Welland Canal season extension draws a lot of interest

While a pilot project, industry hopes it will become the new normal.Ottawa—A week long extension of the Welland Canal shipping season in January drew a lot of interest from shipowners and shippers who have long wanted a bit more time to move cargo before ice closes the Great Lakes/Seaway system.While the Montreal-Lake Ontario section of the Seaway will close as usual Dec. 31, the Welland Canal will be open weather permitting until noon Jan. 8 in a pilot project.Greg Ruhl, President and CEO of Algoma Central Corp. says, “The eight extra days will be huge benefit for us and our customers. It's the new standard.”In many ways, it becomes a two-week extension because companies that want to make a shipment in late December but hesitated in the past because of the previous Dec. 31 closure of the Canal now have the extra time for the cargo to be delivered. Shipowners will be willing to take on those cargoes because even if there are weather delays, they'll be able to move the cargo and get the ship to its winter berth.He expects shipments of cement, aviation fuel and grain to be among the cargoes that will benefit. “Now shippers can plan for late season deliveries knowing they have extra time.”For now, shippers and shipowners will work with the extra week but if all goes well, and the weather cooperates, they will likely in the future to see if the Welland Canal season could be lengthened even more, Ruhl said.The most likely target will be to match the closure of the U.S. Soo Locks in mid-January.Ruhl said it would be more difficult for the Seaway Management Corp. to extend the season on the Montreal-Lake Ontario section because it is farther north and is operated jointly with the U.S. Seaway Development Corp.For now, the focus for Algoma, Canada Steamship Lines and other carriers is making the most of the extra week.To the end of November, the Seaway handled just over 34 million tonnes of freight, down 6.4 per cent from the record traffic of last year. Much of the drop can be attributed to the late harvests on the Prairies and in Ontario as grain movements were 16.6 per cent lower than at the same time last year.Seaway operations have been bedeviled all year by high water levels in the Great Lakes and the Canadian and American Seaway operators are working on plans to increase water outflows next year while ensuring safe navigation.In early December, Lakes Huron and Michigan were 37 inches above normal and Lake Ontario was 18 inches above normal. The Great Lakes water levels broke records during the summer causing beach erosion and disappearing waterfronts.Seaway spokesman Andrew Bagora says, “We did everything we could to move a record amount of water through our system this year while maintaining safe navigation conditions.”The area between Long Sault and Morrisburg was the most troubled by the water flow, he said.There were even calls for the International Joint Commission to close the Seaway in December to allow for much higher water outflows through at the Moses-Saunders dam. The Chamber of Marine Commerce (CMC) warned doing so would cost the Canadian and U.S. economies $250 million by disrupting grain exports, manufacturing plant operations and deliveries of fuel, construction materials and road salt for winter safety to cites throughout the region.CMC said increasing the flow through the dam would only drop water levels by about 1.5 inches a week. “This negligible reduction would come at a huge cost to commercial navigation,” CMC said.The high water also cost shippers and shipowners supply chain millions of dollars,” said CMC President Bruce Burrows. “Halting St. Lawrence Seaway shipping altogether would cause major harm to our economy and achieve no noticeable benefit for flooding victims.”He said the IFC and governments should look at what could be done during the winter shutdown to lower Great Lakes water levels.Wade Sobkowich, Executive Director of the Western Grain Elevator Association (WGEA), said, any disruption to Seaway shipping will have an impact on the Canadian grain industry, including Prairie farmers, who are already experiencing the harvest from hell.“Grain exporters make sales six, nine and even twelve months in advance. They are contractually obligated to execute on sales contracts and a premature Seaway closure, would result in costly contract defaults and grain sitting in Thunder Bay until the opening of navigation in the spring.” An early closure would have rekindled customer concerns about Canada's ability to supply product.”Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.