Delays in negotiations over Fairview Port could be costly

The Daily News takes a look at a report from the Boston Consulting Group that has examined world trade and finds that if Prince Rupert doesn’t move quickly on Phases two, three and more of the container port, we may find ourselves behind the curve of the explosion in shipping.

Talks between the Coastal First Nations and the Federal Government have been moving at a glacial pace of late, leading to all sorts of concerns about the future for the expansion of the project and for beneficial relations between all that are involved.

Even with a fast and long lasting arrangement in place, the Boston Consulting Group flagged a few other potential snags for trade through the Fairview port.


Hurry with port talks, experts urge
By Leanne Ritchie
The Daily News
Friday, May 18, 2007
Page one

A report by the Boston Consulting Group predicts that federal government dithering' over the issue of aboriginal rights and title will prevent the Port of Prince Rupert from reaching its full potential.

Entitled Surviving the China Rip Tide, the most recent work by George Stalk Jr. and Kevin Waddell on inter modal trade, the document cites slow movement on the federal side as the primary reason the port will remain nothing but a container overflow catchment area for the Port of Vancouver.

"Government approval at all levels will be slow to materialize because of the claims of native people, an absence of priority in the permitting process and a lack of vision," reads the report that was released earlier this month.

The report reads as part crystal ball, part mirror as the failure of government to reach an agreement with Coastal First Nations, and subsequent threats that Coastal First Nations will not allow the port to operate until this happens, has been at the centre of concern in recent weeks.
Last week, David Emerson, Canada's Minister of International Trade said federal cabinet ministers are aware of the concerns of the Coast Tsimshian and don't want to see a confrontation develop around the Fairview Container Terminal.

He told the Daily News that progress should be forth coming, and Skeena-Bulkley Valley MP Nathan Cullen echoed Emerson's comments saying that his timeline was "in weeks, not months."
However, with no announcement or signs of progress being made, Prince Rupert city council this week decided to send a letter to Emerson encouraging the federal government and offering any support they can to ensure the success of any process.

The first phase of the container port is expected to open this October.

When Cullen spoke with Emerson on Tuesday, there was no update on the progress of talks.
"There's still a feeling of optimism. I've been talking with the proponents and they are pushing ahead and I've been speaking with some of the First Nations representatives ... who are still encouraged by the progress on the process. I wish Minister Emerson's original estimates on this were correct and this was taken care of by now because there are people from Manitoba all the way across the north asking me about this project. It goes across party lines. It is significant."

According to Cullen, there is a group of First Nations engaging the government without the presence of the lawyers that want to see the issue go to court. He said they are doing this with the guidance of Emerson's office.

"The pieces on the table are the same ones they have always been - a certain amount of training, a certain amount of money, a certain amount of job prospects," said Cullen.
"This has always been the critical element."

He noted the parties have been close at times, however "someone deep in the bureaucracy really screwed this up and it has taken months to move away from that. It happens some time."
The Conservatives have been promising to fix the situation since the last election when it became clear the Liberals had bungled the consultations back in 2005 and former Liberal Transportation Minister Jean Lapierre had written an apology to the Coast Tsimshian for the federal government's delayed involvement.

In January 2006, during the election, Conservative Party campaign co-chair John Reynolds told the Daily News that if First Nations have been insulted by the fact the Liberals didn't enter the negotiating process until October, the Conservatives will apologize and get back to the negotiating table immediately.

"It's unfortunate the Liberals because of their arrogance didn't meet with First Nations as they should have done," Reynolds said, during an interview from Ontario conducted when he was touring with the Conservative leader Stephen Harper during the last election campaign.

The Conservatives made an offer in mid-2006 of $7.5 million of which three quarters was expected to go to Lax Kw'alaams and Metlakatla, however when the offer was not accepted, the bands were told negotiations were over.

The issue is now before the Federal Court of Canada. However, it appears the court won't hear the case before the facility opens in two months.

In the meantime, the Boston Consulting Group's report points to a number of additional challenges for the port of Prince Rupert once it commences operations. These include time delays for customers with cargoes heading for U.S. because they have to deal with double customs inspections as well as the fact that there will never be a large enough population around the Fairview Container Terminal for a local market for products.

While the Boston Consulting Group sees the small population of the region as a disadvantage, the port has always seen this as an advantage because it will not face congestion problems.