Don Drew of Newco Metal and Auto Recycling says having to pay for a second tug to dock a ship collecting metals from their Stephenville operation affects their competitiveness.
The operations manager for the company said extra costs of an estimated $150,000 to have a tug from Sydney, N.S., to guide the Federal Sutton into and out of the Port of Stephenville hurts.
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“This (Port of Stephenville) is a very safe harbour and traditionally ships have been handled without issue by the Omni St. Laurent that’s here,” he said.
Drew said if their company brought in a massive vessel it would be different, but he feels this particular ship shouldn’t require two tugs.
He said Bay Bulls on the east coast of the province has three to four ships come in at a time, along with oil rigs at times and there is no requirement for two tugs there.
“I think the Atlantic Pilotage Authority doesn’t want to relinquish control of this fantastic facility, so they’re driving the cost up so businesses won’t use it and force it to close,” Drew said.
He said the rural economy in this province is not good and the margins on metal and shipping are not good either.
“We don’t have that extra money to pay out, it’s just not there,” Drew said.
There was lots of activity in Stephenville as the 12,000 tonnes of metal were loaded onto the ship this week, which was headed for Argentia to load another 21,000 tonnes of metal from the province’s east coast.
Drew said when this ship docks at the Port of Argentia there will likely be only one tug guiding it in.
Loading the ship in Stephenville required a big effort, from hiring local trucks and local stevedores to using a local shipping agent. He said fuel suppliers and a number of restaurants all had improved business because of it.
Drew said Stephenville is being used as their base of operations in Western Newfoundland because it is the perfect location for what they want to do — located near the port, on the outskirts of the town and an established facility they are upgrading.
The company has already renovated one building and is in the process of fixing up a second this year and putting up some permanent fencing.
“The only thing is, like with every operation, every expenditure goes in and you analyze your bottom line. This second tug cost doesn’t help,” he said.
Sean Griffiths of the Atlantic Pilotage Authority (APA) has said that with a focus on safety and risk mitigation, a tug with sufficient power is required to safely assist a vessel in the transit and docking maneuvers.
Dale Merkel of the Port of Stephenville said despite repeated requests, nobody from the APA has come to Stephenville to discuss the two-tug issue.
