2006 Was a banner year for Port of Prince Rupert

They’ll have fond memories of 2006 as the Port of Prince Rupert celebrated a successful year in the field of moving grain and coal products to overseas markets.

Capitalizing on improving market conditions and more competitive freight rates, the Northwest shipping terminals saw increases in through put that continue to showcase the capabilities of the Port and provide a solid base for the years to come.

The Daily News collected all the details and provided a review of the year and what is on the way for 2007.

PORT GRABS OPPORTUNITIES AND ENJOYS BUMPER YEAR
Ridley Terminals and Prince Rupert Grain handled vast quantities in 2006
By Leanne Ritchie
The Daily News
Thursday, February 08, 2007
Pages one and three

The Port of Prince Rupert is riding high, with coal and grain driving its volume of shipments up 75 per cent in 2006.

It is the best year for the port since 2000, handling 7.7 million metric tonnes of commodities compared to 4.4 million metric tonnes in 2005, despite the closure of its Fairview bulk terminal for conversion to a container port.

Don Krusel, president and CEO of the Prince Rupert Port Authority, said the increase is a direct result of Prince Rupert Grain and Ridley Terminals Inc. capitalizing on improved market conditions, and more competitive freight rates to aggressively pursue new business while handling more products for current customers, he said.

"They seized the opportunities presented to them and successfully delivered their higher throughputs to meet the needs and expectations of their customers," said Krusel.

Greg Slocombe, Chief Operating Officer of Ridley Terminals, said the opening of new coal mines in Northeast British Columbia and strong Asian demand for thermal coal fuelled a 177-per-cent increase in coal throughput to 2.8 million tonnes in 2006.

"Some of the new mines that were just in planning and development started producing last year and brought our volumes up and they are continuing to rise," he said.

"In 2007 we are seeing good strong markets and solid production and I think our volumes will be up again substantially from where they were in 2006."

Meanwhile, a reduction in rail freight charges in August 2006 is one of the factors that helped increase tonnage at Prince Rupert Grain by more than 52 per cent, from 3.1 million tonnes in 2005 to 4.7 million tonnes in 2006.

Last August, CN Rail lowered freight rates to three per cent below other West Coast grain terminals, reflecting the cost efficiencies of transporting agrifoods on a northern mainline that lacks congestion and the fact the Prince Rupert Grain has the highest through put of any grain-cleaning elevator in Canada.

Strong global demand for agrifoods, particularly in China and India, fed a 197-per-cent increase in grain, 110-per-cent increase in canola and a 61-per-cent increase in wheat.

And next year continues to look bright for Prince Rupert.

“It looks extremely promising as a continuation of what happened in 2006. the coal terminal is continuing to diversify and seek out new customers and grain, depending on the final crop later this year, is looking to replicate or improve over 2006,” said Krusel.

Specifically, Ridley Terminals expects to start handling wood pellets from Houston Pellet in May 2007.

A partnership between Canadian Forest Products (Canfor), Pinnacle Pellet and the Moricetown First Nation and Houston Pellet has began construction on a wood pellet handling operation at Ridley Terminals, including the first of four silos.

"And of course we will actually start moving containers through the port in the last quarter of the year," said Krusel.

The port expects an October opening for the first phase of its new Fairview Container Terminal, with an annual capacity of 500,000 TEUs (average size containers) annually, in October 2007.
Operated by Maher Terminals, the Fairview Container Terminal will be the first pure inter modal port in North America, with containers moving directly from ship to rail cars.

It is also the West Coast link in a new Asia- North American mid west “Express Gateway”.

The construction project ended the 2006 year on schedule, on budget and 241/600 man-hours serious injury free.