Investor Presentaiton
Legal and Regulatory Considerations
Coasting
Trade Act
--Kala NAS
RAL-NOL
ENTR
CORP
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■ Per the Act, foreign or non-duty paid vessels are prohibited from engaging in any form of coasting trade activities in
Canadian waters, or between Canadian ports unless they obtain a so-called coasting trade license prior to starting the
operations
In order to obtain a coasting trade license, there must be no Canadian flag vessel capacity available pursuant to a
public application process involving known Canadian ship-owners and union stakeholders
■ The Act protects Canadian ship owners from unfair competition from countries that have lower wages or lower standards
of safety, by forcing such foreign ship owners (and Canadian ship owners of non-Canadian flagged vessels ("foreign
vessels") to obtain a coasting trade license before being allowed to use foreign vessels in Canadian waters
The Act also requires Canadian operators and crews (no work-permitting process available for foreign crew to work
on a Canadian ship), although does not require vessels to be constructed in Canada
■ Emission Control Areas (ECA's or Sulfur Emission Control Areas) are sea areas in which stricter controls were
established to minimize airborne emissions from ships as defined by Annex VI of the 1997 MARPOL Protocol
The established areas are: Baltic Sea area, North Sea area, North American area and United States Caribbean Sea
area
- Vessels are required to limit SOx to 0.1% (v.s. 0.5% required by the IMO in international waters)
In order to meet these emissions regulations, vessel operators are required to use a low sulfur fuel or install a
scrubber to remove sulfur from exhaust emissions
Emissions
Regulation
SEAWAY
WRENCE SEAL
PILOTS
BTS ASSOCIATION
ST. LAW
St. 1962
Great Lakes
Marine Pilotage
■ All vessels are required to hire a pilot from the applicable pilotage authority, or if they are Canadian or US flag operators,
are permitted to have a certified self-pilot employed by the company onboard
There is a limited pool of highly skilled, knowledgeable and qualified pilots to hire from
- Algoma has developed a strong pool of internal self-pilots which provide it with a competitive advantage in the
marketplace
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