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Environmental
Design and
Management
Limited
Land Use Plan &
Re-development
Strategy
Appendix D
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D.1.3
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Project Cargoes (Appendix D)
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Another potential niche that Sydney might develop
is that of project cargoes. Most Canadian-based project cargoes
move out of either the St. Lawrence River or Seaway ports. Most
shippers of project cargoes usually try to bring the vessel as close
as possible to the point of loading or discharge because of the
cost to move these cargoes either by rail or truck. To make Maritime
ports such as Sydney competitive, the "via Sydney" alternative
must be cheaper and more efficient.
On average, it will be $6.00 per tonne just to move the cargo between
Truro and Sydney, as compared with Halifax, which itself has trouble
competing for these cargoes. This cost differential would have to
made up by lower cargo-handling charges than are offered at Halifax
or elsewhere.
The SYSCO wharf could handle rail cars manufactured at Trenton,
NS, as well as locomotives which are manufactured at GM’s
London, Ontario plant, and which currently move on a regular basis
with Jumbo Shipping from Pier 9 Richmond Terminals in Halifax.
Another possibility is the movement of military cargoes, which
are regularly shipped through Halifax and Saint John, and onward
to training bases in the West. There are two companies in Halifax
that specialize in project cargoes; there are many more based in
Ontario and Quebec.
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| D.1.4 |
Steel Transshipment |
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There have been previous discussions with companies
such as Fednav. Fednav is a Canadian-based general cargo line, which
operates worldwide, but specializes on the east coast in carrying
grain outbound from the Great Lakes and steel inbound from Antwerp.
Fednav have advised on previous occasions that they will call at a
port on inducement, for as little as 3,000 tonnes of cargo. Service
to Sydney would be very much dependent upon finding a local base cargo
since the line appears very committed to the St. Lawrence Seaway and
its various terminal operations in that system.
If a local market could be developed or identified in Sydney, perhaps
related to the delivery of pipe for an offshore drilling program
in the Laurentian Channel and Sydney Bight, then perhaps an outbound
cargo service could also be developed. Given its long history of
handling steel products for the steel mill, Sydney would appear
to have an advantage in the handling of all types of steel for the
Maritime market, assuming cost competitive rail and trucking is
available.
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| D.1.5 |
Ferries |
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It has been suggested that there may be an opportunity
for a private sector investor to provide service across the Gulf from
Sydney to the Avalon Peninsula, to compete with both Marine Atlantic
and Oceanex from Halifax and Montreal. Assertions in the Stevens report
that the present routing is due to ‘politics’ are unfounded.
It is a cost, efficiency and cargo issue. The cost to rail containers
to Halifax is less than to Sydney. It is more efficient to load them
with container gantry cranes than ro-ro, and, most important, there
is overseas transshipment cargo available from foreign shipping lines
that call at Halifax.
Two recent studies have suggested that there is potential to operate
from Georgetown, PEI to Newfoundland or from Belledune, NB to Corner
Brook. The Marine Atlantic service was at capacity in the summer,
before the company took delivery of a new ferry in 2001. Should
a new service from Sydney be started, it would be geared to truckers,
and perhaps rail cargo developed in conjunction with Railtex and
CN. CN is tied into a long-term contract with Oceanex, but Railtex
have indicated in previous discussions that it might be able to
develop their own cargoes, particularly to and from western Massachusetts,
and points in the mid-west.
Operating from Sydney to Argentia would allow for quicker vessel
turnarounds than Oceanex can accomplish with its Halifax service,
a major consideration for truckers and the main reason they continue
to use Marine Atlantic’s ferry service. There is the possibility
that Marine Atlantic’s Argentia service could be privatized
and operated on a year-round basis.
A ferry service operating from SYSCO would require an investment
in some additional infrastructure, such as a roll-on, roll-off ramp
or linkspan, as well as back up areas for marshalling trailers.
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| D.1.6 |
Supply Bases |
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Like other sites in Sydney Harbour, particularly Sydport
and Sydney Marine Terminal, SYSCO could serve as an offshore supply
base, providing it was segregated from bulk handling. Also, perhaps
more important, supply boats require preferential berthing, which
may not be possible when large Panamax coal vessels are in port.
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| D.1.7 |
Implications for the Development
of the SYSCO Wharf |
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The main issue in terms of developing the SYSCO wharf
is the compatibility of various cargoes, both bulk and general cargo.
There are issues with respect to handling coal, gypsum, limestone,
dolomite and wood chips at the same facility. They can be segregated,
but non-coal cargo should probably be covered to avoid contamination.
This will add another cost factor.
Another issue is the length of time large Panamax coal vessels
can take to unload, which can be up to 10 days using the existing
equipment, but when it is upgraded will be 5-6 days for a 50,000-60,000
tonne shipment. Tying up the berth for this amount of time is incompatible
with attracting container, break bulk or other liner-type shipping
services. It is also not conducive to handling supply vessels or
developing the site as an offshore supply base. With proper scheduling,
however, there would not likely be any problem using it to load
or unload pipe for a pipe-coating operation.
The port corporation is considering the conversion of part of the
storage shed on the wharf into a tourist reception facility, with
stalls for crafters and local artists.
In terms of a port to emulate, Sydney and SYSCO should look at
Norfolk, New Orleans and Rotterdam internationally, as well as Belledune,
Sept Iles, and Quebec City. Kinder Morgan operates state-of-the-art
terminals throughout North America. Locally (i.e. in Canada), Logistec,
who have a six-month deal with NSPI have considerable expertise.
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| D.1.8 |
Implications for Development |
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To handle container, break bulk or project cargoes,
a 15-20 acre parcel of flat, preferably paved or ‘improved’
back up land would be required within close proximity to the wharf.
Ideally, this back up land would be accessible by rail and highway.
Many of these cargoes could also be handled elsewhere in Sydney
Harbour such as Sydney Marine Terminal (requires rail) or the Sydport
facility, which may require wharf improvements.
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