the port at the heart of daily life
Transcription
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 Montreal, Quebec H3C 3R5 Canada T 514 283-7011 F 514 283-0829 port-montreal.com