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Environmental
Design and
Management
Limited

Land Use Plan &
Re-development
Strategy
Appendix D


D.1.2


Container, Breakbulk and Other Liner Services
(Appendix D)

 

 

Besides the many large container carriers, there are also many niche operators which serve markets off the beaten track, or which are not of interest to the major carriers. Even these routes, such as South America, the Caribbean and South Africa are now attracting the attention of companies such as Maersk Line, P&O Nedlloyd and Zim, which call at large ports such as Halifax.

There are certain markets, however, such as Bermuda, Cuba, the Bahamas, South America as well as perhaps South Africa which Sydney might tap into. Theoretically, there are vessels and shipping companies which call at Pictou, Montreal, Quebec City, Sept Iles, Gros Cacouna, and even the Great Lakes which could be approached about including Sydney in their port rotation. But Sydney would have to offer them something they cannot already obtain, either access to a unique cargo, or very attractive cargo-handling and inland shipping rates.

The development of a general cargo base, and shipping services at the SYSCO facility depends on four factors:

  • The facilities
  • Availability of local cargoes
  • Cost of inland transportation
  • Stevedoring / labour costs

The Stevens and Stevens Cape Breton Rail Opportunities Report identified several potential shippers that could use the Cape Breton and Central Nova Scotia Railway. If these cargoes were brought in by water, the total number of car loads per annum are not significant in terms of developing sufficient ‘inducement’ for a shipping line.

Because of the added distance involved, transportation to and from inland markets may be more expensive than from Halifax. On the other hand, Sydney may be closer to certain world markets than other east coast ports, so ocean fright rates may be lower. For shipments such as military equipment and large project cargoes, stevedoring costs will have to be significantly lower to offset the cost of inland transportation. Rail would also have to be available at or very close to dockside.

Icelandic Shipping
Icelandic Shipping (Eimskip) operates a regular liner service between Iceland and North America on a bi-monthly basis using 725 teu geared vessels. Presently, they call at Argentia, Newfoundland, and Shelburne, Nova Scotia. The carry liquor inbound to Argentia for the Newfoundland Liquor Board, and fish outbound to the U.S. They shifted their Nova Scotia port call from Halifax to Shelburne two years ago to escape high port costs in Halifax, and to better serve fish importers on the South Shore. While it is unlikely that Eimskip will switch Nova Scotia ports again, their example may be instructive in terms of the type of line that may be attracted to Sydney.

Cuba
At the present time, there are at least four direct shipping services between Canada and Cuba, three of which call at Halifax: Coral Container Line, Melfi Lines and as of November 1999, Licorne Navigation. All of these lines are to some degree dependent upon rail service to and from Ontario and Quebec. However, if a unique cargo in the Sydney region could be identified, then perhaps one of these lines could be enticed to leave Halifax.

Russia & Baltic States
It has been more than 10 years since the Berlin Wall came down, and the former communist states in the Eastern Bloc began to open up their economies to a more free market system. Surprisingly, there has been little evidence of direct trade links being developed between eastern Canada and Russia or the former Baltic states of Lithuania, Latvia and Estonia. Yet, there are a number of shipping lines that serve the Canadian market via Montreal. Perhaps a unique cargo could be identified in the Sydney region, which might entice a Baltic carrier into that port.

McLean Kennedy, a Montreal shipping agent, represents Maras Linija, which calls at Tallin and St. Petersburg, as well as Kursu Linija, which calls at Klaipeda, Kaliningrad and Tallin. Likewise, Atlantic Ro-Ro Carriers, which calls at Halifax on a monthly basis, serves St. Petersburg and Kaliningrad. Perhaps they could be enticed to Sydney on the same basis as Eimskip was enticed to Shelburne, i.e. lower costs and labour flexibility. Sea Projects Alliance of Montreal specializes in project cargoes of all kinds, and in the Russian market in particular. Volfro is an NVOCC (non vessel owned common carrier), charterer and ship broker, which also specializes in Russia and surrounding countries and Baltic Republics.

South America & South Africa
One little known fact about Nova Scotia ports is that, because of their location on the great circle route, they are closer to ports in south America and Africa than their eastern North American counterparts. For instance, the distance from Sydney to Cape Town is 6,423 nautical miles, whereas it is 6,789 miles from New York. Likewise, it is 4,663 nautical miles from Sydney to Rio de Janeiro and 4,743 miles from New York. Of course, a vessel calling a range of eastern North American ports would first have to sail north to Sydney before commencing its southbound voyage, and Sydney is that much further away from inland markets. The deviation, therefore, for a ship on one of these trade routes to call at Sydney is much less than one might presume. Again, if a cargo unique to Sydney could be identified, then perhaps it could be combined with additional cargoes that the Cape Breton and Central Nova Scotia Railway would carry from inland markets.


 
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