the port at the heart of daily life

2013 ANNUAL REPORT
THE PORT
AT THE HEART
OF DAILY LIFE
TABLE OF
CONTENTS
Summary1
Message from the Chairman of
the Board of Directors and
the President and Chief Executive Officer 5
Sectors of Activity
6
Growth and Development
10
Partnerships13
Technological Improvements
15
Facilities18
Sustainable Development:
– Community Relations
21
– The Environment
23
Communications25
Employee Training
25
Management Committee
Board of Directors
26
27
Condensed Financial Results
28
Teamwork32
THE PORT
AT THE HEART
OF DAILY LIFE
The Montreal Port Authority (MPA) is an autonomous federal agency. The MPA maintains
and builds infrastructures that it leases to private stevedoring companies.
However, its role extends far beyond this definition. The Port is a true hub at the heart
of its clients’ logistics chains. In fully intends to fulfil this role by providing a range of
value-added services.
The Port of Montreal is closely woven into Montreal’s social fabric, with 26 km of
shoreline between the Victoria Bridge and Pointe-aux-Trembles. It supports more
than 18,200 direct and indirect jobs in Canada, including more than 11,900 in Quebec.
More than $37.5 billion in goods move through the Port of Montreal every year, and its
activities generate economic benefits valued at $1.5 billion.
To reach the European market, 98 percent of Quebec
shippers and 93 percent of Ontario shippers choose
the Port of Montreal. The Port is also the North American
leader connecting Northern Europe to the U.S. Midwest.
SUMMARY OF FINANCIAL RESULTS (in thousands of $)
2013
2012
REVENUE FROM OPERATIONS
87,357
85,585
EXPENSES
81,691
80,819
Operating earnings before the other items
5,666
4,766
Other items
NET EARNINGS
(1,464)
1,335
4,202
6,101
SUMMARY
TRAFFIC HANDLED IN
2013
28
.2 MT
OF TOTAL CARGO
11.9 MT
9.5 MT
OF CONTAINERIZED
CARGO
OF LIQUID BULK
6.6 MT
55,611
OF DRY BULK
PASSENGERS
WELCOMED
In 2013, 28.2 million tonnes of cargo moved through the Port of Montreal, a slight
decrease of 0.9 percent compared to the previous year. In light of the weak economic
growth in developed countries, the 2013 results can be described as very good.
The volume of containerized cargo handled in 2013 was 11.9 million tonnes, down
1.1 percent compared to 2012. This represents 1.4 million 20-foot equivalent unit
containers (TEUs). The economic slowdown affected trade between European and
North American markets. However, this impact was offset at the Port of Montreal by
the strength of new growth markets in Asia, the Middle East and the Mediterranean.
Non-containerized general cargo traffic rose 22.7 percent to reach 159,677 tonnes,
primarily due to metal products, whose volumes increased from 19,372 to
58,664 tonnes.
The volume of liquid bulk handled decreased by 1.8 percent compared to the previous
year, to 9.5 million tonnes. Given that the previous two years had been very good,
it follows that 2013 also ranks among the best in this cargo category.
Dry bulk traffic increased by 0.2 percent to 6.6 million tonnes, mainly due to increased
shipments of iron ore, fertilizer and scrap metal.
On the cruise front, the Port of Montreal maintained the considerable gains it recorded
in 2012, when 69,992 passengers and crew members visited the Port, up 47.3 percent
over the previous year. In 2013, the Port welcomed 69,966 visitors.
PORT OF MONTREAL TRAFFIC RESULTS (in tonnes)
CARGO TYPE
2013
2012
VARIATION
11,896,671
12,032,966
-1.1%
159,677
130,167
22.7%
12,056,348
12,163,133
-0.9%
8,861,939
9,075,189
-2.3%
687,994
646,233
6.5%
9,549,933
9,721,422
-1.8%
Grain
2,638,159
3,070,054
-14.1%
Other
3,912,531
3,467,394
12.8%
TOTAL
6,550,690
6,537,448
0.2%
28,156,971
28,422,003
-0.9%
69,966
69,992
0%
GENERAL CARGO
Containerized
Non-containerized
TOTAL
LIQUID BULK
Petroleum products
Other
TOTAL
DRY BULK
TOTAL TONNAGE
CRUISE TRAFFIC
PASSENGERS AND CREW
Port of Montreal – 2013 Annual Report
3
MICHEL M. LESSARD
CHAIRMAN
OF THE BOARD
OF DIRECTORS
SYLVIE VACHON
PRESIDENT AND
CHIEF EXECUTIVE
OFFICER
MESSAGE FROM THE CHAIRMAN OF THE BOARD OF DIRECTORS
AND THE PRESIDENT AND CHIEF EXECUTIVE OFFICER
THE PORT AT THE HEART
OF DAILY LIFE
We sometimes forget that 80 percent of world freight
traffic moves by ship. This represents an enormous amount
of cargo! The Port of Montreal is the number one choice
for 98 percent of Quebec importers and exporters, and
93 percent of Ontario shippers, for markets in Northern
Europe. This means that a substantial amount of the products
we use in everyday life move through the Port. Just like the
products manufactured here that are sent throughout the
world. The Port of Montreal is at the heart of your daily life.
Together with its partners, terminal operators and road
and rail carriers, the Port bears a great responsibility, which
it proudly fulfils. It plays a key role in the logistics chain of
thousands of entrepreneurs, manufacturers, merchants,
businesspeople, institutions and government agencies.
All of these stakeholders are counting on us. They count on
the reliability, speed and flexibility of our service. Our goal is
to meet their expectations, and even exceed them.
By working with our valued clients and partners, we handled
some 28.2 million tonnes of cargo in 2013. This amount is
slightly less than our traffic results from both the previous
year and our record year of 2011. Factor in the economic
difficulties that Europe, our main overseas partner, has been
going through, and we can honestly say that 2013 was
another good year for the Port of Montreal.
We also ended 2013 on some very promising notes.
We increased our container capacity by 200,000 TEUs
(20-foot equivalent unit containers) with the redevelopment
of the Viau and Maisonneuve sectors. As of last May, we
have been able to accommodate post-Panamax-type ships.
These large vessels can carry more goods with the same
draft, which translates into higher volumes of freight with
the same number of vessels.
We have a new partner, CanEst, whose grain-processing
operations will mark the start of a new era of value-added
services at the Port of Montreal in 2014. And the new trade
agreement between Canada and the European Union
promises great benefits for our port activities.
Among our strategic orientations for 2014, two are
particularly close to our heart: first, we will make every effort
to optimize our infrastructures and adapt them to traffic
growth. We also want to further improve the flow of truck
and rail movements.
Second, we are determined to achieve even greater
market diversification. The markets opening to us in
Asia, the Middle East and Latin America have a lot to
offer. The Port of Montreal aims to position itself as an
excellent solution for exporters and importers seeking to
move goods to and from these markets, by offering direct
access to transshipment ports located near the Suez and
Panama canals.
At the same time, we intend to maintain our dominant
position in Northern Europe. Lastly, with our partners
on the Montreal Cruise Committee, we will continue to
promote Montreal as a cruise destination. As you can see,
a busy year already is underway!
We want to achieve these objectives while assuming
responsible leadership. What does this mean? Simply that
all our decisions and actions, regardless of their nature,
are always guided by our responsibilities to our ecosystem
and our community.
The Montreal Port Authority (MPA) thanks its partners,
its employees, the various levels of government and
the members of its neighbouring communities for their
contribution to making port activities run so smoothly.
MICHEL M. LESSARD
SYLVIE VACHON
Chairman of the
Board of Directors
President and
Chief Executive Officer
Port of Montreal – 2013 Annual Report
5
SECTORS
OF ACTIVITY
CONTAINERIZED CARGO
LIQUID BULK
In 2013, 11.9 million tonnes of containerized cargo moved
through the Port of Montreal, slightly less than the 12 million
tonnes of the previous year. The decline in containerized
cargo was only 1.1 percent thanks to the growing
diversification of markets served by the Port of Montreal.
This diversification ensures that the economic difficulties
experienced by European countries, our main market, have
less impact on the volumes of cargo handled at the Port
of Montreal.
Total liquid bulk traffic decreased by 1.8 percent to total
9.5 million tonnes in 2013. Gasoline, the leading liquid bulk
product, decreased by a very slight 0.4 percent to total
4.3 million tonnes. Fuel oil, which ranked second in terms of
volume, increased by 13.6 percent to reach 2.6 million tonnes.
Other main products whose handling volume increased
are aviation fuel (+16.8 percent), various hydrocarbons
(+6.7 percent) and asphalt (+57.4 percent).
The relative importance of Northern European markets
is lessening as trade expands with the Mediterranean,
Asia, the Middle East, Latin America and Africa/Oceania.
These emerging markets, characterized by strong growth,
are becoming more easily connected to the Port of Montreal,
particularly since the development of huge transshipment
ports in the Mediterranean and the Caribbean. For example,
goods from Montreal that are transshipped in the
Mediterranean can then be easily shipped to Asia through
the Suez Canal.
The main containerized cargo products are foodstuffs,
forestry, metal and iron and steel products, grains,
construction materials, and vehicles and accessories.
DRY BULK
Dry bulk volumes handled at the Port of Montreal in 2013
were slightly higher than the previous year (+0.2 percent),
reaching 6.6 million tonnes. Notable upswings include
iron ore (+31.9 percent), which ranked second in terms of
volume, at 1.9 million tonnes. Grain, the leading dry bulk
product, dropped 14.1 percent in volume to total 2.6 million
tonnes. This decrease is attributable to the wide availability
of vessels on the West Coast, which made freight rates more
economical than moving grain by rail to the East Coast. This
situation abated in the spring with the opening of the Seaway.
6
2013 Annual Report – Port of Montreal
CRUISES
The Iberville Passenger Terminal maintained the significant
number of visitors that marked 2012. That year, the number
of passengers and crew increased by 47.3 percent, rising
to 69,992 people. Although the number of ships and crew
members fell slightly in 2013, the number of cruise passengers
increased from 54,752 to 55,611. These figures reflect the
fact that the Port of Montreal welcomed larger cruise ships.
For example, the AIDAbella alone, which visited twice during
the fall, carries 2,500 passengers.
MAJOR SHIPPING LINES
The Port of Montreal is served by such major international
shipping lines as CMA CGM, Hapag-Lloyd, Maersk Line,
MSC, OOCL, Federal Atlantic Lakes Line and Canada States
Africa Line. The Canadian shipping lines that serve Montreal
are Algoma, Canada Steamship Lines, Canfornav, Fednav
International, CTMA Group, Oceanex, Petro-Nav, Rigel
Shipping Canada and Transport Desgagnés.
CONTAINER
MARKETS
DRY BULK
PRODUCTS
44%NORTHERN EUROPE
40%GRAIN
20%MEDITERRANEAN
29%IRON ORE
14%ASIA
10%SALT
9%MIDDLE EAST
7%RAW SUGAR
6%LATIN AMERICA
5%FERTILIZER
4%AFRICA/OCEANIA
2%GYPSUM
3%CANADA
2%SCRAP METAL
5%OTHER
LIQUID BULK
PRODUCTS
CRUISE
TRAFFIC
65%OTHER PETROLEUM
PRODUCTS
70%INTERNATIONAL
PASSENGERS
28%FUEL OIL
21%CREW MEMBERS
3%
VARIOUS
HYDROCARBONS
9%DOMESTIC
2%ASPHALT
2%OTHER
CREATED IN QUEBEC, MADE IN CHINA,
SOLD
WORLDWIDE
Two years ago,
Montrealer Kristina
Boudaeva would not have
believed that one day she would fill
two or three containers a month with
the charming educational notebooks she
has created. She has succeeded with
the support of the Fondation Montréal Inc.
Made in China, the notebooks are shipped
to the Port of Montreal, where they are
inspected by their creator before being
delivered to clients of Kristins Gifts –
Costco, Target and Staples –
or shipped to Europe.
“I WAS BORN IN RUSSIA AND
WHEN WE ARRIVED IN MONTREAL,
MY FATHER WORKED AT THE PORT.
THE PORT OF MONTREAL HAS BEEN
IN MY LIFE FOR A LONG TIME!”
KRISTINA BOUDAEVA
President
KRISTINS GIFTS
GROWTH AND DEVELOPMENT
INTERNATIONAL
CONNECTIONS
The Montreal Port Authority’s (MPA) Growth and
Development Department continued its work in 2013 to
ensure the Port of Montreal’s visibility on an international
scale and to promote the Port as an intermodal hub for
products moving to or from North American markets and
as a destination of choice for international cruises.
The Port launched a new advertising campaign in 2013
geared toward its partners, clients and potential customers
around the globe. Based on its new Trading with the World
branding, the campaign is among several initiatives that the
Port has introduced as part of its international approach to
developing new markets.
The Growth and Development team was bolstered by the
addition of a new Director, Container, and a Marketing
Manager. The department also continued to work closely
with the Port’s international representatives in the United
States, Asia and Europe.
Advertisements created specifically for the European
market tout the Port of Montreal’s highly efficient intermodal
platform and its advantageous transit times on the shortest
route between Europe and North America’s industrial
heartland. Ads for the Asian market highlight the fact that
the Port is conveniently linked to transshipment centres in
the Mediterranean and Northern Europe. Ads designed for
partners in North America focus on the Port’s first-class
rail and road links and Montreal’s strategic location as the
closest international container port to Central Canada and
the U.S. Midwest.
The Port of Montreal continued its collaboration with the
Port of Antwerp following an accord that was signed in 2013.
The Port of Antwerp is one of the Port of Montreal’s main
trading partners. In 2013, their joint efforts concentrated on
business development between the two ports.
In 2013,
the Port of Montreal
reached out
to its partners
and potential clients
around the globe
with its new slogan:
Trading with the World.
10
2013 Annual Report – Port of Montreal
The Port introduced three new marketing brochures
in 2013. They promote the Port as a supply chain partner
to the North American heartland and highlight its market
reach: the Port provides access to 40 million consumers
within one trucking day and 70 million consumers within
two rail days. One brochure provides an overview of the
Port and its strategic advantages, and the second and third
focus on the Port’s strengths in the container and bulk cargo
markets, respectively.
The Growth and Development team as well as Port
representatives participated in numerous workshops,
conferences, trade shows and international events in 2013.
The Port enhanced its cruise services with the appointment
of a Customer Service and Cruise Coordinator. He is
responsible for the quality of customer service provided
to cruise passengers arriving in Montreal and ensures
coordination among all partners involved in the cruise sector.
The Port won an award for its cruise operations from
the prestigious Cruise Insight magazine for a fifth
consecutive year in 2013. The Port took home the prize
for Most Efficient Port Services. The award recognizes the
Port’s efficient combination of port agency and customs
services and its strong working relationship with cruise line
operations departments.
THE PORT AT
THE HEART OF
A VAST MARKET
40
MILLION
CONSUMERS
The Port provides access
to 40 million consumers within
one trucking day and
70
MILLION
CONSUMERS
within two rail days.
Port of Montreal – 2013 Annual Report
11
FROM THE VINE
TO OUR TABLE
If a 40-foot container holds 1,500 cases of 12 bottles of wine, how many bottles move
through the Port of Montreal annually, given that the SAQ receives 13,000 containers per year?
The answer: 234 million bottles. The strategic location of its distribution centre near
berths in the east end of Montreal is an enormous advantage for the SAQ.
“EVER SINCE WE
BEGAN DEALING WITH
THE PORT OF MONTREAL,
THE LOGISTICS HAVE BEEN
FULLY IN PLACE. THE PORT
IS QUEBEC’S STRATEGIC
LOGISTICS PLATFORM.”
MARIE-ÈVE HALLÉ
Manager, Supply and Transport
SOCIÉTÉ DES ALCOOLS DU QUÉBEC
(SAQ, THE PROVINCIAL
LIQUOR BOARD)
A RECORD
55,611
CRUISE
PASSENGERS
visited Montreal in 2013.
PARTNERSHIPS
EFFICIENT
TEAMWORK
The Montreal Port Authority (MPA), the Quebec Transport
Ministry (QTM) and the City of Montreal continued to work
collaboratively on two major projects that will improve truck
access at the Port of Montreal. The QTM announced in May
the signature of a collaborative framework with the City
of Montreal for the extension of L’Assomption Boulevard,
a new transportation route that will connect with Souligny
Avenue and thereby allow trucks leaving the Port to directly
access the highway network. A Port exit will be built to join
this new stretch of road. The MPA will work in conjunction with
the QTM and the City of Montreal to determine the route of
the L’Assomption Boulevard extension and how it will connect
with Port facilities.
The QTM also announced the construction of a Highway 25
exit ramp leading south that will allow trucks to directly reach
the Port’s common truck entry portal located at the corner
of Notre-Dame and De Boucherville streets. Meanwhile,
the reconfiguration of the entrance ramp leading north
on Highway 25 will provide trucks leaving the Port at the
Louis-Hippolyte Lafontaine Bridge-Tunnel with direct access
to the highway network.
their cruise. Supported by Tourism Quebec, the Montreal
Cruise Committee is an initiative in which the MPA and Tourism
Montreal have teamed up with the City of Montreal and five
local associations or organizations: Aéroports de Montréal
(Montreal airports), the Hotel Association of Greater Montreal,
Montreal Casino, the Old Montreal Business Development
Corporation and the Old Port of Montreal.
The committee’s work continues to bring outstanding results:
the Port welcomed a record 55,611 passengers in 2013.
Tourism Montreal has also produced a series of videos
that showcase to cruise enthusiasts and travel agents
Montreal as a cruise destination of choice. The videos are
available on Tourism Montreal’s YouTube account and on
the www.cruisesalamontreal.com microsite.
Elsewhere, the Port continued its work with CargoM,
the Logistics and Transportation Cluster of Metropolitan
Montreal. MPA President and CEO Sylvie Vachon is the Chair
of CargoM.
CargoM’s mission is to gather all stakeholders from the
region’s logistics and freight transportation sector. They are
working together to reinforce Montreal as a transportation
and logistics hub. More precisely, CargoM promotes the
Montreal logistics chain and establishes working groups
that unite industry partners in order to improve efficiency
and fluidity.
The Montreal Cruise Committee continued its efforts
to attract more cruise ships to Montreal and encourage
passengers to spend extra time in the city before or after
Port of Montreal – 2013 Annual Report
13
A TASTE OF
MOROCCAN
SUNSHINE
Year in, year out, Bar Imex International imports between seven
and 10 million cases of Moroccan clementines for clients in Quebec, Ontario
and the Maritimes. Everything is thought out and each container is cooled
to the ideal temperature for each of the three varieties imported
by this family business located in Montreal’s Anjou district.
“IN NOVEMBER, WHEN
THE DAYS GET SHORTER
AND IT’S GETTING COLD,
A CLEMENTINE IS LIKE
HAVING SUN IN THE PALM
OF YOUR HAND!”
IAN ROUTHIER
Business Development
BAR IMEX INTERNATIONAL
UP TO
2,500
TRUCKS
crisscross port territory
every day.
TECHNOLOGICAL IMPROVEMENTS
ENHANCED NAVIGATION
AND FLUIDITY
THE POST-PANAMAX YEAR
Since May 2013, the Canadian Coast Guard has authorized
the passage of vessels up to 44 metres wide in the
Quebec-Montreal section of the St. Lawrence navigation
channel. The previous authorized width was 32.1 metres
without restrictions. The arrival of post-Panamax-type
vessels in the channel has been made possible through
advances in electronic navigation.
Specifically, this new provision makes it possible for all
post-Panamax-type vessels, including container ships that
can carry 6,000 TEUs (20-foot equivalent unit containers), to
reach the Port of Montreal. In 2013, seven post-Panamax-type
vessels sailed to the Port.
A study commissioned by the Montreal Port Authority
(MPA) and jointly conducted with Transport Canada, the
Canadian Coast Guard, the Laurentian Pilotage Authority
and the Corporation of Central St. Lawrence Pilots certified
that all the criteria were met to allow safe navigation of
post-Panamax-type vessels to the Port of Montreal.
IMPROVED RAIL MANAGEMENT
The year 2013 began with significant change for the Port of
Montreal’s railway team. It took advantage of the one day
of the year when the railway does not operate, January 1, to
replace the train management system. The new computer
system with Rail Manager software from EI System provides
a data system that makes it possible to view each railcar, its
exact location on Port territory, its owner and its status – full
or empty. As a result, railway management efficiency has
increased substantially.
Other improvements were made to railway management
in 2013. Two antennas installed near the CN and CP train
entrances electronically identify each railcar as it enters the
Port, minimizing the risk of error compared to the previous
method when data was gathered manually. In addition, CN,
CP and the terminals now send to the Port’s railway team an
electronic document that includes the destination of each
car on Port terminals, and then, when the cars are ready to
depart, their next destination in North America.
REDUCTION IN GREENHOUSE GAS EMISSIONS
As part of a Transport Canada program aimed at reducing
greenhouse gas emissions (GHG), the Port of Montreal was
awarded a $1.4-million grant to fund a project to reduce GHG
emissions from trucks transporting goods to the Port. Up to
2,500 trucks crisscross Port territory every day, and all drivers
have an access card. The MPA will monitor truck movements
through the network of card readers along the routes used
by the vehicles on its territory, thereby allowing it to “track”
their comings and goings in real time. This information will
identify where and when too much traffic forces drivers to
wait. Based on this information, action can be taken to reduce
waiting time and, in turn, GHG emissions, and improve the
flow of truck traffic and even transit time.
VEHICULAR MONITORING
In 2013, the Port of Montreal equipped its 20 security
vehicles and five railway trucks with a vehicular monitoring
device, which improves the protection of employees and
eco-responsible driving while ensuring the traceability of
their movements. Software collects the information sent
by the device installed on the vehicle and issues automated
daily and weekly reports. This makes it possible to monitor
drivers’ behaviour and their level of eco-responsibility.
The device also has a GPS position sensor and an ID chip
that the drivers use to identify themselves, and which acts
as an anti-theft and locator system. This is the first phase of
an unprecedented project that is integrating breakthrough
technology. The program rollout continues in 2014.
Port of Montreal – 2013 Annual Report
15
QUALITY QUEBEC
TREATMENT FOR
CATS ALL OVER
THE WORLD
Since 1992, Intersand has been
producing and exporting kitty litter,
made from clay with unique
properties found in Wyoming,
to more than 30 countries.
Thanks to the Port of Montreal’s international connections, Intersand
can guarantee fast and reliable service
to its international client base.
“THE ACCESSIBILITY AND QUALITY
OF SERVICE AT THE PORT OF
MONTREAL ALLOWED INTERSAND
TO BECOME A WORLD LEADER
IN THE FIELD OF ANIMAL HYGIENE
SOLUTIONS, ALL FROM OUR
BOUCHERVILLE PLANT.”
STÉPHANE CHEVIGNY
President
INTERSAND
FACILITIES
INCREASED
CAPACITY
INFRASTRUCTURE DEVELOPMENT
The Montreal Port Authority (MPA) maintains its infrastructure
to the highest standard in order to provide its tenants with
first-rate facilities. The MPA invested a record $55 million in its
facilities in 2013, surpassing the previous record of $41 million
set in 2009.
that had been extracted at the site. The extracted soil was
mixed with cement to increase solidity and then re-deposited
at the bottom of excavated areas.
The Port redeveloped land in the Viau and Maisonneuve
sectors in order to provide more space for container storage.
At the Maisonneuve sec tor, space for another
50,000 containers was added at the site. The Port also
built a new longshoremen’s hall and a new parking area and
maintenance workshop for equipment and vehicles used
by longshoremen.
The Viau sector site is 16.5 hectares. Its annual container
storage capacity stands at 150,000 TEUs (20-foot equivalent
unit containers) following the redevelopment. A soil recovery
and reuse project employed a soil encapsulation technique
that allowed the MPA to reuse 44,000 tonnes of poor soil
The Viau and Maisonneuve sector projects have increased
the Port’s container-handling capacity by 13 percent or
200,000 containers to 1.7 million TEUs from 1.5 million TEUs.
Transport Canada contributed $15.1 million to the Viau and
Maisonneuve projects.
The MPA put into place an organizational structure for its
Infrastructure Management department, which is divided
into five groups or “families.” Each group is responsible and
accountable for an aspect of Port infrastructure: electricity,
railway network, roads/sewers/water, berths and buildings.
This long-term vision will facilitate expertise sharing among
the groups, increase versatility and ensure continuity
of knowledge.
The MPA is also redeveloping an area of the Port’s petroleum
products sector in accordance with an agreement it has with
Valero Energy. It is improving berths and berth walls and
increasing berth depth at Sections 101, 102, 105 and 106. It is
also extending the length of the berth at Section 102 so that
it can accommodate larger vessels.
NEW SERVICES FOR PORT CLIENTS
CanEst Transit Inc., a new company founded by La Coop
fédérée, Transit BD and MGT Holdings, signed a long-term
lease with the MPA in 2013 to operate out of the Port’s former
Grain Elevator No. 3 annex. CanEst Transit will specialize in
the containerization of agricultural products destined for local
and international markets.
18
2013 Annual Report – Port of Montreal
The CanEst Transit
project fits perfectly
within the MPA’s
“Port+” strategy
to provide value-added
services to Port users
and to attract new clients.
MORE AVAILABLE
SPACE
200,000
OR 13% MORE
CONTAINERS
Increase in capacity
at the Viau and Maisonneuve
sectors following
redevelopment projects.
1.7 MILLION
TEU CONTAINERS
The CanEst Transit project fits perfectly within the MPA’s
“Port+” strategy to provide value-added services to Port
users and to attract new clients. The centre is scheduled
to open in summer 2014 upon completion of a project to
modernize the facility.
The MPA revamped its Iberville Passenger Terminal in 2013.
The interior walls were painted and new eye-catching signage
was added so that cruise passengers can more easily find
their way around the terminal. The MPA is currently working
on a more in-depth renovation project for the facility.
(20-foot equivalent units)
is the new total capacity.
$15.1
MILLION
Transport Canada’s
contribution to the projects.
The MPA also decided in 2013 that it will proceed with
renovations of the Cité du Havre building that houses its
administrative offices and those of its tenants.
Port of Montreal – 2013 Annual Report
19
FROM INDONESIA
TO YOUR GARDEN
The Caméléon vert boutique on Saint-Antoine Street in Montreal features beautiful
teak furniture and home and garden accessories from Indonesia, China and Latin America.
From Asia, these often homemade wood items are carefully loaded into a container.
They sail on the Mediterranean before crossing the Atlantic to make their way here.
“FROM CHINA,
IT’S A LITTLE LONGER
TO GO BY THE ATLANTIC
AND MONTREAL THAN BY
CANADA’S WEST COAST AND
THEN THE TRAIN, BUT IT’S MUCH
LESS EXPENSIVE AND MORE
ENVIRONMENTALLY FRIENDLY. IT’S
JUST A MATTER OF TAKING THE
TIME. SHIPPING IS THE CLEANEST
MODE OF TRANSPORT.”
VIRGINIE CONSTANT
CAMÉLÉON VERT
5 DEPARTURES,
2,500
PASSENGERS
invited aboard a free cruise:
Port in the City Day
remains popular.
SUSTAINABLE DEVELOPMENT: COMMUNITY RELATIONS
NEW COMMUNICATIONS
CHANNELS
The Montreal Port Authority’s (MPA) commitment to
strengthen its presence and its ties with its neighbouring
community was evident in the Viau sector redevelopment
project. To create a space to accommodate containers,
major works that could impact the neighbourhood had
to be carried out. In March 2013, the Port organized “open
house” meetings to explain the project to the surrounding
community. Nearby residents were subsequently kept
informed of the progress of the works and were invited
to contact the MPA if need be.
Likewise, a meeting was held between representatives
of the residents of Cité du Havre, in the Borough of Ville-Marie,
and representatives of the Port of Montreal. The objective
of this initiative was to get to know and better understand
our respective situations and, together, establish clear and
effective channels of communication.
of the St. Lawrence, helps them get to know themselves
better by working as a team, and encourages them to stay
in school.
Other projects that benefited from the Port’s support
include: the exhibition 20,000 Leagues Over Land and
Sea – Exploring Six Centuries of Cartography, organized
in partnership with Stewart Museum; the exhibition on
the Port of Montreal at the Pointe-à-Callière museum of
archaeology and history; the Montreal Ice Canoe Challenge
organized by Héritage Maritime Canada that took place
on the St. Lawrence River in February 2013; and the Port’s
team of employees who participated in the MS Bike Tour
that raises money to fund research on multiple sclerosis.
PORT IN THE CITY DAY
THE PORT INVESTS IN
ITS NEIGHBOURING COMMUNITIES
In September, the Port of Montreal held Port in the City Day,
an event that remains as popular as ever with each passing
year. In partnership with AML Cruises, the Port invites the
public to take a cruise on the St. Lawrence River to discover
port facilities. Five departures are scheduled during
the day. To sign up for these free cruises, people simply
go to the MPA website and become “Friends of the Port,”
or “Neighbours of the Port,” which is open to all residents
of Montreal East and the following boroughs: Ville-Marie,
Mercier-Hochelaga-Maisonneuve and Rivière-des-PrairiesPointe-aux-Trembles. The tickets went like hotcakes.
In 2013, the Port of Montreal supported several educational
projects within the neighbouring community or related to
marine activities. For the third year, the Port was a partner of
the Samajam Student Retention Project that allows students
to develop a sense of belonging to their school through music.
On September 7, 2013, more than 2,500 people went
aboard the Cavalier Maxim for a one-hour cruise on the river.
Passengers were treated to a spectacular view of the Port.
MPA senior managers were on board to present the Port
and its facilities and explain operations.
A new section dedicated to Neighbours of the Port was
launched in the fall edition of Logbook magazine, posted
three times a year on the Port of Montreal website, and
completely free of charge. This new communication channel
makes it possible to share information with neighbouring
communities on Port life, news, events and projects, works
underway and achievements.
In the same spirit, the Port of Montreal partnered with
the ÉcoMaris project, financing the participation of two
young people from the Port’s neighbouring districts in
an expedition aboard the Roter Sand sail training vessel.
This experience aims to educate youth about the ecosystem
Port of Montreal – 2013 Annual Report
21
A BIT OF LATIN AMERICA
IN YOUR
COFFEE
Lantic Sugar is part of the history of Montreal, just like the Port.
Lantic has been in business with the Port for 126 years, in the same location,
at the foot of Pie IX Boulevard. Bulk carriers from Latin America, mainly Brazil,
unload 500,000 tonnes of raw sugar a year directly
into the Lantic facility by conveyor.
“WITH THE PORT OF
MONTREAL, WE HAVE
AN EXCELLENT,
MUTUALLY BENEFICIAL
BUSINESS RELATIONSHIP.”
BOB COPELAND
Vice-President of Operations
LANTIC SUGAR
SUSTAINABLE DEVELOPMENT: THE ENVIRONMENT
LEADERSHIP AND DETERMINATION
LEADER IN GREEN MARINE
The Port of Montreal was again among the leaders in Green
Marine. This organization, of which the Port is a founding
member, is a joint initiative of several associations repre­
senting the marine industry in Canada and the U.S., with a
goal to implement an environmental program throughout
North America. Every year, its members are evaluated on
their environmental performance. Despite a tightening of the
requirements, the Port of Montreal maintained its solid ratings:
5/5 for its environmental leadership and its efforts to reduce
conflicts of use, and 4/5 for its control of greenhouse gas
emissions (GHGs).
In addition, the Montreal Port Authority’s (MPA) Environment
Department gave a presentation at the 2013 Green Marine
Annual Conference, held in Vancouver, on the interactive
mapping of soil quality of land on Port territory and reports
on pollution and complaints.
INNOVATION IN SOIL SOLIDIFICATION
The Port of Montreal used a pioneering method of soil
reinforcement to solidify soil extracted from land in the
Viau sector, which has been redeveloped to accommodate
containers. Once mixed with cement, these soils form a very
thick and extremely solid paste, which is spread on the bottom
of the excavated ground. The truck trips that were eliminated
by not sending the extracted soil to a technical landfill and
replacing it with noble soil saved the equivalent of 170 tonnes
of GHGs.
RECYCLED AND RECYCLABLE RAILWAY TIES
Since last fall, the Port of Montreal railway that serves various
terminals includes some 20 composite railway ties laid over
a length of 40 feet. The ties are made from recycled tires
and plastic bottles. The MPA is testing how they react to
the Quebec climate. If the results are satisfactory, these new
composite ties will replace the old wooden ties when they need
to be changed. A composite tie is estimated to last 40 years,
compared to about a decade for a wooden tie. Furthermore,
the new tie is 100 percent recyclable at the end of its life cycle.
Some 3,300 composite ties are used every mile (1.6 kms).
Their use would make it possible to save 750 hardwood trees,
to eliminate the use of 22,000 pounds of creosote, and to
recycle two million plastic bottles, nine million plastic bags
and 10,000 used tires.
COMPLIANCE WITH THE ENVIRONMENTAL
MANAGEMENT SYSTEM
Over the course of 2013, Port tenants conducted 15 environ­
mental compliance audits. By doing so, they fulfilled an
obligation under the requirements of the MPA’s environmental
management system, which are included in the contractual
clauses of its tenants’ leases.
In addition, all projects carried out by the MPA were analyzed.
These project evaluations determined that, when called for,
the environmental effects could be managed by the effective
mitigation measures already in place.
NEW SPAWNING GROUNDS
AT THE BOUCHERVILLE ISLANDS
The rehabilitation projects in the Boucherville Islands were
completed in 2013 with the seeding of plants in the fish
spawning zones and the planting of shrubs. Two sections
of channels were deepened to ensure a continuous, perma­
nent link to open water. These projects involve five islands
managed by the MPA in the northwest part of the Boucherville
Islands archipelago.
HYBRID VEHICLES
The Port has completed the conversion of its fleet of Security
and Fire Prevention vehicles; they are now all gasoline-electric
hybrids. This technology makes it possible to reduce fuel
consumption by nearly 50 percent.
ACTIVE TRANSPORTATION
In spring 2013, Vélo-Québec booths and bicycle tune-up
workshops were set up to encourage employees to bike to
work. A used bike drive was also held to benefit Cyclo Nord-Sud,
a charity that sends used bikes to disadvantaged people
in countries in the southern hemisphere. It is also noteworthy
that many employees and tenants of the Port bicycle, walk,
take public transportation or carpool to get to work.
Port of Montreal – 2013 Annual Report
23
THE PLANET GETS ITS NEWS ON
PAPER PRODUCED
IN CANADA
Whether they live in Latin America, the Middle East, Africa or Asia,
millions of people stay informed by starting their day with their favourite
newspaper, printed on paper produced in Canada. From the Port of Montreal,
Resolute Forest Products exports every year thousands of containers
carrying huge roles of newsprint that can weigh up to 1,200 kg.
“OUR NEWSPRINT
IS SENT TO MORE THAN
90 COUNTRIES
THROUGHOUT THE WORLD.”
JACQUES LAROCHELLE
Vice-President International
RESOLUTE FOREST PRODUCTS
THE PORT OF MONTREAL
WELCOMED
2,227
VISITORS
in 2013.
COMMUNICATIONS
REACHING OUT TO THE WORLD
The Port of Montreal continues to foster a strong relationship
with its neighbouring communities and assume its role as a
good corporate citizen. The Montreal Port Authority (MPA)
has launched an action plan to enhance communications
with Port neighbours, in particular residents of the Viau and
Maisonneuve sectors and Cité du Havre.
The Port of Montreal welcomed 2,227 visitors to its
administrative building and on Port tours in 2013. Among
the visitors were international delegations including
the Government of China’s Ministry of Transport, the
Government of India’s Central Board of Excise and Customs,
and representatives of a trade mission led by Kris Peeters,
Minister-President of Flanders, Belgium; regional groups
including Quebec Manufacturers & Exporters and the export
promotion organization Carrefour Québec International;
and college and university students studying for the most
part transportation and logistics or international trade.
The Port also hosted the Chartered Institute of Logistics
and Transportation in North America (CILTNA) Outlook
Conference in May and the St. Lawrence Economic
Development Council (SODES) St. Lawrence-Great Lakes
Trade Corridor Conference in November.
The Port of Montreal won three awards in the American
Association of Port Authorities’ (AAPA) annual Com­
munications Competition in 2013. The Port won an Award
of Excellence for its new website, an Award of Distinction
for its PortInfo electronic magazine, and an Award of Merit
for its new branding campaign Trading with the World.
The Port also won the International Association of Ports
and Harbors’ (IAPH) bronze 2013 Port Communications
Award. The prize recognizes a project that provides free
Wi-Fi on Port of Montreal territory to seafarers whose ships
are docked in Port. The service allows mariners to connect
more easily with family and friends back home.
The MPA’s Security and Fire Prevention Department
welcomed two classes from Cégep du Vieux Montréal’s fire
prevention program and presented the Port’s emergency
measures plan to students. It also made arrangements for
students from Collège Montmorency’s fire safety program
to conduct exercises aboard certain vessels in the Port.
EMPLOYEE TRAINING
INTELLIGENT INVESTMENT
In 2013, no less than 7,828 hours of training were provided
to 243 MPA employees. This amounts to an average of
32 hours of training per employee.
For the past five years, the Port of Montreal has practically
doubled its investment in training hours for its employees
to perfect and maintain their skills. The MPA strongly
believes that investing in skills development enables the
Port to improve its agility and mobilize its employees.
Our team ensures our success, which is why we need to train
our employees in new technologies and the latest trends.
Port of Montreal – 2013 Annual Report
25
MANAGEMENT
COMMITTEE
SYLVIE VACHON
President and
Chief Executive
Officer
DANIEL DAGENAIS
Vice-President,
Operations
TONY BOEMI
Vice-President,
Growth and
Development
RÉAL COUTURE
Vice-President,
Finance and
Administration
26
2013 Annual Report – Port of Montreal
MARIE-CLAUDE
LEROUX
Vice-President
and Secretary,
Corporate Affairs
and Secretariat
SERGE AUCLAIR
Vice-President,
Strategy and
Human Resources
SOPHIE ROUX
Director of
Communications
BOARD OF
DIRECTORS
GOVERNANCE
On October 20, 2013, Michel M. Lessard was reappointed
Chairman of the Board of Directors of the Montreal
Port Authority (MPA) for a period of two years. Anik Trudel
was appointed Vice-Chair of the Board of Directors for
a two-year term.
COMMITTEES OF THE BOARD OF DIRECTORS
To guide its decisions, the Board of Directors relies on
four committees.
Audit Committee
This committee recommended the approval of the
MPA’s audited financial statements and examined
the recommendations of the external auditor. It monitored
the MPA’s financial results on a quarterly basis. It kept track
of the capital budget. It analyzed the annual and interim
reports on risk management and ensured that proper
measures were in place to manage any potential risks.
It closely monitored the performance of the MPA’s investment
portfolio as well as legal requirements, regulations and
contracts that could impact the MPA.
Governance and Human Resources Committee
This committee fulfilled its mandate with respect to the
remuneration of senior management and non-unionized
employees. It closely monitored the performance of MPA
employee pension fund portfolio investments. It ensured
that declarations of conflict of interest or perceived conflict
of interest were filed in conformity with the MPA’s code
of ethics. It coordinated self-evaluations for the Board
of Directors and Board committees.
MICHEL M. LESSARD
(since 27-06-2007)
Chairman of the
Board of Directors
Corporate Director
Me ANIK TRUDEL
(since 19-06-2008)
Vice-Chair of the
Board of Directors
General Manager,
Edelman
NORMAND MORIN,
ENG. PH.D.
(since 30-10-2006)
Corporate Director
YVES FILION
(since 11-05-2007)
Certified Corporate
Director
MARC Y. BRUNEAU
L.SC.COMM, F.C.A.
(since 12-04-2010)
Corporate Director
Environment, Safety, Health
and Security Committee
This committee conducted its annual review of the activities
of the Environment and Security departments. It also
examined measures related to health and safety. It monitored
priorities related to the MPA’s Sustainable Development
Policy and its implementation.
CLAUDE MELANÇON
(since 24-03-2012)
Corporate Director
Infrastructure Committee
(formerly Fixed Assets Committee)
This committee helped the Board fulfil its mandate relative
to infrastructure management and investments by the
MPA in its building infrastructures and related equipment,
including the relevance and rationale of the five-year plan
and the annual infrastructure budget.
GERMAIN THIBAULT
(since 29-11-2012)
General Manager
Grand défi Pierre Lavoie
Port of Montreal – 2013 Annual Report
27
CONDENSED
FINANCIAL RESULTS
STATEMENT OF EARNINGS
year ended December 31, 2013
2013
2012
(restated)
(in thousands of Canadian dollars)
$
Revenue from operations
87,357
85,585
Expenses
Salaries and benefits
Maintenance and repairs
Public services
Professional services
Payments in lieu of property taxes
Other expenses
Gross revenue expenses
Amortization of fixed assets
35,595
8,890
424
4,432
2,620
5,041
3,819
20,870
35,222
8,131
428
3,062
2,200
6,739
3,787
21,250
81,691
80,819
5,666
3,633
2,000
(7,097)
4,766
3,771
1,250
(3,686)
4,202
6,101
Operating earnings before the following items
Investment income
Settlement of legal proceeding
Restructuring expense
Net earnings
$
STATEMENT OF COMPREHENSIVE LOSS
year ended December 31, 2013
(in thousands of Canadian dollars)
Net earnings
2013
$
2012
(restated)
$
4,202
6,101
Other comprehensive loss
Items that will be reclassified subsequently to net earnings
Available-for-sale financial assets
Loss for the year
Reclassification in net earnings
Items that will not be reclassified subsequently to net earnings
Remeasurement of defined benefit obligation
(3,102)
(1,162)
(1,016)
(743)
28,708
(23,070)
Other comprehensive income (loss)
24,444
(24,829)
Total comprehensive loss
28,646
(18,728)
28
2013 Annual Report – Port of Montreal
STATEMENT OF CHANGES IN THE EQUITY OF THE GOVERNMENT OF CANADA
year ended December 31, 2013
(in thousands of Canadian dollars)
Balance as at January 1, 2012 (as previously reported)
Impact of the adoption of IAS 19 (as revised in 2011)
Net earnings of prior years
Remeasurement of defined benefit obligation of prior years
Balance as at January 1, 2012 (restated)
Retained
Contributed earnings
capital (deficit)
$
$
235,199
–
–
631
(2,232)
2,232
Accumulated other
comprehensive
income
$
Total
equity
$
5,147
240,977
–
–
(2,232)
2,232
235,199
631
5,147
240,977
Year 2012
Net earnings of the year (restated)
–
6,101
–
6,101
Other comprehensive income (loss)
Available-for-sale financial assets
Loss for the year
Reclassification in net earnings
Remeasurement of defined benefit obligation
–
–
–
–
–
(23,070)
(1,016)
(743)
–
(1,016)
(743)
(23,070)
Total comprehensive income loss of the year (restated)
–
(16,969)
(1,759)
(18,728)
235,199
(16,338)
3,388
222,249
–
4,202
Balance as at December 31, 2012 (restated)
Year 2013
Net earnings of the year
–
4,202
Other comprehensive income (loss)
Available-for-sale financial assets
Loss for the year
Reclassification in net earnings
Remeasurement of defined benefit obligation
–
–
–
–
–
28,708
(3,102)
(1,162)
–
–
32,910
(4,264)
28,646
235,199
16,572
(876)
250,895
Total comprehensive income loss of the year
Balance as at December 31, 2013
Port of Montreal – 2013 Annual Report
(3,102)
(1,162)
28,708
29
CONDENSED
FINANCIAL RESULTS (CONTINUED)
SUMMARIZED STATEMENT OF CASH FLOWS
year ended December 31, 2013
(in thousands of Canadian dollars)
Operating activities
Net earnings
Non-cash items
Net change in working capital
Expenses payable
Net cash from operating activities
Investing activities
Acquisition of fixed assets net of government grant
Disposal of fixed assets
Acquisition of investments
Disposal of investments
Interest received
Net cash used in investing activities
Financing activities
Payments under finance lease contracts
Net change in cash
Cash, beginning of year
Cash, end of year
30
2013 Annual Report – Port of Montreal
2013
2012
4,202
11 304
6,101
10,525
15,506
16,626
$
294
456
$
(4,703)
–
16,256
11,923
(37,911)
985
(43,296)
59,732
2,916
(17,364)
50
(26,933)
30,394
3,388
(17,574)
(10,465)
(287)
276
(1,605)
3,979
1,734
2,245
2,374
3,979
SUMMARIZED STATEMENT OF FINANCIAL POSITION
December 31
2013
December 31
2012
January 1
2012
$
$
46,367
42,333
238
259,647
28,549
72,782
323
241,287
30,128
75,457
430
243,143
348,585
342,941
349,158
33,797
456
692
3,683
59,062
26,377
–
754
413
93,148
29,215
–
1,332
221
77,413
97,690
120,692
108,181
235,199
16,572
(876)
235,199
(16,338)
3,388
235,199
631
5,147
250,895
222,249
240,977
348,585
342,941
349,158
$
(in thousands of Canadian dollars)
Assets
Current
Investments
Other assets
Fixed assets
Liabilities
Current
Expenses payable
Asset retirement obligations
Obligation under finance lease contracts
Employee benefit obligation
Equity of the Government of Canada
Contributed capital
Retained earnings (deficit)
Accumulated other comprehensive (loss) income
The financial statements have been prepared in conformity with International Financial Reporting Standards (IFRS). The
complete version of the audited financial statements is available upon request.
MICHEL M. LESSARD
SYLVIE VACHON
Chairman of the
Board of Directors
President and
Chief Executive Officer
February 28, 2014
Montreal, Quebec, Canada
Port of Montreal – 2013 Annual Report
31
TEAMWORK
The Port of Montreal could not
play its pivotal role at the heart
of the Greater Montreal region’s
transportation logistics chain
without the active involvement
of its employees and partners.
By definition, a fluid and efficient
transportation service is the result
of working in partnership.
The Port of Montreal team
salutes the shipping lines,
terminal operators, agents,
railways, trucking companies
and the many other
stakeholders in the cargo
transportation logistics chain.
TO ONE AND ALL,
THANK YOU FOR
YOUR EXCELLENT
COLLABORATION
INFORMATION
MONTREAL PORT AUTHORITY
Communications Department
[email protected]
Ce document est disponible
en français sur demande : 514 283-7050
Photo Credits
Port of Montreal Archives
Christian Carpentier
Sylvain Giguère
Pierre-Louis Mongeau
Graphic Design
Dyade
Printed in Canada
May 2014
MONTREAL
PORT AUTHORITY
2100 Pierre-Dupuy Avenue, Wing 1
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