By Leo Ryan, AJOTThe long-awaited decision last fall by Canada’s federal government to eliminate a three-decade old 25% duty on imported vessels has sparked a flurry of orders to renew Canada’s aging inland fleet. The strong appreciation of the Canadian dollar has also facilitated the renewal process coinciding with a rebound of traffic on the St. Lawrence Seaway. All told, newbuilding orders approaching one billion dollars are benefiting from a new regulatory regime in place since October. In the latest sign that Canada’s inland fleet has entered a rather dramatic renewal phase, farmers in western Canada will become owners of ships that move their wheat on the Great Lakes under an agreement announced on Feb 8 in Winnipeg between the Canadian Wheat Board (CWB), Algoma Central Corporation and Upper Lakes Group Inc. Controlled by farmers in the Prairie provinces, the CWB is the largest wheat and barley marketer in the world, selling grain to some 70 countries. The CWB is purchasing two new lake freighters being built in China that will be ready for service in 2013 as part of a larger purchase by Algoma and Upper Lakes. The CWB’s cost for the two ships is US$65 million, paid over the next four crop years. Prairie farmers also own a fleet of 3,400 rail hopper cars that move wheat and barley to ports and domestic customers. Farmers will benefit from contributions that are expected to average at least $10 million per year to the CWB pools when the ships are in operation. They will also benefit from more efficient grain movement through a renewed fleet, the CWB said. “As ship owners, we are moving forward to strengthen farmers’ position in our grain supply chain,” said CWB board chair Allen Oberg, a farmer from Forestburg, Alberta. “This historic step puts us at the helm. Through the CWB, farmers will share in the control and the profits of Great Lakes grain shipping. This is a value-added investment with significant net benefits for Prairie producers.” Oberg said the purchase agreement would not have been possible without the foresight of the Government of Canada in removing the tariff on imported vessels last fall, rendering the renewal of the Canadian domestic fleet economically feasible. Last December, Algoma Central ordered three self-unloaders and one gearless bulker from Nantong Mingde Heavy Industries at a cost of $205 million. Now the CWB has ordered two bulkers and Upper Lakes has ordered one bulker. Overall value of the seven ships ordered, all told, is about $310 million. Retroactive to Jan. 1, 2010, the duty removal will apply to five bulk carriers costing $500 million ordered last summer by Canada Steamship Lines. Algoma Central also qualified for duty remittance on two tankers built in Turkey. All seven vessels involved in the recent orders will be operated and managed by the Seaway Marine Transport pool of partners Algoma and Upper Lakes. Vessels with Major ‘Green’ Features Algoma President & CEO Greg Wight and Upper Lakes President & CEO Pat Loduca have welcomed the partnership with western Canadian producers in purchasing the new, state-of-the-art Equinox class bulk carriers. The Equinox vessels will be able to carry more cargo and move faster than the existing Seaway-size ships. New engine technology will result in reduced fuel consumption and lower emissions. The new ships will reportedly generate 60% less emissions than existing conventional vessels and accommodate future ballast water treatment solutions. “This exciting initiative will modernize the Great Lakes fleet with larger, faster ships that consume less fuel and meet future environmental standards,” Wight said. “By working together with Prairie farmers, we have forged a relationship that will have lasting value for all.” Loduca said the timing is excellent for this partnership, given the need to replace an aging fleet on the Great Lakes. He stressed that the strength of the Canadian dollar also helps keep new-vessel costs down. “We are very pleased to be seizing thi