Decision No. 127-W-2008

March 26, 2008

File No. W9125/L13/07-2

APPLICATION

LNA Trading Inc. (the applicant) has applied, through its Canadian representative, for a licence to use the "LIBERTY", the "LUMMI ISLAND" and the "POINT BASALT", three American barges, to transport crushed rock from Texada Island, British Columbia to the Delta Port, Delta, British Columbia, commencing on February 15, 2008 and ending on June 15, 2008.

ISSUE

Is there a suitable Canadian ship or non-duty paid ship available to perform the activity?

FACTS AND DETERMINATION

Canadian Transportation Agency (the Agency) staff gave notice of the application to the relevant portion of the Canadian marine industry.

JJM Constuction Ltd. (JJM) objected to the application to import the American barges by offering its own barges, i.e., the Miller-308, Miller-309, Miller-311 and Miller-312. JJM pointed out that these barges were used on a similar project in 2007.

The applicant has rejected the offer made by JJM, challenging the seaworthiness of two of the barges. Evidence was filed from a marine surveyor who claimed that the Miller-308 and Miller-312 were unfit for anticipated normal service conditions, even if collision damage is repaired. Therefore, both barges are uninsurable. The surveyor also provided comments about his concerns regarding the two other barges (i.e, the Miller-309 and Miller-311), without filing any evidence.

The Agency requested that JJM provide documentation that establishes that the barges are seaworthy and fit for the proposed activity and to also provide insurance certificates for the offered barges.

JJM submitted current insurance certificates. It also provided a letter from a marine surveyor confirming that two of the barges (i.e., the Miller-309 and Miller-311) will be in seaworthy condition when repairs are completed. JJM stated that repairs were completed on the Miller-309 and that those to the Miller-311 will be finished shortly.

Based on the above, the Agency determines that there is a suitable Canadian ship available to perform the activity.

The Agency is providing this determination to the Minister of Public Safety.

Members

• Raymon J. Kaduck
• J. Mark MacKeigan