Prince Rupert Port Authority turns corner to better days

After a number of lean years, the Port of Prince Rupert feels that it has turned the corner with 2006 providing the first profit in a number of years. The port found success in the last year thanks to shipments through Prince Rupert Grain and Ridley Terminals.

With the promise of increased revenues through the soon to be operating Container Terminal and an increase in shipping for grain and coal at Ridley Island, the Port is anticipating more good news to arrive in the years to come.

The Daily News provided some background on the recent years and what may come along shortly.

Port buoyant as it floats back into the black in ’06
By Leanne Ritchie
The Daily News
Friday, July 06, 2007

While companies as far away as Memphis are anxiously awaiting the opening of the Port of Prince Rupert's new Fairview Container Terminal, it is the coal and grain terminals that are carrying the port on their shoulders.

Don Krusel, president and CEO of the Prince Rupert Port Authority, said the corporation made a profit in 2006 because of the tonnage moving through the two terminals on Ridley Island.

"We have been through some dark times," said Krusel. "Last year was the first year the port authority was profitable in many, many years. We've turned a big corner."

The driving numbers behind the port's finances is the amount of traffic that moves through its facilities. Tonnage almost doubled compared to the levels of the previous five years, rising to almost eight million tones in 2006.

Tonnage in 2007 is expected to reach 9.8 million.

Revenues were up 3.5 per cent over the previous year, an increase of $800,000 compared to the average of the last five years.

"That was really due to the good year that Prince Rupert Grain had and the rebound year Ridley Terminals Inc. had, which directly resulted in an increase in our revenues," said Joe Rektor, the port's vice-president of finance.

"It's good to be back in the black."

In the meantime, the port used up all of its available cash, around $50 million in 2006, developing the new Fairview Container Terminal. The new terminal is expected to open in October of this year.

Ridley Terminals has bounced back since 2002, when the crash of coal developments in the Northeast reduced tonnage through the federal facility to a trickle of iron ore. Last year, the terminal handled two million tones of coal and other products and that is expected to grow in 2007.

"We expect this to have a healthy increase in 2007 compared to 2006," said Krusel. "The turn around continues at RTI."

Meanwhile, Prince Rupert had its second best year in 2006 since 1994. The terminal handled 4.9 million tones of grain.

"What's driving this is helped by another partner, CN," said Krusel. "Now grain is priced on rail rates through Prince Rupert below grain moving to the Port of Vancouver. We all remember a time when there was a price differential in the other direction."

Cruise traffic in 2006 declined. However, it has bounced back to its highest point yet in 2007, totaling 110,000 passengers who are staying longer in the community.

Krusel said the port is positioning itself to take advantage of the anticipated growth in the Alaskan cruise theatre. Currently, Alaska sees about 960,000 cruise ship passengers per year and that is expected to grow to 1.5 million.

"We are trying hard to make Prince Rupert a participant in that growth," said Krusel. "We are looking at where the gaps lie, what do we need in this community - to create more economic returns to this community and to attract more passengers and more cruise lines."