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Growing Towards Sustainability

The St. Lawrence Seaway Management CorporationAnnual Report 2005/2006

La croissance pour la durabilité

laVoie Maritimedu Saint-Laurent

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SLSMC, the successor to the St. Lawrence SeawayAuthority, was established in1998 as a not-for-profitcorporation by Seaway usersand other interested parties.In accordance with provi-sions of the Canada MarineAct, the SLSMC manages andoperates the Canadian assetsof the St. Lawrence Seawayfor the federal governmentunder a long-term agree-ment with Transport Canada.

Our Mission: We pass shipsthrough a safe and reliablewaterway system in a cost-effective, efficient and environmentally friendlymanner to meet ourcustomers’ transportationneeds.

Our Vision: The SLSMC andits partners… the transpor-tation system of choice.

Our Values: Respect,Openness, Integrity,Innovation

The Seaway is an essentialpart of the North Americantransportation infrastructureand a lifeline to businesswith the rest of the world. Itmoves raw materials andfinished cargoes from a vastnetwork of inland ports toworldwide markets in asocially and environmentallyresponsible manner.

The St. Lawrence Seawayserves cargo vessels, cruiseships, a multitude of othervessels through a series oflocks and channels connect-ing Montreal to Lake Erieand providing access to3,700 km of navigablewaters, and:

• A dedicated and profes-sional workforce thatprides itself on providingexcellent customer service

• A reliable operationconsistently above 99%availability

• Joint Canadian and U.S.government inspections at entry, eliminatingduplication

• The ability to handle largevessels measuring up to225.5 metres in overalllength, 23.8 metres inbeam and an 80.8 dm draft

• ISO 9001:2000 certificationfor ship inspections, trafficcontrol and lock operationservices

• High quality trafficmanagement, using auto-matic vessel identificationand real-time tracking

• An excellent safety record

• A bi-national Web site, themost comprehensive singlesource of Seaway/ GreatLakes information, withreal-time navigation data,links to government andcommercial marinetransportation sites andfull e-business services

FeedbackHead Office202 Pitt StreetCornwall, OntarioK6J 3P7(613) 932-5170

Maisonneuve Region151 Écluse StreetSt. Lambert, QuébecJ4R 2V6(450) 672-4110

Niagara Region508 Glendale AvenueSt. Catharines, OntarioL2R 6V8(905) 641-1932

[email protected]

The St.LawrenceSeaway ManagementCorporation

Growing Towards Sustainability

Management Corporation

GrowingTowards SustainabilityThe marine transportationindustry in Canada has ahistory dating back to theorigins of our country. Thesedeep roots help us adapt tonew circumstances, andtoday we are striving toaccommodate recent shifts inthe economics of shippingand meeting modernchallenges to the way wedefine and carry on ourbusiness. All of us in marinetransportation now recognizethat change is necessary fora successful and sustainableindustry. Working togetherfor change, we still retainour strongest tradition: mov-ing cargo efficiently, safelyand in an environmentallyfriendly manner through theNorth American heartland.

Sowing the seeds of changetakes time and effort. Newideas, initiatives and partner-ships are taking root. Together with government

agencies, regulating bodies, vessel operators and freightforwarders, we are workingas an industry to define themarine transportation optionsof the future.

Nurturing the ideas withthe most potential is the keyto successful development.Together we are finding outwhich new ideas are mostlikely to bear fruit. We areserious in our commitment tochange by actively research-ing and testing new ways ofdoing business. Our workthrough HWY H20 is helpingthe industry concentrate itsefforts in areas of commoninterest.

Reaping the rewards of ourefforts motivates us to contin-ue. Tonnage on the Seaway isgrowing and diversifying everyyear. On the horizon, we cansee the benefits of increasedcontainer shipping and short-sea shipping on the GreatLakes. We are working withgovernments and our otherpartners to turn good ideasinto reality.

Hwy H20… aSign of ReliefThe Great Lakes/ St.LawrenceSeaway System of rivers,lakes, canals, locks and portshas been unified under a newidentity – Hwy H2O. Hwy H2Obegins with Atlantic Oceanaccess at the Port of Quebecand encompasses the entiresystem (a total of 18 ports sofar), to its most westerlypoint in the mid-continent,the Port of Duluth.

As a marketing brand, itclearly and concisely cap-tures the very essence of themarine highway by utilizingits most basic element,which is universally under-stood in an instant... H2O. Focusing on relieving ourovercrowded highways, andwith the added benefits ofreduced fuel consumptionand reduced greenhouse gasemissions brought by themarine mode, our newestcampaign builds on theessential part we play in anintegrated multimodaltransportation network.

our power generationcapacity through new part-nerships and agreements.

ment through long-termcollective agreements.

z Our vision is our destination z Our strategy is our vessel

z Our values

Welland Canal: a ship’s-eye view

Beluga vessel and FedRhine vesselPhoto courtesy of Port of Hamilton

Port of Valleyfield, Quebec

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brought by the mode, our newest

builds on the part we play in an

multimodal network.

GrowingOur BusinessResponsibly• We work to attract new

cargoes and encourage amore environmentallyfriendly approach toshipping, thereby establish-ing a stronger role in thetransportation chain.

• We actively partner inleveraging the benefits ofthe Seaway and GreatLakes as a socially andenvironmentally responsibletransportation system.

• We strive to provide themost equitable tolls andfees to meet the needs ofour customers and encour-age new business.

• We encourage and catalyzeconstruction of new, moreenvironmentally friendlyships that can be used onthe Great Lakes.

• We continue to improve onour power generationcapacity through new part-nerships and agreements.

Setting theStage forPeople toSucceed• We are defining the work-

force we will need in thefuture – hiring the rightpeople now and providingthe training and supportthey will need to meet thedemands of tomorrow.

• Our supervisors and man-agers benefit from qualitytraining, coaching and thetools they need to supplyleadership excellence.

• We support the health ofour employees by encour-aging healthy lifestyles andproviding a healthy andsafe work environment.

• We provide our workforcewith a stable work environ-ment through long-termcollective agreements.

Innovating toOptimizeOurService• We test and develop new

equipment and proceduresthat improve customerservice.

• We work to optimize ourcurrent system andmaximize its potential.

• We are pushing the bound-aries of traditional vesselsecuring technologies tosimplify system use andincrease efficiency for bothour customers andourselves.

• We encourage transits ofnon-traditional vessels andadapt our services tocustomer needs.

z Our vision is our destination z Our strategy is our vessel

z Our values guide us

Loading aluminum cargo Photo courtesy of Port of Hamilton

Port of Valleyfield, Quebec

Respect for our employees,communities, environ-

ment and customers is key toSeaway sustainability. Wework with our many stake-holders to improve servicesand operations, and to raiseawareness of the benefits ofmarine transportation. As acomplement to rail and road,we are a vital economic,social and environmentallyresponsible component of theNorth American multimodalsupply chain.In 2005, we:• provided employees with a

healthy, safe and stablework environment; invest-ing more than $400,000 insafety training, ergonomicevaluations, employeeassistance programs andphysical fitness.

• participated in emergencyresponse exercises (70employees or 12% ofworkforce) to identify andbe prepared to protect the public and environment

should an actual emergen-cy occur.

• revised ballast waterinspection procedures tostrengthen our ballastwater management processfor protecting inlandwaters.

• defined new environmentalprotection standards andclauses to be included inleases to ensure thatlessees are accountable forthe protection and care ofSeaway lands.

• provided users with systemavailability of 99.37%, withSeaway delays per transit33% below our commitmentof 30 minutes.

• recorded the secondlongest season, one dayshort of the 2004 record of280 days.

• enabled customers tomaximize vessel-carryingcapacity through draft

increase; including thelargest single load evercarried through our locks—31,195 metric tons of iron ore.

• moved 242,000 tonnes ofnew cargoes as a result ofthe Welland Canal incen-tive tolls program initiatedin March of 2005.

• carried out, for the 8th

consecutive year, thefinancial and infrastructurecommitments associatedwith the business plan.

• converted the east side ofthe Welland Canal flightlocks to hydraulic mechan-ical drives, thereby taking another step inmodernizing the system.

Focusing onsustainability

Photo of the BeauVENTois event (top of left column) courtesy of Beauharnois City.

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3 President’s Message

6 Commitment to Our Customers

9 Economic Responsibility

14 Environmental Responsibility

18 Commitment to Our Employees

21 Social Responsibility

24 Corporate Governance

27 Financial Summary

Table of Contents

Front Cover:Menominee vessel in Port Colborne;Machinist at work;Canal days, Port Colborne at night:photos: Thies Bogner, MPA, F/PPOAdditional photos: pages 3, 4, 24 and 26

Inside cover flap:St-Lambert Lock, photo: Stéphane Estève

Graphic design:Walters & Greene Associates

Printed bySt.Joseph Print Group


Our Vision talks of partnerships, ofintegration across our waterway

system and of a seamless operation of thissystem. It talks of working with stakehold-ers for the benefit of everyone. This isimportant since the Great Lakes / Seawaysystem is a shared resource, serving thepeoples of two countries in numerous waysand being challenged to meet the needs ofa diverse group of stakeholders. In 2005,the Corporation formally recognized this asbeing paramount to its current and futureuse of the Great Lakes / St. LawrenceRiver by initiating the process of inte-grating “sustainability” into all aspects ofits operation.

With the Great Lakes as the backdrop,marine transportation is our business and itis an important business; one whichensures our current quality of life andwhich, with increased use, can go a longway to protecting that quality of life intothe future.

We, at The St. Lawrence Seaway Manage-ment Corporation, are proud of our contri-bution to this and are determined to play alarger role, looking to expand the use of theinland marine transportation system. We are not doing this to be self-serving, but

for the benefit of allthose who live, workand play around thesewaters, those whodraw their livelihooddirectly or indirectlyfrom its presence andthose whose econom-ic activity allows thisto happen.

Whether it is in interaction with ouremployees, our customers, communityinterests, our Governments or the popula-tion at large, we are working at formu-lating a consistent, positive message andbuilding on a strong foundation of Corpo-rate Social Responsibility (CSR). Thismessage flows from our Vision, is in accor-dance with our Mission and embodies ourValues.

In 2005, The St. Lawrence Seaway Manage-ment Corporation carried out its Mission ina very successful manner, while makingstrides towards its Vision. We saw the tran-sit of more vessels in the Montreal/ LakeOntario and Welland Canal sectors of thesystem than in 2004, while consolidating

President’s Message

3

Upbound vessel entering Iroquois lock


volume at the higher level achieved in2004. This was a result of some notablesuccesses, amongst which are theincreased usage of the system by smallervessels – one of our key growth factors –and the rebound of both of our core car-goes of grain and iron ore.

In 2005/06 our revenues covered the costsof operating the system and allowed for acontribution to the long-term maintenanceof the infrastructure, owned by the FederalGovernment. Our normal streams of reve-nue were supplemented by the new cargowe were able to attract to the system andby the increased generation of electricityfrom the water used in the canals.

In 2005, we continued with our push toleverage technology and presently haveseveral initiatives being considered andadapted for the uniqueness of the Seaway,to both increase our internal productivityand to render the use of our system morecost effective for our customers. With newtechnology coming to the forefront, ourstrategic objective to “define the jobs ofthe future and develop the skills of thefuture” becomes paramount and we havemade significant progress in this endeavour.

We are providing an outstanding level ofstewardship in managing the Corporationand using the system to the benefit of all.In this context, during 2005, while “systemavailability” was maintained at its histori-cally high level (> 99%), “System Reliabili-ty” increased again, the number of “VesselAccidents” decreased and pollution wasvirtually eliminated.

Nothing we do—past present or future—getsdone successfully without the commitment,dedication and effort of people < ouremployees > and 2005 was no exception.Whether in operating and maintaining the

system to provide high levels of customersatisfaction, developing to meet future chal-lenges or working on environmental andcommunity issues, I am proud of theirachievements and consider myself lucky to bepart of their contribution.

To ensure the ongoing success of the Cor-poration through its employees, welaunched several new initiatives in 2005.Wellness goes hand-in-hand with a healthywork environment and committees acrossthe organization took to this challengewith enthusiasm. The Corporation support-ed this with the “physical activity contribu-tion program” and a National QualityInstitute analysis of current initiatives inorder to shape future actions.

Extending this concept to those with whomthe Corporation interacts, we engaged aconsulting specialist to carry out a baselineevaluation of the Corporation, as we lookto initiate a formal approach to CorporateSocial Responsibility in 2006. The initialstudy showed that, even without a definedprocess, we have intuitively been carryingout many of the appropriate initiatives fora good CSR rating. As we integrate thisapproach into our activities, we will reportour results in economic, environmental andsocial terms and you will see the first stepstowards this in this Annual Report. It is our


4

Here are some members of the Billings and landsmanagement Department, from left to right:Johanne L'Heureux, Frédéric Dufault, MoniqueChapdelaine, Karine Mageren, Annabelle Né, andMichelle Boudreau.


5

intention to make the full switch to CSRreporting for our 2007 Annual Report.

And so we are poised for more success in2006.

Our flexible tolls structure for new cargoon the Welland Canal was a success and weare extending the concept to the Montre-al/Lake Ontario sector, looking to morethan double the new cargo volume movedin 2005. Our HWY H2O initiative is gainingtraction and we will be expanding thereach of this as we go forward.

Our system is aging, but doing so graceful-ly. In fact today, with all the sometimesconflicting demands, it is performing at alevel never previously seen and this willcontinue as we rehabilitate critical com-ponents and integrate ''requirements'' with''capabilities''. This March, the WellandCanal (now in its fourth version) openedfor the 75th season of operation earlierthan ever before and after a winter sea-son which saw more intricate and compli-cated rehabilitation work, with the

hydraulic conversion of one side of theflight locks.

These good news stories give us the confi-dence to set our sights high as we move intothe future. They come from the hard workand commitment of our employees, the sup-port of management and the Board and theinput of partners and system users alike.

On a sad note, 2005 saw the passing of BobSwenor last November, a man who con-tributed immeasurably to the Corporation’ssuccess during its formative years. He wasa key player in the Seaway’s successfultransformation from a Crown Corporation toa privately managed Corporation. Hisexpertise was evident from the early dayswhen he represented the Users group nego-tiating with the Government, through to hisrole as Chair of the Transition Committeeand then as the Corporation’s first Chairmanof the Board from October 1998 to August2004. He knew people, knew that thestrength of an organization came from peo-ple and we, all the people associated withthe Seaway, will miss him.

Good reading and I hope this annual reportprovides an overall view of the enormouspotential that The St. Lawrence SeawayManagement Corporation has to bring tomarine transportation in Canada.

Richard Corfe


View of lock 6, 5 and 4, Welland canal


At the Seaway, our values of respect,openness, integrity and innovation

dictate our relationship with our cus-tomers. In particular, we respect theirneed for safe and cost-effective transits;and we innovate where possible to ensurewe meet those needs, now and into thefuture. We are open to providing informa-tion and we show integrity in solving prob-lems. We continuously work to improve ourservices through research and the develop-ment of new technologies and methods.We know that the future of the Seaway isbased on its ability to adapt to a changingeconomy and to remain a key partner inthe multi-modal transportation system thatlinks North America to the world.

Modernizing an IndustryNowhere is the value of innovation moreevident than in our operations, where theentire lockage process is being evaluatedcontinuously. We have been passing vesselsthrough our locks in much the same man-ner since we opened; our employees guidethe vessel into the lock and secure it man-ually to a bollard with ropes or wirecables. In our continuous effort to modern-ize and improve services, we have, overthe last decade, automated the controlsystems at all of our structures for saferand more flexible operations.

Now, we are concentrating on efforts toimprove these traditional methods. Duringthe past year, we have worked with part-ners to identify, develop and test new toolsto make lockage more cost-effective andefficient. A prototype spotting system hasbeen developed and tested with the help

Commitment to Our Customers

6

of Innovation Maritime and the Transporta-tion Development Centre at our Côte-Ste-Catherine facility. Preliminary tests haveshown some promising results and a morerobust installation is planned for 2006. Asuccessful automated spotting system willhelp reduce a vessel’s lockage time by sev-eral minutes at every lock, thus reducingits overall transit time.

The Corporation is committed to achievinga safer and more rewarding work environ-ment for its employees and better servicefor its customers through continual testingand improvements to our vessel securingprocess. Potential solutions include modi-fied vessel securing arrangements, an auto-mated mooring system, or no mooring atall. These solutions focus on the need toimprove lockage times, reduce costs ofusing the system for our customers andreduce the risk of injury to our employees.

System ReliabilityInvestment in the infrastructure is ourguarantee to our customers that we will behere for many years to come. Last year,the SLSMC spent $35 million to directlyimprove the reliability of our aging infra-structure. We invested $22 million in theNiagara Region, of which half went towardsthe hydraulic conversion of mechanicaldrives for gates, valves and ship arrestorslocated at Locks 4, 5 and 6. Significant

Côte-Ste-Catherine Lock inspection


funds were made available to enable theremote operation of the Homer Bridge andrepairs to the Allenburg Bridge sheaves.Maisonneuve Region saw an investment of$12 million on key projects, such as main-tenance dredging in the South Shore Canal,preparing the St. Louis Bridge for remoteoperation and various other works. Theremainder was spent on several small proj-ects.

Our extensive maintenance program is criti-cal to system reliability. Reliable infra-structure and equipment guarantee thatvessels will pass efficiently through ourcanals. We measure our success against thenumber and length of delays to vesselscaused by breakdowns in the system. Forthe 2005 navigation season, we reported552 hours of maintenance and breakdowndelays. While this represents an averageof only 7.5 minutes per transit, it is anincrease with respect to 2004. With morethan 60% of the breakdown delays in theWelland Canal resulting from aging gatemachinery, our hydraulic conversion proj-ect targets a direct reliability issue.

We plan to reduce delays over the nextyears by closely investigating breakdownsthrough a more rigorous analysis and fol-low-up cycle. In addition, current revisions

to our maintenance process will free super-visors from planning and scheduling tasks,allowing them to focus on supervisingmaintenance and repairs and ensuring allwork meets the highest standards.

System DependabilityWe provide consistent and safe vessel tran-sits, and our customers are assured theycan transit the system with minimal delays.In 2005, our system availability remainedabove the 99% target for the sixth straightyear, and our 283 day navigation seasonwas the second longest on record, one dayshy of the record set the previous year.Throughout the season, we kept our aver-age delays per transit down to 20 minutesper region, 33% lower than our target of 30minutes.

In 2005, we implemented a commitment tobetter service by reducing our standardtransit time objective for the WellandCanal by 30 minutes, from 11 hours to 10.5hours. Our commitment is to pass 90% ofvessels through the Seaway within thestandard transit time + 2 hours. In 2005,we achieved this new objective for 81.5%of vessels. The implementation of slowerbut safer vessel mooring procedures and agrowing number of vessels taking advan-tage of the deeper drafts (therefore slow-er), led to us falling short of our 90%target. The lockage innovations we arenow working on are key to reducing futuretransit times. In particular, the new auto-mated spotting system prototype, whichprovides the vessel master with accurateposition information while locking, willfree up our personnel to more quickly andefficiently secure the vessel in the lock.


7

On September 1, 2005, the CSL Assiniboinecarried 31,195 metric tons of iron ore—

the heaviest load ever carriedthrough our locks. Our customers

are taking advantage of ourincreased drafts and vessel

dimensions to maximizetheir carrying capacity.


Safety and Security on the WaterwayDuring the 2005 navigation season, we suc-cessfully reduced our vessel accident rateto 2.5 per 1000 transits. This translates toa total of 14 vessel accidents, 9 fewer thanin 2004. Key to safety on the Seaway isour extensive inspection program, ensuringvessels are properly equipped to protectthe Seaway’s infrastructure and the GreatLakes environment, as well as their ownsafety. All 224 foreign vessels entering thewaterway in 2005 were inspected for sea-worthiness to Seaway standards.

During the 2005 season, the Seaway contin-ued with its ongoing security initiatives.Our three-year security program, aimed atincreasing vessel security and controllingaccess to our structures, included installa-tion of motorized gates and proximity carddetectors at many of our facilities. Thisprogram will continue through to Novem-ber 2007. Security threat and responseplan exercises were carried out in bothoperational regions, demonstrating that weare serious and well prepared in the eventof an emergency. Over the course of 2005-

06, more than 130 employees were trainedin the International Ship and Port FacilitiesSecurity Regulations (ISPS) and the Sea-way’s role in vessel security.

Customer FeedbackWe rely on our customers, and build ontheir suggestions, to improve our services.We use several means of communication togather their comments, including conduct-ing customer surveys every second yearand organizing customer relations meetingsat least twice a year. Our 2005 customerrelations meetings focused on currentprograms, innovations and levels of service.During the closing period, frequent confer-ence calls informed key customers aboutvessel movements and ice conditions at ourlocks.

The Seaway maintains a Complaints Man-agement System to capture and managecomplaints from the public, customers andother stakeholders through our traffic con-trol centres and locks. Our objective is torespond to each complainant within fiveworking days and to close the issue withinten working days or transfer the complaintto the appropriate third party. In 2005, wesuccessfully closed or transferred 83% ofthe complaints received. Our focus in 2006will be on strengthening our documenta-tion and follow-up practices in order toachieve our 100% objective.

A Challenging End to the 2005 SeasonThe 2005 closing period brought its shareof challenges to the Seaway and its users.An unusually cold December led to earlyice formation in the Welland Canal, a situ-ation that only occurs every five years orso, and the first real challenge of this kind


8

Accident RateAccidents per 1000 transits

2003/2004 2004/2005 2005/20062002/20032001/2002

0.7

0

1

2

3

4

5

6

4.50

6.00

3.50

2.50

1


In developing our business and ensuringthat our waterway remains a vital and

sustainable transportation route for yearsto come, the Seaway is pursuing a courseof responsible growth. Our priority is tooperate a safe and efficient waterway, relia-bly moving our customers’ vessels to theirdestinations – but we do more. While we

continue to service long-established com-modity movements, we are also working toattract new cargoes that will use more ofour available capacity. We are takinggreater advantage of our green power-gene-rating capabilities to supply our own needsand create new revenue. We are also play-ing an important role as a catalyst in bring-ing partners together from around theworld for the benefit of our waterway andin promoting the Seaway system as anessential link in North America’s strongintermodal transportation chain.

Our Priority: Moving Cargo For the 2005 navigation season, whichopened on March 23rd and closed onDecember 30th, there were 3,443 commer-cial vessel transits through the WellandCanal and 2,695 transits through theMontreal-Lake Ontario (MLO) section — an

Economic Responsibility

9

“Highway H20 has brought a new focusworldwide on the potential of the GreatLakes/Seaway system… it’s a great successfor all of us.”

Alan Thoms, President and CEO,Canadian Shipbuilding and Engineering

since the introduction of the wider-beamvessels (78-foot vessel in an 80-foot lockchamber). In one particular case, a vesselwas trapped in ice at the entrance to Lock7 for an extended period, causing delays toother customers trying to schedule finalcargo movements. Working together withthe vessel operator, and partnering with acommercial tug operator, we managed tosuccessfully resume navigation. Given ourfirm commitment to customer service, wereviewed the challenges of the closingperiod and quickly devised solutions. Cus-tomers have been assured that we canhandle what nature throws at us throughbetter forecasting, the identification ofkey trigger points and a commitment tobetter equipment for periods of harshweather.

St-Lambert Lock, Maisonneuve Region.photo: Stéphane Estève


overall increase of 6.7% over 2004 trafficlevels. We helped our customers move 43.3million tonnes of combined cargo for theseason, a decrease of 0.4% from the 43.5million tonnes carried in 2004.

Both of our main bulk commoditiesincreased in 2005 despite potential inter-ruptions in their industries. The iron oreindustry wasimpacted bylabour issues attwo mines inLabrador, whilethe U.S. andCanadian grainindustries fellvictim tounfavourableweather condi-tions during theharvest period.Overcomingthese chal-lenges, iron oreand grain ship-ments increased

by 5.3% and4.8%, respec-tively, in 2005.

Other bulkcargoesincreased by2.5% on bothsections, drivenby higher volumesin commoditiessuch as salt (up28.3% in theMLO and 7.6% onthe Welland)and potash (up7.4% in the MLO

and 32.1% on the Welland).

Coal, one of our staple cargoes, showed asignificant decrease on the Welland Canalof 12.7% from 2004, most of which isattributed to the closing of the Lakeviewcoal-fired generating plant. Total coalmovements on the Seaway amounted to3.7 million tonnes in 2005. The MLO section


10

0

2

4

6

8

10

Grain Iron Ore Coal Other Bulk General

Montreal /Lake Ontario Section

Millions of Tonnes

2003/2004 2004/2005 2005/2006

9.2 9.0

0.2 0.6 0.7

9.5 9.3

8.39.0

7.78.6 8.8

2.5

4.23.3

0

2

4

6

8

10

12

Welland Canal

Millions of Tonnes


9.09.4

6.6 6.67.4

4.2 4.23.7

10.1

11.4 11.7

1.7

3.0

2.0

9.3

2003/2004 2004/2005 2005/2006


did see an increase of 87,000 tonnes due tostrong industrial demand for coal and addi-tional shipments to the Belledune coal-fired power generation facility.

Although economic conditions in the U.S.and Canada were fairly good in 2005, therewas reluctance towards long-term commit-ments. Steel imports declined as reducedprices and uncertainty affected the NorthAmerican steel industry. Consequently, gen-eral cargo decreased by 23.4%, to 3.3 mil-lion tonnes. Steel slabs were less affectedthan finished steel in the MLO section andincreased by 27.1% or 130,000 tonnes.

Growing Towards SustainabilitySLSMC is playing an increasingly successfulrole as a catalyst to bring the marineindustry together in partnerships that ben-efit individual stakeholders, the GreatLakes/Seaway System, and society atlarge. During the past year, HWY H2O hasevolved to become a truly bi-national mar-keting initiative, encompassing all themajor ports on the St. Lawrence River andthe Great Lakes. Along with the SLSMC and

our American counterpart, the SaintLawrence Seaway Development Corpora-tion (SLSDC), all partner ports haveembraced the HWY H2O common messageand are endorsing it through their own pro-motional campaigns. The result has beenwidespread, renewed interest in the bene-fits that the marine mode adds to thetransportation network. In 2006, member-ship will expand with a second layer ofpartners under the HWY H2O banner toinclude vessel operators, stevedoring com-panies, terminals and other associatedinterests.

Visibility for HWY H2O is receiving a boostfrom our modernized exhibit and electronicbrochure and our increased presence attransportation industry conferences andtrade shows. The trade show exhibit,unveiled in October at the Breakbulk Con-ference & Exhibition in Houston, was host-ed by representatives from the SLSMC andseveral partner ports. Our new promotion-al tools attracted attention and inquiries,generating renewed interest in the Seawayas a viable cargo route.


11

0

5

10

15

Five Year Review of Combined Traffic by Commodity

Million Tonnes

2001 2002 2003 2004 2005



Led by the SLSMC and SLSDC, the 28th

Seaway Trade Mission took place from Octo-ber 17 to 22, 2005. During this week-longmission to London, England, and Hamburg,Bremen and Brake, Germany, delegates metwith senior maritime organization officialsand Seaway/Great Lakes clients. The trademission introduced the HWY H2O marketingcampaign to the European marine industry,and promoted the system’s most recentoperational and technical improvements,new cargo initiatives, passenger cruiseopportunities, and environmental protec-tion strategies. Discussions with the Inter-national Maritime Organization focused onthe concerns of the St. Lawrence/GreatLakes region in regards ballast water regu-lations and the positive measures beingimplemented to reduce the risks of intro-ducing invasive species into the heartlandof North America. The meeting with theSeaports of Niedersachsen, the marketingarm for a group of eight ports, led to con-tinuing talks on formalizing co-operationbetween that organization and HWY H2O.


12

Leading up to the 2006 opening, SLSMClaunched a mini-campaign to increaseawareness of and interest in the GreatLakes / St. Lawrence Seaway. Using themotto “A Sign of Relief,” the campaignreinforced the HWY H2O brand by encour-aging the public to see the St. LawrenceSeaway as an alternative highway that canbring relief both to land route congestionand to the environment.

Building Ships ThroughPartnershipsWhile attracting new cargoes through pro-motion will bring growth, sustainablegrowth demands a broader perspective.There is, for instance, currently a shortageof modern domestic vessels suited to theSeaway, caused partly by historical trendsand partly by the associated investmentrisks. Europe has been successful in build-ing a fleet of short-sea shipping vessels,raising non-traditional capital with variousfiscal incentives to reduce the overallinvestment and risk. SLSMC has been study-ing the European model to see how it could

be used in Canadato attract newinvestment andlower the riskbarrier.

While a modernshort-sea Seawayfleet is a long-termendeavor that willrequire lastingindustry and govern-ment commitment,SLSMC has taken thefirst successful stepby helping bringtogether Peters

Seaports of Niedersachen meeting in Brake,Germany, October 20th, 2005.


Kampen, a Dutch shipyard, and CanadianShipbuilding & Engineering, one of ourlessees. The two companies have formed astrategic alliance to build two hulls and sixcomplete vessels. This order will contribute$100 million to the local economy and pro-vide sustainability to the Port Weller opera-tion and its 250 employees. Themulti-purpose vessels were ordered by Car-risbrooke Shipping and will be usedthroughout Europe and North America totransport paper, steel and other products.This project is an important milestone as itcreates world-class shipbuilding capacity inthe Great Lakes/St. Lawrence region—anessential foundation to the long-termsuccess of short-sea shipping in North America.

A Catalyst for New BusinessIn March 2005, SLSMC launched an incen-tive toll program to attract new cargoes tothe Welland Canal. “New cargo” is definedas containerized cargo, or cargo which hasnot moved in an annual amount greaterthan 10,000 metric tons between 2001 and2003. New cargoes will remain qualifiedfor the toll reduction through the 2007shipping season. This incentive programbrought in almost 242,000 tonnes of newcargo in 2005, along with $659,000 ofadditional revenue, and included alu-minum, raw sugar, fluorspar acid andwindmill components. As the new tariff isbased on the gross registered tonnage of avessel rather than a fixed fee, much of thenew cargo was shipped on smaller-sizedvessels. Based on the success of this initia-tive, SLSMC and Transport Canada wereable to extend the program to the Montreal-Lake Ontario section of the Seaway for the2006 season.


13

Throughout the year, the Seaway sponsoreda series of cargo workshops focusing onspecific market sectors, such as steel, autoparts, and forestry products. These ses-sions provided a vital forum for regionalports, terminal operators, stevedoringfirms, and marine carriers and shippers todiscuss the options and opportunities avail-able to them and raised awareness of thebenefits of bringing their cargo to themarine mode.

Key in the catalytic process was a HWY H20container conference which broughttogether delegates from a variety of indus-tries to discuss the untapped potential ofthe Great Lakes / Seaway system. Manyexperts from across the transportationindustry, ranging from a European owner ofa fleet of modern multi-purpose vessels toan intermodal trucking company interestedin shifting containerized cargo to themarine mode, shared their opinions on thebenefits water transport can bring, not justto the Great Lakes /Seaway region, but tothe North American economy as a whole.

More than just a discussion of possibilities,the two-day conference made it clear thatpositive developments are already under-way. The Port Weller contracts wereannounced, with the managing director ofthe Peters Kampen shipyard and the owner

New Business: tug and bargePhoto courtesy of Seaway Marine Transport (SMT)


Understanding and minimizing theimpacts of marine transportation on

the environment is very important to theSeaway. Since we hold the key to entryinto the Great Lakes, we have a responsi-bility to ensure that the users of thesystem are well informed and their shipsproperly equipped to protect land, waterand air. We also take great care to mini-mize our own operational impacts on theland and water we manage.

Environmental AwarenessAn important step in protecting the envi-ronment is to first understand our impactupon it. An inventory of the environmentalimpacts of marine transportation wasestablished in 2005 to raise the environ-mental awareness of our management andexecutive teams. The inventory details 18areas where the environment can beimpacted by the marine mode; what stepsthe marine industry and regulators aretaking to mitigate these impacts; and howthe Seaway can take action to regulate orinfluence improvements. Our participationin several high profile marine sustainabilityinitiatives will allow us to bring this knowl-edge to the table, ensuring that the issuesare addressed.

14

of U.K.-based Carrisbrooke Shipping amongthe speakers. The participants made valu-able contacts for putting short-sea shippingand container shipping in place on theGreat Lakes / Seaway and maintained theirmomentum after the conference. Forexample, a trucking company interested inmoving containers by ship on Lake Erie hasnow joined up with a logistics company anda management company, and their contain-ers may start moving by ship as early asthe 2006 season.

Environmental Responsibility

February 2006 - VM/S Hercules lifted 191metric tons locomotive on the BBCCalifornia Vessel

“Training our employees to deal withemergency situations is essential inminimizing threats to the system.”


Environment Management System SLSMC recognizes that protecting the envi-ronment is important to the Seaway’songoing success and sustainability. TheCorporation’s environmental policy includesan Environmental Management System out-lining the management of all aspects ofenvironmental protection and risk underSLSMC control. All maintenance projectsincluded in our Asset Renewal Plan areevaluated for their environmental impactbefore being approved.

Compliance and IncidentsIn 2005, the air-cooling system at our St. Lam-bert office was replaced to resolve severalhalocarbon leaks over the last several years.Through such improvements, the SLSMC iscommitted to complying with all environmen-tal regulations. Beginning in 2006, we willassess our regulatory compliance using anEnvironmental Index to help us measure ourenvironmental performance accurately andassist us in establishing targets.

Land UseMuch of the land managed by the Seawayis rented to commercial and private enter-prises. In recent years, our land manage-ment and environment departments havebeen working closely to integrate newstandards of environmental protection intoour lease agreements. As we renew leases,we ensure protection of this public land bylegally binding our lessees to responsiblymaintain and manage the valuableresource they occupy.

Dredging Program Linked toEnvironmental CompensationThe SLSMC was proud to contribute morethan $110,000 as environmental compensa-

tion for the four-year South Shore Canaldredging program. This compensation proj-ect will restore a natural link between twosections of Ruisseau St-Jean, a highly pro-ductive creek flowing into Lake St-Louis.

SLSMC must maintain a safe waterway forits users, and dredging is carried out onlyto ensure adequate channel depth for safenavigation. By providing vessels with suffi-cient depth, we protect both the environ-ment and the public. All our dredgingprojects meet federal environmentalimpact screening criteria. In 2005, SLSMCcompleted the second phase of a four-yeardredging program in the South Shore Canalto restore the canal depth to constructiongrades and ensure safer vessel transits inthat area. A total of 27,650 cubic metresof material was excavated and disposed ofduring the 2005 phase.

Protecting WildlifeIn recent years, the Valleyfield and St-Louisvertical lift bridges have been home tonesting pairs of peregrine falcons. In 2005,the Seaway collaborated with Servicesenvironnementaux Faucon and the QuebecMinistry of the Environment to protectboth the birds and our employees, the lat-

15


Peregrine Falcon on vertical lift bridgenear Beauharnois



16

ter from the raptors’ aggressive attacks. Aplan was established to replace the about-to-hatch chicks with sterile eggs. Thefemale falcons would remain in the incu-bating stage, keeping their aggressivenessunder control for a longer period, untilthey abandoned the infertile eggs. One ofthe eggs retrieved from the two nestingsites hatched successfully. The chick wastransferred to an adoptive female at alocal quarry and eventually flew off on itsown.

Invasive SpeciesMany of the invasive species introducedinto the Great Lakes since 1970 can beattributed to ship ballast water discharge.Zebra mussels, for example, are now foundthroughout the Great Lakes ecosystem,competing with native mussel species andconsuming plankton, crucial for the sur-vival of many small native fish. Seawayregulations call for vessels to comply withthe “best practices” for ballast water man-

agement, while regulations are formulatedby both the U.S. and Canadian govern-ments. To date, we have worked with theU.S. to perform ballast water inspections.In 2005, we reviewed our ship inspectionand ballast water inspection practices andtrained our inspectors to better recognizeproper ballast water management prac-tices. As Transport Canada and the U.S.Coast Guard work towards new ballastwater regulations, Seaway inspectors willbe well positioned to help protect ourwaters, an essential step to a sustainablemarine transportation corridor.

Electrical Energy UseThe cost of electricity and its availability isimportant to all Canadians and thatincludes us at the Seaway. We havereviewed our historical consumption andare now establishing new performance indi-cators to better manage our energy use.Our goal is to include these results startingwith the 2006–07 fiscal year.

The Seaway has been generating its ownhydro power for the Welland Canal since

Compensation Project for stream decontamination



17

Seaway partnered withRankin Renewable Power Inc.to develop additional powergeneration facilities at threeof our weirs. This project willmake use of existing hydropotential from secondary useof existing water flows, thusproviding an additionalsource of clean energy toCanadians.

Emergency ResponsePreparednessProtecting the environment

means being prepared for the unexpected.Training our employees to deal with emer-gency situations is essential in minimizingthreats to the system. Our employees areinvolved with regional agencies and partici-pate in joint emergency response exerciseswith the municipalities adjoining the Sea-way. Our goal is to carry out at least twoemergency response exercises each year. In2005, we participated in Regional Environ-mental Emergencies Teams (REET) planningsessions along the Seaway which aredesigned to cooperatively respond to envi-ronmental emergencies.

We successfully coordinated a multi-agencyfield response exercise with the RegionalMunicipality of Niagara and held a desktopexercise in the Maisonneuve Region in-volving both on-site and off-site teams. Inaddition, we provided professional trainingto our response managers.

Being Prepared Pays On November 19, 2005, emissions from aboiler system degraded the air quality inthe St. Lambert office complex, forcing

Electrical Energy Consumptionin Gigawatt Hours

2003/2004 2004/2005 2005/20060

3

6

9

12

15

13.27

0.86 0.90 0.89

13.31 13.8512.96

10.9212.17

Maisonneuve Cornwall Niagara

Power House, Welland canal

1932. In January 2005, SLSMC became anindependent power generator. We are nowgenerating excess power and, since thederegulation of the power generation indus-try, are supplying our surplus power to theOntario power grid. A major retrofit to thepowerhouse is now complete and, withplanned minor upgrades, the powerhousewill soon be fully automated. In 2005, the


evacuation of our Traffic Control Centre(TCC). This was the first time the TCC hadto be evacuated, but our back-up centrewas ready. Prior to evacuation, coordina-tion was established with our neighbouringtraffic control centres and the back-upcentre was up and running in less than anhour. There was no interruption in trafficcontrol services and the change wentlargely unnoticed by our customers.

Success comes from the efforts of ouremployees aligned with the goals of

the Corporation. One of our primarystrategic objectives is to set the stage foremployees to succeed. Our goal is forevery employee in the Corporation to havethe skills and knowledge to contribute posi-tively to fulfilling our mission and achievingour vision. We provide our employees witha motivating work environment and theright tools to allow them to grow with theorganization. Our commitment to a safeand healthy work environment, compre-hensive benefits and value-added workhelps us attract and retain employees ofthe highest quality.

The Seaway employed 560 permanent andtemporary employees in 2005-06 for a totalsalary expenditure of $37 million, and ourpermanent workforce averages over 17years of service per employee. One of our

Commitment toOur Employees

18

The marine industry has always been male-oriented. SLSMC isworking hard to ensure equity in our workforce, especially innon-traditional jobs. On April 30, 2005, Maisonneuve Regionestablished our first all-woman lock crew—the first of many,we hope. From left to right: Danielle Emond, Denise Gianni,and Josée L'Hérault

Emergency response exercise at lock 7,Welland canal, June 2005.


challenges is the high retirement rateexpected over the next several years. Ourrenewed staffing procedures, our employ-ment equity policy and vision of the futurejobs are the platforms that will help uslaunch the Seaway’s next generation ofworkers.

Increasing Employee ConfidenceTo provide our employees with a consistentand safe work environment, we undertookan extensive human factors study through-out our operational locations. A major fea-ture in this evaluation was consistency ofcontrol system layouts and standardizationof operator interface stations and screens.The study recommendations will help usprovide our workforce with a standardoperating environment on all structuresand increase our employees’ confidencewhen operating the various structures.

Training and DevelopmentOur Employee Opinion Survey, carried outin 2004, indicated that improvements weredesired in the areas of company leadershipand performance management. In 2005, wefocused training on our managers and front-line supervisors. The goal was to developleadership skills that will help them carryout their roles of directing, motivating,enabling and managing employee perform-ance to achieve our organizational goals.

Jobs of the FutureThese are interesting times for the Canadi-an workforce. Baby-boomers are retiring inincreasing numbers, leading to an emphasison recruitment for most Canadian compa-nies. In 2004, SLSMC identified major

upcoming changes and trends in our workand how they will affect our core processjobs. In 2005, we went on to define theprofiles of future core jobs at the Seaway.Our current employees are now aware ofthe skill base of the future, and will havethe opportunity to develop those skillsthrough training programs aligned with thenew jobs of the future. We are also hiringa significant number of employees, theheart of our workforce into the next genera-tion, and bringing aboard personnel whohave a wide range of the skills required tomeet future challenges at the Seaway.

A Healthy Work EnvironmentOur employees are improving their health,thanks to the work done by our Wellnesscommittees. The Corporation has con-tributed over $26,000 towards employeeparticipation in physical fitness programsat outside gyms and health facilities. Sofar, 158 employees – 27% of our workforce– have taken advantage of this opportuni-ty, and we are encouraging greater partici-pation in 2006. Our solid Employee

Commitment to Our Employees

19

Employee Assistance Program UsageNumber of requests for assistance per year

200520042003

0.7

0

25

50

75

100

125

111 109 103

4.50


Assistance Program is comprehensive andis being well used. In 2005, 103 individualrequests for assistance were received forthis confidential service. In 2005, threeworkshops were held at our Head Office:Living with Stress, Achieving Balance inWork and Family Life, and Eating to LiveWell, in both official languages. Theywere well attended and appreciated byour employees.

Health and SafetyEvery year, the corporate Health and Safe-ty Policy is reviewed and approved by ourExecutive Committee. This policy sets thefoundation for the Seaway’s strong healthand safety focus throughout the organiza-tion. In 2005, a total of 49 joint Healthand Safety Committee meetings wereheld, demonstrating the commitment ofthe Corporation and its employees tosafety in the workplace. The Iroquois Lockfacility has now gone 12 consecutive yearswithout any lost-time injuries and HeadOffice is in its third injury-free year.While the number of accidents is relative-ly low —our “frequency rate” is 1.81 per

100 person year worked—time lost toinjury in 2005 did show an increase over2004 levels. There were 30.83 lost days ofwork per 100 person years, compared to13.7 in 2004.

ErgonomicsAfter an extensive review of our officework environments, 53 employees benefitedfrom ergonomic assessments. They all tookadvantage of the better work methods andequipment prescribed. We have identifiedat least three cases where an employee’spain and discomfort from work practiceswere successfully resolved. The preventivemeasures suggested were beneficial forboth the employees and the Corporation.

AccommodationTreating our employees with respect anddignity is important. During 2005, we madesignificant efforts to raise the awareness ofall employees with respect to our accom-modation policies and practices. Theinformation led to 42 requests for accom-modation, of which 40 were successfullymet. Only two employees proceeded tolong-term disability.

Commitment to Our Employees

20

Corporate PoliciesSLSMC has developed and maintains policies that guide and protect our employees, our business and our stakeholders:

- Accommodation in the Workplace- Health and Safety- Code of Professional Conduct- Staffing and Recruitment- Harassment and Discrimination in the Workplace- Alcohol and Drug Abuse- Employment Equity and Diversity


The St. Lawrence Seaway has numerousstakeholders – individuals, groups,

communities, employees, governments,industry partners and many others. As agood corporate citizen, SLSMC acceptsresponsibility for dealing with those affect-ed by our operations in a manner thatreflects our values: Respect, Openness,Integrity and Innovation. In particular, werecognize the importance of open commu-nication with stakeholders in order to bringabout better understanding of mutual con-cerns. This communication also helps gene-rate ideas to resolve social andenvironmental challenges related to ouroperations, and these strong relationshipswith our stakeholders help us work togethertowards sustainability.

Business Ethics and ComplianceOur Employee Code of Conduct lays outthe guidelines for everyone in the Cor-poration. Compliance with operatingstandards and practices is continuouslymonitored, and all business units areformally audited every three to fiveyears. Internal Audit reports to theAudit Committee of the Board threetimes per year, while an externalauditor ensures our financial state-ments are in order.

Employment Practices and the WorkforceThe Corporation has revised allof its staffing and recruitmentpractices to ensure that we actethically and responsibly; andour staffing process now gives

easier access to job information and broad-er access to vacancies. The process is basedon transparency and consistency and rein-forces overall principles of equity andselection based on merit. Policies andpractices at all levels of the Corporationare administered according to the applica-ble laws and regulations.

A Barrier-Free WorkplaceProjects were undertaken in 2005 to ensurethat all our primary facilities are fullyaccessible to persons with mobility chal-lenges. Work included the installation ofautomatic doors and special washrooms. In2006, we will implement a policy evalua-tion mechanism to ensure that all new andrevised policies are barrier-free to allgroups protected under the Human RightsAct and the Employment Equity Act.

Social Responsibility

Innovation...• We encourage and support creativity,

seeking out innovative and entrepreneur-ial ways to grow our business andgenerate revenue.

• We strive to improve our organization andourselves, through ongoing learning,leadership and commitment.

• We seek continuous improvement, tryingnew ideas, developing new skills andapplying new technology.

Integrity...• We stand for integrity, holding to the

highest standard of ethical behaviourand transparency in everything we do.

• We are performance-driven and wedeliver on time using our dynamism,creativity, knowledge and experienceto do the right thing at the righttime.

• We spend wisely, getting the bestvalue for every dollar.

Respect...• We value the contribution of everyone,

and foster trust and mutual respect ininternal relations as well as between theCorporation and its stakeholders.

• We focus on our customers, understandingtheir needs and working to provideexcellent service.

• We protect the environment, keeping ourlands and waters clean and promotingsound environmental practices among ourcustomers.

Openness...• We foster open communication,

exchanging ideas and feedback openlyfor the benefit of everyone, both insideand outside the organization.

• We promote wellness in a healthyorganization, where safety isparamount, treatment is fair andworkforce diversity encouraged.

• We build partnerships, working togetherwith customers and stakeholders in thebest interests of all.

21


Workforce Diversity and HarassmentWe value diversity in our workforce and inour dealings with customers who representcultures from around the world. Ouremployees have received diversity trainingand provide a high level of customer service,treating all individuals with respect anddignity. SLSMC’s policy places the responsi-bility on each employee to abstain fromany actions that could be consideredharassing or discriminatory. Discriminationin any form by or towards employees, con-tractors and customers is prohibited.

Caring EmployeesWe encourage our employees to participatein fundraisers for charitable causes. Duringthe past year, employees throughout theCorporation showed they cared by donatingtime and funds to various local charities.Along with the United Way, charitiesreceiving assistance included a CommunityCare children’s toy drive, food drives andthe Heart and Stroke Foundation’s “Paintthe Town Red Campaign”.

In addition, the Seaway contributes to thewell-being of sailors using our waterwaythrough donations to various seafarer mis-sions. These missions provide welcome andfriendship to seamen in unfamiliar sur-roundings, helping them to overcome diffi-culties of language and culture. In 2005,the Seaway donated $1,000 to the

Mariners’ House of Montreal and $500 eachto Hamilton’s Missions to Seafarers andToronto’s Missions to Seamen.

Public SafetyThe importance of vessel security hasnever been more prominent than it istoday. As the SLSMC continues to activelyimplement its corporate security plan, itmust also consider the various stakeholdersalong the river and canals. In 2005, weheld several meetings with local electedofficials and municipal staff, as well asmedia, to explain vessel security require-ments and how they might affect munici-palities from Montréal, Québec, to PortColborne, Ontario.

Since the Seaway canals pass through manymunicipalities, we have the obligation toprotect the public through awareness cam-paigns and physical installations. In 2005,we worked closely with the City of Port Col-borne, its police department and the localnews and media to raise awareness of thedangers surrounding the operation of ourfree-standing bridges. Of particular impor-tance was bridge 21 in Port Colborne, con-trol of which was being remoted to ouroperations centre. The increased mediaattention and a police patrol at the bridgeresulted in a smooth and safe transfer of itsoperation.

Every summer, we conduct an awarenesscampaign to inform the various communi-


22

SLSMC Scholarships: Undergraduate ProgramEach year, three $1,000 bursaries are awarded to chil-dren of SLSMC employees who are enrolled in acollege or university undergraduate program.

United Way CampaignEvery year, dedicated employees volunteer to canvass theircolleagues for support during the United Way campaign. In 2005,Seaway employees across the organization raised close to$28,700, with pledges averaging $80 per permanent employee.


ties along the canals about the dangers ofthe canal waters, with special emphasis onthe weirs. In the Niagara Region, a video,“Dangerous Waters of the Welland Canal,”is distributed to local schools and aired onthe local cable television network, in con-junction with advertisements in the localnewspapers.

Working with First NationsOur relationship with the First Nationswhose lands border the Seaway is veryimportant to us. Our structures and opera-tions have a direct impact on their landsand waters. We work closely with Akwe-sasne representatives during the periodleading to the opening of the navigationseason to minimize the impact of ice-breaking on their community. In Kah-nawake, we maintain various rights-of-wayand one free-standing bridge. SLSMC useslocal contractors and services for capitalworks on these assets, where possible. In2005, we held seven meetings with FirstNations representatives and awarded proj-ects worth almost $224,000 to Mohawkcontractors.

Opening up Our LandsAs manager of lands owned by TransportCanada, SLSMC has a responsibility tomaintain and protect these lands. In part-nership with several communities, wemaintain public access to low-securityareas such as the many kilometres of bicy-cle paths. Access to these natural openspaces along the shoreline is a much-appreciated amenity for local residents anda valuable tourist attraction for the Sea-way area.

As partnerships strengthen with communi-ties along our route, we are approachedmore frequently to open our lands for vari-ous special events. In 2005, we providedaccess to an open area in Beauharnois for acommunity kite flying day and in Sainte-Catherine for an ice-fishing derby. In alonger term effort, representatives fromTransport Canada, the SLSMC and municipalrepresentatives from the City of Port Col-borne met to discuss various options forland development in the community. TheSLSMC has teamed up with the City of PortColborne to identify solutions that will helpeach organization achieve its long termland use goals in the area. Working togeth-er is the sensible way to achieve a sustain-able future for us all.


23

Canal Days, Port Colborne


24

The St. Lawrence Seaway ManagementCorporation is governed by a nine-mem-

ber board that is responsible for ensuringthe long-term viability of the Corporationand of the Seaway as an integral part ofCanada’s transportation infrastructure. TheBoard oversees many aspects of the SLSMC’smandate, including strategic planning, riskmanagement, succession planning, communi-cations policy and the integrity of the Corpo-ration’s internal control. It also reviewsSLSMC’s financial results and future directionand sets limits on management authority,accountability and unforeseen expenditures.

Individual Board committees overseegovernance, human resources, audit, andasset renewal.

Board of Directors Peter G. Cathcart 2Ontario Provincial Government Representative

Richard J. Corfe President & Chief Executive OfficerThe St. Lawrence Seaway Management Corporation

W. Nick Fox 4*,5

Grain Members’ Representative

Richard Gaudreau 1,3

Federal Government Representative

William Keays 3*

Québec Provincial Government Representative

David F. Mothersill 2,5

Steel and Iron Ore Members’ Representative

Georges H. Robichon 1*,5

International Carrier Members’ Representative

J. Douglas Smith, Chair 1,2*,5

Domestic Carrier Members’ Representative

Guy C. Véronneau 3,4,5

Other Members’ Representative

Corporate Governance (as of March 31, 2006)

Members of:1. Governance Committee2. Human Resources Committee3. Audit Committee4. Asset Renewal Committee5. Ad hoc Tolls Committee

* Committee Chair

Board of Directors. From left to right: W. Nick Fox, Richard Gaudreau, Georges H. Robichon, David F. Mothersill, J. Douglas Smith, Peter G. Cathcart, Richard J. Corfe, William Keays, Guy C. Véronneau.


Officers

Richard J. CorfePresident and Chief ExecutiveOfficer

Michel DroletVice-President, Niagara RegionCorporate Safety Officer

Adina JusterVice-President, Maisonneuve RegionCorporate Environmental Officer

Serge BergeronChief Financial Officer & Director of Support Services

Yvette HoffmanCounsel and Secretary

Industry Members 2005/2006

Domestic CarriersAlgoma Central CorporationSt. Catharines, Ontario

Canada Steamship Lines Inc.Montréal, Québec

Groupe Desgagnés Inc.Québec, Québec

Lower Lakes Towing Ltd.Port Dover, Ontario

McKeil Marine Ltd.Hamilton, Ontario

St. Marys Cement Co.Toronto, Ontario

Upper Lakes Group Inc.Toronto, Ontario

GrainADM Agri-Industries CompanyWindsor, Ontario

Agricore UnitedWinnipeg, Manitoba

Alfred C. Toepfer (Canada) Ltd.Winnipeg, Manitoba

Bunge Canada Ltd.Québec, Québec

Cargill LimitedWinnipeg, Manitoba

James Richardson Int’l Ltd.Winnipeg, Manitoba

Louis Dreyfus Canada Ltd.Calgary, Alberta

Saskatchewan Wheat Pool Inc.Regina, Saskatchewan

The Canadian Wheat BoardWinnipeg, Manitoba

International CarriersColley Motorships LimitedMontréal, Québec

Fednav International Ltd.Montréal, Québec

Gresco Ltée.Montréal, Québec

Inchcape Shipping ServicesMontréal, Québec

Laden Maritime Inc.Montréal, Québec

Montship Inc.Montréa

Navitrans Shipping AgenciesMontréal, Québec

Robert Reford, A Division of MRRM (Canada) Inc.Montréal, Québec

Other MembersAGP Grain Ltd.Minneapolis, Minnesota

Essroc Italcementi Group Mississauga, Ontario

Keystone Canada Inc. Montréal, Québec

Lafarge Canada Inc.Concord, Ontario

OmniSource CorporationBurlington, Ontario

Ontario Power Generation Inc.Toronto, Ontario

Petro-CanadaOakville, Ontario

Tate & Lyle Canada Ltd.Toronto, Ontario

The Canadian Salt Company Ltd.Pointe-Claire, Québec

The Mosaic CompanyRegina, Saskatchewan

Steel and Iron OreDofasco Inc.Hamilton, Ontario

Iron Ore Company of CanadaMontréal, Québec

Québec Cartier Mining Company Montréal, Québec

Stelco Inc.Hamilton, Ontario.

Corporate Governance

25


Officers and Executive Committee

26

Michel DroletVice-President, Niagara Region

Corporate Safety Officer

Guy YelleDirector of Operations and Technical Services

Aldert Van NieuwkoopDirector of

Market Development

Sophia TrottierDirector of

Internal Strategies

Serge BergeronChief Financial Officer &

Director of Support Services

Richard J. CorfePresident and

Chief Executive Officer

Adina JusterVice-President, Maisonneuve Region

Corporate Environmental Officer

Yvette HoffmanCounsel and Secretary


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