Financing of Phase Two of Fairview Container port “a done deal”

Hunter Harrison CEO of CN Rail, painted a fairly positive picture for the Port of Prince Rupert and the railway’s plans for it in the future.

Speaking at an Edmonton Conference of the CN Board of Directors, Harrison explained what plans the railway had for the Edmonton area, which stands to benefit greatly from the new transportation corridor to the Asia Pacific through Prince Rupert.

But for Rupertites it would be his thoughts on the future of the port after phase one is developed that will be of the most interest.

“Financing for the $600-million second phase-- a concern for the port authority earlier this year -- is now in place, he said.”There are some other hurdles, but not financing hurdles. From a financing standpoint it’s a done deal."

CN has already stated that phase one will be sold out before the first container ship arrives, making the need for phase two and beyond a key ingredient to the development of transportation needs for the future.

Edmonton on track to future
CN chief says city can expect jobs and rail operation growth as Rupert opens
David Finlayson
The Edmonton Journal
Wednesday, June 13, 2007

EDMONTON - Edmonton will be a key link in CN's growth as Western Canada becomes the hot market area, CEO Hunter Harrison said Tuesday.

The city is perfectly positioned to become a major transportation hub as the Prince Rupert container port comes on stream and Chicago continues to be gridlocked, Harrison told the chamber of commerce.

"The difference between Edmonton and Chicago is we can get through Edmonton and we can't get through Chicago."

"So all of the growth from Prince Rupert and the return business to Prince Rupert, as well as growth in Vancouver, is going to flow through Edmonton. We're going to see job creation, capital investment and probably yard expansion." Western Canada business grew eight per cent year over year, while Eastern Canada was down a couple of points, Harrison said.

"The future is bright in Western Canada and we are spending a billion dollars on infrastructure to prepare for it."

The railway is building a $32-million Fort Saskatchewan oil and gas distribution centre, and a $1.6-million east Edmonton facility for train to truck transfer of liquid products such as methanol, biodiesel and drilling mud will open later this year, Harrison said.

The $160-million Prince Rupert first phase will be sold out before it even opens this fall, and the partners will move into phase two as quickly as possible, he added.

Financing for the $600-million second phase-- a concern for the port authority earlier this year -- is now in place, he said. "There are some other hurdles, but not financing hurdles. From a financing standpoint its a done deal."

Prince Rupert is 36 hours closer to the vital Asian markets than any other U.S. or Canadian port.

CN is also building a $20-million transload operation and intermodal rail terminal in Prince George to tap into wood and other resource-based export products in northern B.C.

Harrison also said the railway is changing its culture so it's safer for workers and communities after a series of "unfortunate" incidents in the last couple of years, including the Wabamun Lake spill. "It's not about bottom-line dollars. It's the right thing to do."

Harrison spent two days meeting with his board here this week and will receive an honorary law degree from the U of A. today.

"For someone who as a 17 year old worked in the grease pit oiling boxcars that is quite an honour," he said.