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FROM PAST TO PRESENT A BC SHIPBUILDER’S PERSPECTIVE Malcolm McLaren Presented By President Allied Shipbuilders Ltd. November 2009

God & Shipbuilder We Adore In Times of Danger, Not Before When War Is Over, All Things Righted God Is Forgotten, The Shipbuilder Slighted...with apologies to Kipling

Launch of 10,000 Ton Victory (Liberty) Ship West Coast Shipbuilders, Vancouver – Future Site of 2010 Winter Olympics

Fort Chilcotin in English Bay - June 1942 The first WWII ship built by West Coast Shipbuilders (Hull #101) was launched March 7, 1942 and was a casualty of war having been sunk on July 24, 1943

Rayonier No. 1 fully loaded

Rayonier No. 1 leaps as it dumps its load

Allied Shipbuilders Site – 1969 North Shore of Vancouver Harbour

Launching the rail car barge Haida Transporter - April 27, 1968

The 75-foot drum seiner Katrena Leslie (Hull # 214) underway in fog in English Bay

Ships for Offshore Oil The West Coast & Arctic - Past - Is there a future for Canadians?

The drill rig Sedco 135F was built by Victoria Machinery Depot

The Lady Alexandra at sea

Do governments have a role in making sure these opportunities are available to Canadians? OFFSHORE OIL & GAS

Canada's Revolutionary Icebreakers Lead the World

1970 to1980 – Arctic Oil Exploration Good for Shipbuilding & Ship Repair Major Damage to - Hull - Rudders & Stocks - Propellers

Arctic Nutsukpok in the Beaufort Sea, bound for Tuk ALLIED HULL 235

The Kigoriak was the first icebreaker to operate year-round in the North American arctic

Ships Few & Far Between ( )

470 Car Ferry Construction In Steel Simple / Effective

Chuck Ko Allied’s technical manager and Ed Stephenson Allied’s steel superintendent in front of the Spirit of British Columbia (Hull # 254) just before launch

Bow view of the Spirit of Vancouver Island

Chip Barges Built in BC – Post 2000 Current Demand For Wood Chip Transport ?

The Inkster on sea trials, with the crew on deck

Allied Hull 259 – Delivered 2007

Slow Times Metal Shipbuilding Yard Closures 1990’s - Burrard Drydock (Versatile, North Vancouver) - Yarrows (Versatile, Victoria) - Bel-Aire Shipyard, North Vancouver - Westcoast Manly, Vancouver - Vito Steel Boat, Delta - Matsumoto, North Vancouver - Shore Boats, Richmond

1990’s – B.C.’s Future was in Ship Repair Work for Some Most Shipbuilding Yards Close 1986 – 1800 Ton Lift Capacity Floating Dry-dock

West Coast Shipbuilding Yards That Have Built Complex Vessels Over 30 Meters Long: West Coast Shipbuilding Yards That Have Built Complex Vessels Over 30 Meters Long: - Allied Shipbuilders - Vancouver Shipyards (WMG) - Victoria Shipyards (WMG)

- BUILDERS MUST COMPLY WITH STRINGENT SAFETY & ENVIRONMENTAL STANDARDS, ETC. - CANADIAN MARINE REGULATORY CLIMATE AMONG MOST CHALLENGING IN THE WORLD - BUILDERS MUST COMPLY WITH STRINGENT SAFETY & ENVIRONMENTAL STANDARDS, ETC. - CANADIAN MARINE REGULATORY CLIMATE AMONG MOST CHALLENGING IN THE WORLD - TO MY KNOWLEDGE, NOT DUE TO EXCESSIVE PROFITS FOR THE BUILDER - TO MY KNOWLEDGE, NOT DUE TO EXCESSIVE PROFITS FOR THE BUILDER THE COST OF CANADIAN BUILT SHIPS

‘WHAT’ IS TO BE BUILT - TO BUILD REASONABLY PRICED SHIPS, THE CUSTOMER MUST COME TO THE PARTY - TO BUILD REASONABLY PRICED SHIPS, THE CUSTOMER MUST COME TO THE PARTY - TOO OFTEN GOVERNMENT SHIPS ARE NEEDLESSLY COMPLEX - TOO OFTEN GOVERNMENT SHIPS ARE NEEDLESSLY COMPLEX - BUILD SIMPLE―UTILITARIAN―EFFICIENT - BUILD SIMPLE―UTILITARIAN―EFFICIENT - ACT AS IF IT IS YOUR OWN MONEY - ACT AS IF IT IS YOUR OWN MONEY

High Speed Ferry Owners Idea – Builders Receive the “Credit”

Why Build In Canada?

100 Car Commuter Ferry Spartan, Utilitarian, Efficient

100 Car Commuter Ferry Allied Hull 257

BC Shipbuilding - Price Distribution Example foot / 100 vehicle ferry

Global Shipbuilding Practise For many governments, shipbuilding is an important aspect of their national pride and industrial policy. Consequently, the industry worldwide operates in a distorted marketplace.

European Union - Had direct subsidy until recently - Supportive Government Policy United States - Canadian built commercial vessels prohibited from USA, but US builds enjoy duty free access to Canada. Korea - Previous bailout by government / IMF - Supportive Government Policy China - Very low wage rates and supportive government policy Brazil – Supportive Government Policy Challenges For Canadian Shipbuilders

ONLY REASONABLE THAT CANADIANS ARE INVOLVED WITH THE DEVELOPMENT AND PRODUCTION OF THEIR NATURAL RESOURCES. MUST HAVE NATIONAL POLICIES WHICH CREATE A COMPETITIVE DOMESTIC MARKET TO USEFULLY EMPLOY CANADIANS.

GOVERNMENT LEGISTATION ACTION Ensure Canadian Industry Engaged In Building Ships For Resource Development. - The Rest Of The World Does

Current Canadian Federal Government Policy “The federal government will continue to procure, repair and refit vessels in Canada subject to operational requirements and the continued existence of a competitive domestic marketplace”

GOVERNMENT PROCUREMENT ACTION - COMPETITIVE BID PROCESS FOR PROCUREMENT - PRIVATE SECTOR SHIPYARDS RATHER THAN GOVERNMENT SHIPYARDS - UTILIZE THE EXISTING “SURVIVOR” SHIPYARDS; THEY HAVE PASSED THE TEST - IMMEDIATELY COMMENCE PRACTICAL SHIPBUILDING PROJECTS - BUILD NEW GOVERNMENT SHIPS ON A RATIONAL SCHEDULE TO ENSURE CONTINUITY OF WORK

Questions