Presentation to MASS17 OCTOBER 2017

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2 Presentation to MASS17 OCTOBER 2017

3 Since 1967, the Woodward Group of Companies has been involved in the fuels and shipping business throughout eastern and northern Canada Average annual CPP throughput estimated 600 million liters Storage sites with a total capacity over 200 million liters Delivering fuel to the Arctic & sub-arctic regions in its own vessels Started delivery for the Government of Nunavut and its agencies Woodward has expanded its delivery program to virtually all Nunavut communities accessible by marine delivery as well as commercial and defense locations throughout the Arctic region Involved year round in passenger and freight ops in sub Arctic northern Newfoundland and Labrador

4 Total Fuel Deliveries in Liters Canadian Arctic and Sub-Arctic Regions since year ,700,000,000

5 Typical day in February in the Strait of Belle Isle

6 Apollo and our Partners CCG in Escort Status

7 Our Most Important Partnership: the CCG Arctic season starts late June and ends as late as early December; northern NL ice ops starts January/February and ends late April/May Our shipping work is about 70% ice ops and the CCG is our most important partner in that work In our opinion, the CCG is a world class provider of ice ops support with highly experienced officers and decades of experience based knowledge and skills second to none

8 CCG Fleet Size and Age The CCG does their work with equipment that is capable but aged, expensive to operate and given the demand from the users is at risk of being found under capacity for the work it is asked to complete

9 Current CCG Ice Breaking Fleet These vessels are the main icebreakers utilized. The CCG has a cadre of lighter ships that do lighter ice ops work but they are mostly used when the heavy and medium ice breaker fleet is occupied and conditions permit.

10 Average CCG Fleet Age The CCG fleet average age of the ice breakers is approximately 36 years; commercial fleets are less than 20 years average age The current Canadian Government policy for vessel procurement means that fleet average age will continue to slide for 11 more years until first projected newbuild icebreaker is launched Average age by then without policy change or fleet reduction will be well over 45 years assuming the current vessels are still working

11 Geographic Limits of Arctic Ice Breaking and Sar Ops There are minimal SAR resources currently deployed in the Canadian Arctic; a few rescue boats and very few CCG Auxiliary The CCG ice breaking fleet has been 2-3 vessels at a time, especially in shoulder seasons SAR response is from the south or commercial traffic in the area if available

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13 Arctic Fuel Delivery Methodology Almost all those deliveries have been by way of floating 4 inch rubber hose; A guesstimate of our average delivery volume is about 2,000,000 liters; That equates to over 2350 individual instances of product deliveries occurring during the time we have worked in the Arctic Region

14 Fleet Composition All ships are Ice Classed, Type A or B vessels Fleet upgrades are occurring now as standards for ops require All ships IACS Classed, Delegated Inspection and our fleet maintenance program is our most important work

15 The Best Case Delivery Reasonable hose length No ice Perfect weather conditions

16 Typical Day Work boat hose tending in first year ice Ice goes from slob to solid in less than 24 hours in late season deliveries Hose length of more than 5000 feet in some sites Weather/ice may require hose to be carried over 4000 feet by crew

17 Biggest Issues in the North: Available Infrastructure Bollards: Situation is finally starting to improve but still areas in desperate need Usable Wharves: Churchill, Nanasivik? No service providers No tugs Nav Aids such as range lights few and many needed Inadequate charts in some areas outside of established shipping corridors

18 Current Infrastructure Very few Bollards One usable Wharf Incomplete Charts No Service providers or repair companies No tugs or other assistance available No spill response groups available North of 60

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22 October 2017 Iqaluit Pangnirtung Broughton Island Clyde River Pond Inlet Grise Fiord Resolute Arctic Bay Churchill Pelly Bay Cambridge Bay Coppermine Gjoa Haven Igloolik Taloyoak Rankin Inlet Chesterfield Inlet Arviat Whale Cove Baker Lake Cape Dorset Coral Harbour Sanikilliuaq Repulse Bay Kimmirut Hall Beach Bollards available No bollards available; use rocks Bollards available. Bollards available. Bollards available. 1 Bull dozer one bollard Bollards available Dock in this port Bollards available Bollards available Tractors used Bollards available Bollards at GN Location Bollards available Bulldozer used Bollards available Buried wires used Bollards available Bollards available One bollard but would block the port if used Bollards / Ring bolts Bollards available Bollards available

23 Charts While charts exist for most navigable areas of the Arctic, the detail available is inconsistent and deviations from normal routes for ice or other operational issues is at best difficult. It is not an issue of skill or competence of the cartographers, but as with most Arctic issues, limited resources available for the work.

24 Zonal Date Entry System The zonal date entry system which is currently used for entry into the Arctic zones by necessity dictates when work can occur and when deliveries can be made. The vessel type and typical ice conditions in a zone are used to establish dates This correctly puts safety and security, not typical business drivers, in charge of your business plan for work in the Arctic areas.

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26 Arctic Ice Regime Shipping System (AIRSS) Alternate method of zonal entry Actual ice conditions are assessed and the type of vessel proposing entry uses it s assigned ice class to calculate an ice numeral to determine if, despite date, conditions permit the ship to enter (positive go-negative no) Calculation is given to Nordreg (TC) who rigorously check based on their best ice information

27 What If? A large passenger cruise ship grounds in the Arctic with 1500 or more passengers? What if at the same time a freight ship has a crew member with a medical emergency? What if a hunter is overdue to his home and a SAR mission must be launched? What if the weather is preventing a helicopter leaving base or making its way to final destination? These are real possibilities that happen in the shipping business every day and are we ready?

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