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St. Lawrence Seaway Management Corporation St. Lawrence Seaway Development Corporation Customer Relations Meeting Niagara Region Offices 508 Glendale Avenue, St. Catharines, ON October 30, 2015 Communicate Meeting Objectives 2015 year to date navigation season results Clarify / obtain comments on procedures, practices in effect, improvement ideas Consult customers Other possible improvement ideas Obtain feedback on service provided October 30, 2015 1

Action Items Item Issue / Action Date Reported / Initiated Responsible 1 Discuss with industry, service providers and Transport Canada a means to address security for unplanned interfaces. October 16, 2014 Boisclair/ Godard 2 3 4 Request from D. Pearson from Algoma to inform of the possible plans to de-water lock 1. March 6, 2015 Boisclair Seaway to communicate with operations personnel and industry a standard set of terms to use with HFM operations. March 6, 2015 Nolet / Grady Seaway to issue a Seaway Notice to clarify the requirement of vessel crew members on deck during an HFM lockage for the 2015 navigation season. March 6, 2015 Burgess / Nolet/ Grady 2015 Operations Review October 30, 2015 2

2015 Operations Review 2015 Operations Review Service Level Objectives October 30, 2015 3

2015 Operations Review Service Level Objectives 2015 Operations Review Service Level Objectives October 30, 2015 4

2015 Operations Review NR Transit Time Comparison: With and Without Seaway Delays Welland Canal OAL>=185m # Inland Average Transit Time (Seaway delays) Avg Transit Time no Seaway delays # Ocean Average Transit Time (Seaway delays) Avg Transit Time no Seaway delays Upbound 387 11.4 10.9 97 11.6 11.2 Draft>26'6 36 12.9 12.6 - - - 26'3<Draft<=26'6 15 12.8 12.4 14 12.6 11.8 Draft<=26'3 336 11.1 10.7 83 11.4 11.1 Downbound 376 11.8 11.4 90 10.9 10.6 Draft>26'6 200 12.1 11.9 - - 26'3<Draft<=26'6 73 11.8 11.5 54 11.2 10.8 Draft<=26'3 103 11.0 10.6 36 10.5 10.4 Grand Total 763 11.6 11.2 187 11.3 10.9 Standard: 10.5 hrs 2015 Operations Review MLO Transit Time Comparison: with and without Seaway delays MLO OAL>=185m Count Inland Avg Transit Time (Seaway delays) Ocean Avg Transit Time No Seaway Delays Count Avg Transit Time (Seaway delays) Avg Transit Time No Seaway Delays Upbound 203 25.6 25.0 112 24.3 23.8 Draft>26'6 84 26.4 26.1 Draft>26'3 29 26.5 25.6 29 25.1 24.7 Draft<=26'3 90 24.6 23.7 83 24.0 23.4 Downbound 194 24.2 23.7 104 22.5 22.3 Draft>26'6 109 24.4 24.0 Draft>26'3 41 24.6 24.0 59 22.8 22.5 Draft<=26'3 44 23.3 22.8 45 22.2 21.9 Up inland 25 hrs Dn inland 22 hrs Up ocean 23 hrs Dn ocean 22 hrs October 30, 2015 5

2015 Operations Review MLO - Transits on Lake St. Francis Average transit times between SNL and BO4U (May-Nov) Dir/Fleet 2011 2012 2013 2014 2015 Upbound 5.92 5.88 5.91 5.91 5.94 I 6.08 5.99 6.02 6.02 6.15 O 5.54 5.63 5.66 5.73 5.65 Downbound 4.56 4.59 4.57 4.55 4.48 I 4.67 4.69 4.67 4.65 4.59 O 4.33 4.38 4.36 4.40 4.34 2015 Operations Review Service Level Objectives October 30, 2015 6

2015 Operations Review Service Level Objectives 2015 Operations Review Service Level Objectives October 30, 2015 7

2015 Operations Review Service Level Objectives 2015 Operations Review Service Level Objectives October 30, 2015 8

2015 Operations Review Service Level Objectives 400 350 300 HFM Operational Delays - MLO G5 - HFM cancelled G6 - HFM delay attaching Sum of Delays in Minutes 250 200 150 100 50 0 April May June July August September 2015 Operations Review Service Level Objectives October 30, 2015 9

2015 Operations Review Service Level Objectives Water Levels Outlook SLSMC Customer Relations Meeting 30 October 2015 Derrick Beach Boundary Waters Issues, Environment Canada Burlington, ON October 30, 2015 10

Recent Conditions in the System Actual* Compared to 21-Oct-15 Average** Last Year Chart Datum Lake Superior 183.57 m 7 cm -14 cm 37 cm Lake Michigan-Huron 176.55 m 14 cm same 55 cm Lake St. Clair 175.19 m 25 cm -4 cm 79 cm Lake Erie 174.28 m 24 cm 3 cm 78 cm Lake Ontario 74.63 m 4 cm 5 cm 43 cm Lake St. Lawrence 72.78 m -31 cm -5 cm 28 cm Lake St. Louis 21.10 m -3 cm -21 cm 75 cm Port of Montreal 5.81 m -45 cm -58 cm 25 cm *Preliminary. **Statistics: Great Lakes: 1918-2014; St. Lawrence River: 1960-2014; Montreal: 1967-2014 October 30, 2015 11

October 30, 2015 12

October 30, 2015 13

October 30, 2015 14

St. Lawrence Seaway Management Corporation St. Lawrence Seaway Development Corporation Water Levels and Speed Restrictions Water Levels & Speed Restrictions - 2015 Meet / speed restriction on Lake St. Louis due to flow changes 10kts up and 12 ktsdnfor vessels >78dm Meet/ speed restriction due to shoaling at GalopIsland 8kts up for vessels >=78dm between LB122 & LB127; vessels >=78dm avoid meets & sailing over high spots 7kts up / 12kts dnfor vessels >=78dm between LB122&LB127; vessels >=78dm avoid meets & sailing over high spots Meet /speed restriction in Sector IV (COI and North Colborne) 8.5kts up for vessels >=78dm between LB157 & LB162 and avoid meets and high spots; 8.5kts up for vessels >=78dm between LB157 & LB162 Vessels >=78dm avoid meets sailing over high spots; 8.5kts up for vessels >=78dm between LB157 & LB162 Speed restriction between IKE and IRO Speed reduced from Column III to Column IV, i.e. from 11.5 to 10.5 October 30, 2015 15

Ballast Water Ballast Water Test Results October 30, 2015 16

Ballast Water Test Results - 2014 2012 100% of ships received a BTE 2013 100% of ships received a BTE 2014 100% of ships received a BTE 2012 98.1% Compliance rate with BW regulations (133 Tanks NC) 2013 98.7% Compliance rate with BW regulations (91 Tanks NC) 2014 99.0% Compliance rate with BW regulations (84 Tanks NC) 2012 98.5% BW Tanks sampled (6,901 out of 6,974) (73 Tanks AR) 2013 99.6% BW Tanks sampled (6,777 out of 6,803) (26 Tanks AR) 2014 99.6% BW Tanks sampled (8,466 out of 8,497) (31 tanks AR) 2012 133 BW Tanks from 36 ships transits received a Letter of Retention 2013 91 BW Tanks from 47 ships transits received a Letter of Retention 2014 84 BW Tanks from 50 ship transits received a Letter of Retention Ballast Water Test Results - 2015 Results till October 26, 2015 2015 99.25% BW Tanks sampled (6,260 out of 6,307) 2015 96.6% Compliance rate with BW regulations (6,091 out of 6,307 tanks) 2015 216 BW Tanks non-compliant under Letters of Retention (5 ships with 16 or more tanks non-compliant) October 30, 2015 17

Ballast Water - Domestic 2008 Started BW compliance verification with SIP No sampling or testing of BWT 2014 BW Program No changes were considered necessary Compliance Rate 2013 BW reports reviewed and in compliance to date (95%) 2014 BW reports reviewed and in compliance to date (97%) 2015 BW reports reviewed and in compliance to date (98%) 2014/2015 Deficiencies Copies of sediment removal to be provided to NR Comments / Questions? October 30, 2015 18

Navigation Winter Process Closing Cycle Decision Factors for Closing Date To provide Safe and reliable Navigation system Seaway Corporations consider; Environmental Conditions Forecasted Traffic and carrier demand Market considerations Ports and Shipper requirements System logistics & capacity limitation Ice Breaker Assets availability (Nav. Aids removal) Operating Costs Winter Maintenance Program scheduling and Costs October 30, 2015 19

Navigation Season Optimization Navigation Season OPENING AND CLOSING DATES OF NAVIGATION 1998-2014 Montreal - Lake Ontario Section YEAR Opening Closing Opening Welland Canal Section Closing Days of Navigation Days of Navigation 1998 26-Mar 28-Dec 278 24-Mar 28-Dec 280 1999 31-Mar 25-Dec 270 31-Mar 25-Dec 270 2000 27-Mar 26-Dec 275 27-Mar 25-Dec 274 2001 23-Mar 24-Dec 277 23-Mar 24-Dec 277 2002 26-Mar 26-Dec 276 26-Mar 25-Dec 275 2003 31-Mar 28-Dec 273 26-Mar 30-Dec 280 2004 25-Mar 30-Dec 281 23-Mar 31-Dec 284 2005 25-Mar 29-Dec 280 23-Mar 30-Dec 283 2006 23-Mar 30-Dec 283 21-Mar 30-Dec 285 2007 21-Mar 28-Dec 283 20-Mar 29-Dec 285 2008 22-Mar 29-Dec 283 20-Mar 30-Dec 286 2009 31-Mar 29-Dec 274 31-Mar 30-Dec 275 2010 25-Mar 29-Dec 280 25-Mar 30-Dec 281 2011 22-Mar 30-Dec 284 22-Mar 30-Dec 284 2012 22-Mar 29-Dec 283 22-Mar 31-Dec 285 2013 22-Mar 01-Jan 286 22-Mar 01-Jan 286 2014 31-Mar 01-Jan 277 28-Mar 31-Dec 279 October 30, 2015 20

Season Optimization Requirements Lake Ontario Upper New York Stakeholders First Nation MOU Incremental operational costs Pilotage Capacity and costs competitiveness Hydro-power Ice Boom Investment (NYPA-OPG, Hydro-Quebec) Power loss and revenues IJC water regulation plan Navigation support Winterization of all Structures Market considerations (incremental business) Maintenance minimum duration period Ice Breaker required Capacity and Capability for Safe and predictable navigation conditions MODERNIZATION UPDATE CUSTOMER RELATION MEETING Oct 30, 2015 October 30, 2015 21

Agenda - Modernization HFM Status update Locations / Schedule Success Rate / Non-Compatible vessels Requirements Review HFM Locks Procedures Review VSS Update Draft Measurement Prototype VHF Frequencies Status as of Navigation 2015 October 30, 2015 22

Status as of Navigation 2017 Status as of Navigation 2018 October 30, 2015 23

High Level Update HFM Weekly Success Rate varies between 85% and 93% of the transits depending on the week and location. HFM Non successes are usually the vessels that are Non-HFM- Qualified. (High predictability) «Staffing on Deck» Requirements for HFM locks are being reviewed, fleet by fleet, vessel by vessel, in order to have a change in requirement by spring 2016. Review of Current Procedures underway, to better reflect the new Seaway lockage process Lexicon / Glossaire Hands Free Mooring Vacuum Pads Final Mooring Position Attach Detach Warp ahead Warp back Ship Arrester Amarrage à Mains Libres Ventouses Position Finale d'amarrage Attacher Détacher Avancer avec ventouses Reculer avec ventouses Défense October 30, 2015 24

New Operations Environment Communications - Spotting Spotting Instructions Verbally acknowledge spotting instructions (from VSS radio or lock personnel) Initial communication (for FMP) 25m spotting instruction Final spotting instruction ( in position ) October 30, 2015 25

Future Operations Environment Lock Frequencies in Welland Canal Current use of radio channels in Welland Canal: Ch66A for downboundand Ch17 upboundvessels Increased communication between vessel and lock operator due to modernization causing increased interference Proposed configuration Individual frequency for each single lock with exception of Flights which would have one for East set and one for West Eliminate communication congestion and reduce possible missed information Feedback from users? October 30, 2015 26

St. Lawrence Seaway Management Corporation St. Lawrence Seaway Development Corporation DRAFT INFORMATION SYSTEM (DIS) Draft Information System Vessel Transits with DIS in 2015 as of September 30th 43 vessels with DIS installed on board (3 of these vessels have not transited in 2015) Transits with draft >80.8 dm Section Upbound Downbound Total MLO 88 107 195 Welland 36 198 234 **Included above are 4 upbound vessels in the MLO section with draft>80.0 dm (restriction lifted April 13th,2015) In terms of these vessels total transits Section Upbound Downbound Overall MLO 52% 68% 60% Welland 12% 67% 39% October 30, 2015 27

Timber Tie-Up Wall Reconstruction Update SLSMC Customer Relations Meeting October, 2015 D Arcy Wilson, GM Engineering, Niagara Region Project Overview 2013-18 Scope includes UL1, UL2, LL3 and UL3 Total = 1.88km Procurement Method - Design-Bid-Build Single multi-year contract for all 4 walls Attract more contractors Economy of scale Provision for contractor construction savings after first year October 30, 2015 28

Project Status Construction Progress UL1 & UL2 construction work completed (13/14 & 14/15). Sheet pile installation at UL3 completed (14/15) and ready for this year s wall reconstruction (15/16) Sheet piles at LL3 in progress this year in advance of next year s wall reconstruction (16/17) Project Status Construction contract for all walls Planned construction completion - April 2017 October 30, 2015 29

Project Status UL2 Construction UL2 Wall Completed in March 2014 Project Status UL1 Construction UL1 Sheet Pile Installation (Jan 15 to Mar 21, 2014) October 30, 2015 30

Project Status UL1 Construction UL1 Tie-Up Wall Demolition (Jan 1 to Jan 25, 2015) Existing post tensioned concrete anchor wall to be demolished Project Status UL1 Construction UL1 H-Pile/Steel Framing Install.(Jan 12 to Feb 27, 2015) October 30, 2015 31

Project Status UL1 Construction Precast concrete coping units (Jan 29 to March 2, 2015) Project Status UL1 Construction Precast concrete deck slab assembly (Jan 29 to March 2, 2015) October 30, 2015 32

Project Status UL1 Construction Cast-in-place concrete deck slab (Feb 6 to March 17, 2015). Project Status UL1 Construction View of completed wall from the Reach (Reach flooding commenced March 18, 2015). October 30, 2015 33

Project Status UL1 Construction View of completed wall from above. Project Status UL3 Construction UL3 Sheet Pile Installation (Nov 2014 to Mar 17, 2015) October 30, 2015 34

Project Status LL3 Construction LL3 Sheet Pile Installation (In progress, commenced Sept 2015) Questions? Before After October 30, 2015 35

SLSMC Security SLSMC Security Welland Canal 2015 - NOTICE TO SHIPPING # 6 WHARF 2, 16, 18.2 To ensure vessel compliance within the MTSR regulations, security arrangements for any ship to shore interface at Wharves 2, 16, 18.2, it will now be the sole responsibility of the Wharf Operator, Port Weller Marine Terminal (PWMT) or Snider Dock Services (SDS) to coordinate all security effort between the ship and shore. October 30, 2015 36

SLSMC Security Welland Canal 2015 - NOTICE TO SHIPPING # 8 VESSEL INTERFACE RESTRICTIONS AT LOCKS Lock 1: Lock 2: Lock 3: Interfaces permitted, traffic dependant. Interfaces permitted, traffic dependant. Continues with no interfaces. Flight Locks: Continue with no ship chandler interfaces. Ship personnel can embark/disembark at Locks 4 and 5. No interfaces at Lock 6 continues. Lock 7: Lock 8: Interfaces permitted, traffic dependant. Note that the access via West side pedestrian gate will be discontinued. Interfaces permitted, traffic dependant. SLSMC Security MLO Section 2015 - NOTICE TO SHIPPING # 4 Interfaces at St-Lambert (N 1) and Upper Beauharnoi s (N 4) locks under MARSEC 1 marine security level Except for rare occasions, from now on, interfaces (deliveries, pick-ups, embarking, disembarking and visits to ships) will only be permitted at St-Lambert (N 1) and Upper Beauharnois (N 4) locks of the Montreal-Lake Ontario section, starting at the beginning or the navigation season, April 2, 2015, and for the entire 2015 navigation season. Please refer to the Notice to Shipping for more details October 30, 2015 37

SLSMC Security MLO Section 2015 - NOTICE TO SHIPPING # 9 Security at approach / tie-up walls Mariners are reminded that the Seaway approach/tie-up walls are considered controlled areas under the Marine Transportation Security Regulations. Ship conducts an interface at a Seaway approach/tie-up wall, the Seaway operations centre must be advised ahead of time. Control of persons wanting to go to the ship at the approach/tie-up walls or to disembark from the ship at the approach/tie-up walls must be performed at the main access gate before heading to the approach walls or leaving the lock. Surveillance at Seaway approach/tie-up walls is performed with video cameras. The ship must advise the operations centre if a security incident or a threat occurs around the ship. Measures will be put in place in response to the situation. SLSMC Security MLO Section 2015 - NOTICE TO SHIPPING # 29 MARINE SECURITY AT COTE STE-CATHERINE WHARF Mariners are advised of the change in marine security measures at Cote Ste-Catherine wharf (wharf n 4) for all ships that are tied-up and not in interface with one of the lessees at the wharf. The costs of compulsory security will be billed to the concerned ships. There will be a minimum of 4 hours charged to the ship. For certain Canadian ships whose security plan permits, it will be possible for them to perform their own marine security and avoid costs. In these cases, they must advise the operations centre in advance by email at cdo@seaway.ca that they refuse the security based on their own security plan. In no way does this affect marine security procedures already in place between ships and the lessees at the wharf. October 30, 2015 38

SLSMC Security-Opposite Side of Lock Continued cooperation with trade to report any breaches during lockage MR with additional cameras, monitoring of the opposite side of Lock can be achieved NR will monitor by camera for high risk and/or ships of Interest either from the Lock or OPS/TCC This item is one of the items to be addressed for long term SLSMC Security Restricted Area 1 Any person entering a Seaway Lock (Restricted Area 1 R1) must be accompanied by a holder of a R1 card In the future SLSMC will not be escorting persons to the lock to embark/disembark from the ship SLSMC will issue SLSMC R1 cards to key persons from shipping companies, agencies and/or regular service provider Process: require photo be taken and/or submitted Require paperwork completed/signature (briefing on security responsibilities) Once third party has been issued an R1 card, they can escort persons on/off ships at Locks (no requirement for an escort) Canadian sailors do not require to be escorted onto or off ships October 30, 2015 39

St. Lawrence Seaway Management Corporation St. Lawrence Seaway Development Corporation MARINE SERVICES ACTIVITIES Accidents - Incidents - Violations Description 2012 2013 2014 2015 Grounding / Touch 3 1 9 3 Bottom Collisions 1 0 3 0 Contact with Seaway 5 15 19 12 Structures Damage During Lockage 0 0 0 0 Accidents at Bridges 2* 0 0 1 Violations 23 25 30 21 Hull October 30, 2015 40

Violations Review (Meeting held twice per year) Most Frequent Violations 2012 2013 2014 2015 Speeding 7 6 3 9 Past Stop Symbol 5 8 7 5 Over Draught 0 4 3 4 Air Draught 4 0 0 0 Non Reporting 1 2 0 2 Obstructing Navigation 0 2 0 0 Others 4 3 1 1 (not following instructions) Ship Non-Conformities 2014 Navigation Season 2013 2014 Block Diagram Encroachment 144 163 (B.W., cranes, masts & ballast) Stern Anchor (not operational / slashed) 32 38 Mooring Arrangements 89 68 or Equipment (lines, fairleads, dead man) Others (ESI Inspections - mechanical, 111 133 PSC issues, navigational equipment, charts & publications, ballast water, sewage, steering gear, WWA & radars AIS (no DGPS, no signal, incorrect info) 27 35 Heaving lines/anchor buoys 154 164 Landing Booms 34 31 Fenders (require, poor condition) 25 19 Deck = 69% Bridge = 20% Engineering = 11% Deck = 74% Bridge = 19% Engineering = 7% October 30, 2015 41

Other Items Closing Preparations Winter Berthing Policy (Niagara) Conclusion Additions to Action List Adjournment October 30, 2015 42