Solidfiying the Gateway message

"There's not euphoria but there is a growing confidence that wealth and prosperity are returning to the community."-- Mayor Herb Pond reacting to the news of an addition to the industrial base at Ridley Terminals.

They're getting ready to say some pretty nice things about us in the Thursday Globe and Mail, as word spreads about Canpotex's decision to ship potash out of Ridley Island.

In a story posted to their website on Wednesday night, the Globe examined Canpotex's plans for development and the positive vibes it is generating around the city.

Highlighting, the ports accessibility to both China and the Canadian prairies, the article provides a pretty solid bit of evidence that the growth for the Port is still in its formative years, as the advantage of shipping through a relatively unclogged port here is attracting attention.


Potash boom lifts Prince Rupert port
DAVID EBNER
From Thursday's Globe and Mail
June 26, 2008 at 12:09 AM EDT

VANCOUVER — The potash boom touched down in Prince Rupert, B.C., Wednesday as Canpotex Ltd. said it would build a new export terminal to boost Asian shipments of the high-demand fertilizer as part of a $500-million expansion plan.

To nearly double its export capacity to 23 million tonnes a year from 12 million, Canpotex, which markets potash internationally for Saskatchewan producers, also plans to expand a Vancouver facility.

The win for Prince Rupert over a rival site in Cherry Point, Wash., is the latest and most visible sign of how the northwestern British Columbia port town is riding global demand for commodities.

Long battered by the declines of British Columbia's forestry and fishing industries, Prince Rupert has more recently been buoyed by increased bulk exports of coal and grain, the main products moving through the port.

About half of Canpotex's added capacity will be at the new terminal in Prince Rupert, which is expected to cost roughly $300-million.

Canpotex chose Prince Rupert largely for its direct connection to customers – it's a shorter ocean trip to Asia than from more southern ports.

And it's also a speedy link with potash producers in Saskatchewan.

“It's a gateway, a straight shot from Saskatchewan to Prince Rupert right to the heart of Asia,” said Jon Somers, vice-president of planning and development at Canpotex.

Prince Rupert is also far less congested, handling just an eighth of the annual tonnage that moves through Vancouver, and the rail links to the northern port are also less busy.

The price of potash, a key ingredient for fertilizer, has tripled in the past year and stock of Potash Corp. of Saskatchewan Inc., the biggest domestic producer, has also almost tripled. Now the second most valuable company on the Toronto Stock Exchange, it is adding several million tonnes of production capacity.

Potash Corp. is one of the Canpotex's three co-owners, along with Agrium Inc. and Mosaic Co.
The other half of the new Canpotex capacity will be added in North Vancouver at Neptune Bulk Terminals (Canada) Ltd. where Canpotex has most of its existing capacity.

A container cargo terminal was also added in Prince Rupert last year. Completed for $170-million, it can handle 500,000 containers a year and is getting busier after a slow opening. A $650-million plan to quadruple the capacity is being studied.

Potash is adding further diversification to a city that has seen its population slide more than 20 per cent to 13,000 from 17,000 a decade ago.

“It's extremely significant for us,” said Don Krusel, chief executive officer of the Prince Rupert Port Authority, where potash could increase total bulk exports by 50 per cent.
“Prince Rupert is the gateway between North America and Asia for international trade. This just solidifies that message.”

Another winner in Canpotex's selection of Prince Rupert is Canadian National Railway Co., which serves the port. James Foote, a CN executive vice-president, said the decision demonstrates that CN's bulk transport business is strong.

In Prince Rupert, the city sees itself as one piece in a long string, according to Mayor Herb Pond. The port can be even more successful when containers that enter North America full also depart full on the backhaul portion of the route to Prince Rupert with products for export, he said.

“We suffered from a really bad decade. This is a significant step forward for Prince Rupert.

There's not euphoria but there is a growing confidence that wealth and prosperity are returning to the community. Our goal is to be a one-stop-shop port for all kinds of commodities.”