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Case study report about Canadas transport system and the required transport energy supply within
the country, taking into account the technical, socio-political and security challenges presented by
each energy supply.
Assessment Title
Programme Title:
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TLB7002
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Tutor:
th
Due Date: 20 November 2014
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Contents
Executive Summary..............................................................................................................................5
Introduction .........................................................................................................................................6
Overview about Canada.......................................................................................................................7
Location............................................................................................................................................7
Area and Population ........................................................................................................................7
Geography and Resources ...............................................................................................................7
Economy...........................................................................................................................................8
Transport Networks .........................................................................................................................8
The Changing Nature of Maritime, Road, Rail and Pipeline as a Means of Transporting Transport
Energy ..................................................................................................................................................9
The changing nature of maritime ....................................................................................................9
General introduction regarding the maritime industry in Canada ..............................................9
The purpose of the ports and the future changes .....................................................................10
Enhancing marine safety............................................................................................................13
The Changing Nature of Road ........................................................................................................14
The Usage of Road Trucks ..........................................................................................................14
Damages and Safety...................................................................................................................15
The Changing Nature of Rail ..........................................................................................................16
The beginning of Canadas Rails ................................................................................................16
Load capacity of the freight of different energy sources ..........................................................18
Safety Concerns .........................................................................................................................19
The Changing Nature of Pipelines..................................................................................................20
Canadas Transmission Networks ..............................................................................................20
Maps of the pipelines Networks in Canada ...............................................................................21
The changing nature of pipelines ..............................................................................................22
Future of Aviation Fuel and Its Supply Globally .................................................................................23
Distribution of aviation fuel and Refueling ................................................................................23
Main Aviation fuel suppliers ......................................................................................................24
Aviation fuel supply globally ......................................................................................................25
Future of aviation fuel ...............................................................................................................26
Aviation fuel supply in Canada...................................................................................................27
3
Executive Summary
This report was commissioned to examine and evaluate the technical, socio-political and security
challenges that need to be considered in the process of making energy available from variety of
sources for transport purposes in Canada.
The methods of research that were conducted in this report is by records and annual reports of
Canadas transport systems, official websites, books, and news articles. The research is focusing
on Canadas energy transport systems and the challenges presented by each energy supply within
the country, which are presented in three main sections:
These sections include the changing nature of all the means of transport in the country and how
they will be handled and developed in the future. The report also covered the future of aviation
industry in Canada and the global supply of the fuel in the aviation sector including the
environmental issues faced in the industry. Moreover, it covered the outlook of the electrical
network distributions system and all the analysis related to this sector. The third section of the
report focused on the energy infrastructure and the requirements of it to further develop and
help to boost the countrys energy transportation.
The report finds some errors that need to be maintained in the transport sector in order to further
develop and have an efficient energy supply within the country. General recommendations about
Introduction
This report is going to elucidate the changing nature of exporting and importing energy resources
within Canada; as it will also provide some key points regarding the future of aviation fuel and
how it is going to be distributed on the global countries. Moreover, it will also provide the
electrical distribution in the foreseeable future, along with infrastructure requirements for
transporting divergent energy sources. This report is also going to include the Socio-political
issues; which is something that has a combination of social and political factors, for example, the
issue of protecting the environment as a social factor and the political factors that effect this issue
(sociopolitical, 2014). The paper is also going to include the technical challenges which are
basically a result of increasing the energy demand in the world at a time when most resources are
declining and maturing. Therefore, technology plays an important role in order to discover and
access to energy resources (Technical challenges , 2014). Furthermore, this paper is going to
include some of the security challenges that could be faced because of the changing environment
of the geopolitical stability.
each has its own responsibilities for social programs such as health care, education and welfare.
Despite all this area Canada has a very small population, which lately was estimated by 35,540,400
(statcan.gc.ca, 2014) the country has a population of multicultural nations and diverse
backgrounds due to high immigration rates,13% of the Canadian population is over 65 of age, and
19% is under the age of 15(nationsencyclopedia, 2014)
Economy
Canadas monetary unit is the Canadian dollar (Can$).it was estimated by 2013 that Canada is
currently ranked as the 6th freest economy in the world. It has a very stable and attractive
investment destination (Foundation T. H., 2014).The gross domestic product in Canada is
considered very high as it was estimated in 2013 by US$ 1825.10 Billion(tradingeconomics,
2014).The biggest business partner to Canada is the United States, its main exports are: crude oil,
natural gas, machinery, electricity, aluminum etc. on the other hand, its imports consists of
chemicals, equipments, motor vehicles.(nationsencyclopedia, 2014)
Transport Networks
There are five main transport networks in Canada which are as follow, Air transport, Road
transport, Railways, Water transport and Pipelines.
The emission caused by ships per mile is less than other transportation modes , Also it is
continuing to improve.
Maritime facilities are following the rules and regulations that were set by the
International Maritime Organization (IMO).
The Canadian major ports are considered as economic engine and gateway to trade.
Metro Vancouver port: Metro Vancouver is the largest port in Canada and the fourth
largest port in North America that handles more than 50% of all container cargos as it is Canadas
busiest container port. It is located in the southwest coast of British Columbia and it covers 600
Kilometers from Roberts point at Canada and USA border to the access of Burrard to Moody port
and from the Fraser Valley to Pitt Lake. Moreover, Vancouver Port is offers a 28 major marine
cargo terminal and full facilities and services according to international standards. Also, it has a
deep sea terminal that has the capacity to handle a super Panamax ship and on dock rail facilities
with no draft restrictions. Furthermore, Vancouver Port is considered as the most diverse port in
North America that operates five business sectors which are: bulk, bulk break, containers,
automobiles and cruise. This makes it easier to trade with more than 160 world economies and in
2013 the port handled 135 million tons of cargo which is estimated to be around 95% of the port
total services in term of exporting and importing services (Canada's largest and busiest port ,
2014).
10
As climate change is a global issue in the world, weather conditions have an effect on Vancouver
Port so the Canadian port authorities are trying to avoid any delays in handling cargo because it will
affect the port reputation and as a result it will be a financial cost (weather and tide , 2014).
Metro Vancouver port has a vision in 2050 that focuses on providing better services without
affecting the environment by having electric vessels that do not causing any emissions, providing
environmentally friendly equipment that helps in the port operations and to ensure the safe
movement of containers with environmental concerns, focusing on energy transmission and
moving people and fright without using oil. Also, new energy resources will be used especially in
transporting energy resources (energy fouurm - port 2050, 2014), designing an energy trilemma
to achieve energy security for economic growth and energy equity for environmental
sustainability and social stability, reduce 50% of global emission by 2050, adopt a technology
innovation and finally improving port policy and regulation and increase the share of intermittent
renewable (Winkler, 2014).
Montreal port: the port of Montreal is covers 24KM of Montreal city and 4KM in contra
core and it is considered as a strategic hub for Canadas economy and the most unique port in
the world for its strategic location. Moreover, it handles a large amount of containers and liquid
bulk such as oil as well as dry bulk such as coal and salt. Also, large portion of Canadas global
trade transit through the port of Montreal. Furthermore, maritime shipping is known to be as an
environmentally friendly and economical mode of transport among all of transportation
methods. In addition to that, the port of Montreal is an important link in the chain of global
maritime trade as it receives cargos from all cotenant therefore the port of Montreal is a diverse
international harbor. The railway network in the port is an important facility that helps in
improving the flow movement of cargo (port of Montreal , 2014).
11
Prince Rupert port: it is located on the north coast of British Columbia and it has an
efficient rail and road system that connects the west of Canada to the east. This port is an ice
free harbor that is covered by the outer islands. Moreover, it has the ability to handle 250,000
tons of cargo and it is developing every year to take advantage of trade with China. Also, it has
a strategic location as it is the closest North American port to Asia that handle coal, grain and
chemicals (CPA facts , 2014).
St. Lawrence Seaway system in Great lakes plays an important role in marine transportation
beside the Canadian ports. The seaway was opened in 1959 and it is controlled by Canada and
United States governments. Moreover, it has 15 locks that allow ships to travel between the
great lakes to the port of Montreal. This seaway handles 50 million tons of coal, grain and steel
but it is closed during winter season because of the weather condition (Marine and ports ,
2014).
The following map shows the locations of all the ports in Canada, which also shows that the ports
are located at the southern parts of the country, this is because the weather in the southern sea
parts of Canada is not as cold as the northern parts which helps in maritime activities.
12
13
14
Other public companies such as Gibson Energy Inc. can transport about 250.000 oil barrels in a
month as well as propane gas, natural liquid gas and butane gas by road tankers trucks around
Canada and export to the United State. The energy sources are then transported to the storage
hubs of the company and the pipelines receiving stations, then to be distributed to many others
consumer in the markets in the country and the US. (Gilchrist, 2014).
The roads vehicles also used to transport nuclear and radio actives
Damages and Safety
Although transport natural resources energy via roads and trucks became very popular and well
controlled in the country, the safe and security elements are still considered limited; as the truck
road transport has more risk of oil petroleum and natural gas spill and leak comparing with
pipelines transport. On the other hand, the road transportation is considered to be more risky and
dangerous on the workers than the pipelines transport. (Kenneth P. Green , 2013)
.
15
16
The
map shows
the Canadian National Railway Company networks in Canada and the US. (Canadian National
Railway Company, 2014).
The Canadian pacific freight rail system is the second major rail company with over 15,000 miles of
rail networks in the country that are operate in both Canada and the United states of America. (
Canadian Pacific, 2014).
This map shows the Canadian Pacific Rail system Routes networks. (Canadian Pacific , 2014).
17
Wind power: wind energy power has been transported to destination since 2005 by the Canadian
Pacific railways. The rail system has transported more than 3500 carloads of turbines, hubs,
nacelles, blades and tower sections. The Canadian pacific airways transport wind energy
equipments by 70 tons and 85ft flat train cars. (Canadian Pacific , 2014).
Nuclear power: Canada is one of the biggest country producer and consumer of nuclear power in
the world with 19 power reactors in service by major safety records and standers of transporting
and managing the radioactive waste and the nuclear power. (Canadian Nuclear Association , 2013)
18
Government , 2012) that are stored in especial maintained containers with extreme packaging
methods to increase the safety during transportation. (Canadian Nuclear Association). This image
shows container truck of radioactive material. (OPG , 2010).
Safety Concerns
On October 2014, a train belonged to the Canadian National Railways Company was crashed and
destroyed in central Saskatchewan City which caused a spill of petroleum and other chemical
products that was carried by the train. The spill caused fire and explosion at the accidents
location; which destroyed the train cars terminal loads. (David George Cosh , 2014).
This recent train derailments accident is one of many other derailments in Canada. In the recent
years the derailments accident has increased a lot, many of these train and rail systems that are
involved in the incidents carried oil, petroleum and many other dangerous flammable bulks which
increase the risk of potential fire and explosions and the death rate among the workers.
In 2013, The Transportation Safety Board of Canada was concerned about the increased accidents
of the trains system; since they discovered more than 100 unreported derailments accidents in
Canada which bring the question of how safe is the Canadian rail system for the public and the
natural resources transported? (Dave Seglins, 2014).
19
Purpose
Areas
Length
Gathering Pipelines
From: wellheads
250,000 Kilometers
Transport crude
oil, natural gas
liquids.
Transmission
Pipelines
115,000 Kilometers
Distribution
Pipelines
Natural gas
450,000 Kilometers
Feeder Pipelines
(Association, 2013)
20
21
The CEPA is currently investing tens of billions of dollars in pipelines projects (renewing,
installing new pipelines networks), and expanding them to reach different areas within the
country. (Association, 2013)
Investments in constructing new association facilities that ease the operation of moving oil
& gas, through pipelines from terminals and marine facilities. (TransCanada, 2014)
22
be
for
24
This figure shows the fluctuations and increscent of the fuel prices in 2014, which are effected by
different issues around the world, such as political, technological and the security of the resources
of oil.
(IATA, Fact sheet, Fuel, 2014)
On the other hand, this increscent in the fuel prices will provide incentive for airline companies to
improve their fleets fuel efficiency decreases their environmental effects from aviation fuel. The
governments will also be determining procedures to have control over the fuel prices.
(James K.D. Morrison,Philippe A. Bonnefoy, R. John Hansman, 2010)(IATA, 2014)
Aviation fuel supply globally
Aviation fuel supply is facing a huge challenge which affects it now and in the future; this
challenge is oil running out. Therefore, many countries are looking for new energy resources to be
used as aviation fuel instead of petroleum products.
25
In order to achieve these goals the association requires all the stakeholders which represent most
of the world countries to work together, in order to reduce carbon emissions foot prints caused by
aviation industry.
The strategy includes:
26
Liquid bio jet fuels are only alternative energy source to be used for air transport, and
there are no policies or rules to secure the resources to supply the aviation sector, known
that there are other transport modes that could use this source for energy.
Moreover, the Canadian authority authorized a company called FSM Management group, which is
now a company responsible of all the technological aspects and infrastructures of the fuel systems
in the major Canadian airports. This includes fuel facilities, solutions for small airports,
construction and panning. These projects were provided with the best technologies that help in
facilitating the distribution system of aviation fuel to these airports from the storage areas, and
even bringing bulk fuels to the airports by different means of transport.
This shows how Canada is successfully managing its aviation fuel supply by using new
technologies and updated systems in order to cover the demand of the aviation fuel in the
airports (Group, 2014).
This picture shows some of the projects that are now under process to develop and build new
infrastructures for aviation fuels in different airports in Canada; these projects value exceeds $350
million. (Group, Projects, 2014)
28
Figure 8 New projects for aviation fuel in Canada
29
Electricity generation
The electricity in Canada is generated from a diverse mix of resources but the main one is hydro
power with a 59% of electricity generation as moving water is the important source in Canada.
Also, other renewable resources are being used such nuclear while the secondary resources are
the fossil fuel which consists of oil and gas. In addition, Canada has a huge capacity of hydropower
with more than 348 billion kilowatt that puts Canada in the third largest country in the world that
produces electricity through hydropower. Furthermore, the capacity is being developed in
geographic places to take advantage of the hydropower. Those places are: Quebec as the main
one, Labrador, British Columbia, Ontario and Manitoba (About electricity , 2014).
30
The following charts shows the electricity generation in Canada by a different energy resources
and how it was changed since 1990 until 2013 (Canada's electricity industry , 2014).
Industry structure
There are three activities that the electricitys industry involved in (About electricity, 2014):
Various energy sources and technologies that are used to generate electricity.
A high voltage transmission of electricity for long distances in order to bring electricity from
power plants to the end users.
Distribution of electricity to end users through low voltage local distribution power lines.
known in several places in Canada such as: Ontario, Toronto hydro, Horizon utilities and hydro
Ottawa (public and investor ownership, 2014).
Electricity trade
Canada is considered as the second largest electricity exporter in the world. Also, it is an active
participant in North American electricity trade. The cross border between Canada and the United
States allows the electricity generations to operate more efficiently even if the local demand is
low (electricity transmission in Canada , 2014). The following chart shows the export and import
of electricity and how Canada export a lot of electricity as it is the largest exporter in the world
(Canada's electricity industry , 2014).
Electricity supply
Hydropower is the main energy resource that Canada use to produce electricity as it is heavily
depends on the resources that are available in the country. Canada has a lot of energy resources,
some cities in Canada are rich in water so they heavily rely on hydropower, those cities are: British
Columbia, Ontario, Quebec, Manitoba and Labrador, while other cities depends on fossil fuels and
coal to produce electricity such as : Alberta, Nova Scotia, New Brunswick and Saskatchewan
(Canada's electricity supply , 2014). Furthermore, in 2012 Canadas general power generations is
estimated by 646 billion KWh from several resources which are: hydro by 380 billion KWh that was
32
estimated to be around 59% , nuclear by 96.4 billion KWh by 15%, coal by 76.4 billion KWh and gas
by 62.1 billion KWh of the general power generation (nuclear power in canada , 2014).
Electricity demand
The demand for electricity is expected to grow between 2010 to 2035 by 1% each year, especially
in industrial sector. So in order to cope with the increase of demand the generation capacity will
increase by the Canadian producers. The below chart shows the changes of electricity demand
from 1990 to 2008 and from 1012 to 1035 in several sectors which are: residential, industrial,
commercial and transportation (National energy board , 2014).
Electricity consumption
Canada is the sixth country in the world when it comes to electricity consumption of all sectors
which is estimated to be 549.5 billion
KWH annually. The following figure
shows the changes of electricity
consumption through years and how it
is not stable from 2000 to 2012
(electricity consumption , 2012).
33
34
(Canadainfrastructure, 2012).
35
A map shows the routes of The Keystone XL pipeline projects from Canada to the United States of
America. (TransCanada , 2014).
According to TransCanada, the project is aim to improve and rise the power of the economy of
both countries and creates job opportunities for the Canadian and the American people
(TransCanada, 2014) it will also increase the production of the domestic Canadian crude oil
(TransCanada , 2014). However, the future outlook of pipelines system in Canada is not well
36
accepted among the Canadian people. (Democracy Now, 2014). The statement of TransCanada
came after the citizens and the public in Canada refused the new project plan as it will effect
harmfully in the environment and destroy the wild life of the country and increase the pollution
which will extract and move a toxic material oil sand. (Amy Goodman, Denis Moynihan, 2014).
On the other hand, the pipelines infrastructures in Canada are consider heavily important and one
of the main transportation modes in the country; as 100 percent of the country natural gas
exports and about 97 percent of oil are transported to the United states by pipeline. The current
statistics draw a close look on the future expand of the infrastructure and the increase demand
on the country natural resources exported which is expected to rise up to 33% in the year of 2035.
(Natural Resources Canada, 2014).
The figure below shows the predictable increase of the crude oil supply by pipelines and rail system
in the next years. (Natural Resources Canada, 2014)
37
Another pipeline project is the Energy East project by TransCanada that planned to be build from
Alberta to eastern Canada in Saint John and will hold a bigger capacity than the Keystone XL
pipeline. The new construction pipelines would transport of estimated more than 1 million barrels
of crude oil per day. The new project seems promising for the oil industries in the country for
exporting as well as domestic usage. However, the east energy pipeline is facing the same rejects
as the keystone XL by the protesters and the environment activities. (Brad Plumer , 2014).
A map shows the route of the Energy East project. (Brad Plumer , 2014).
38
2014).
According to the Canadian Marine Act, the Canadian sea ports have conduct a project plan vision
by 2050; the vision of port metro Vancouver consisting upon numbers of persuaders:
Green shipping standers: the ports is aiming to contribute of reducing gas emission by 50%
in the year of 2050 (Sandra Winkler, 2014). To do so, the port will offer discounts to the docking
ships that meets the minimum required of /environmental level. These persuaders are also
followed by the Prince Rupert Port Authority. (Danny Bradbury , 2014).
Finding other energy resources: numbers of renewable fuel such as solar, nuclear, hydro
and wind energy power provide variety of energy instead of oil, coal and other fossil fuel. For
example the sun provides 23,000 cubic mile of oil. (Dr. Ripudaman Malhotra, 2014).
39
Conclusion
The reported document above provides in details analyzing information of transport requirement
and the different energy resources for the infrastructure in Canada. The information covers and
explains the socio political issues with the security challenges that face the transportation
industries in Canada. Canada has set and established numbers of future projects and objectives to
improve the energy supply within the transportation sector and at the same time the country
insure to reduce the gas emissions and have more sustainable environment.
41
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