Steve Ashton admits that walking into Lloyd’s of London’s building complex a few blocks from the historic Tower Bridge was a daunting experience.
But the Manitoba highways minister said his trip to the British capital last month to meet with three senior Lloyd’s underwriters was productive.
Ashton, a northern Manitoba MLA and longtime advocate for the port of Churchill, went to London to convince Lloyd’s officials to change their insurance rate policies for ships moving in and out of the port on Hudson’s Bay.
More than an insurance company, Lloyd’s of London is a market where competing insurance underwriters ply their trade.
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According to its website, Lloyd’s started in the 1600s as a coffee house. Edward Lloyd provided a place for ship’s captains, merchants and “rich men” to catch up on reliable shipping news and make deals to insure ships and cargoes.
Lloyd’s continues to be a major player in marine insurance, as well as other specialty areas. The market has insured Betty Grable’s “million-dollar legs,” Ringling Bros. circus acts, and many rock stars.
Ashton said the officials he met with seemed to have an open mind about Churchill.
They were aware the port had its earliest-ever opening on July 11 this year and told him they are impressed with the way owner Omnitrax is managing the port.
“My message to them was, ‘If you need information, let us know,’ ” Ashton said. He said he argued for three changes to Lloyd’s policies on the port:
- Eliminate a 15 percent premium on non-ice-strengthened ships during the regular shipping season from Aug. 15 to Oct. 15.
- Extend the main shipping season to July 20-Nov. 5.
- Allow certain types of ice-strengthened ships to travel to the port from July 2 to Nov. 10.
Omnitrax spokesperson Bernie Boucher said the company is encouraged by the provincial government’s support for its endeavors.
The company has been working on the issue since it bought the port from the federal government. Omnitrax even flew Lloyd’s underwriters to the port in 1998.
Boucher explained that navigational technology to identify ice movement and formation has improved since Lloyd’s first established rates for the port a century ago.
Shipping grain outside Lloyd’s shipping season dates is cost-prohibitive because of high insurance rates.
With a longer season, the port could handle grain from the current crop year, said Boucher.
He’s hoping Lloyd’s will extend this year’s shipping season on an interim basis and make favorable changes to dates and rates over winter.
“We’re very optimistic if the changes can be made … that’s our way to reach a million tonnes and over, easy,” said Boucher.
The port hopes to handle 700,000 tonnes of grain this season, but needs at least one million tonnes per year over the long term to be economically viable.
As of last week, the port had loaded 280,000 tonnes of grain onto 11 ships, including 31,000 tonnes of feed peas.
That’s compared to this time last year, when the port had loaded only 108,000 tonnes onto four ships.
Boucher said the logistics of rail movement and the port are working smoothly.
“It’s great, but it’s got to be better.”
