KOTUG Canada is the sole and exclusive provider of Trans Mountain Tanker Escort to Trans Mountain Tankers within the Area of Operation[1].

For Trans Mountain Tanker Escort Towage Services, transit between Buoy QA and Buoy J is divided into two routes:

Route 1:  Buoy QA – Race RocksRoute 2:  Race Rocks – Buoy J

Escort Towage Services on Route 2 (Race Rocks – Buoy J) can be performed by two categories of vessels, dependent on weather criteria determined by using the Tug Matrix as captured in Annex A – “Towage Conditions”.

  • Tug Category A – Minimum 80 tonnes bollard pull escort rated tug (“Orca” / “Grizzly”) – up to 95th percentile weather conditions.
  • Tug Category B 200 tonnes bollard pull anchor-handling supply tug (“K.J. Gardner”) – above 95th percentile weather conditions.

Request for Service Notices:

KOTUG Canada dispatch office shall only accept firm orders. All service orders must be placed with KOTUG Canada dispatch no later than 48 hours prior with final confirmation in writing no later than 24 hours prior. Any bookings with less than 24 hours notice cannot be guaranteed and may be subject to additional surcharges.

KOTUG Canada dispatch contact information:

T +1 (778) 879-0365
E dispatch@kotugcanada.ca / L.korporaal@kotugcanada.ca

Time of arrival or departure may change as necessary without charge provided such change is made, and notice given to KOTUG Canada, prior to the 24 hour advance final confirmation for the service.

The ultimate Tug Category shall be determined by KOTUG Canada by reference to the Tug Matrix and weather criteria which shall be determined using a specific weather management forecasting tool. Access to the weather management forecasting tool may be provided to the agent upon request.

All services supplied by KOTUG Canada Escort Tugs or by any Escort Tugs chartered by or otherwise engaged by KOTUG Canada to supply services shall be subject to KOTUG Canada’s standard towing conditions attached as Annex A hereto.[2]

Tariff for Services:

The Tariff for Services shall be comprised out of the following components:

  • an Escort Tug Tariff (“Tariff”) based on all-inclusive daily Time Charter Rate (”ITC”) adjusted quarterly depending on the number of forecasted service requests during the quarter; and
  • a Fuel cost (“Fuel Block Charge”) based on actual consumption of ultra-low-sulphur-diesel fuel (ULSD) against the USLD rack price per litre at Vancouver, B.C. delivered by SUNCOR (Petro-Canada) of the day of the execution of the work,[3] plus applicable federal and/or provincial taxes (i.e., Sales taxes carbon taxes), transportation, and distribution fees). A  5% administrative and handling fee (based on the rack price) is applied. Quantity of ULSD fuel consumed at the commencement and conclusion of any Services shall be measured by the Vessel’s flowmeters.

Payment terms:

Each invoice shall always consist of two components:

  • an amount based on the Tariff with suitable description of the services rendered per Escort Route, and
  • a Fuel Block Charge to cover the fuel cost specific to the services rendered per Escort Route.

Payment terms are 14 (fourteen) days from date of receipt of (electronic) invoice. Accounts not paid within 14 days shall bear interest at a rate of 2% per month (24% per annum) compounded annually.

PREVALING TARIFFS – QUARTER 2, 2024 Rates effective as per 15 May 2024
(1) Total Tariff Escort Towage Route 1 (Buoy QA – Race Rocks)$ 61,313.82N/A
Escort Tug Tariff$ 51,981.51
Fuel Block Charge*$ 9,332.32
(2) Total Tariff Escort Towage Route 2 (Race Rocks – Buoy J)$ 59,865.70$ 71,289.75
Escort Tug Tariff$ 51,981.51$ 51,981.51
Fuel Block Charge*$ 7,884.20$ 19,308.24
 (3) Total Combined Tariff $ 121,179.52$ 132,603.57
*Please note that charge is based on an assumed average fuel consumption – actual fuel consumption may vary. Fuel will be invoiced based on actual consumption. Any and all applicable and prevailing Federal and/or Provincial taxes and delivery cost will be added to the final invoice.
(3) Render emergency services
Emergency services means participating in marine emergency response including Terminal Emergency Assistance, Oil Spill Response and Early Storage activities as required.
$ 40,062.50 plus fuel, per day (and not pro rata for part thereof) per tug
Confirmed orders cancelled with less than 24 hour notice and prior tug leaving berth When firm order placed for only Escort Route 1:
Above Escort Tug Tariff for Route 1 at 25%

When firm order placed for only Escort Route 2:
Above Escort Tug Tariff for Route 2 at 25%

When firm order placed for Escort Route 1 and 2 combined:
Above Combined Escort Tug Tariff at 25%
Confirmed orders cancelled with less than 24 hour notice and after tug is underway When firm order placed for only Escort Route 1:
Above Total Tariff (1) for Route 1 at 100%

When firm order placed for only Escort Route 2:
Above Total Tariff (2) for Route 2 at 100%

When firm order placed for Escort Route 1 and 2 combined:
Above Total Combined Tariff (3) at 100%

Above total combined tariff (3) at 100%
Demurrage: Excessive time / Standing-byThe rates set forth herein include waiting time up to two (2) hours measured from the time the tug reports for the service (but not earlier than the time ordered) at the required location. Waiting time in excess of two (2) hours shall be charged at a rate of $2,000 per hour, per tug, prorated to the nearest half hour plus fuel.
The above schedule of rates shall not apply for any services provided outside the limits of Vancouver Harbour, Route 1 (Buoy QA and Race Rocks), Route 2 (Race Rocks and Buoy J) and Victoria Harbour nor to services of the nature of salvage or services supplied to save or assist in saving any vessel from a marine peril.

Rates for additional services not covered in this agreement shall be negotiated on a case-by-case basis.

All the above Rates and Terms and Conditions are subject to change without notice

[1] Refer Annex B

[2] KOTUG Canada’s standard towing conditions were developed after joint consultation between KOTUG Canada and Trans Mountain’s Marine Shippers’ Sub-Committee (chaired by Trans Mountain). These conditions are widely practiced globally, including on the west coast of Canada. They combine the internationally recognized UK Standard Conditions for Towage and Other Services, Eastern Canadian Tug Owners’ Association (ECTOA) Standard Towing and Insuring Conditions (2015), and additional terms for Trans Mountain Tanker Escort.

[3] https://www.petro-canada.ca/en/business/rack-prices

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T. +1 (778) 879 0365
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Get in touch

T. +1 (778) 879 0365
Mail us!