Wednesday, May 16, 2007

COSCO’s arrival heralded as another major player onboard for Port project


The Daily News made the COSCO announcement its front page article on Tuesday, a review of the decision of the giant Chinese shipping line to become the shipper of choice for the Fairview Container Port.

MEGA-SHIPPER COSCO IS HEADING FOR RUPERT’S PORT
World-wide shipper inks landmark deal that will likely lead to many others
By Leanne Ritchie
The Daily News
Tuesday, May 15, 2007
Pages one and three


Another world class player has come dockside at the new Fairview Container Terminal and it opens a world of opportunity for Canadian exporters.

CN announced yesterday it has signed a contract with COSCO Container Lines Americas, Inc., under which COSCO will become the first steamship company to route Asian freight through the new Port of Prince Rupert container terminal and CN’s North American rail network.

“Our partnership with COSCO, and Prince Rupert container terminal operator Maher Terminals of Canada Corporation, is clear recognition of the competitive advantages of the new port facility and CN’s rail network reach and superior service offering.” Said James M. Foote, CN”s executive vice-president, sales and marketing.

COSCO Container Lines Americas, Inc., is part of China Ocean Shipping (Group) Company, headquartered in Beijing, China. Founded on April 27, 1961, as the pioneer of international shipping carriers in China, (COSCO) has grown into a US$17 billion corporation by clearly focusing on the goal of enabling commerce around the globe.

“The most important trade pattern on the Pacific ocean is between China and North America,” said Don Krusel, president and CEO of the Prince Rupert Port Authority. “COSCO is one of the main players and is really important for the development of the Gateway.”

COSCO specializes in shipping and modern logistics, serving as a shipping agency and providing services freight forwarding, shipbuilding, ship repairing, terminal operation, trade, financing, real estate and IT industry as well with an aim at taking one of the leading roles in these areas.

“We have been trying to promote and develop export traffic,” said Krusel. “COSCO has a broad reach into the Asian market an it will create an excellent opportunity here to export from Western Canada into Asian markets.”

COSCO is the first shipper to sign up, but discussions are underway with other shippers as well.

The Fairview Container Terminal will be operational this October and able to handle 500,000 TEUs (average sized containers) annually. COSCO will begin shipping through Prince Rupert during the fourth quarter.

Prince Rupert Mayor Herb Pond said the announcement of the fist shipper means businesses looking to use the containers for backhaul to Asian markets can now begin finalizing their plans.

“This will allow us to firm up some induced or indirect opportunities around the port,” he said. “People have been kicking the tires but without a shipper it’s been hard to understand where the containers were flowing from and to.”

COSCO Group owns and operates 550 modern merchant ships. Ships and containers with the conspicuous “COSCO” logo are shuttling among 1,300 ports in more than 160 countries and regions.

“As with every piece of this, we have ended up with another world class player,” said Pond.

When Maher Terminals was announced as the container terminal operator, many people were amazed the largest container handling company on the East Coast was backing the Prince Rupert project, not just as an overflow to Vancouver but with the concept of developing a major port on its own.

The Port of Prince Rupert is expected to begin construction on Phase Two of the development shortly after the opening of Phase One and triple that capacity, up to two million TEU’s annually.

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