Thursday, May 25, 2023

 

Vancouver Increases Container Throughput at DP World Terminal

Vancouver container terminal
DP World invested in expanded capacity at its downtown Vancouver terminal (Vancouver Fraser Port Authority)

PUBLISHED MAY 23, 2023 7:27 PM BY THE MARITIME EXECUTIVE

 

Vancouver Fraser Port Authority joined with terminal operator DP World to mark the completion of a major expansion project at one of the port’s terminals. The increased capacity is considered critical to the near-term growth of the port while Vancouver continues a long-term process to add a third terminal and operator to the port.

Port executives noted that DP World has operated for over 20 years in British Columbia handling over 20 million loaded TEU at the Centerm Container Terminal. It is also the 100th anniversary of terminal operations overall in Vancouver. The port is a critical part of Canada’s trade handling a third of Canada’s trade in goods outside of North America.

The expansion project was designed to increase throughput at the terminal by 60 percent. Construction on the US$260 million project was completed in February 2023 and with the facilities now in operation capacity has been increased to 1.5 million TEU a year, 40 percent over the previous capacity of 600,000 TEU annually. The terminal’s footprint was increased by 15 percent. 

As part of the investment, DP World also used the project to reduce the terminal’s environmental impact. Shore power connections were installed for containerships on dock. They also converted the existing diesel yard cranes to electric. The design of the expanded facility also eliminates wait times for vehicles at train crossings and used LEED standards in the construction.

Vancouver Fraser Port Authority also completed the South Shore Access Project earlier this month in partnership with the Government of Canada and with funding from the National Trade Corridors Fund. The final part of the South Shore Access Project, including upgrades to Waterfront Road and the removal of road and rail conflicts in the area to connect terminals directly to the Trans-Canada Highway are now complete. 

“Expanding the footprint of the Centerm container terminal and improving road and rail links in the area will increase container trade capacity and resiliency at the Port of Vancouver in the near term,” said Robin Silvester, President and Chief Executive Officer, Vancouver Fraser Port Authority. “As recent years have shown, a robust container sector is critical for Canadian exports and for reliable access to the goods Canadians depend on every day.” 

Port officials highlight Canada’s west coast marine container terminals are forecast to hit capacity by the mid- to late-2020s, following a decade of five percent average annual growth.  In 2022, the port handled an actual count of just under two million containers (3.55 million TEU).

In April the port received government consent for a controversial plan to add the third terminal to the port. They have been planning and lobbying for the terminal for a decade and still need to win critical approvals. Opposition continues based on the potential impact of the site both on natural habitats of fish and wildlife as well as the potential environmental issues. Port executives highlight the design features to limit the impact while continuing to point out that Vancouver must expand its container capacity.

Deputy finance minister tapped as next Hydro-Quebec CEO: Sources

Quebec’s government has chosen former pension fund head Michael Sabia as the next chief executive officer of Hydro-Quebec, according to people familiar with the matter. 

Sabia has been tapped to succeed Sophie Brochu, who left as head of the electrical utility in April. The appointment could be made official as soon as Wednesday after formal approval from Quebec’s cabinet, the people said, speaking on condition they not be named because the matter is still private.

Sabia, 69, is Canada’s deputy minister of finance, serving as the top bureaucrat to Finance Minister Chrystia Freeland. Earlier this year, he helped craft the Canadian government’s $491 billion (US$364 billion) budget for the 2023-24 fiscal year, laden with incentives for low-carbon technology, including clean electricity. 

Hydro-Quebec is an important producer and exporter of hydroelectric power, pumping $6 billion (US$4.4 billion) into provincial government coffers last year. But it has major challenges ahead. After spending years working to convince US states to buy its abundant clean energy, the government-owned firm faces the prospect of future power shortfalls as the province lures more manufacturers. One of the projects Hydro-Quebec has committed to is the Champlain Hudson Power Express, Blackstone Inc.’s US$6-billion transmission line to feed New York City.

The utility is also one of the province’s largest bond issuers, with $5 billion (US$3.7 billion) in long-term debt financing in 2022, according to last year’s annual report. 

Sabia was CEO of the Caisse de Depot et Placement du Quebec, Canada’s second-largest public pension manager, from 2009 to 2020, leading the institution into an investment of more than $7 billion in a light rail system in Montreal, the Reseau Express Metropolitain. Prior to his time at the Caisse, he was CEO of BCE Inc., the country’s largest telecommunications company. 

“It’s nice to see someone here who understands how the business works and what needs to be done to ensure a climate of confidence in the economic sector,” said Jocelyn Allard, president of a Quebec lobbying group that represents industrial users including Glencore Plc and Rio Tinto Plc. In the past, Allard has criticized the uncertainty surrounding the price and quantity of future power supplies.

Normand Mousseau, a Université de Montreal professor and energy expert, said he wonders if Sabia is the right fit for what Hydro-Quebec needs. “The issue right now is not financial, but technological, technical, of transformation and of demand response,” he said. “We could have had someone with a background in technology, someone who has mastered in-depth technological transformations, who is capable of bringing the necessary innovation to Hydro-Quebec.”

WORKERS CAPITAL

CPPIB CEO says global growth to be

 'challenging' over long-term

The head of Canada’s largest pension fund said there are still “outstanding questions” about how the global economy will grow over the long-term and cautioned his fund is unlikely to record the same double-digit returns it booked over the past decade.

John Graham, president and chief executive officer of the Canada Pension Plan (CPP) Investment Board, told BNN Bloomberg in an interview that he expects the U.S. to resolve its debt ceiling debacle and is looking to raise liquidity to take advantage of “opportunities” the fund sees in equity and fixed-income markets.

“What is going to drive global growth over the next 10 years? That’s one of the things that keeps us up at night,” Graham said.

Graham’s comments come in the wake of CPP Investments releasing its latest annual report for fiscal 2023 on Wednesday, in which the pension fund reported a 1.3 per cent return. That was the lowest return over the past 10 years but above the 0.1-per-cent benchmark tied to its reference portfolio measures.

Funds under CPP Investments’ management increased by a total return of 10 per cent over the past 10 years, it reported, which Graham acknowledged “would be challenging over the next 10 years to repeat that.”

Canada’s largest money manager said it has $570 billion in assets under management, up about $31 billion due to a profit of $8 billion and net transfers of $23 billion from Canadians in its last fiscal year.

The fund’s return for the year recorded a shortfall in its fixed-income and real estate investments as long-duration government bonds and higher interest rates led to a drag on those asset classes. Those declines were offset by strong gains from its private equity, infrastructure and credit investments, CPP Investments said.

Meanwhile, Graham described the fixed income markets as “interesting” as central banks around the world lifted interest rates to help combat rapidly rising inflation. CPP Investments’ booked a 0.8-per-cent decline among its fixed-income assets that it attributed to exposure to longer-dated government bonds. He noted that CPP Investments will continue to be “constructive” in its energy portfolio investments.

“The path to get here was painful with discount rates rising,” said Graham. “But we’re in a better place in terms of fixed income than we were a year ago.” 

A weaker Canadian dollar served as a tailwind to CPP Investments as 78 per cent of its net assets were derived in foreign currencies. CPP Investments recorded a $25 billion gain, or an annual increase of 5.1 per cent, thanks to its foreign exchange investments.

CPP Investments also said that Graham’s compensation rose slightly higher to $5.38 million last year – $4.6 million of which was tied to various annual incentives.  


CPP Investments reports 1.3 per cent return 

for its latest fiscal year

The Canada Pension Plan Investment Board is bracing for headwinds in the event of a recession but said a wide range of investments makes it well-positioned for uncertain economic conditions.

The CPPIB reported Wednesday it earned a net return of 1.3 per cent in its latest fiscal year as inflation and rising interest rates weighed on both stock and fixed-income markets.

The board said the investment gains combined with net transfers from the Canada Pension Plan brought its net assets to $570 billion on March 31, up from $539 billion a year earlier.

"I think we've been trying to be very clear and share the investing market has gotten more competitive and more challenging," said CPP Investments chief executive John Graham in an interview.

"We expect forward-looking returns to be down compared to where they've been historically, but we're also in a position where we're really benefiting from active management and benefiting from diversification."

Graham said geopolitical events and a potential recession could be difficult to forecast, but CPP Investments is well-prepared.

"The key is for us to build a resilient portfolio — a portfolio that will perform through a wide range of macroeconomic and geopolitical scenarios," he said. "The way we do that is diversification."

CPP Investments said the gain for its latest fiscal year reflected returns on investments in infrastructure and certain U.S.-dollar-denominated private equity and credit assets, which benefited from foreign exchange. External investment managers using quantitative, equity, and fixed-income trading strategies also contributed positively to results, the firm said. 

A weaker loonie against the U.S. dollar and other major currencies also helped boost investment returns.

The increase included $8 billion in net income and $23 billion in net transfers from the Canada Pension Plan.

But its performance was partially offset by declines in both equities and fixed income across major markets as high inflation and rising interest rates weighed heavily on both asset classes. 

"We had headwinds in certain parts of the portfolio and tailwinds in other parts of the portfolio," said Graham, who highlighted challenges in office real estate, retail and the technology space over the past year.

"Certain asset classes continue to be pretty robust, like renewable had a pretty robust year, conventional energy had a robust year," he said. 

As of March 31, CPP Investments' portfolio included 33 per cent in private equities, 24 per cent in public equities, 12 per cent in fixed come, 13 per cent in credit investments, nine per cent in real estate and nine per cent in infrastructure.

In addition to investing across various asset classes, Graham said global diversification is key to CPP Investments' strategy for navigating a possible recession.

But amid Canada's ongoing political tensions with China, Graham said CPP Investments remains "surgical" and "selective" in determining which companies in that country to invest in.

He said CPPIB has invested around nine per cent of its funds in China and "we constantly debate whether that's the right amount."

"The right amount is really based on whether we think we're going to get compensated on a going forward basis for the risk," he said.

"We do believe that we should have exposure to China because it is the world's second largest economy. It is a fast-growing economy and it's very connected right now to the broader world. We certainly are aware and alive to some of the challenges and we spend a lot of time thinking about how one should invest in China."

On a relative basis, the fund’s net return of 1.3 per cent for the year beat the 0.1 per cent return by its aggregated reference portfolios over the same period.

The fund's 10-year annualized net return stood at 10.0 per cent.

This report by The Canadian Press was first published May 24, 2023.

Danielle Smith's gaffes put Alberta up for grabs

If it’s always the economy, Alberta Premier Danielle Smith and her United Conservative Party should be cruising toward reelection on Monday.

The energy-producing province’s unemployment rate is lower than it’s been for most of the past decade. Inflation is running cooler than the Canadian average. And oil prices are higher than those the last three premiers enjoyed, keeping Alberta’s producers profitable and helping balance the budget with the spending taps still open.

But a trove of Trumpian comments from Smith’s former career as a radio talk-show host — plus a few during her time as premier — and policies that push Alberta toward Quebec-style autonomy have put control of a province that produces about as much oil as Iran within the reach of her center-left challenger. 

Polls have consistently shown New Democratic Party Leader Rachel Notley, herself a former premier, neck-and-neck with Smith. “The election should not be close,” said Duane Bratt, a political science professor at Calgary’s Mount Royal University, “because conservative voting is the default option in this province and the economy is rebounding.”


A victory for Notley — whose party leans left on most issues but has adapted to the political necessities of a province that relies on oil and gas revenues — would be a boon for Justin Trudeau. While she argues federal targets for cleaning up the energy sector need to be scaled back, Notley would be a more reliable partner for the prime minister on climate policy and beyond. Still, she has distanced herself from Trudeau and her federal counterpart, NDP Leader Jagmeet Singh, due to their unpopularity in Alberta. 

A poll by Abacus Data released May 22 showed Smith’s United Conservative Party leading with 40% of eligible voters, compared with 37% for Notley’s New Democrats. A poll by the same firm a week earlier had those figures reversed.

Smith has found herself in a competitive race in part because of comments that appeal to her base’s more extreme elements while alienating mainstream conservatives. 

For example, on a 2021 podcast, she likened Albertans who were vaccinated against COVID-19 to followers of Adolf Hitler. As a candidate for her party’s leadership in 2022, she implied on a Twitter broadcast that cancer is largely preventable up until stage four. And just hours after taking office, she said unvaccinated people were “the most discriminated against group that I’ve ever witnessed in my lifetime,” drawing the ire of Indigenous communities in Canada. She walked back that statement the next day, saying she didn’t “intend to trivialize in any way the discrimination faced by minority communities and other persecuted groups.”

Smith has faced criticism for her actions as premier, too. An ethics watchdog found she broke the rules by involving herself in the case of a street preacher facing pandemic-related charges. And the first bill her government introduced was the Alberta Sovereignty Within a United Canada Act. It took effect in December, with Smith saying it gives the province a framework to resist federal laws or policies that hurt Alberta.

The move added “another layer of uncertainty” for businesses that want to move to or invest in Alberta, Deborah Yedlin, president of the Calgary Chamber of Commerce, told BNN Bloomberg Television at the time. Similar measures taken by separatist parties in Quebec prompted many businesses to scale down or leave the province, Yedlin added. 

Smith has also floated the ideas of pulling Alberta out of Canada’s main pension plan and replacing the Royal Canadian Mounted Police with a provincial police force.

The sovereignty bill is at the center of Notley’s critique of the premier.   

“It is a really damaging piece of legislation, and it’s one that was crafted in a fit of pique by a bunch of extremists in the UCP, most of whom seem to have taken over the party, much to the chagrin of many reasonable conservatives all across this province,” Notley said in an interview earlier this month.

Smith’s team hasn’t responded to emails and phone calls from Bloomberg requesting an interview. The premier has almost entirely refrained from campaigning on her marquee legislation. Instead, she has focused on tax cuts and job growth, pointing to Notley’s largest vulnerability.

The NDP leader was elected in 2015 among dissatisfaction with the conservatives that had ruled the province for decades, and with a boost from a splinter faction that sapped votes from the main incumbent party. 

However, Notley’s government was hampered by low oil prices that sent Alberta’s budget into years of deficit, a departure for the fiscally conservative province. She also came under fire from many in the energy industry who saw moves such as introducing a carbon tax and raising corporate levies as hurting the province’s main economic engine.

Amid the dissatisfaction, former federal cabinet minister Jason Kenney reunited the province’s conservatives and marched to a victory in 2019. His time in office was cut short in 2022, as he took flak from a far-right caucus faction and faced broader criticism of his pandemic management.

It was in that environment that Smith’s criticism of Covid policies helped her win the UCP’s leadership contest against members of Kenney’s government, including Finance Minister Travis Toews, who has declined to run for reelection this year. Kenney’s energy minister, Sonya Savage, also isn’t seeking reelection.

Notley is attempting a rare comeback in Canadian politics. No former Alberta premier has ever won reelection after losing it, and the last time it happened in any Canadian province was in Quebec in 1985.

While she has a rich target in Smith and a relatively scandal-free four years as premier to hold up as an alternative, the weak economy of her tenure may foil her chances. 

“People remember what the bad times were like and who was in charge,” said Bratt, the Mount Royal political scientist. “They remember when the good times were there and who was in charge, regardless of whether that was due to the global price of oil.”

With assistance from Robert Tuttle and Brian Platt.

Alberta, British Columbia and Quebec join Ottawa in investigating ChatGPT

The governments of Alberta, British Columbia and Quebec are joining the federal privacy commissioner in investigating the company behind the artificial intelligence-powered chatbot, ChatGPT.

Alberta's privacy authority says the joint investigation would see if OpenAI, which is the parent company of ChatGPT, obtained valid consent from Canadians to collect, use and disclose their personal information via its chatbot.

ChatGPT, which was launched in November, uses already existing information on the internet and responds to questions from users in a conversational manner. 

The privacy authorities say they will also investigate if the U.S.-based company followed its obligation to transparency, access, accuracy and accountability.

Privacy Commissioner of Canada Philippe Dufresne has said artificial intelligence and its effects on privacy are a top priority. 

The federal authority launched its investigation in April.

This report by The Canadian Press was first published May 25, 2023.

Police lay no charges against former Unifor head Jerry Dias in alleged bribery case

Unifor National President Jerry Dias speaks in Toronto on November 5, 2020. , 
THE CANADIAN PRESS/Carlos Osorio

Former Unifor president Jerry Dias was not charged as the result of an investigation launched last year into allegations that the longtime union leader accepted a bribe, Toronto police said Thursday. 

The police's financial crimes unit began investigating the former president of Canada’s largest private sector union last spring after the union handed over money Dias allegedly accepted from a supplier of COVID-19 rapid test kits he promoted to members. Police said Thursday that the investigation has been concluded. 

Unifor at the time charged Dias with violating the code of ethics and democratic practices of the union's constitution, and said a hearing would be held before the national executive board.

Dias said in a statement that he reached a "satisfactory legal settlement" with Unifor.

Unifor’s director of legal and constitutional matters Anthony Dale said in a statement Thursday that the union’s own matters relating to Dias have been concluded to its satisfaction and he will no longer be subject to a hearing process under the union’s constitution. 

Dale said the union was informed by police at the end of 2022 that no criminal charge would be laid, but the union’s own conclusion was unrelated to the police investigation. 

Dias said that these developments “reinforce what I have always known to be true: that over my 45-year career, I have consistently acted with integrity and in the best interests of Unifor members.”

Dias said the allegations against him were not true. 

“I have never made a dime outside of my salary with Unifor, and I have always lived by the union’s Code of Conduct,” he said.

“In saying this, it is time to move on with my life.” 

The union had said Dias allegedly gave a Unifor employee $25,000, which he said was half of the money from the supplier, and the employee subsequently filed a complaint under the Unifor code of ethics and delivered the money to the union.

Dias committed to entering a rehabilitation facility in the wake of the incident, saying his use of painkillers, sleeping pills and alcohol to deal with a sciatic nerve issue had impaired his judgment. 

Dias began a medical leave on Feb. 6, 2022, around a week after being notified about the union's independent investigation into the matter. He was already set to retire that year, but did so early.

Dias said Thursday that he has received medical attention to deal with “serious health issues including debilitating sciatica,” and has also received assistance to eliminate his dependence on opioids to deal with pain. He said he regrets the distraction to members, and thanked those who reached out to him.

Dias had been the president of Unifor since 2013 when it was created as a merger between two unions. He was an outspoken figure of the labour movement in Canada, playing an key role during the negotiation of the United States-Mexico-Canada Agreement and the successful fight to reopen the General Motors plant in Oshawa, Ontario. 

In an election in August 2022, former national secretary-treasurer Lana Payne was elected the new president of Unifor, running against Dias’ former executive assistant Scott Doherty, as well as Dave Cassidy, president of Unifor Local 444.

Dias said in the statement that he is proud of his work as Unifor’s first president.

“While I will no longer be leading the actions on the picket lines and at the bargaining table, I will always be Unifor’s number one supporter.”

Can beer convince people to drink recycled wastewater?

Earlier this year, a new beer appeared on the menu at Fox City Brewing Company in Forsyth, Georgia. Opened three years ago in a former ice house an hour south of Atlanta, Fox City serves pale ales, stouts and other microbrews. The new addition, called Revival Lager, stands apart from anything it’s made before — and from nearly every other beer on tap in the U.S. Fox City’s menu calls it a “light, crisp, eco-friendly lager made from highly repurposed and recycled water.” This is a delicate way of saying that it’s made from treated sewage. 

“We flower up the verbiage a little bit, to make sure people try it,” says Chris Bump, the brewer at Fox City, sitting in the taproom on a Tuesday afternoon in March. When a waitress brings over two pints of Revival, Bump, a 35-year-old Georgia native with tattooed arms, a full beard and floppy baseball cap, raises a toast before we both take a sip. It is, as advertised, a refreshing, easy-drinking beer.

Bump did not wake up one morning and decide to try brewing a beer with recycled wastewater. The idea came to him via the Canadian water technology company H2O Innovation, which operates a sewage treatment plant in Forsyth and wanted a beer to serve at the annual symposium of the WaterReuse Association. Held this year in Atlanta, the event brings together hundreds of utility leaders, engineers and scientists to discuss the state-of-the-art in recycling water. A few hours after I shared a pint with Bump, cans of Revival would be served at a symposium party at the Georgia Aquarium, where self-professed “water nerds” mingled while manta rays and beluga whales swam behind glass walls.

Fox City is not the first microbrewery to be enlisted in the cause of “potable reuse,” the industry term for reintroducing treated wastewater into a drinking-water supply. Utilities have spent decades trying to convince US cities and towns that drinking recycled water is safe, but proposals for so-called “toilet-to-tap” systems have stirred up resistance and backlash. In response, advocates are increasingly turning to beer as a go-to strategy for helping consumers overcome the yuck factor. And as more cities find themselves squeezed between growing populations and drought-stressed water supplies — making potable reuse a more attractive, if not inescapable, option — wastewater beers are likely to proliferate in the years ahead. 

“If you give somebody a glass of water and tell them that it's been purified from wastewater, more than likely one person out of two will not drink it,” says Guillaume Clairet, chief operating officer at H2O Innovation. “But if you convert that same water to beer, then all of a sudden nine out of 10 will.” 


IN TREATMENT

The water Bump used to make Revival came from the northwestern edge of Los Angeles, where the Las Virgenes Municipal Water District recently opened a small demo facility as a showcase for the public to learn about potable reuse. Las Virgenes depends entirely on water from the California State Water Project, a 700-mile system of canals, dams and pumps that transports fresh water from the northern part of the state. After that water passes through toilets and drains in the district, it goes to a traditional waste treatment plant; from there, it’s either discharged into a local creek (and eventually into the Pacific Ocean) or sent through specially designated purple pipes to irrigate parks and golf courses. 

Three years ago, Las Virgenes began piping a small fraction of the plant’s outflow — about 1 million gallons a day — into the demo facility, where it is put through the additional steps of ultrafiltration (UF), reverse osmosis (RO) and an ultraviolet-advanced oxidation process (UV AOP) to be brought up to state’s standards for recycled drinking water. Each step in this alphabet soup of water tech removes increasingly small contaminants, from bacteria to viruses to salts and hormones.  

“The reuse industry is about belts and suspenders,” says Clairet at H2O Innovation, which makes the UF and RO equipment used in Las Virgenes. 

When the WaterReuse Association suggested brewing a beer for its symposium, Clairet, who sits on the planning committee, took on the job of figuring out how to do it. He had hoped to get the water from the onsite treatment system at a hospital in Atlanta, which uses H2O equipment to recycle wastewater for heating and cooling, but Georgia state law lacked a framework to allow it to be used for drinking. So once Fox City was on board, Clairet called his contacts at Las Virgenes, who agreed to supply the water. 

In January, Las Virgenes put a half dozen 55-gallon drums of purified water on a truck to Forsyth, where Bump pumped it into his hot liquor tank — the first step in the beer-making process — and got to work. He had wanted to brew something more exotic than lager, but Clairet and the symposium’s organizers insisted on a straightforward beer that highlighted the water’s purity. (Hazy and funky are not necessarily desirable traits for a brew meant to counter people’s associations with sewage.) 

“I really enjoy making sour beers,” says Bump. “But the more I thought about it, that's probably not the best thing. So I think they made a good call there.”

PITCHING POTABLE RESUSE

The idea of making beer with recycled water originates with a brewer in Oregon named Art Larrance. Now retired, Larrance is co-founder of Cascade Brewing and a pioneer of the state’s craft beer industry. For years, he sat on the advisory committee for Clean Water Services, a utility in suburban Portland that treats about 70 million gallons of wastewater per day, most of which gets discharged into the Tualatin River. At a meeting in 2014, the utility’s management asked the committee to help think of ways to demonstrate that this water was safe to drink. “I said, ‘Well, let's just go make some beer with it, if it's that good,’” recalls Larrance.

Clean Water Services decided to host a competition among local homebrewers to make beer with its effluent. When the state’s department of environmental quality called a public meeting about the idea, it immediately drew national attention. “I probably got 100 media phone calls in the first 30 days,” says Mark Jockers, then public affairs manager and now chief of staff at the utility. By the time the competition happened in the summer of 2015, more than 400 news outlets had covered it. 

That coverage included plenty of wisecracks about sewage and toilets, but it was also, by and large, the kind Clean Water Services had been aiming for. Most stories, according to an analysis commissioned by the utility, presented potable reuse in a favorable light. Jockers says the stunt successfully delivered the message that water-recycling technology is well-established. 

Last fall, a study by researchers at Stanford and the University of Illinois at Urbana-Champaign found that recycled wastewater was as clean, if not cleaner, than the surface-water sources that supply many cities. Recycled water’s recent history as sewage, paradoxically, means that utilities and regulators tend to put it through more rigorous treatment and testing than water from rivers and lakes, which, more often than not, includes the outflow of wastewater treatment plants. This reflexive bias makes recycled water some of the safest you can drink. 

Namibia, one the most arid countries in sub-Saharan Africa, has been recycling water for more than 50 years. (Lucas Van Vuuran, one of the scientists who helped develop the first plant there, also coined a favorite slogan of potable reuse advocates: “Water should not be judged by its history, but by its quality.”) Singapore, a similarly water-stressed country that depends on neighboring Malaysia for its supply, has also been recycling water for decades; its water agency collaborated with a local brewer to sell beer made with treated water. Both countries employ so-called direct potable reuse (DPR) systems, where treated water is piped directly back into the drinking supply. 

In the US.., such systems have proven to be a hard to sell. The largest water recycling plant in the world is in Southern California. Opened in 2008, the Orange County Water District’s Groundwater Replenishment System can treat up to 130 million gallons of wastewater per day, enough to meet the needs of nearly 1 million people. For now, that water is used to help refill the aquifers that supply the region.

This type of system, known as indirect reuse, puts an environmental buffer between treated water and drinking pipes. It serves as both quality control check and psychological crutch, allowing consumers to imagine pristine mountain brooks instead of bubbling tanks of sewage. For Clean Water Services’ first beer competition in 2014 — before the utility had Oregon’s permission to provide treated water to brewers directly — it took water from the Tualatin River, just below where its treatment plant discharges, in a deliberate attempt to illustrate the flimsiness of the environmental buffer.

“We call that the waters of amnesia,” says Jockers. “You put the effluent in the river, and then you take it out, and magically, it's [drinking] water.” 

In 2013, the drought-prone West Texas town of Big Spring began running the first DPR system in the US. But even there, the water flows into pipes where it mixes with the supply from local reservoirs and is then treated again before being delivered to homes. El Paso, about 300 miles west of Big Spring, is planning to skip this final redundancy with a DPR system, set to begin operating in 2026, that can provide up to 10 million gallons a day of drinking water. The city hasn’t made a beer yet from its pilot plant, but it plans to, says Gilbert Trejo, vice president of operations and technical services for the local water utility, El Paso Water. 

'ACTIVATED SLUDGE'

Since Clean Water Services’ success in Oregon, recycled water brewing projects have spread to cities in California, Colorado, Arizona, Idaho and elsewhere. Beers with names such as Activated Sludge and One More Time Around have become a regular fixture at water engineering conferences and craft brewing festivals. Nearly 100 breweries have made recycled beers, according to Travis Loop, organizer of the Pure Water Brewing Alliance, a group of utilities, brewers, engineers and tech companies involved in these projects. “People always love to sit down and share a beer and talk,” says Loop. “And about 90% of any beer is going to be water, so it just makes a lot of sense.” 

Ironically, it was a macro-brewer that helped create the taboo against recycled water. After a particularly bad drought in the late 1980s, a utility in Southern California’s San Gabriel Valley put forward a plan to replenish its underground aquifers with recycled water. Miller Brewing Company (now part of Molson Coors) at the time drew 1 billion gallons of water per year from the same reservoir for a local plant. Afraid of what customers might think, the beermaker joined public opposition to the plan — helping coin the term “toilet-to-tap” and suing regulators, who shelved the project.

That fight — and the term that sprang from it — has created an ongoing headache for cities looking to adopt water recycling plans. In El Paso, says Trejo, residents often take “toilet-to-tap” literally, imagining a pipe from their toilet to their sink with maybe a charcoal filter in between.

For most Americans, water simply appears when they turn on the tap and disappears down the drain as if by magic. They don’t think too much about what happens before or after because they don’t have to. “I call it the flush-and-forget society,” says Aaron Tartakovsky, co-founder and CEO of Epic Cleantec, a San Francisco startup that designs, installs, and runs on-site water-recycling systems for apartment buildings and businesses. “This entire infrastructure is very literally out of sight out of mind. And that's a problem.”

In Tampa, Florida, where city leaders have been searching for ways to meet growing demand for water without draining local rivers, plans to replenish reservoirs with recycled water instead of letting it flow into the Bay have repeatedly run aground due to lack of public support. The most recent proposal last year came under attack as part of a failed effort to unseat the city’s Democratic mayor, Jane Castor, who supported it. The Tampa Bay Young Republicans produced an ad that used the “toilet-to-tap” label and showed a mother and daughter who pretended to be excited to drink glasses of brown “potty water.” 

This weaponization of potable reuse has been a setback in efforts to educate the public about recycled water, Brian Armstrong, executive director at the Southwest Florida Water Management District, told the audience during the WateReuse Symposium in March. “Right now, the only way to get people to drink this is when we put it in beer,” he said, only half-joking. 

In San Francisco, Tartakovsky has also found beer to be a useful conversation starter. Last year, Epic Cleantec took more than 2,000 gallons of water from its on-site purification system at a 40-story apartment building in the city’s Mission District and delivered it to Devil’s Canyon Brewing Company in nearby San Carlos, which used it to make a Kolsch-style ale called Epic OneWater Brew. The idea was to show regulators and industry folks that the company’s technology produces water clean enough to drink. 

In 2015, San Francisco became the first city to require new large buildings to have on-site water reuse systems, but for now, those systems are limited to non-potable uses such as flushing toilets. Tartakovsky hopes the city — and others — will clear the way for on-site potable reuse. 

At the United Nations Water Conference in New York in March, Tartakovsky made the rounds passing out cans of OneWater Brew, including to executives at AB InBev and other global beer brands. “I can tell you right now that we are already having conversations with some of the biggest brewers in the world about doing water reuse within their existing operations,” he says.

Back in Forsyth, Revival Lager sold out in April. Fox City set the price at $4 per pint, the cheapest on the menu, in part because the water was free. “Everybody seemed pretty willing to accept it and try it,” says Bump. “You can’t beat four bucks.”

CANADA

Disconnect between employers, employees on in-office work: Survey

A new survey shows that poor sentiment towards in-office work by employees presents a significant challenge for employers.

A survey released Thursday by workplace-design consultancy Unispace, found that 50 per cent of employees are now in the office at least four days a week, but only 31 per cent of Canadian employees approve of the current model.

“The data from Canadian respondents shows that employers are clearly emphasizing the value of the workplace, but this, by itself, may not be enough to drive successful employee engagement and performance,” Ryan Caffyn-Parsons, the chief executive officer of The Americas at Unispace, said in a news release

The survey found that 55 per cent of workers felt reluctant about working in the office, which was slightly higher than the global average of 51 per cent. Some of the main factors behind employee dissatisfaction with office work included a lack of privacy and lower levels of productivity.  

And while 41 per cent of those surveyed indicated they sat at a shared workstation, 79 per cent of respondents stated they would view working in the office more favourably if they had an assigned desk. 

Around 27 per cent of employers indicated that learning and development opportunities were among the main benefits of in-office work. However, employees ranked those fourteenth on the list of things they liked about working in the office.  

Canadian respondents also indicated that they’d be interested in regularly having a long weekend, with 87 per cent saying they be interested in test-driving a four-day work week.

“What our data also highlights is that employers may be missing an opportunity to better define the purpose of their office and how this can best enable their employees' full work ecosystems,” Caffyn-Parsons said. 

The survey was conducted between April 3-14 by Opinium Research. Results were derived using responses from 9,500 employees and 6,650 business leaders across 17 countries.

HINDUTVA ALLIED WITH BUDDHIST ISLAMOPHOBES

How India is supporting Myanmar's military with arms

A new UN report has revealed that state-owned and private Indian companies supplied arms and raw materials to the junta in Myanmar. Pro-democracy activists decry the actions.


Murali Krishnan in New Delhi
DW
May 25, 2023

Since the military junta seized power in Myanmar in February 2021, companies within India — including state-owned entities — have shipped at least $51 million (€47.3 million) in arms, raw materials and associated supplies to Myanmar's military and arms dealers.

A UN report released last week revealed that a total of 22 unique suppliers based in India shipped arms to the junta during the military's violent clampdown on dissent and protests.

Among the suppliers were state-owned entities, including Bharat Dynamics, Bharat Electronics and Yantra India, and private companies Sandeep Metalcraft and Larsen & Toubro.

The report said India's continued supply of materials to Myanmar, which have been used for surveillance as well as to boost artillery and missile stocks, could be considered a violation of customary international law and international humanitarian law.

"India should therefore be aware that the arms it provides to the Myanmar military — though relatively limited — are likely to be used in the commission of international crime," the report stated.

Myanmar has been gripped by a civil war since the junta led by General Min Aung Hlaing toppled the elected government of Aung San Suu Kyi in February 2021 in a coup.

Myanmar: Protesters hit with tear gas, stun guns

Demonstrators were met with ramped up aggression from security forces, following the most deadly days since last month's coup.

Taking to the streets

A protester wearing a gas mask sits on a blocked road in Yangon on Tuesday, March 2. Police in Yangon fired tear gas on Monday at crowds who returned to the streets to protest last month's coup.Image: ASSOCIATED PRESS/picture alliance

Russia, China and Singapore main suppliers


Besides India, Russia, China, Singapore and Thailand also provided military support worth a total of about $1 billion to the Myanmar military, including arms dealers who have figured out how to play the system, the report noted.

Russia, China and Singapore continue to be the main suppliers of advanced weapons systems to the Myanmar military, accounting for over $400 million, $260 million and $250 million, respectively, since the coup, with of the trade originating from state-owned entities.

"That's because sanctions are not being adequately enforced and because arms dealers linked to the junta have been able to create shell companies to avoid them," said Tom Andrews, the UN special rapporteur on the situation of human rights in Myanmar.

In its detailed report, the UN accuses the arms manufacturer Yantra India Limited of sending 122 mm barrels for weapons to Myanmar in October. The barrels, valued at $330,000, were shipped to Yangon-based Innovative Industrial Technologies Company Limited, which is owned by the Myanmar military's arms broker.

Myanmar marks two years since military coup


Pro-democracy leaders and activists in Myanmar have been taken aback by India's assisting and supporting the junta through military supplies.

"India, as the biggest democracy in the area, continues its counterproductive policy of engagement with military junta, which is not a reliable partner for India and not serving Indian interests even in the short run," Zaw Tuseng, president of the Myanmar Policy Institute, told DW.

The expert also warns that ties between New Delhi and the junta won't help curb China's influence in the country.

"If India goes on like that, there is more to lose than gain," Zaw Tuseng said.

Moe Zaw Oo, a deputy foreign minister of the National Unity Government (NUG) of Myanmar, said he was shocked to learn that India supplied arms to Myanmar's military. The NUG is the government-in-exile formed by elected representatives and members of ethnic minority groups.

"The people of Myanmar will remember that and it will have impact on the long-term relations of the two countries. India's government should seriously take into consideration our people's desire and will rather than short-sighted business interests," Moe Zaw Oo told DW.

According to Sui Khar, a leader of the Chin National Front (CNF), India sees China's influence in Myanmar as a threat. "It is therefore trying to forge good relations with the military junta which is misplaced. It will not work. Tatmadaw (Myanmar's ruling military junta) is not the only stakeholder in the country, and the sooner New Delhi realizes this, it will be good," Sui Khar told DW.

The CNF is also affiliated with the NUG.

Thousands of fighters from Chin state and the Sagaing region have joined an armed struggle and put up fierce resistance to the Myanmar army over the past two years.

"The people's rights are being crushed. New Delhi should consider the moral and ethical implications of such arms transfers and sales," Salai Isaac Khen, the former minister of Chin state, told DW.
India denies being major source of Myanmar arms

Indian representatives told UN rapporteur Andrews that the arms supplied to Myanmar were part of commitments made to the civilian government before the coup, and were exported in light of New Delhi's own domestic security concerns.

Myanmar dissidents resist junta from Thailand



02:50


"India has never been, nor is, a major source of arms to Myanmar, and India has been fulfilling our past obligations. Our exports are very clearly scrutinized. We consider what is in the interest of the people of Myanmar," the representatives said, according to the report.

There are an estimated 1,704,000 total internally displaced persons in Myanmar as of 6 March, according to UN figures.

At least 2,940 civilians have been killed by Myanmar authorities, according to the Independent Assistance Association for Political Prisoners, a watchdog group that tracks killings and arrests. Another 17,572 have been arrested since February 2021, with 13,763 of them still behind bars.

Edited by: Sou-Jie van Brunnersum
Can oil money and fancy shopping malls finally unite Libya?

New roads, public parks and expansive reconstruction — Libya has recently seen an influx of cash from oil sales, and locals are hopeful. But all the economic progress also has a dark side.


Cathrin Schaer | Islam Alatrash in Libya
DW
May 25,2023

"After a difficult and turbulent time, there is hope," Mustafa Abu Braidaa, a shopkeeper in Tripoli, Libya, enthuses.

"Of course, there are still challenges," he told DW. "Inflation, the currency is devalued and there are increases in costs. And yes, it's taking a long time for things to get better. But there have been positive changes and I think all this contributes to an improvement for people like me," the 32-year-old concludes optimistically.

Khadija Al-Buri, a 26-year-old nurse based in Tripoli, feels the same. "I'm worried that fighting could begin again, and there is lots of uncertainty and fogginess, but I do have hope for improvement," she says. "I think what we are seeing now is really raising people's spirits."
New construction is evident in Libya's biggest cities, observers say
MAHMUD TURKIA/AFP

A nation divided

Libya has been split into two since 2014, with opposing governments located in the east and west of the country respectively. A United Nations-backed administration known as the Government of National Unity is based in Tripoli in the west, and its rival, known as the House of Representatives, is based in the east, in Tobruk. Each is supported by a number of local militias and foreign powers, and each has tried to wrest control from the other.

However, after several years of fighting and instability, the violence has largely subsided and most recently, it is the country's economic prognosis that has been getting all the attention.

Libya has the most oil deposits in Africa and last year earned $22 billion (€20.4 bilion) in oil revenues as prices rose, thanks to shortages caused by the war in Ukraine. Oil prices jumped from around $41 (€38) a barrel on average over 2020, to just over $100 (€93) a barrel last year, according to numbers from the Organization of Petroleum Exporting Countries.
In January, Italy signed an $8 billion gas production deal with Libya
Image: Hazem Turkia/AA/picture alliance

All this meant that Libya's state budget was in the black in 2022, the World Bank has noted. And for 2023, the International Monetary Fund, or IMF, expects Libya "to top the list of growth for Arab countries with 17.9%," a monthly briefing published by Germany's Konrad Adenauer Foundation reported.

This kind of growth in gross domestic product, or GDP, is partially due to much lower numbers in previous years. But it's still a lot more than IMF forecasts for elsewhere in the region. For example, the Middle East's average predicted GDP growth for this year is about 2.7%.

But is all that good economic news actually having any meaningful impact on ordinary Libyans' lives?

Life is better, city residents say


There's a lot of new and very noticeable construction and infrastructure in places like Tripoli and Benghazi, confirms Claudia Gazzini, the senior Libya analyst at the International Crisis Group think tank. "You have parks and roads that weren't there before, and there are some astounding shopping malls," says the expert, who was in Libya this month. "And by and large, that pleases many ordinary Libyans. When you're in Tripoli, you'll hear residents saying that day-to-day life is much better than it was two years ago. So there is no doubt that those who live in these big cities share some payback from all this recent economic activity."




However, much of the current economic growth mostly benefits the country's elite, as they are the ones who dispense construction contracts and cash, Gazzini explains. "So the outlook for a major economic boost from which ordinary Libyans — especially those at lower levels of society — can benefit is still far away. It's easy to see the glitzy construction in Tripoli and Benghazi and even to some extent in Misrata, but what about those Libyans on the periphery, in smaller towns, the mountains and the desert?"

"The bottom line is that Libya could not have asked for better circumstances than [those that existed] in 2022 or, so far, in 2023," says political scientist Jalel Harchaoui, an associate fellow with the UK-based think tank the Royal United Services Institute. Oil is pumping, and prices currently offer the country a good income. And the population that's sharing that money is comparatively small, at about 7 million.
Real reconstruction?

"The population is not struggling with a Lebanon-type situation, and the situation should in theory be satisfactory," Harchaoui told DW. But, he says, for many Libyans it is not.

As is the case in many countries dependent on oil revenues, almost three-quarters of Libya's labor force is employed by the government, and the public sector wage bill is only growing. Youth unemployment remains high, sitting at around 51% in 2022.

"What this means is that the income of the state is not actually benefiting its population," the Libya expert explained, referring to the lack of transparency in infrastructure projects and dubious, or even nefarious, motivations for some of the new development.

"For example, Egyptian companies were invited to build like a ring road near Tripoli," he continued. "It's very, very expensive and not particularly useful. It was all done to please Egypt from a political perspective. There was no transparency."

Similar concerns plague major reconstruction in downtown Benghazi, he says, where families who decided to remain in damaged homes are now being pushed out in a worrying way to make room for new building. "So what you have is reconstruction done in the interests of the elites," Harchaoui noted, "but not based on popular demand."

Last year, European nations bought almost three-quarters of Libya's oil exports
Image: AFP via Getty Images
'Wheeling and dealing'

Despite all this, Libya's current economic development might also offer a kind of opportunity, experts say.

Last July, the Tripoli-based government agreed to appoint Farhat Bengadra, a former head of the country's central bank, to run Libya's all-important oil company, the National Oil Corporation.

Bengadra is a supporter of Khalifa Hifter, who effectively controls the eastern Tobruk-based government. The appointment came after several months of politically motivated blockades of fuel production facilities and ports that substantially reduced the country's oil output, and therefore its national income. Observers suggest that Bengadra got his new job as the result of a private agreement between the two opposing governments, one that seems to benefit both sides.

"Since this informal, transactional agreement was made last July, we've seen much wheeling and dealing between the two camps " the Crisis Group's Gazzini points out. "Both camps are receiving very profitable kickbacks in shady ways — it's all informal and involves individuals rather than institutions — but this transactional relationship is also keeping the peace on the ground. Because the actors involved have more interest in enabling these arrangements than in going to war with one another."

In Tobruk, former Libyan warlord Khalifa Hifter (pictured on poster) is in control
Image: ABDULLAH DOMA/AFP

There have been calls for a general election in Libya for some time in the hopes that this would reunite the country under one democratic government. According to the United Nations' plans for the country, another attempt at a national vote should take place later this year.

"But elections are essentially a trigger for change," Gazzini notes. "And these deals between the former enemies are very profitable for both sides. So this [the profit sharing and economic growth] clearly rubs up against the UN-backed road map."

An immediate solution is difficult. Gazzini thinks formalizing the informal "wheeling and dealing" could help bring Libyan politicians on board for an election. Harchaoui worries that the current situation, even if it brings some hope, is only cementing existing corruption and lack of transparency among Libya's political elites.

Only one thing seems to be clear, the experts agree: Despite all the shopping malls and new roads, volatility remains the overriding factor in Libya, whether that's due to international oil prices or Libyan militias' infighting.

Edited by Timothy Jones.