15years ADMINISTRATION. our ANNUAL REPORT

Transcription

1 15years our ADMINISTRATION ANNUAL REPORT 2014

2 UNITED by the sea Our story is that of life in the era of boats, watching the horizon for their arrival and following their departure as long as they could be seen. Our story is that of the developments that our port facilities have created to allow the exploitation of our region s natural resources: forests, mines and electricity, just to name a few. Our story is that of a great ocean port with a forcibly regional vocation which is at the core of the major developments of our area. Our story is a small, maybe even a big part of the history of our country. Louis-Ange Santerre Unis par la mer, 1994 Equipped with diversified and efficient facilities, the Port of Sept-Îles is the largest iron ore port in North America, with shipments close to 27 million tons yearly. The city s port infrastructures play a vital and strategic role in Eastern Canada s economy. Its impact was assessed at close to 4,000 direct and indirect jobs and annual economic activities in the order of 1 billion dollars. Europe and Asia, Sept-Iles ideal location allows year-round access to the St-Lawrence Seaway and its most important Canadian ports, with close to 90 % of its merchandise headed to international markets, half of which are destined to Asia. Situated at the heart of all of the main maritime routes between North America,

3 April 1, 1999 Under the Canada Marine Act adopted in 1999, the Port of Sept-Îles became a Canadian Port Authority managed by a local board of directors known as the Sept-Îles Port Authority. CELEBRATING our Port! To mark the celebration of the Port s 15 th anniversary, many community collaborators, organisations, partners and supporters joined forces to offer an array of activities. Whether it be the Tous à bon Port edition of the city s Vieux-Quai en Fête, of which the Port was an honorary sponsor or the Port s Martime Week launched by the Governor General of Canada, his Excellency the Right Honourable David Johnston, which attracted over 4,000 visitors, the local administration took every opportunity to build ties with community members. THANKS Ville de Sept-Îles Vieux-Quai en Fête HMCS Jolliet Destination Sept-Îles Nakauinanu Partner businesses and organisations Volunteers 1

4 The Sept-Îles local port authority is without a doubt a success story when it comes to vision, commitment and partnership. First of all, I would like to pay tribute to the first administrators of this great adventure, and to all those who have followed in their steps. Over the past 15 years, we have benefitted from many enriching projects and have learned to navigate through sometimes difficult conditions. Our values and our vision have allowed us to experience change with confidence, and that is what shapes our organisation. CAROL SOUCY Chairman of the board Our decisions are based on the desire to achieve great things, for the benefit of our community and users. To achieve this goal, we have created and maintained strategic and meaningful relationships with local and regional partners, our users, elected officials and government representatives. Throughout the years, trust and close ties have translated into a bright future, and as such, our team members should be applauded for their experience and know-how. Thanks to the strength of our partnership, we have successfully carried out our projects, and I wish to personally thank them. With the completion of our multi-user dock, a new page in our history has been written. While 2015 marks the end of my mandate, I am greatly satisfied with how much our project has evolved. I am proud to have contributed to the management and evolution of this organisation. TO SUCCEED Audit Committee Pierre Côté In charge Jean-Pierre Maltais Manon Langlois Environment Committee François Turmel In charge Christian Michaud Carol Soucy Ex Officio Finance Committee Avit Ouellet In charge Pierre Côté Carol Soucy Ex Officio Human Resources Committee Avit Ouellet In charge Jean-Pierre Maltais Christian Michaud Carol Soucy Ex Officio 1 2 BOARD OF DIRECTORS 1 Avit Ouellet 2 Manon Langlois 3 Pierre Côté 4 Jean-Pierre Maltais 5 François Turmel 6 Christian Michaud 7 Pierre D. Gagnon, President & CEO 8 Carol Soucy

5 MISSION The Port of Sept-Îles, benefiting from the natural advantages of the Bay of Sept-Îles, has the mission to remain an important development agent by providing adequate facilities and efficient services, in a partnership framework and with a sustainable development approach. Since 1999, the Port has been managed by local governance whose strategic vision of development takes into account needs and opportunities to deliver the best to its world its users, partners and community Photo credit: DSIN CHAIR Charles A. Langlois Marc Brouillette Langis Saint-Gelais Élizabeth Blais First Board of Directors Carol Soucy FIRST BOARD OF DIRECTORS 1 Charles A. Langlois Chairman 2 Marc Brouillette Vice-Chairman 3 Suzanne Parent Bouchard 4 Gilles Cossette 5 Mario McDonald 6 Jean-Guy Normand 7 Carol Soucy PAST ADMINISTRATORS Stanley McGee Serge Lévesque Yves-Marie Côté André Rioux Keith Eldridge Daniel Jouis Yannick Chiasson 3

6 2014 was a milestone in the Port of Sept-Îles history: the 15 th anniversary of the creation of a local port authority, completely financially independent, managed and governed by the people from Sept-Îles and no longer by a central agency in Ottawa. Since its creation in 1999, the new administration has wanted to continue in the footsteps of its predecessors and develop the full potential of Pointe-Noire, with the results known to us today: Cutting-edge port facilities to serve our industries and the needs of the markets. A world-class multi-user dock, unique to North America, precious stepping stone for the iron ore market, the Plan Nord and the Port s future growth. The construction of the Cruise Terminal has also enhanced the city s image and enriched the attractiveness to our tourists. PIERRE D. GAGNON President & CEO In the course of this period, which resembles that of adolescence, the Port has redefined itself with a new image, more dynamic and contemporary, based on values of sustainable development and the strength of partnerships. This meaningful DEPLOYMENT in the past 15 years is driven by the unconditional commitment of all of the organisation s resources, managers and administrators, who have been completely devoted to excellence in order to Deliver the best to our world : our clients, partners and community. I wish to extend my utmost gratitude. TO DEPLOY THE TEAM 1 Shawn Grant 2 Étienne Bouchard 3 Carl Allard 4 François Devault 5 Joël Richard 6 Diane Morin 7 Cloé Gagné 8 Patsy Keays 9 Pierre D. Gagnon, President & CEO 10 Marie-Ève Guérin 11 Manon D Auteuil 12 Mélissa Sanikopoulos 13 Raynald Ouellet 4

7 To deliver the best to its world, management of its different activities, team expertise, financial input in the community, its role as an economic developer as well as its environmental initiatives that make it a leader in the preservation of the Bay of Sept-Îles and the promotion of the blue highway. the Port of Sept-Îles is supported by a devoted and readily available multidisciplinary team that strives to provide services to its users, support current activities and numerous development projects. The Sept-Îles Port Authority is a solid organisation, and well anchored in the port industry and its community. It is successful on many fronts: operations for its users, the 7 star TEAM 3 OPERATIONS Raynald Ouellet, Eng. Vice-President, Operations & Business Development 2 Manon D Auteuil, Eng. Director, Engineering & Sustainable Development 3 Shawn Grant Harbour Master and Port Security Officer 4 Mélissa Sanikopoulos Environment Manager 5 Étienne Bouchard Project Manager 6 Carl Allard, Eng. Asset Manager 7 Joël Richard Operations Clerk ADMINISTRATION 8 Diane Morin Director, Finance and Administration 9 Marie-Ève Guérin Accounting Technician 10 François Devault Accountant CORPORATE AFFAIRS 11 Patsy Keays Director, Corporate Affairs 12 Cloé Gagné Executive Assistant (replacement) Caroline Gauthier Executive Assistant

8 2014 TONNAGE 23.8 Million Tons TO ACCOMPLISH 2014 Photo credit: DSIN In regards to annual production, there has been a 14% decrease, with 23.8 million tons handled compared to 27.7 million tons last year. The closing of Wabush Mines Scully mine in February 2014, as well as the suspension of Labrador Iron Mines activities following the iron ore market s unfavourable conditions, are the main reasons behind this economic downturn. Last October marked the end of the construction of the multi-user dock. The dock will be fully operational once the loading equipment is installed in the spring of Finally, what a nice way to celebrate the 15 th anniversary of the local port authority! This season, a new record was reached: 9 ships docked and more than 5,700 passengers visited the Sept-Îles port of call. In 2014, Destination Sept-Îles Nakauinanu focused on assessing its products and services, as well as on developing a strategy and plans in order to improve activities and reception facilities. Supported by our partners, our goal is to offer our future visitors, as well as our business community and population, a unique experience. Also noteworthy are the expansion of the facilities of Société d intervention maritime est du Canada Ltée. (SIMEC) and the signature of a long-term agreement with the organisation in support of the North Shore marine environment. 6

9 TO EVOLVE The Port of Sept-Îles is an important promoter and generator of economic spinoffs. It is a key partner in making current and future user projects a reality by adapting to client and market demands. With more than half a billion in private and public investments in the recent years, its range of services is unparalleled. In the past 15 years, the Port has carried out many major projects totaling the colossal figure of close to $319 M: Construction of a multi-user dock $207 M Increase in storage capacity AAI $30 M Expansion of La Relance terminal $25 M Construction of the Cruise terminal $21 M Pointe-Noire terminal optimisation $19 M Pointe-Noire dock restoration $5 M Construction of a railway link $3 M Expansion of SIMEC building $1 M Misc. $8 M TONNAGE AND PASSENGER STATISTICAL TABLE Year Tonnage Highlights ,926, ,885,581 Wabush Mines most successful year since metric tons ,071,448 Year of the last coal transhipment at the Port of Sept-Îles ,101, million metric tons handled at the IOC dock ,885,719 Record loading of metric tons by the M/V Penelope at the Pointe-Noire terminal ,543,893 Record low in iron ore loading in the port of Sept-Îles with metric tons ,447,957 Significant increase in tonnage from Aluminerie Alouette with the launch of Phase ,458,574 First year of operation for the rail-car ferry ,367,838 20% increase in the volume handled at the Pointe-Noire terminal ,599,523 Fourth year of increase in the volume at the Relance terminal ,827,920 Decrease in the recorded demand for iron ,070,234 Commencement of shipping activities for the new iron ore mine, Bloom Lake ,954,381 Commencement of shipping activities for Labrador Iron Mines ,891,604 Steady growth in volumes at Labrador Iron Mines ,712,654 Commencement of shipping of iron ore for Tata Steel Minerals Canada ,786,335 Closing of Scully Mine in February 2014 and shutdown of production of Lake Bloom in December of 2014 Total 366,531,438 Year Passengers ,047 First anchored cruise ship ,119 First cruise ship to dock at the Cruise terminal ,438 Visit from 5 cruise liners ,370 Visit from 3 cruise liners ,797 Record year with the visit from 9 cruise liners Total 21,771 7

10 $13,046 k IN REVENUES TO PERFORM Photo credit: Sébastien Miousse STATEMENT OF FINANCIAL POSITION Fiscal Year Ending December 31 (in thousands of dollars) ASSETS LIABILITIES AND EQUITY CURRENT ASSETS Cash $34,313 $41,913 Accounts receivable $9,361 $25,233 Contributions receivable $0 $8,395 Prepaid expenses $115 $183 Current portion of investments $1,000 $1,000 Current portion of net investment in direct financing leases $3,223 $3,101 $48,012 $79,825 INVESTMENTS $3,000 $3,000 NET INVESTMENT IN DIRECT FINANCING LEASES $12,380 $15,603 GRANTS RECEIVABLE $3,630 $4,271 CONTRIBUTIONS RECEIVABLE $11,000 $17,580 CAPITAL ASSETS $287,980 $234,747 $366,002 $355,026 $41, CURRENT LIABILITIES Credit facilities $10,000 $15,000 Operating debts $12,009 $38,578 Deferred income $688 $641 Long term liabilities maturing within a year $6,352 $2,964 $29,049 $57,183 DEFERRED REVENUES $94,460 $109,386 LONG TERM DEBT $63,782 $15,134 DERIVATIVE INSTRUMENTS $955 $1,009 DEFERRED CONTRIBUTIONS $102,408 $103,598 DEFINED BENEFIT LIABILITIES $1,135 $503 $291,789 $286,813 AUTHORITY S EQUITY Contributed capital $11,707 $11,707 Excess of assets over liabilities $63,580 $56,932 Accumulated other comprehensive income ($1,074) ($427) $74,213 $68,212 $366,002 $355,025 $41,550 8

11 The Port has maintained its revenues in the amount of $13,046 k compared to 2013, with a slight 0.5% decrease despite inferior volume. The loss attributable to the closing of Wabush Mines Scully mine may have been compensated by additional volume at Bloom Lake that has had a record year in 2014 since its opening. Operation costs have decreased compared to 2013, and total $7,292. Consequently, the quarter s results, setting aside other assets, have increased by approximately $53 k compared to provided by the IFRS accounting standards, thus giving a total result of $6,001 compared to $7,733 last year. Most investments made by the Port in the last year were directed to the construction of the multi-user dock, totaling $55.3 M. If we take a deeper look at the financials in the past 15 years, the Port has shifted from $41.5 M in assets in 2000 to more than $366 M in The major investments in new infrastructure over those 15 years have generated a net increase of $2 M in 2000 to more than $6 M in Changes noted in 2014 and 2013 and in other assets are related to the recording of two factors COMPREHENSIVE FINANCIAL STATEMENT 2014 Fiscal Year Ending December 31 (in thousands of dollars) 2014 RESULTS GROSS REVENUE $13,046 $13,105 $3,497 OPERATING EXPENSES Operating expenses $4,287 $4,406 Administrative expenses $3,005 $2,997 $7,292 $7,403 $3,371 INCOME BEFORE OTHER ELEMENTS $5,755 $5,702 $ OTHER ELEMENTS Other revenues $1,574 $2,266 $2,001 Financial expenses ($681) ($795) OTHER COMPREHENSIVE INCOME ($647) $560 S/O COMPREHENSIVE INCOME $6,001 $7,733 $2,127 CAPITAL EXPENDITURES $55,676 $127,412 $3,583 Investments - Assets (in thousands of dollars) Year Annual fixed amount 1999 $3, $3, $3, $ $ $1, $3, $4, $3, $1, $14, $59, $11, $25, $127, $55,676 Total $318,905$ Revenue Trends (in thousands of dollars) Year Annual fixed amount 1999 $2, $3, $3, $3, $3, $3, $4, $5, $6, $6, $6, $9, $12, $13, $13, $13,046 Total $111,943 $ Investments Environment (in thousands of dollars) Year Annual fixed amount 1999 $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $143 Total $2,203 9

12 TO PROTECT environment The Port has completed an important part of its Kelp Management Program in the bay of Sept-Îles with 160 reefs created to compensate for the loss of fish habitat due to the construction of the multi-user dock, meeting the environmental objectives related to the project. The Environmental Watch Program for the bay of Sept-Îles, headed by the Institut nordique de recherche en environnement et en santé au travail (INREST), has completed its second phase thanks to the Port s financial contribution. The work was aimed at analysing the sediments as well as studying the bay s ecosystem. HIGHLIGHTS In the last fifteen years, at least 2.2 million dollars have been invested into projects dealing with the restoration, preservation and enhancement of the environment. Here are a few examples: Reshaping of the banks and transplantation of grasslands Recipient of Phénix de l Environnement in Transplantation and seeding of saltmarsh cordgrass on close to sq. mt. of the banks Installation of artificial reefs to stimulate the settlement of sea cabbage and epibenthos Implementation of an Environmental Watch Program of the bay of Sept-Îles, in collaboration with the City of Sept-Îles and the INREST. 10

13 TO PROGRESS sustainable development HIGHLIGHTS Since 1999, the Port carries out environmental audits. These quinquennial audits and annual follow-ups help identify measures port users and partners can take to reach and surpass environment compliance standards Establishment and application of an environmental policy Inauguration of the Railway Transhipment Center to promote the Blue Highway Creation and diffusion of the Practices and Procedures Guide The Port of Sept-Îles is the first North American port to see all its stakeholders, terminals and users comply with the Green Marine Program. The Port of Sept-Îles has become the 3 rd largest North American port, after Metro Vancouver and Montréal, to receive the Green Award certification which acknowledges and attracts other certified ships with tariff cuts Merchandise Transportation Prize AQTR 2010 St. Lawrence Prize The Port of Sept-Îles has continued to integrate its sustainable development initiative to its current activities by creating an Environmental Manager position to meet the ever-growing challenges the development of Port infrastructures represents. The Port s participation in the Green Marine Program allows it to reduce its environmental footprint by adopting concrete and assessable measures. The constant improvement of the Port s environmental performance is attributable to the development of its environmental management system initiated in Identifying targets and concrete measures to attain them serves a basis for the ecofriendly consumption and management of residual material as well as the appreciation of indicator-based results. 11

14 The Port of Sept-Îles is well known for its core mission of community involvement. Three elements of concern guide its desire to become a committed and dynamic citizen: direct community support through a donation and contribution policy well in tune with the community, a motivated presence on committees and in work groups in support of the development of different organisations and the accessibility of port facilities to all those wanting to better understand the port and its operations. TO SHARE donations contributions Photo credit: Bruno Misson MAJOR DONATIONS IN 2014: $64,250 in revenues to Élyme des sables for its 5 à Huître maritime $15,000 towards the 2014 Edition of Vieux-Quai en Fête $10,000 towards the HMCS Jolliet monument $8,000 towards the 30 th Annual Innu Nikamu Festival $8,000 towards the Fondation régionale Hôpital Sept-Îles for Market-Lab chairs Retrospective Since 2012, for all Port investment projects exceeding 25 M dollars, a maximum of 0.15% of the total investment will be given to an organisation, corporation or other community body which reaches the general population, demonstrating how important community investment is to the Port. $5,000 towards the Société Alzheimer de la Côte-Nord for its annual Alzheimer Coffee Break Campaign and Walk for Memories $4,000 towards an educational tv program called Les Matelots de Tante Caro focused on the St. Lawrence, port and nautical activities Close to $174,679 offered to 80 community organisations 12

15 IN 15 YEARS $1,127,312 IN DONATIONS AND CONTRIBUTIONS DONATIONS AND CONTRIBUTIONS: 1999 $11, $9, $11, $10, $11, $12, $19, $19, $44, $32, $25, $72, $92, $419, $160, $174,679 Total $1,127,312 13

16 TO PUSH the limits Once upon a time, a small boat was coveted by a great port to proudly give its community the desire to surpass itself. Investing for the sake of history and to motivate We are ocean lovers, passionate about great projects and especially great achievements. The strength symbolised by the Hermel is inestimable. This incredible crossing, with such a small boat, represents a great pride which we wish to share. More so, the Hermel represents the shipping world, having navigated the same route as most of our visiting ships. Her captain is a force of nature, a role model for us all, especially our youth. Acquiring this precious boat in the Spring of 2014 is thus an important legacy for our community. A true gem, this unique boat will be put on display and made accessible to tourists, cruise ship passengers, visitors and the local population, as well as used for educational purposes during school visits. 14

17 TO PLAN ahead The Port of Sept-Îles is at the forefront of the regional economy, which makes it a cornerstone of its economic development. International port of call for natural resources and its industries, the Port of Sept-Îles stands out for its strategic position in relation to the numerous projects being developed in Northern Québec and Labrador. We encourage the arrival of major industries, drawn by great economic potential and the richness of the region. The Port is committed to providing adequate and state of the art infrastructures to all its current and future users, as well as to encouraging the realization of growth-generating projects. Our history hugely determines our ability to adapt and meet all types of challenges, but especially to project ourselves in the future. Our local port authority has reached an enviable maturity with the recent and numerous new infrastructure over the last years. Thus, with close to $320M in investments to sustain and increase activities in the last 15 years, the Port of Sept-Îles has now become an undeniable international deep sea port given it is the only one in North America able to welcome the largest bulk-carriers in the world. With the Plan Nord and the Maritime Strategy on the horizon, the Port of Sept-Îles will inevitably be a strategic gateway that will greatly contribute to the area s economic development and deliver the best to our world. Pierre D. Gagnon, President & CEO. 15

18 Our anchor is weighed, our engines are revving and the crew equipped to pursue the development of the people s port to DELIVERING THE BEST TO OUR portsi.com 16