughout North America. He joins Seaspan after most recently serving as a senior vice president with Vigor Industrial in Oregon.

In his new role, he’ll be responsible for the company’s operation, as well as building and maintaining mutually beneficial relationships with customers and suppliers throughout the shipbuilding and ship repair industry, according to the company.

“Joe’s diverse experience and track record of proven leadership across diverse sectors of the North American marine transportation industry will be an asset,” Seaspan Shipyards President Brian Carter said. British Columbia-based Victoria Shipyards is a Seaspan company.

The retiring Barker, who began his shipbuilding career at the age of 16, has been in the marine industry for about 40 years, including the last 21 years with Victoria Shipyards.

“Malcolm has been instrumental in successfully building Victoria Shipyards to the thriving organization it is today and words cannot express the sincere gratitude we have for his leadership and accomplishments,” Carter said. “Throughout Malcolm’s tenure, Victoria Shipyards has grown steadily and earned a reputation for its quality work in new construction, major ship upgrades and ship repair.”

O’Rourke and Barker are expected work closely in the coming weeks to ensure a thorough and seamless leadership transition process, according to Seaspan.

Victoria Shipyards Receives Excellence Award

By Mark Edward Nero

The Canadian branch of advanced technology company Lockheed Martin has given its first Supplier Excellence Award to Victoria Shipyards for its work and contribution to the Royal Canadian Navy’s Halifax Class Modernization-Combat Systems Integration project.

HCM-CSI is a modernization program for the mid-life upgrade of radars, major critical sensors, command and control systems, operations room and a suite of simulation and training systems. Victoria Shipyards, which is part of Canadian maritime industry company Seaspan, has managed the disassembly and removal of legacy systems, the retrofit and renovation of space on-board, and the installation of new systems and sensors for the five West Coast-based Halifax Class frigates under contract to LM Canada MST.

Work completed on Canada’s frigates is also providing opportunities to expand the program internationally. Lockheed Martin Canada signed a $180-million contract in May 2014 to supply the combat equipment to modernize New Zealand’s Te Kaha and Te Mana Anzac-class frigates. The first NZ frigate slated for modernization is expected to arrive at Seaspan’s Victoria Shipyards in mid-2016, contingent on a contract being finalized this year.

“We are grateful to Lockheed Martin Canada for bestowing on us its Supplier Excellence Award for our work on HCM,” Seaspan Shipyards President Brian Carter said. “Our contribution has benefited from a strong working relationship with Lockheed Martin Canada, an unwavering commitment of our Victoria Shipyards tradesmen and management and an effective working relationship at the shipyard with the Royal Canadian Navy.”

Seaspan Completes Shipyard Modernization

By Mark Edward Nero

Seaspan-owned Vancouver Shipyards on Nov. 6 officially celebrated the completion of a two-year, $170 million shipyard modernization project.

The project, funded entirely by coastal transport company Seaspan Marine Corp., transformed Vancouver Shipyards into one of the most modern facilities in North America, and is expected to allow for the effective and efficient delivery of vessels for the Canadian Coast Guard and Royal Canadian Navy.

The new facilities include Canada’s largest permanent gantry crane, four new fabrication buildings and a new load-out pier.

“We have built a state-of-the-art shipyard right here in North Vancouver, tailor-made to support Seaspan’s role as the non-combat capability provider to the Government of Canada’s National Shipbuilding Procurement Strategy,” Seaspan CEO Jonathan Whitworth said.

The completion of the modernization project coincides with the commencement of construction on two initial blocks for the first ship, the Canadian Coast Guard’s Offshore Fisheries Science Vessel, slated for completion by the summer of 2016.

“We have begun our work for the Canadian Coast Guard on the initial blocks of the first Offshore Fisheries Science Vessel,” Seaspan Shipyards President Brian Carter said. “We estimate the new vessel construction work we will do for the Canadian Coast Guard and Royal Canadian Navy will result in the creation of 5,000 direct, indirect and induced jobs over the next 20 years, produce almost $500 million per year in gross domestic product for B.C.’s economy, and mean thousands of people will get the opportunity for an exciting career in shipbuilding.”

Once full production on the new vessels commences in the spring of 2015, Seaspan says, it will also create stable work over the next decade for suppliers throughout British Columbia and across Canada.

In addition to the Vancouver Shipyards project, Seaspan has invested an additional $15 million to upgrade facilities at Victoria Shipyards. Work, which includes a new operations center to support testing, trials and commissioning of the new federal vessels, is expected to be complete by the end of 2014.

Seaspan, Unions Enter Binding Arbitration

By Mark Edward Nero

Vancouver, British Columbia-based shipbuilder Seaspan on June 14 formally signed agreements with both the Canadian Merchant Service Guild and International Longshore Warehouse Union Local 400 to enter into binding arbitration/mediation to settle a labor dispute.

“Following extensive discussions with the Honorable Kellie Leitch, Minister of Labor and Minister of the Status of Women, Seaspan and both unions have agreed to allow the federal government to appoint an arbitrator who will run the process and be responsible for setting the terms of reference,” Seaspan announced in a news release.

Once the arbitration is complete, the outcome is binding and cannot be challenged by Seaspan or the unions. As part of the agreement, Seaspan has agreed to forgo new contract terms the company had planned to implement on June 9, and both unions have agreed not to strike.

The new seven-year contract would have given tug crew members annual one percent pay increases the first four years, followed by 1.5 percent raises the next three years. But among the sticking points were Seaspan’s desire to gain more flexibility to outsource work, the ability to revise shift schedules and to slash benefits costs by more than half.

Now the contract is on hold as a new deal is being mediated.

“I am very pleased with this outcome,” Seaspan CEO Jonathan Whitworth said. “We look forward to working with both unions and the government appointed arbitrator to bring the contract negotiations to a close as quickly as possible.”

Arbitration comes after more than eight months of collective agreement negotiations between Seaspan and the Merchant Service Guild, which began Oct. 21, 2013. Membership of the Guild consists of about 200 captains, mates and engineers on Seaspan tugs.

Seaspan had also been negotiating with ILWU Local 400, which represents deckhands and cooks on Seaspan tug crews. On June 3, ILWU Local 400 voted unanimously in favor of striking; however the local’s president, Terry Engler said he was hopeful that discussions with the labor minister and Seaspan would lead to an agreement.

Seaspan, Unions Agree to Federal Mediation

By Mark Edward Nero

Vancouver, British Columbia-based shipbuilder Seaspan has apparently averted a strike by its tugboat crewmembers, at least for the time being, by agreeing to enter federal mediation/arbitration.

Following extensive discussions with the Canadian Labor Minister Kellie Leitch, Seaspan announced June 3 that it has signed a Memorandum of Agreement (MOA) with the Canadian Merchant Service Guild, agreeing to enter mediation.

This announcement comes after more than eight months of collective agreement negotiations between Seaspan and the Guild, which began Oct. 21, 2013.

Seaspan has also been negotiating with International Longshore and Warehouse Union, which represents deckhands and cooks on Seaspan tug crews.

As part of the agreement, Seaspan says it will also defer unilateral implementation of a new collective agreement, which was scheduled to take effect June 9. However, the membership of the Guild, which consists of about 200 captains, mates and engineers on Seaspan tugs, went ahead with a previously planned June 4 strike vote, with a “very clear majority” casting ballots in favor of a strike, according to Capt. Mike Armstrong, the Guild’s western branch president.

That being the case though, the Guild hasn’t served Seaspan with a strike notice and has told its members to continue performing their duties as usual for the time being.

“The Negotiation Committee is in favor of continuing to explore the use of mediated arbitration to resolve this dispute,” Armstrong said in a memo to Guild members following the strike vote.

The new seven-year contract would give tug crew members annual one percent pay increases the first four years, followed by 1.5 percent raises the next three years. But among the sticking points, the union says, are Seaspan’s desire to gain more flexibility to contract work out, the ability to revise shift schedules and to slash benefits costs by more than half.

On June 3, ILWU Local 400 voted unanimously in favor of striking, however the local’s president, Terry Engler said he was hopeful that discussions with the labor minister and Seaspan would lead to an agreement.