Complimentary not competitive

The prospect of a port catering to bulk goods in Kitimat is not considered a threat to the Port of Prince Rupert. That’s the impression provided in a front page story in the Daily News on Thursday. The plans that are in the works would provide shipping services to the forest products, steel and energy industries from a port between Methanex and Alcan in Kitimat.

A break bulk goods port once was on the shores of Prince Rupert at Fairview, but never seemed to reach its potential as far as volume goes. It made for a situation that spurred on the move to containerization on the North Coast.

While the Rupert Port now seems fairly dedicated to that concept of shipping, they haven’t completely ruled out a return to bulk goods at some future date. Though one wonders what kind of demand would be there should Kitimat have their bulk port up and running.

The full story can be found in the Thursday Daily News.

‘KITIMAT’S PORT PLAN NO THREAT TO RUPERT’
By Leanne Ritchie
The Daily News
Thursday, October 26, 2006
Pages One and Three

The Port of Prince Rupert doesn’t see the possible development of a break-bulk port facility in Kitimat as a threat, or even a rival.

“We take kind-of a regional perspective and we’d like to think on one hand there’s enough opportunities for all of us and we should be working together to see how we can compliment each other for the benefit of the region and not just focus on one community at the expense of another community,” said Barry Bartlett, manager of corporate communications and public affairs for the Prince Rupert Port Authority.

The Kitimaat Port Development Society is currently completing a $775,000 four phase feasibility study that explores the potential of building a common carrier break bulk facility in between the Alcan and Methanex docks in Kitimat.

An earlier consultant’s report indicates there is an opportunity to develop the facility in Kitimat. The mutli-phase study will outline markets, determine long-term prospects, identify revenue sources and examine capital investment needs.

During a recent Northwest Corridor Development Corporation meeting in Terrace, Steve Wilson, president of the Kitimaat Port Development Society and chief councilor of the Haisla First Nation, also said the two projects could be complimentary.

“Because of the focus on containers in the Vancouver area and the containerization in Prince Rupert, there’s a loss of break-bulk capacity. Really that’s the opportunity that preserved itself and we decided as a group to take advantage of that,” said Wilson.

The Fairview Container Terminal currently under construction in Prince Rupert used to be a break bulk terminal that shipped lumber, pulp and agricultural products with a focus on exports. The new terminal will focus on container imports from Asia.

“We don’t want to compete with Prince Rupert, we want to be complimentary to them because it’s good business and it’s good for the region,” said Wilson, who described a break-bulk facility handling forest products, steel and energy products.

However, just because the Kitimaat Society is looking at break-bulk doesn’t mean the Port of Prince Rupert has given up on its possible future in the break-bulk business, said Bartlett.

“If you look at the (federal government’s) Pacific Gateway Strategy, there is also the recognition there is going to be a very vibrant break-bulk capacity required. Right now, we are focusing on the container port, but we certainly do have the capacity, particualry for example with Ridley Island to accommodate a break bulk facility as well as other facilities,” said Bartlett.

In the Pacific Gateway Strategy, British Columbia outlines its vision for future shipments through the province’s ports. This includes upping container shipments from 2.1 million per year in 2005 to nine million per year by 2020 and increasing break-bulk shipments from 62 million tones in 2003 to 95 million tones in 2020.

The Haisla have been spearheading the Kitimaat Port Development for the past four years.

Although Kitimat is a private port, it exports up to 11 per cent of British Columbia’s Gross Domestic product annually.

“What we need is a common carrier port because Kitimat as a port right now is really Alcan, Eurocan and Methanex. Opportunities for common carriers are zero. Allowing other businesses to use the port of Kitimat have been limited because all he land is privately owned,” said Wilson.

Wilson added that the province really needs to look to the North when it comes to finding ways to meet the goals of the Pacific Gateway strategy.

“Right now, the Gateway strategy is really limited to ports that have containers and most of the focus is on Vancouver, which I think is wrong.

“The centre of the world is not Vancouver, I think that both Kitimat and Prince Rupert deserve more a full look at the opportunities that are there because there are a lot of good opportunities and we can compliment each other,” he said.

“What this does is it presents an opportunity to as a region work together to benefit everybody… on the coast.”