Thunder Bay Port Authority
Annual Report 2010
Message from the Chair
The Port Authority’s initiative to diversify cargo handled at Keefer Terminal gained momentum over the past
season. In addition to shipments of wind turbines to western Canada, the port handled the Peace Bridge
originating in Spain and destined for the city of Calgary, oilsands equipment, and the export of components of
a methanol plant from Edmonton destined for China. The majority of the project cargo ships were loaded with
grain at the port for the return trip to Europe. The Authority continued to expand laydown areas at Keefer to
facilitate further growth in project cargo shipments.
The 25 per cent import duty on foreign vessels was lifted in 2010 which we believe was a major factor in the
investment of $400 million in new ships for the Great Lakes. These vessels will have greater cargo carrying
capacity, reduced fuel consumption, increased speed and provision for the latest in ballast water treatment
technology. For the first time in history, the Canadian Wheat Board announced that it will be purchasing two
of the new lake vessels, demonstrating the western Canadian farmers’ confidence in the Seaway system.
As part of a major capital plan the Port Authority advanced its development plans for its Intercity property and
is in the process of planning the demolition of the former UGG “M” elevator. It is our belief that this property
provides an excellent opportunity to attract marine-related business to the city.
One of the key issues remains the lack of understanding and awareness of the current and future potential of
the Seaway, the world’s largest inland waterway. We continue to work with all levels of government to raise the
profile of the port and the waterway. The success in the project cargo initiative demonstrates that the Seaway
route can competitively link Europe with the growing market in western Canada.
The world’s greatest increases in grain consumption are forecast to occur in Africa and the Middle East leading
to predictions of improved tonnages through the Seaway. Increasing demand for bulk shipments from western
Canada will create new opportunity for the available capacity in Thunder Bay.
On behalf of the Board I would like to express our appreciation to the staff for their dedication and hard work
throughout the year.
Fred Stille
Chair of the Board
1
Thunder Bay Port Authority
Thunder Bay Port Authority
Board of Directors
The ongoing success of the Port of Thunder Bay benefits Thunder
Bay and the region. Industry leaders bring decades of experience
to the Thunder Bay Port Authority Board of Directors. Each level
of government – federal, provincial and municipal – names a
director for a three-year term. The federal Transport Minister, on the
recommendation of port users, names the remaining four directors.
The Board is autonomous and elects its own chair.
The Authority promotes and invests in the Port of Thunder Bay’s
infrastructure and participates in regional economic development.
To remain a competitive player within the Port System, the
Authority uses first-rate facilities, professional services, and new
technologies to improve operations, enhance performance, and
build the future.
Fred Stille
Chair
Port User Director
Pritam Lamba
Past Chair
Nicholas Pustina
Vice Chair
Municipal Director
Lorne Crawford
Port User Director
Maria Hudolin
Port User Director
Ed Metzler
Federal Director
David O’Brien
Provincial Director
Management
Timothy V. Heney
Chief Executive Officer
Melvin H. Parker
Comptroller & Corporate Secretary
Guy P. Jarvis
Director of Engineering
& Harbour Master
Annual Report 2010
2
Mission
The Mission of the Thunder Bay Port Authority is to
promote and invest in the efficient integration of marine,
rail and road transportation systems and to support
economic development.
Vision
The Vision for the Port of Thunder Bay is to be Western
Canada’s preferred gateway for cargo transiting the
Great Lakes – St. Lawrence Seaway System.
Strategic Objectives
• Diversify marine cargo
• Raise port profile
• Pursue strategic investments
In December 2010, Thunder Bay’s City Council
designated Thunder Bay Port Authority lands as
Community Improvement Plan area. The designation
provides for tax relief on new investment on Authority
lands, and is a significant tool for attracting new
opportunies to Thunder Bay.
3
Thunder Bay Port Authority
Thunder Bay Port Authority (TBPA) is optimistic about the long-term future of the Port of Thunder
Bay. The Port is the western Canadian terminus of the St. Lawrence Seaway System, the longest inland
waterway in the world. The opportunities and challenges are largely determined by the Port’s strategic
role as it relates to the Seaway corridor. The Port was built to provide access to European markets for
western Canadian grain producers through the longest grain supply chain in the world.
For the past five years, an integral part of TBPA’s strategy has been expanding the number of project
cargo ships that come through the Port Authority’s Keefer Terminal. Each shipment results in
significant economic impact to the region as well as providing backhaul capacity for grain exports.
TBPA works with its strategic partners to coordinate the activities of stevedores, trucking companies,
equipment operators, railways and fabricators to ensure that project cargo is handled efficiently and
provides value to the shipper.
Annual Report 2010
4
CANADA’S GATEWAY To THE WEST
wind turbines:
various vessels summer 2010
In 2010, five shipments of wind turbine
components were handled at Keefer Terminal.
39,000 cubic metres of parts were transferred
from vessel either directly to trucks or to
laydown areas for storage and staging.
BRIDGE PARTS: OSC VLISTDIEP SETEMBER 2010
In September, oversized bridge parts arrived at
Keefer Terminal on the OSC Vlistdiep. The parts
were travelling from Spain to be used in the
construction of Calgary’s Peace Bridge over the
Bow River. Hauled from Thunder Bay by truck,
these pieces were the widest loads ever carried
out of Keefer Terminal by truck at 19’ 6”.
MACHINERY: DUTCH RUNNER OCTOBER 2010
The Canadian vessel Dutch Runner berthed at
Keefer Terminal in October. The Dutch Runner
carried a shipment of pressure vessels from
Southern Ontario which are currently being
stored at the Terminal for eventual continuance
to the Oilsands in Northern Alberta.
METHANOL PLANT PARTS: PALEMBANG
NOVEMBER 2010
Components of a disassembled methanol plant
were exported from the Port in November. The
plant parts were transported from Edmonton
to Keefer Terminal by train, where they were
loaded onto the Palembang. The Palembang
carried the parts to China where the plant is
being reassembled.
5
Thunder Bay Port Authority
The Great Lakes passenger vessel Clelia II
made ten stops in Thunder Bay during the
summer of 2010. Over 750 passengers
enjoyed daytrips to Thunder Bay which
included visits to Fort William Historical Park
and local shopping.
The Port of Thunder Bay has the largest grain
storage capacity in North America at 1.2 million
tonnes. Wheat, durum, coarse grains, oilseeds,
feed grains, peas and other pulse crops as well as
various grain by-products are handled annually
at Thunder Bay’s eight grain terminals.
Annual Report 2010
6
thunder bay port authority balance sheet
As at December 31
2010
2009
Assets
Current
Cash
Accounts receivable
Other receivable
Prepaid expenses
$
323,146
$
429,038
85,846
41,640
879,670
Long term investments
18,980,116
Property, plant and equipment (net)
18,198,573
$ 38,058,359
180,409
300,300
54,041
534,750
18,589,175
18,451,346
$ 37,575,271
Liabilities and Equity
Current
Accounts payable and accrued liabilites
$
Deferred rental income
561,807
$
64,847
530,108
67,649
626,654
597,757
Equity
Contributed surplus 27,711,964 27,711,964
Retained earnings 8,705,024
8,270,647
Accumulated other comprehensive income 1,014,717
994,903
37,431,705 36,977,514
$38,058,359
$ 37,575,271
financial report 2010
The Thunder Bay Port Authority is mandated by the Canada Marine Act to be financially self-sufficient.
The Authority’s operating revenues are comprised of Keefer Terminal revenue, Intercity Site revenue,
harbour dues and lease revenues from lands under its administration. Keefer Terminal revenues
represented 61% of the Authority’s operating revenue in 2010.
Net earnings for the year were $434,000. These results reflect a continuing commitment to effectively
manage operating costs and maximize return on the Authority’s assets. For further details, please refer
to the financial statements included in this report.
Since becoming a Port Authority in 1999, TBPA has spent in excess of $8 million on capital
improvements, dredging and infrastructure. The Authority has developed a 5-year, $12.3 million
capital budget that provides funds for several major strategic projects. The current annual advertising
and public relations budget of $100,000 is indicative of TBPA’s efforts to maintain the port profile
locally, nationally and internationally.
7
Thunder Bay Port Authority
statement of earnings
For the year ended December 31
2010
2009
Revenue
Terminal
Harbour
Harbour Park
Intercity
$ 1,351,233
$
576,146
169,745
127,717
1,356,443
613,891
169,349
35,212
2,224,841
Expenses
2,174,895
602,210
152,056
134,511
1,022,132
602,850
126,711
80,234
899,526
1,910,909
1,709,321
Terminal
Harbour
Intercity
Administrative and Marketing
Earnings from operations before the following
313,932
465,574
Payments in lieu of municipal taxes (268,679)
Gross revenue charge
(60,694)
(292,690)
(60,056)
(15,441)
Amortization (410,087)
Earnings (loss) from operations (425,528)
112,828
(441,724)
(328,896)
Investment income
859,905
841,361
Earnings for the year
$
434,377
512,465
$
laydown
construction
Construction
commenced on
the expansion of
cargo laydown
areas at Keefer
Terminal in 2010.
Laydown areas
are used to store
and stage project
cargo, providing
additional value for
the shipper.
Annual Report 2010
8
cargo statistics
• Grain remains the major port
commodity accounting for 75% of
total shipments. In 2010, 5.2 million
tonnes were shipped, a decrease of
10% from 2009
• Coal shipments rebounded by 14%
in 2010 to 1.1 million tonnes
• There were 368 vessel calls in 2010,
compared to 375 in 2009
• Foreign vessel calls increased by 22%
from 58 in 2009 to 71 in 2010
• Thunder Bay remains the largest
grain port and the only potash load
point on the Great Lakes
• Potash shipments increased by 82%
in 2010 to 314,000 tonnes
December was the Port’s busiest month
of 2010 in tonnage and vessel calls.
Domestic and foreign vessel calls were
the highest for the month since 1998 and
2005, respectively. During one 24-hour
period, nine vessels departed the Port
of Thunder Bay with cargoes totalling
154,780 tonnes.
Keefer Terminal Project Cargo
60000
8
7
50000
40000
5
30000
4
3
20000
2
10000
0
1
2004
2005
2006
No. of Vessels
99
Thunder
Authority
ThunderBay
BayPort
Port
Authority
2007
2008
Freight Tons
2009
2010
0
No. of Vessels
Freight Tons
6
cargo statistics
TONNES BY
COMMODITY
2010
2009
Grain
5,219,784
5,837,252
Coal
1,062,891
930,105
313,952
172,173
95,901
153,903
158,953
178,913
10,986
13,553
6,862,467
7,285,899
Potash
Dry Bulk
Liquid Bulk
General Cargo
TOTAL
cargo shipments
Annual Report 2010
10
Bro
oks
165˚W
Ra
ng
e
WESTERN CANADA FREIGHT CORRIDOR
Mt Mckinl
Mckin
kinle
inle
nley
nss
e Mountai
Mackenzie
150˚W
Queen
een
n
Cha
harlotte
ha
rl e
Is
sslands
Cape Ho
owe
o
w
British Columbia
PROJECT CARGO
CORRIDOR
Alberta
Saskatchewa
skatchewa
an
Vancouver Isla
Va
an
nd
Manitoba
to
45˚N
Ontario
rio
GRAIN CORRIDOR
135˚W
Quebec
THUNDER BAY
Nova Scotia
i
a
n
M
t
s
.
G r e a t
Cape Cod
c
h
Death
Valley
Guadalupe
ad pe
e
l
a
p
p
TWO-WAY CARGO
Cap
C
Ca
pe Ha
p
atteras
a
B
Bermuda
A
30˚N
a
P l a i n s
Mojave
ve
Sie
j a
B a
rra
ra M
dre
Sier
Ma
a
n i
o r
l i f
C a
Long Island
nd
tal
ntal
en
Orie
cid
Grain
adre
Oc
15˚N
Project Cargo
Sier
ra M
Picco
co de
de Orizab
Oriza
Orizaba
adre
Del
Yuc
Yucatan
Y
u
uc
Peninsu
P
Penins
nsula
nsu
G r e
a t e r
A n t i
l l e s
Sur
L e s s e r
A n t
Isthmus
Isthmu
us of Panama
P ama
0˚
120˚W
0˚
105˚W
90˚W
75˚W
0
0
500 K
Parallel scale at 4
11
Thunder Bay Port Authority
Shipping cargo through the Seaway utilizes
the greenest mode of transportation. Marine
transport uses less than half the fuel of rail
transport and about one tenth the fuel
of trucking. CO2 emissions are reduced
by 30% and 85% compared to rail and
trucking, respectively. As the Lake Fleet
is revitalized, fuel efficiency and emission
reductions will make the greenest mode of
transportation greener.
Nova
.
Cape Cod
a
n
M
t
s
Vessel
l
a
p
p
Cape Hatteras
A
P l a i n s
a
c
h
i
G r e a t
Rail
Canadian Seaway users are investing more than
$400 million in the revitalization of the Seaway’s Lake Fleet,
which will greatly reduce the carbon footprint of the Fleet.
Canada Steamship Lines, Algoma Central Corporation and
the Canadian Wheat Board have ordered new vessels with
state-of-the-art design and technology. Pictured is the
new Equinox Class vessel which has been ordered by both
Algoma and the Wheat Board.
tal
rien
re O
Mad
Features of the Equinox Class vessel:
• 40% reduction in air emissions
• Superior fuel efficiency due to minimized resistance
and an energy-recovering rudder
• Maximized cargo-hold capacity
• Minimized noise and vibration levels
• Space for ballast water treatment
technology
Long Island
to be installed in the future
Hispaniola
2010 highlights and events
Top Hat Ceremony April 2010
Lake Superior Day July 2010
Visit from Taipei Director General July 2010
13
Thunder Bay Port Authority
ACPA Conference August 2010
OMTF Marine Night September 2010
H.M.S. Bounty Visit August 2010
Grain Transportation Meeting September 2010
Annual Report 2010
14
keefer terminal
Cargo Laydown
Area
Breakbulk / General Cargo
Heavy-lift
Rail Track
Clear Span
Breakbulk / General Cargo
1
Warehouse
3
2
4
Clear Span
Cargo Handling Facility
Coast Guard
Property
Main Gate
Administration
Building
THUNDER
Thunder BAY
Bay PORT
Port AUTHORITY
Authority
100 Main Street,
Thunder Bay, ON P7B 6R9
807.345.6400 ||807.345.9058
807.345.9058
tbport@tbaytel.net ||www.portofthunderbay.ca
www.portofthunderbay.ca
Rail-Yard
(200 car capacity)