Captain's Soppitt Remarks at Port Outlook 2007
January 30, 2007
WELCOME
GOOD MORNING EVERYONE AND THANK YOU FOR COMING TO OUR PRESS CONFERENCE
CONCURRENT WITH THIS PRESS CONFERENCE WE ARE RELEASING OUR TRAFFIC RESULTS FOR LAST YEAR AND THE CRUISE SCHEDULE FOR THIS YEAR.
OUTLOOK 2007 – IN A WORD - POSITIVE
FIRST OF ALL LET ME TELL YOU THAT THE PORT OF SAINT JOHN IS ALIVE & WELL AND FROM A TRAFFIC PERSPECTIVE THERE WAS PLENTY OF GOOD NEWS IN THE PAST YEAR
TRAFFIC RESULTS
IN 2006 CARGO AT PORT AUTHORITY FACILITIES INCREASED BY 22% ATTAINING 1.7 MILLION TONNES COMPARED TO 1.4 MILLION THE PREVIOUS YEAR.
BULK CARGO INCREASED BY 19%;
- INCREASES IN POTASH (23%) AND SALT (17%);
- INCREASES IN LIMESTONE (3.7%);
- THE BEST YEAR YET FOR MARITIME METALS (75,000);
- IMPORT SUGAR RESUMED AT THE PORT OF SAINT JOHN
FOREST PRODUCTS AND BREAK BULK
- OVERALL INCREASE OF 65%
- 267,000 FOREST PRODUCTS
- AV NACKAWIC, AVCELL, IPP, LAKE UTOPIA
- 19,000 BAGGED CARGO & PROJECT CARGO
CRUISE
ANOTHER SUCCESSFUL CRUISE SEASON:
- 34 CALLS AND ALMOST 88,000 PASSENGERS;
- FOUR ADDITIONAL CARNIVAL CRUISE LINE CALLS;
- NEW CRUISE LINE AT OUR PORT -CRYSTAL CRUISES;
- TWO INAUGURAL CALLS;(CRYSTAL SYMPHONY/STAR PRINCESS)
- QUEEN MARY MADE TWO CALLS AND SPENT OVERNIGHT IN THE PORT;
- BAY OF FUNDY CRUISE PARTNERSHIP;
WHERE WE ARE GOING – OUR FUTURE DIRECTION
OUR STRATEGIC PLANNING WORKSHOP HELD IN MAY FOCUSED ON TRADE DEVELOPMENT AND FACILITY USAGE AND AN INDEPTH DISCUSSION ON OUR DIRECTION.
BY FOCUSING ON THE UNIQUE CAPABILITIES OF THIS PORT AND ITS CENTRAL LOCATION IN THE REGION, THE PORT OF SAINT JOHN WILL BE ESTABLISHED AND PROMOTED AS THE ATLANTIC CANADIAN CENTRE OF MARINE ACTIVITY LINKING NORTH AMERICA TO THE WORLD.
THE DIVERSITY OF OUR PORT, THE EMERGING ENERGY HUB AND OUR CENTRAL LOCATION IN ATLANTIC CANADA AND NEW ENGLAND MAKES THIS ATTAINABLE.
WE HAVE MUCH TO OFFER:
- THE MOST WESTERLY PORT ON THE ATLANTIC SEABOARD AND THE CLOSEST TO CONSUMER AND MANUFACTURING CENTERS CENTRALLY LOCATED IN THE ATLANTIC AND NEW ENGLAND REGION
- WE HAVE A PLETHORA OF DIVERSE FACILITIES TO MEET THE NEEDS IN ALL MARINE SECTORS.THIS GIVES US THE FLEXIBILITY TO ATTRACT A BROAD SPECTRUM OF CARGO.
- WE ARE THE EMERGING CENTER FOR ENERGY IN CANADA AND WE ARE POISED FOR AN EXPLOSION OF GROWTH WITH THE ADVENT OF LNG AND THE PROSPECTS OF A SECOND REFINERY.
- OUR FACILITIES ARE WELL SERVED BY RAIL AND HAVE DIRECT AND UNIMPEDED ACCESS TO MAJOR HIGHWAYS.
- NB SOUTHERN IS THE NUCLEUS OF THREE RAIL SYSTEMS LINKING THE PORT TO THE NORTH, THE WEST AND THE SOUTH.
WE WILL USE THESE STRENGTHS AND DEVELOP A SUPPLY CHAIN LOGISTICS SOLUTION WHICH WILL MAKE SAINT JOHN THE MOST COST-EFFECTIVE, EFFICIENT, ACCESSIBLE AND PREFERRED MARINE GATEWAY IN ATLANTIC CANADA.
ATLANTIC GATEWAY
IN THE WAKE OF ESTABLISING THE PACIFIC GATEWAY INITIATIVE, THE FEDERAL GOVERNMENT IS IN PROCESS OF DEVELOPING A NATIONAL GATEWAY STRATEGY
GATEWAYS AND TRADE CORRIDORS ARE ABOUT ATTRACTING TRADE, HAVING THE NECESSARY INFRASTRUCTURE AND TRANSPORTATION SERVICES AND SUPPORTING SOCIO-ECONOMIC DEVELOPMENT.
THE ST.LAWRENCE AND GREAT LAKES HAVE LAUNCHED THE HIGHWAY H2O BRAND AND A GATEWAY STRATEGY HAS BEEN LAUNCHED BY PORTS ON LAKE ONTARIO AND ON THE ST.LAWRENCE RIVER; ATTENTION HAS NOW TURNED TO AN ATLANTIC GATEWAY AND SAINT JOHN MUST BE AN INTEGRAL PART OF SUCH AN INITIATIVE.
MUCH OF THE DIALOGUE SO FAR HAS BEEN CENTRED AROUND CONTAINERS, HOWEVER ALL CARGO SECTORS NEED TO BE CONSIDERED IF IT IS TO BE A TRUE GATEWAY. IT WILL REQUIRE A COORDINATED EFFORT FROM THE ENTIRE REGION TO MAXIMIZE ALL OF THE ASSETS TO ENCOURAGE USE OF THE GATEWAY. SAINT JOHN WILL PLAY A MAJOR ROLE IN THIS INITIATIVE.
WE WERE PLEASED TO SEE THE PROVINCIAL GOVERNMENT TAKE THE INITIATIVE TO ORGANIZE A NB STAKEHOLDERS FORUM RECENTLY AND SAINT JOHN WAS WELL REPRESENTED.
THE PORT AUTHORITY IS TAKING A LEAD ROLE IN ENSURING WE ARE INVOLVED IN THIS INITIATIVE.
SAINT JOHN GATEWAY COUNCIL
THE NUMBER ONE PRIORITY OF THE PORT AUTHORITY IS TO RAISE THE PORT’S PROFILE ON ALL LEVELS AND INCREASE MARINE ACTIVITY – CARGO, PASSENGERS AND DIVERSIFIED OPERATIONS WHICH CONTRIBUTE TO OUR MARINE BUSINESS
DEVELOPING TRADE IS A SHARED RESPONSIBILITY THAT REQUIRES A TEAM EFFORT FROM A BROAD SPECTRUM OF STAKEHOLDERS - TERMINAL OPERATORS, SHIP AGENTS, RAILWAYS, ROAD, PORT LABOUR, ECONOMIC DEVELOPMENT AGENCIES AND THE THREE LEVELS OF GOVERNMENT. EACH HAS A ROLE TO PLAY AND EACH BRINGS A CRITICAL ELEMENT TO THE TABLE.
THE PORT AUTHORITY WILL BE INVITING THESE STAKEHOLDERS TO PARTICPATE IN THE FORMATION OF A SAINT JOHN GATEWAY COUNCIL WITHIN THE NEXT SIX MONTHS. THIS IS AN IMPORTANT STEP IN POSITIONING SAINT JOHN IN THE ATLANTIC GATEWAY.
BASED ON OTHER MODELS, SUGGESTED STRUCTURE CONSISTS OF REPRESENTATION FROM PORT USERS, ALL MODES OF TRANSPORTATION, THE BUSINESS COMMUNITY AND ALL LEVELS OF GOVERNMENT.
THE GOAL WILL BE TO MARKET THE PORT AS AN INTEGRAL PART OF THE SAINT JOHN REGION WITH AN ESTABLISHED SET OF OBJECTIVES, AIMED AT BRINGING IN NEW CARGO AND BUSINESS AND CONTRIBUTING IN A REAL WAY TO THE “TRUE GROWTH” STRATEGY.
EMERGING GLOBAL MARKETS
CHINA AND INDIA ARE THE TWO STRONGEST EMERGING GLOBAL ECONOMIES. WITH THIS COMES THE POTENTIAL FOR TRADE. THE PORT OF SAINT JOHN IS SEEKING OPPORTUNITIES IN BOTH MARKETS.
INDIA
A STEERING COMMITTEE IS ACTIVE IN IDENTIFYING AND PURSUING OPPORTUNITIES IN INDIA
- BUILDING ON EXISTING RELATIONSHIPS AND DEVELOPING NEW RELATIONSHIPS WITH INDIAN INTERESTS
- OBJECTIVE THIS YEAR IS TO GET SUPPORT FOR A TRADE MISSION TO INDIA IN THE FALL AND INVITE KEY STAKEHOLDERS TO PARTICIPATE.
- THROUGH THIS PROCESS WE WILL IDENTIFY TRADE OPPORTUNITIES LINKING SAINT JOHN AND INDIAN MARKETS.
CHINA
RELATIONSHIPS ARE ALSO KEY TO DEVELOPING TRADE WITH CHINA.
THE FIRST STEP IS TO RAISE THE PORT’S PROFILE IN CHINA
- PARTICIPATION IN TRADE MISSION TO CHINA IN LATE 2005
- BUILDING A RELATIONSHIP WITH THE CHINESE EMBASSY IN OTTAWA
- PARTICIPATE IN A CHINA PORTS AND TERMINALS SUMMIT IN MAY
MARKETING
OUR NUMBER ONE PRIORITY IS TO INCREASE MARINE ACTIVITY AT THE PORT AND SEE ALL OF OUR FACILITIES FULLY ENGAGED.
IN ITS MARKETING EFFORTS THE PORT AUTHORITY IS CONCENTRATING ON DEVELOPING MORE CONTAINER BUSINESS, INCREASING CRUISE, INCREASING BULK CARGO AND DEVELOPING MORE OPPORTUNITIES FOR ON-DOCK BUSINESSES AND INDUSTRIES WHICH WILL COMPLEMENT OUR MARINE BUSINESS.
(ON-DOCK MANUFACTURING, FABRICATION PLANTS, DISTRIBUTION CENTRES,TOURIST-RELATED VENTURES)
CONTAINER MARKET
THE CONTAINER MARKET IS A HIGHLY COMPETITIVE ONE AS HAS BEEN DEMONSTRATED RECENTLY IN HALIFAX. SHIPS OF 5000 TEUS ARE NOW THE NORM ON THE OCEAN TRADE ROUTES AND THIS CAPACITY IS INCREASING. SHIPS ARE GETTING LARGER, PORTS OF CALL FEWER AND DEMANDS ON PORTS TO UPGRADE INFRASTUCTURE INCREASING.
THERE ARE NOW SHIPS OF 11,000 TEUS IN SERVICE AND 15,000 TEU VESSELS ARE BEING CONSIDERED.
TO PUT THIS IN CONTEXT FROM A SAINT JOHN PERSPECTIVE WHEN WE WERE IN OUR HEYDAY WITH CONTAINERS, THE LARGEST SHIPS IN SERVICE HAD A CAPACITY OF 2200 TEUS.
GIVEN OUR EXISTING INFRASTRUCTURE, OUR BEST OPPORTUNITY LIES WITH NICHE MARKETS AND CARRIERS OF 4000 TEUS OR LESS CAPACITY AND NOT NECESSARILY MAIN LINE CARRIERS
WE ARE FOCUSING ON THREE AREAS
- ATTRACTING A SECOND CONTAINER LINE TO THE PORT
- EXPLORING OPPORTUNITIES FOR FEEDER SERVICES AND SHORT SEA SHIPPING AND
- ATTRACTING A MAJOR DISTRIBUTION CENTRE TO THE REGION
OUR FIRST PRIORITY IS TO FIND A SECOND CONTAINER LINE FOR THE PORT, EITHER THROUGH A DIRECT SERVICE OR A FEEDER SERVICE INTO THE U.S.
OUR GREATEST STRENGTH LIES IN THE NORTH-SOUTH
TRADE CORRIDOR LINKING US TO USEC, THE CARIBBEAN, SOUTH AMERICA AND TRAFFIC COMING THROUGH THE PANAMA CANAL.
CRUISE BUSINESS
55 SHIPS AND 138,000 PASSENGERS EXPECTED THIS YEAR AND WITH THE ADDITION OF ONE OR TWO DIVERSIONS ACTIVITY IS EXPECTED TO BE IN EXCESS OF 140,000 ESTABLISHING OUR BEST YEAR EVER….TO DATE.
THIS YEAR, MARQUEE PORT FOR THE FIRST TIME. CARNIVAL CRUISE LINES HAVE INCREASED CALLS YET AGAIN ARE CALLING EXCLUSIVELY AT SAINT JOHN ON SEVEN OF THEIR CRUISES OUT OF NEW YORK.
WITH OUR CRUISE DEVELOPMENT PROGRAM, LONG WHARF IS NOW NEEDED AND BEING PROMOTED AS OUR SECOND CRUISE BERTH.
THE FACILITY IS EQUIDISTANT WITH PUGSLEY TERMINAL TO MARKET SQUARE AND IT IS EXTREMELY IMPORTANT THAT THE PASSENGER EXPERIENCE IS COMPARABLE TO THAT AT PUGSLEY TERMINAL.
THIS YEAR WILL SEE EIGHT CRUISE VESSELS AT THIS PIER. ON THESE DAYS, THERE WILL BE A SHIP OF SAME SIZE AT PUGSLEY PUTTING A POTENTIAL 6000 VISITORS INTO THE CITY FOR EIGHT HOURS. IN SEPTEMBER WE WILL HAVE TWO 3-SHIP DAYS BACK TO BACK. THESE WILL BRING OVER 13,000 PEOPLE INTO OUR CITY OVER TWO DAYS.
IMPROVEMENTS AT LONG WHARF
- DEMOLITION OF SHED/ PAVING
- GROUND TRANSPORTATION AREA
- SECURITY ZONE
- NEW RECEPTION TENT/NEW GANGWAYS
AT PUGSLEY TERMINAL WE EXPECT TO MOVE AHEAD WITH THE TERMINAL BUILDING THIS YEAR IN CONJUNCTION WITH THE FURTHER DEVELOPMENT OF WATER STREET AND THE EXTENSION OF HARBOUR PASSAGE. THIS PROJECT WAS UNVIELED LAST FALL WHEN CITY COUNCIL, FOR THE FIRST TIME EVER, HELD A MEETING OUTSIDE CITY HALL AT THE CRUISE FACILTY. A JOINT APPLICATION FOR FUNDING IS PENDING. OUR GOAL IS TO HAVE A BUILDING IN PLACE FOR THE 2008 SEASON.
BULK CARGO DEVELOPMENTS
- FURTHER INCREASES IN SUGAR IMPORTS
- EXPANDING MARITIME METALS OPERATIONS TO INCLUDE SHREDDING OF AUTOS
- PURSUING OPPORTUNITIES IN OTHER COMMODITIES BOTH DRY AND LIQUID
- EXAMINING A BUSINESS CASE FOR INVESTING IN A BULK FACILTY TO CONSOLIDATE BULK OPERATIONS AT THE PORT
INCREASES IN BREAK BULK
- AV NACKAWIC TRANSITION TO RAYON PULP THIS YEAR WILL LEAD TO INCREASED TRADE WITH INDIA
- LUMBER CARGOES TO EUROPE
- PAPER PRODUCTS TO CENTRAL AMERICA
- ANTICIPATE FURTHER OPPORTUNITIES FOR PROJECT CARGOES
SPIN-OFFS FROM ENERGY HUB
WITH THE CONTRUCTION OF THE LNG TERMINAL UNDER WAY THERE HAVE ALREADY BEEN SPINOFFS FROM THIS PROJECT.
THESE ARE EXPECTED TO CONTINUE IN THE NEXT FEW YEARS. AT PRESENT, TWO OPERATIONS HAVE SET UP ON THE WEST SIDE CONNECTED WITH THE CONSTRUCTION OF THE TERMINAL.
THE REFURBISHMENT OF COLESON COVE, POINT LEPREAU AND THE PROSPECTS OF A SECOND OIL REFINERY WILL ALSO LEAD TO OPPORTUNITIES FOR PROJECT CARGO FOR THE PORT.
FPC IS MOVING TOWARDS RAMPING UP PRODUCTION OF GAS TRANSPORTATION MODULES AT SHED D ON THE WEST SIDE. THIS WILL LEAD TO IMPORTS OF LARGE DIAMETER STEEL PIPE, FABRICATION OF THE MODULES ON PORT PROPERTY AND FITTING OUT NEW-BUILDS AT THE PORT OF SAINT JOHN.
WE ARE ALSO TALKING TO ANOTHER PARTY INTERESTED IN A SIMILAR OPERATION. THIS WOULD ALSO HAVE A MARINE COMPONENT AND WILL BE ANOTHER EXAMPLE OF HOW THIS PORT IS PREPARED TO DIVERSIFY ITS OPERATIONS TO MEET THE NEEDS OF THE INDUSTRY.
PORT INFRASTRUCTURE/CAPITAL INVESTMENTS 2007
THE PORT AUTHORITY INVESTS AN AVERAGE OF $3 MILLION ANNUALLY IN PORT INFRASTRUCTURE. THIS IS GENERALLY UNSEEN AS IT GOES INTO KEY PROJECTS, WHICH ENSURE THE INTEGRITY OF EXISTING FACILITIES.
AT THE SAME TIME THE AUTHORITY NEEDS TO INVEST IN NEW PORT DEVELOPMENT IN AREAS THAT ARE PROJECTING GROWTH.
THIS YEAR $8 MILLION HAS BEEN BUDGETED FOR CAPITAL IMPROVEMENTS, THE MOST SIGNIFICANT BEING THE CRUISE TERMINAL BUILDING.
OTHER INVESTMENTS INCLUDE CONTINUED UPKEEP OF OUR MAJOR TERMINALS AND IMPROVEMENTS AT LONG WHARF.
PORT SECURITY
SECURITY CONTINUES TO BE A HIGH PRIORITY FOR GOVERNMENT AND IN THE MARINE INDUSTRY.
THE PORT AND ITS FACILITIES ARE COMPLIANT WITH INTERNATIONAL MARINE SECURITY REQUIREMENTS.
FURTHER SECURITY MEASURES IN THE FORM OF RESTRICTED AREA2S ARE BEING INTRODUCED AT MARINE FACILITIES HANDLING CONTAINERS AND CRUISE SHIPS.
THESE AREAS ARE ESTABLISHED AROUND CRITICAL INFRASTRUCTURE, WORKING AREAS AROUND SHIPS, CARGO STORAGE AREAS AND AT CRUISE TERMINALS. ACCESS TO THESE AREAS WILL BE RESTRICTED TO HOLDERS OF SECURITY CLEARANCES.
THEY WILL BE IN PLACE IN VANCOUVER, MONTREAL AND HALIFAX BY THE END OF THIS YEAR AND BY THE END OF 2008 AT OTHER PORTS INCLUDING SAINT JOHN
THIS YEAR THE PORT AUTHORITY WILL BE PREPARING FOR THESE MEASURES AND WILL BE INTRODUCING CCTV CAMERAS AROUND THE PORT.
THE REQUIREMENT FOR R2S AT OUR CRUISE FACILITIES WILL BE INCORPORATED INTO TERMINAL DESIGN AND INTO CRUISE OPERATIONS.
WE WILL CONTINUE TO WORK WITH THE PORT COMMUNITY AND STAKEHOLDERS IN THE IMPLEMENTATION OF SECURITY CLEARANCE PROGRAMS AND R2S
FUTURE DIRECTION
FACILITY USE
- MAINTAIN INTEGRITY OF AND PROMOTE THREE MAJOR TERMINALS
- CONCENTRATE CRUISE AND CRUISE-RELATED ACTIVITIES AT PUGSLEY TERMINAL AND LONG WHARF
- DEVELOP LOWER COVE TO BE AN ACTIVE MARINE TERMINAL
- DEVELOP A CASE FOR REDEVELOPMENT OF LOWER WEST SIDE
BUSINESS DEVELOPMENT
OVER THE NEXT FIVE YEARS WE WANT TO:
- REACH 100,000 TEUS IN CONTAINER VOLUMES
- REACH 200,000 CRUISE PASSENGERS/YEAR
- ACHIEVE 1.75 MILLION TONNES OF BULK CARGO
- SUBSTANTIALLY INCREASE BREAK BULK CARGO
- ESTABLISH ON-DOCK OPERATIONS TO COMPLEMENT MARINE ACTIVITY
CONCLUSIONS
DEVELOPING OUR BUSINESS, IMPROVING OUR FACILITIES AND POSITIONING OUR BRAND FOR FUTURE GROWTH WILL COMPLEMENT AND STRENGTHEN THE BUSINESS COMMUNITY’S EFFORTS TO CREATE SUBSTANTIAL GROWTH FOR SAINT JOHN FOR GENERATIONS TO COME. WE LOOK FORWARD TO PLAYING OUR PART.
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