The Daily News had two front page stories today, each of equal importance to the future economic growth of the region. One featured a positive step in the Container Port project as construction trailers begin to arrive at the Fairview location and steel pilings prepare to make their journey from Vancouver to Rupert. It’s a positive move in a project that carries quite a few hopes, but few tangible steps thus far.
Left out of the article is any indication as to whether there has been a resolution to the concerns of First Nations, over the land issue surrounding the southern spit of land that was in question, as outlined in a past Podunk. At the end of January a “breathing space” of one month had been set before legal issues would be pursued, that “space” has now passed by, it will of interest to Podunk to see what the next steps there will be. The issue played itself out through February in the pages of the Vancouver Sun, as the temperature around the city inched upwards as the container project seemed to become caught up in the throes of a political debate.
The other project that made headlines was the long running saga of the Skeena Cel pulp mill at Watson Island, today it was announced that SunWave Forest Products has requested a two month extension before revealing its plans for the site. This marks the umpteenth time the fate of the large industrial site has been granted an extension, a situation that might seem rather laughable if only it were not so serious. The request for an extension was required as the Chinese government wished to receive more information about the project, in the interim SunWave has provided another million dollars to cover the costs of keeping the deal alive. Podunkians are unfortunately quite used to hearing the word extension when it comes to Skeena Cel, so probably the news won’t be greeted with surprise or worry. Rather we will just continue along the path of slow torture, waiting for word one way or another about the mill which hasn’t produced a roll of paper in years.
Two projects with a bit of history in the region, one cautiously seeming to move forward, the other stalling in the gate. Once again the folks of Podunk can only sit back and read the fine print, hoping that something concrete takes place in short order. Hoping that nothing else may come up to give cause for concern for the viability of either one.
For the benefit of those that may have missed the paper today or live in far off locales, we provide the Podunkicized versions of both stories below.
PORT CONSTRUCTION IS SET TO HIT HIGH GEAR
By Leanne Ritchie
The Daily News
Monday, February 27, 2006
Page One and Five
The steel pipe that will be used as piles to support the wharf extension a the Fairview Container Terminal are in Vancouver and should start arriving in Prince Rupert during the next month, says the Prince Rupert Port Authority.
“We are excited to see the materials arrive and look forward to the first visible signs of construction in Prince Rupert,” said Mike Graham, Port Engineer for the Prince Rupert Port Authority.
“We anticipate construction activity at Fairview will ramp up significantly over the next 30 days.”
The materials for the berth extension component of the construction project are currently sitting at Lynneterm in Vancouver’s inner harbour.
Meanwhile, the site itself here in Prince Rupert has been cleared and offices that will be used by the terminal construction contractors are being moved in.
The materials for the wharf extension consist of 3,900 metres of spirally welded pipe, just under one metre in diameter, and fabricated from 20mm thick steel plate.
The pipe was produced in China and was supplied in 18-metre lengths to permit efficient transportation.
The entire stock equates to about 200 lengths of pipe that, positioned end-to-end would cover almost four kilometers.
The pipe will be pre-sized according to site conditions and welded into 99 individual piles before being shipped to Prince Rupert in an estimated three barge loads. The pipe has a special wear-resistant and corrosion-resistant polyethylene coating system applied at the factory.
In January, the Prince Rupert Port Authority announced approval to proceed with the conversion of the Fairview Terminal into Canada’s newest container-handling facility and award of the contract for the first component of the construction program.
A joint venture partnership of Fraser River Pile and Dredge, which also worked extensively on the Northland Cruise Terminal dock, and Western Industrial Contractors were selected to complete the marine portion of the Fairview Terminal conversion, which consists of extending the current dock face out into deep water through the construction of a 400 metre new berth.
This new wharf will extend 20 metres into the channel to minimum water depth of 17 metres, sufficient to accommodate the next generation of super post-panamax ships.
The new wharf upgrades will support the installation of three super post-panamax container cranes. It is expected to cost $110 million, one third of the construction budget.
Western Industrial Contractors will construct both the new deck and structure to carry the new rails for the three large container cranes to be installed at the terminal. Fraser River Pile and Dredge will complete the pile driving and marine-related work.
Future plans feature the expansion of the terminal to reach an annual capacity of two million TEU’s.
A report: the Prince Rupert/Port Edward Container Port Business Opportunities, found that in Phase 1 of the development (expected to be completed in early 2007 with a capacity of 500,000 standard-size containers (TEU’s), there will be 1,025 person-years of direct and indirect construction employment.
Other expected employment impacts include jobs at the terminal (150), jobs at container port servicing businesses and a variety of indirect jobs (135).
SALE OF FORMER SKEENA MILL PUT BACK TO APRIL
By Leanne Ritchie
The Daily News
Monday, February 27, 2006
Page One
SunWave Forest Products has been granted another two-month extension on the purchase of the former Skeena Cellulose pulp mill, but the company has also bellied up to the bar with more than $1 million to cover the interim costs.
The China Paper Group, SunWave’s parent company whose majority shareholder is the Chinese government, has asked for more time because of additional information requests by the purchaser’s review committee in China.
The sale, which was expected to close by Feb. 28, has been extended to April 27.
SunWave Forest Products, a subsidiary of the China Paper Group, remains confident that the purchase will be completed and has committed in excess of $1 million to the receiver to fund ongoing costs and other issues, funds that would not be refundable in the vent that the sale does not complete.
“This level of financial commitment shows how serious we are to acquire this pulp mill. We are continuing to get great support from other stakeholders; including First Nations, Local 4 of the PPWC and the communities and businesses of Northwest B.C .” said Susanna Xu, SunWave spokesperson.
Larry Prentice of receiver Ernst and Young Inc. said he was disappointed the full approval process could not be completed within the time frame established in December, but added that he is encouraged the request that SunWave increase its level of financial commitment to the deal was readily accepted.
The sale includes the pulp mill site assets not previously acquired, as well as the real estate and other assets in Port Edward and New Hazelton and a substantial forest license in the Kispiox forest district.
The China Paper Group, through its B. C. subsidiary SunWave Forest Products, put in an offer on the Watson Island land in May 2005 after purchasing the mill equipment from Maynard’s Auction.
While the purchase price for the lands and licence is no more than $5 million, a decision to operate the pulp mill will represent close to a $100 million investment on the part of the China Paper Group.
Last year, an expert in the forest industry from PricewaterhouseCoopers LLP explained the interest of the Chinese in Skeena reflects the tremendous growth in, and demand for, primary products in China because of the country’s rapid economic growth.
Currently, there’s a tremendous demand for pulp and lumber in the Chinese market, he said.
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