DATELINE:
First of CWB’s grain freighters steams into seaway ;
ONE of two Great Lakes freighters purchased by the CWB for $65 million – the CWB Marquis – will open this year’s navigation season of the St. Lawrence Seaway in a ceremony at St. Lambert Lock in the Port of Montreal today.
The ship, built at the Nantong Mingde Heavy Industries Stock Co. shipyard in China, arrived in North America about two months ago.
In its maiden voyage, it loaded its first haul of ore at Port Cartier, Que., destined for Hamilton.
It will then sail through the Great Lakes to pick up grain in Thunder Bay in about 10 days.
While standing on the deck of the 226-metre by 24-metre ship on Wednesday, Ian White, CWB’s chief executive officer, said by telephone it was an exciting event for the Winnipeg-based grain operation (formerly the Canadian Wheat Board).
“We’re very pleased and excited to be adding the Marquis to our growing group of assets,†White said.
The bulk carrier will be operated by Algoma Central Corp., the largest operator of Great Lakes ships. The CWB Marquis is part of a much-needed rejuvenation of the fleet.
Its sister ship, the CWB Strongfield, is expected to be in service in the Great Lakes by the end of July.
In addition to the two CWB ships Algoma will operate, the St. Catharines, Ont.-based company is purchasing another six.
The so-called Equinox Class vessels are part of a new class of energy-efficient lakers with the ability to carry more cargo and sail faster while consuming less fuel. They include exhaust-scrubbing systems designed to remove 97 per cent of sulphur-oxide emissions generated by the vessel engines.
The decision to purchase the Chinese-built ships was made in 2011 before federal legislation was passed that ended the Canadian Wheat Board’s single-desk marketing monopoly of Prairie wheat and barley.
The CWB is currently deep in the process of lining up strategic investment as part of its ultimate decoupling from its former owners, the Canadian government.
White said more news on that front will be “coming soon.â€
He said the addition of the ships is part of the CWB’s growing portfolio of grain-handling and transportation assets.
“This gives us visibility throughout the supply chain,†he said.
In addition to building a number of high-throughput country elevators over the last couple of years, the CWB became the majority owner of the Great Sandhills Railway, a 200-kilometre line in Saskatchewan, last summer.
“We like the idea of not just (owning) elevators, but being involved in the total supply chain,†White said.
He would not share details about how the business model of owning a couple of Great Lakes freighters will work, but said the CWB expects to make a profit.
In 2011, when the purchase was first announced, CWB officials said the new ships would pay for themselves in eight years.
On Wednesday, White said: “The capital outlay will add to the bottom line. We expect it to be in line with the sort of return that we expect out of any investment we make.â€
martin.cash@freepress.mb.ca
ID: WFP.20150402.cwbshipmec0040
PUBLICATION: Winnipeg Free Press
EDITION: Print
DATE: 2015.04.02
SECTION: Business
PAGE: B6
BYLINE: By Martin Cash
WORD COUNT: 526
First of CWB’s grain freighters steams into seaway ;
ONE of two Great Lakes freighters purchased by the CWB for $65 million – the CWB Marquis – will open this year’s navigation season of the St. Lawrence Seaway in a ceremony at St. Lambert Lock in the Port of Montreal today.
The ship, built at the Nantong Mingde Heavy Industries Stock Co. shipyard in China, arrived in North America about two months ago.
In its maiden voyage, it loaded its first haul of ore at Port Cartier, Que., destined for Hamilton.
It will then sail through the Great Lakes to pick up grain in Thunder Bay in about 10 days.
While standing on the deck of the 226-metre by 24-metre ship on Wednesday, Ian White, CWB’s chief executive officer, said by telephone it was an exciting event for the Winnipeg-based grain operation (formerly the Canadian Wheat Board).
“We’re very pleased and excited to be adding the Marquis to our growing group of assets,†White said.
The bulk carrier will be operated by Algoma Central Corp., the largest operator of Great Lakes ships. The CWB Marquis is part of a much-needed rejuvenation of the fleet.
Its sister ship, the CWB Strongfield, is expected to be in service in the Great Lakes by the end of July.
In addition to the two CWB ships Algoma will operate, the St. Catharines, Ont.-based company is purchasing another six.
The so-called Equinox Class vessels are part of a new class of energy-efficient lakers with the ability to carry more cargo and sail faster while consuming less fuel. They include exhaust-scrubbing systems designed to remove 97 per cent of sulphur-oxide emissions generated by the vessel engines.
The decision to purchase the Chinese-built ships was made in 2011 before federal legislation was passed that ended the Canadian Wheat Board’s single-desk marketing monopoly of Prairie wheat and barley.
The CWB is currently deep in the process of lining up strategic investment as part of its ultimate decoupling from its former owners, the Canadian government.
White said more news on that front will be “coming soon.â€
He said the addition of the ships is part of the CWB’s growing portfolio of grain-handling and transportation assets.
“This gives us visibility throughout the supply chain,†he said.
In addition to building a number of high-throughput country elevators over the last couple of years, the CWB became the majority owner of the Great Sandhills Railway, a 200-kilometre line in Saskatchewan, last summer.
“We like the idea of not just (owning) elevators, but being involved in the total supply chain,†White said.
He would not share details about how the business model of owning a couple of Great Lakes freighters will work, but said the CWB expects to make a profit.
In 2011, when the purchase was first announced, CWB officials said the new ships would pay for themselves in eight years.
On Wednesday, White said: “The capital outlay will add to the bottom line. We expect it to be in line with the sort of return that we expect out of any investment we make.â€
martin.cash@freepress.mb.ca
ID: WFP.20150402.cwbshipmec0040
PUBLICATION: Winnipeg Free Press
EDITION: Print
DATE: 2015.04.02
SECTION: Business
PAGE: B6
BYLINE: By Martin Cash
WORD COUNT: 526
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