15years
ADMINISTRATIONour
ANNUALREPORT
2014
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.
Situated at the heart of all of the main
maritime routes between North America,
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.
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
UNITEDby the sea
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To mark the celebration of the Port’s
15th 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
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”.
CELEBRATINGour Port!
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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.
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.
CAROL SOUCY Chairman of the board
BOARD OF DIRECTORS1 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
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
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TO SUCCEED
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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.
1999 – 2014
CHAIR 1999 – 2002 Charles A. Langlois
2002 – 2005 Marc Brouillette
2005 – 2007 Langis Saint-Gelais
2007 – 2008 Élizabeth Blais
2008 – 2015 Carol Soucy
FIRST BOARD OF DIRECTORS1 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 ADMINISTRATORSStanley McGee Serge Lévesque Yves-Marie Côté André Rioux Keith Eldridge Daniel Jouis Yannick Chiasson
MISSION
1999 | First Board of Directors
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PIERRE D. GAGNONPresident & CEO
2014 was a milestone in the Port of Sept-Îles’ history: the 15th 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.
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 TEAM1 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
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TEAM
To deliver the best to its world, 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,
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 7 star
OPERATIONS1 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
ADMINISTRATION8 Diane Morin | Director, Finance and Administration
9 Marie-Ève Guérin | Accounting Technician
10 François Devault | Accountant
CORPORATE AFFAIRS11 Patsy Keays | Director, Corporate Affairs
12 Cloé Gagné | Executive Assistant (replacement)
Caroline Gauthier | Executive Assistant
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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 2015.
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.
Finally, what a nice way to celebrate the 15th 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.
23.8Million Tons
TONNAGE
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TONNAGE AND PASSENGER STATISTICAL TABLE Year Tonnage Highlights1999 20,926,1312000 23,885,581 Wabush Mines’ most successful year since 1977. 6 051 885 metric tons2001 20,071,448 Year of the last coal transhipment at the Port of Sept-Îles2002 21,101,646 15 million metric tons handled at the IOC dock2003 22,885,719 Record loading of 146 662 metric tons by the M/V Penelope at the Pointe-Noire terminal2004 17,543,893 Record low in iron ore loading in the port of Sept-Îles with 15 659 385 metric tons2005 22,447,957 Significant increase in tonnage from Aluminerie Alouette with the launch of Phase 22006 23,458,574 First year of operation for the rail-car ferry2007 21,367,838 20% increase in the volume handled at the Pointe-Noire terminal2008 22,599,523 Fourth year of increase in the volume at the Relance terminal2009 19,827,920 Decrease in the recorded demand for iron 2010 25,070,234 Commencement of shipping activities for the new iron ore mine, Bloom Lake 2011 25,954,381 Commencement of shipping activities for Labrador Iron Mines2012 27,891,604 Steady growth in volumes at Labrador Iron Mines2013 27,712,654 Commencement of shipping of iron ore for Tata Steel Minerals Canada2014 23,786,335 Closing of Scully Mine in February 2014 and shutdown of production of Lake Bloom in December of 2014
Total 366,531,438
Year Passengers 2009 5,047 First anchored cruise ship2010 5,119 First cruise ship to dock at the Cruise terminal 2011 02012 3,438 Visit from 5 cruise liners2013 2,370 Visit from 3 cruise liners2014 5,797 Record year with the visit from 9 cruise liners
Total 21,771
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 $17 M• Pointe-Noire dock restoration $5 M• Construction of a railway link $3 M • Expansion of SIMEC building $1 M• Misc. $10 M
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TO PERFORM
$13,046 kIN REVENUES
ASSETS
2014 2013 2000
CURRENT ASSETSCash $34,313 $41,913Accounts receivable $9,361 $25,233Contributions receivable $0 $8,395Prepaid expenses $115 $183Current portion of investments $1,000 $1,000Current 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 $15,603GRANTS RECEIVABLE $3,630 $4,271 CONTRIBUTIONS RECEIVABLE $11,000 $17,580CAPITAL ASSETS $287,980 $234,747
$366,002 $355,026 $41,550
LIABILITIES AND EQUITY 2014 2013 2000
CURRENT LIABILITIESCredit facilities $10,000 $15,000Operating debts $12,009 $38,578Deferred income $688 $641Long term liabilities maturing within a year $6,352 $2,964 $29,049 $57,183
DEFERRED REVENUES $94,460 $109,386LONG TERM DEBT $63,782 $15,134DERIVATIVE INSTRUMENTS $955 $1,009DEFERRED CONTRIBUTIONS $102,408 $103,598DEFINED BENEFIT LIABILITIES $1,135 $503 $291,789 $286,813
AUTHORITY’S EQUITYContributed capital $11,707 $11,707 Excess of assets over liabilities $63,580 $56,932Accumulated other comprehensive income ($1,074) ($427) $74,213 $68,212
$366,002 $355,025 $41,550
STATEMENT OF FINANCIAL POSITION Fiscal Year Ending December 31 (in thousands of dollars)
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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 Cliffs 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 2013.
Changes noted in 2014 and 2013 and in “other assets” are related to the recording of two factors
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 2014. 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 2014.
2014 RESULTS
2014 2013 2000 GROSS REVENUE $13,046 $13,105 $3,497
OPERATING EXPENSESOperating expenses $4,287 $4,406 Administrative expenses $3,005 $2,997 $7,292 $7,403 $3,371INCOME BEFORE OTHER ELEMENTS $5,755 $5,702 $126
2014 2013 2000OTHER ELEMENTSOther revenues $1,574 $2,266 $2,001Financial expenses ($681) ($795)OTHER COMPREHENSIVE INCOME ($647) $560 S/OCOMPREHENSIVE INCOME $6,001 $7,733 $2,127
CAPITAL EXPENDITURES
$55,676 $127,412 $3,583
COMPREHENSIVE FINANCIAL STATEMENT 2014 Fiscal Year Ending December 31 (in thousands of dollars)
Investments - Assets(in thousands of dollars)
Year Annual fixed amount
1999 $3,3712000 $3,5832001 $3,1782002 $6352003 $5582004 $1,3892005 $3,6302006 $4,1202007 $3,1952008 $1,3492009 $14,8802010 $59,1092011 $11,0102012 $25,8102013 $127,4122014 $55,676
Total $318,905$
Investments – Environment (in thousands of dollars)
Year Annual fixed amount
1999 $2562000 $3482001 $152002 $802003 $952004 $732005 $1292006 $652007 $1932008 $492009 $1372010 $84 2011 $94 2012 $94 2013 $340 2014 $143
Total $2,203
Revenue Trends (in thousands of dollars)
Year Annual fixed amount
1999 $2,6492000 $3,4692001 $3,3262002 $3,1822003 $3,8282004 $3,4932005 $4,6852006 $5,7672007 $6,3492008 $6,9702009 $6,7992010 $9,1422011 $12,8612012 $13,2722013 $13,1052014 $13,046
Total $111,943$
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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 1999 – 2014
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:
2003 - 2005 Reshaping of the banks and transplantation of grasslands Recipient of “Phénix de l’Environnement” in 2005.
2007 - 2009 Transplantation and seeding of saltmarsh cordgrass on close to 9 000 sq. mt. of the banks.
2007 - 2014 Installation of artificial reefs to stimulate the settlement of sea cabbage and epibenthos.
2013 Implementation of an Environmental Watch Program of the bay of Sept-Îles, in collaboration with the City of Sept-Îles and the INREST.
TO PROTECTenvironment
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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 2013. 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.
HIGHLIGHTS 1999-2014Since 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.
2006 Establishment and application of an environmental policy.
2008 Inauguration of the Railway Transhipment Center to promote the Blue Highway.
2009 Creation and diffusion of the “Practices and Procedures Guide”.
2011 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 3rd 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.
2010 Merchandise Transportation Prize AQTR
2010 St. Lawrence Prize
TO PROGRESSsustainable development
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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.
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.
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 30th Annual
Innu Nikamu Festival
• $8,000 towards the Fondation régionale Hôpital
Sept-Îles for Market-Lab chairs
• $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
TO SHAREdonations – contributions P
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$1,127,312IN DONATIONS AND CONTRIBUTIONS
IN 15 YEARS
• 1999 $11,170
• 2000 $9,820
• 2001 $11,194
• 2002 $10,835
• 2003 $11,484
• 2004 $12,089
• 2005 $19,158
• 2006 $19,339
• 2007 $44,422
• 2008 $32,988
• 2009 $25,331
• 2010 $72,643
• 2011 $92,382
• 2012 $419,140
• 2013 $160,638
• 2014 $174,679
Total $1,127,312
DONATIONS AND CONTRIBUTIONS:
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TO PUSHOnce 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.
the limits
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TO PLANThe 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.
ahead
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portsi.com
Our anchor is weighed, our engines are revving and the crew equipped to pursue the development of the people’s port… to DELIVER
THE BEST TO OUR
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