The Port , CN and Maher Terminals seek to enhance Fairview's reputation

"We are pleased to have built upon the strong collaborative environment at the Prince Rupert Gateway. This agreement forges a strong partnership to further improve the performance of the West Coast's most efficient gateway for transpacific trade and sets the stage for greater transparency for shippers in their supply chain management." -- Don Krusel of the Port of Prince Rupert outlining some of the key elements of a new service agreement between major participants at the Port of Prince Rupert.

 The goal as detailed in a press release issued today is simple: "promote and better measure improvements in port performance and to enhance Prince Rupert's role as a preferred gateway on the west coast for Central Canada and U.S. Midwest markets."

To that end, the Prince Rupert Port Authority, CN Rail and Maher Terminals have signed a level of service agreement that will set specific targets for continuous improvements in the handling of cargo through the Fairview Terminal.

John Buckley, president and chief executive officer of Maher Terminals explained that the agreement builds upon the already strong ties between the three players in Prince Rupert as they continue to grow the throughput through Fairview with an eye towards the future.

One of the key factors in the agreement is the ability to improve the delivery targets with specific times for unloading and loading containers between vessels and rail cars, dwell times at the terminal, and CN transit times to markets in Canada and the U.S.

A process that should help to reinforce the reliable source of transit for those customers that are currently using the Northern Gateway, while at the same time showcasing the terminal's potential for those that could soon come on board.

You can review the details on the agreement from this release issued today.

Atlin Terminal renovations continue on as cruise ship season approaches

It's one of the first impressions that visitors receive of the city when they arrive by water, and with the 2010 Cruise season a few months away, the Atlin Terminal is getting a renovation and upgrade.

Part of the city's trendy Cow Bay shopping area, the Terminal has proven to be a popular destination for those arriving in the city by whatever mode of transportation, looking to see what's happening on the waterfront in that part of the city.

CFTK's Sahar Nassimdoost wandered around the lower part of the building that is the stations local home and provided a sneak preview as to what's going on inside the doors in anticipation of this years visits from near and afar.

Down to the final words in the port dispute?

The original deadline has come and gone, the two sides took a few days off over the New Years Eve/Day festivities to rest up for the next session and starting this morning at nine thirty, the two sides of the Port supervisors dispute will sit down at a negotiating table to see if they can resolve their differences without a work stoppage.

As we have outlined on the blog over the last few weeks, organizations across the North from Initiatives Prince George to the Port of Prince Rupert have weighed in with their concerns over the possibility of a shutdown of the Ports of British Columbia and in particular over what damage could be caused to the Port of Prince Rupert, having only recently become one of the talked about destinations in the world of transportation and shipping.

Progress was reported on some of the key issues as the original deadline approached on January 2nd, and from that progress came the scheduled talks of Saturday, what remains to be seen is if there is enough common ground to allow them to continue until a settlement is reached, or if the Port of Prince Rupert finds itself behind a picket line by next week.

The Daily News featured the latest developments as the front page, headline story in Friday's paper.

PORT STRIKE THREAT LOOMS AS SIDES GET AROUND TABLE
By Monica Lamb-Yorski
The Daily News
Friday, January 02, 2009

Pages one and two

Fingers are crossed that resumed negotiations taking place tomorrow between the International Longshore and Warehouse Union (ILWU), Local 514 and the British Columbia Maritime Employers Association (BCMEA) with two federally appointed mediators, will result in a settlement, avoiding a strike or lockout that would drastically affect Prince Rupert and Vancouver ports.

Local 514 has been without a contract since March 2007 and is in a legal position to issue strike notice as of Jan. 2.

If the union, representing 450 ship and dock foremen - 11 in Prince Rupert - does strike, 5,000 port workers - 200 in Prince Rupert - are expected to walk off the job in support.
Issues on the table include pension payments and working conditions.

In a telephone conversation, the office administrator at the ILWU 514 office in Vancouver said the union was not issuing further statements as of this morning, but did confirm that the two sides will resume negotiations tomorrow morning at 9:30 a.m.

According to a Canadian Press article dated Dec. 29, only grain shipments would be guaranteed in the event of a disruption, because they are protected by federal law.

"Specialty crops that move by containers are not covered by the law," the article stated.

In past strikes, workers have been legislated back to work, but with Canada's parliament temporarily suspended, federal action would not be possible until after Jan. 27 when parliament resumes.

According to Lloyd's List, the potential strike has already induced some shippers to divert cargo away from Prince Rupert to the U.S. Pacific Northwest ports of Seattle and Tacoma.
Prince Rupert Port Authority's president and CEO Don Krusel voiced concern about the potential impact of unresolved negotiations in a letter to Minister of Labour Rona Ambrose, dated Dec. 22.

"A labour disruption would likely result in the long-term loss of hard-won trade through Canadian West Coast ports, which may never be recovered. Canadian importers and exporters, already reeling from the global economic turbulence that is eroding their financial health, will be forced to find alternate, more expensive shipping routes," wrote Krusel.

"This domino effect would result in significant job losses and adversely impact families across this new northern Canadian trade corridor as well as the Canadian economy," Krusel stated.
Tim McEwan, president and CEO of Initiatives Prince George Development Corporation, echoed Krusel's concerns in a letter to Minister Ambrose, composed on New Year's Eve.

"Initiatives Prince George has very strongly supported the development of the Fairview Container Terminal [at] the Port of Prince Rupert in opening up Northern British Columbia as a new international trade corridor that will catalyze job and wealth creation," stated McKewan on behalf of the Economic Development Authority for the City of Prince George .

"Prince George's opportunities moving forward are based on the investment community's continuing confidence in Northern British Columbia corridor opportunities."

McKewan said investor confidence levels will be strongly influenced by the level of services provided by the port, which, to date has been superior.

"Volumes have been building in recent months at the Port of Prince Rupert," McKewan added.
Both Krusel and McEwan have asked the federal government to actively work to prevent disruptions at the ports in Prince Rupert and Vancouver. In addition, Krusel stated the Prince Rupert Port Authority would appreciate the federal government's "consideration for structural changes, either through essential service legislation or amalgamating the two ILWU entities into one council, to avoid similar future potential disruptions."

A telephone call to Minister Ambrose's office indicated her office will open again on Jan. 5. She could not be reached for comment.

Globe and Mail offers up endorsement of expansion plans for Port of Prince Rupert

There is much talk out of Ottawa these days that the best way to tackle the challenges of an economic meltdown is to invest in the infrastructure of the nation, a move that would best position the country for the recovery phase, once the economic order returns to a semblance of normalcy.

With that vision statement leading the charge, the Globe and Mail has provided an editorial in Tuesday's paper urging the Harper government to take that advice on capital spending and run with it.

Of particular interest to North Coast residents is the support the paper has provided for the expansion plans of the Port of Prince Rupert, suggesting that this is the exact time for the government to spend on transportation infrastructure projects such as Phase Two.

"Some of these undertakings could greatly facilitate trade. Commerce with Asia would be promoted by multiplying the container capacity of the port of Prince Rupert, B.C., with matching roads and railway tracks. Similarly, this would be a fine time to relieve the transportation congestion in the Lower Mainland of B.C."

While its probably easy to be an armchair economist from the comfort of a newspaper editorial board office, it is a suggestion that makes a fair amount of sense, considering the current level of concern in the Lower Mainland over any further encroachment on lands in the Delta area as part of the Deltaport expansion plans.

Critics there have said that with Prince Rupert on line now and prepared to expand further, that both the province and federal governments should devote their attention and finances towards the north coast and a chance to redefine the transportation grid for the future.

With the Globe and Mail offering much of the same advice, one wonders if the Conservatives may be finding that the future for Asian trade will flow through the Pacific Gateway at Prince Rupert, providing for a economic boost on the North Coast for the troubled economic times still to come.

GLOBE EDITORIAL
Stimulus, when consumers are wary
Article
Comments
From Tuesday's Globe and Mail
November 24, 2008 at 11:35 PM EST

Any economic stimulus package will be subject to time lags between its announcement and the achievements of the desired effects. That is why Jim Flaherty, the Minister of Finance, ought to provide a significant framework for new expenditures on Thursday, when he presents his economic update, although detailed spending plans cannot be expected yet.
The federal and provincial governments should concentrate on capital investments, in their measures to stimulate the economy, and alleviate or prevent recession.

In other times and circumstances, it would be good policy to encourage consumers to spend and consume. At present, they are unlikely to respond. People are worried. They are saving for the rainy days they expect, retreating from shops into the safety of their homes; they are de-leveraging, using their cash to pay down credit-card credit – which is all very well, but it means that larger income-tax refunds or another GST cut would do little to boost the economy.
Canada has to also realize that we cannot hope to stimulate the economy of the United States, which is still the home of our most important customers.

Instead, governments should activate construction projects that are already on the drawing-boards, and have been waiting for funding. Canada's infrastructure suffered much depreciation during the fiscal restraint of the 1990s, and did not catch up in the balanced-budget period. The wear and tear are showing.

Setting infrastructure projects in motion will not immediately lead to rising payrolls and busier cash registers, but that is all the more reason why the time to get going is now – to put contracts out for tender that will before long begin to bear fruit in wages and salaries.

Some of these undertakings could greatly facilitate trade. Commerce with Asia would be promoted by multiplying the container capacity of the port of Prince Rupert, B.C., with matching roads and railway tracks. Similarly, this would be a fine time to relieve the transportation congestion in the Lower Mainland of B.C.

As for trade with the United States, the new bridge between Detroit and Windsor should be expedited, along with other steps to counteract the notorious thickening of the border.
Numerous other aspirations could be realized: the updating and enhancing of the electricity grid, an expansion of public transit in all of Canada's larger cities and faster interurban passenger trains, as well as more scientific and technological research.

Stephen Harper candidly admitted surprise at the extent of the crisis at the APEC summit on the weekend. The country can help itself recover from that surprise by turning well-laid plans into realities.

Metlakatla optimistic that settlement with Port could come before the New Year

Only a few issues apparently stand in the way of a final settlement agreement between the Metlakatla Band and the Prince Rupert Port Authority.

The elected chief of Metlakatla Harold Leighton has updated the discussion stage thus far by suggesting that he is hopeful that all of the remaining issues will be addressed before the end of December.

Still unresolved between the two sides is the question of the environmental impact of the Ports phase two plans on the Metlakatla band, one of the key issues that has framed the debate for the bulk of this year.

Leighton outlined the situation thus far and his hopes for a settlement soon as part of an article in Monday's Daily News.

Metlakatla hopeful of progress
Band is expecting to move forward in talks with port authority
By George T. Baker
The Daily News
Monday, November 24, 2008
Page one

Metlakatla elected chief Harold Leighton says he is optimistic there will be a settlement deal in place between the Metlakatla band and the Prince Rupert Port Authority by the end of the year.
Leighton made the comments after Prince Rupert Port Authority president and CEO Don Krusel met with the Metlakatla band on Tuesday during the band's annual general meeting.

Leighton said that while the process is really slow right now, there is a framework for a settlement that will hopefully guide the negotiations on settlement by the end of 2008.

"We have a settlement agreement that has actually been drafted but what goes into the agreement there is still some issues that are outstanding," said Leighton.

Issues still needing to be addressed include environmental questions over phase two over the port expansion.

Also on the table at the AGM was discussion about the recently signed protocol agreement reached by Metlakatla and other First Nations bands along with the City of Prince Rupert and the District of Port Edward.

Leighton mentioned that increasingly recognizing Tsimshian names for land, lakes and mountains is a key concern for Metlakatla, as it is with many First Nation bands.

"Recognizing the territory - whose territory it is when you enter the city, that's on the agenda of communities and municipalities and it's also an issue that is being dealt with by municipalities at treaty negotiation tables," said Leighton.

He said it was really important to recognize the historical importance of traditional geographical names.

"It's been always a priority of the Elders that we bring those names back," said Leighton.

Rising fuel costs leave Port Authority with mixed thoughts

The rising cost of fuel is leaving the Prince Rupert Port Authority with a positioning statement of sorts, making the location of the Prince Rupert container port beneficial for those shipping lines looking to save on fuel costs. Thanks to its location one day closer to Asia, the Rupert advantage could become a strong factor for growth should fuel costs continue their march upwards.

However, a troublesome US economy could counter balance that benefit as the demand for goods from Asia could drop if the American economic recession continues or goes deeper than forecasters first thought.

All of that economic talk was presented for a Prince Rupert audience last week as the Port of Prince Rupert hosted their annual general meeting last week, the Daily News had details of the economics of transportation in Monday's paper.

Port hoping high cost of gas will help, not hinder
By Leanne Ritchie
The Daily News
Monday, July 07, 2008
Page three

The rising cost of fuel prices is magnifying the Port of Prince Rupert's geographic advantage on the West Coast, according to the head of the Prince Rupert Port Authority (PRPA.)
Don Krusel, president of the PRPA, said during the PRPA's annual general meeting last week that rising oil prices could be both a positive and a negative influence as the port moves to expand container trade.

"It could be a positive impact because this is the closest port to Asia," he said. "If you can convince a carrier to sail between Prince Rupert and Asia they are actually saving on their fuel bill if they are only calling in Prince Rupert."

The PRPA is keeping a close eye, not only on fuel prices but also the economic slow down in the United States and its impact on the development of Fairview. However, the port does expect container traffic will continue to grow.

"Because this is all movement of international goods around the world, we have to pay close attention to international events - what is happening in the economy, what is happening to the exchange rate, what is happening in China, what is happening to oil prices and how does all of this impact our participation in the industry," he said.

"Before, we only had to worry about the local economy and what was happening in the forest industry and fishing industry."

He said the port is concerned about whether or not the U.S. will move into a deep recession because it will have an impact of the flow of containers to the West Coast of North America.
"And therefore it will have an impact on us," he said.

In the first quarter of operations of the Fairview Container Terminal, the port and Maher Terminals saw the movement of 17,000 TEUs (average sized containers.)

On the backhaul (containers moving from North America back to Asia), they are averaging 31.7 per cent, with some vessels up to 50 per cent.

"We can't get any more containers on the backhaul," said Krusel. "Most of the containers coming into North America are filled with lighter products such as clothing, toys and things like that. The products we are shipping out are much heavier, therefore you could not fill every container on that vessel because the product is too heavy. We have reached capacity on the backhaul."

The Port of Prince Rupert, Maher Terminals and CN opened the Fairview Container Terminal this fall. The PRPA has also filled its Environmental Assessment project description for Phase Two, which would see an additional 1.5 million TEU capacity added. The filing of the project description notifies federal agencies of the application. The next step will be for the port to see approval for its terms of reference for an environmental assessment, which will detail the areas to be studied.

In Hong Kong, Kevin Falcon outlines transportation and Prince Rupert Port plans

According to an Asian shipping industry trade paper, Seatrade Asia Online, there are moves in the works to dramatically expand the Rupert container port.

In an article dated July 3rd, the on line edition claims that the province of BC is set to dedicate 15 billion dollars to expand the Port of Prince Rupert, in a bid to become the preferred gateway to the Pacific between North America and Asia.

The article outlines how a Danish shipping conglomerate AP Moller-Maersk Group has been selected as the preferred bidder for the job to invest 650 million into the expansion plan for the facility. The estimated time of development is 2012 when the throughput will quadruple the ports capacity.

Falcon recently concluded a two week trip to Asia to highlight among many issues, the opportunities available in British Columbia for those wishing to ship their goods through the ports of the Pacific Gateway.
.
While his Ministerial website promised much in the way of details of his trip with frequent reports and photos to accompany his visit, little of actual newsworthiness seems to have been posted there in recent weeks.

The story as reported by the Asian trade paper makes for an interesting development, in that the expansion plans seem to be moving ahead quickly, while locally there has been little heard on the subject in the last few months.

What remains to be seen is whether these details as reported from an international trade newspaper turn out to be correct and a blue print of sorts, or if they were just an outline from the Minister, of what could one day come on the horizon for the Rupert port.

There is no mention of the pending project developments on the BC Transportation Ministry website or on the Port of Prince Rupert website.

As always, those of us on the shoreline wait for further details, hopefully not to have the first word of developments come from the trade papers of the world...

Targeting Asian traffic, Prince Rupert expands
Seatrade Asia Online
July 3, 2008

Vancouver: The Canadian province of British Columbia is spending C$15 billion (HK$114.74 billion) to expand its Prince Rupert port facilities in a bid to become the preferred Pacific gateway for ships travelling between Asia and North America, reports the South China Morning Post.

Using Prince Rupert can trim two days off the 12-day trip for a ship sailing from Shanghai to Long Beach. That, together with a fast and efficient rail network across the continent to Chicago, offers quicker delivery than United States ports, the British Columbia government says.

"The all-in transport time is unmatched by ports on the west coast, even the ports in Long Beach and Los Angeles," the province's Transport Minister Kelvin Falcon said. Mr Falcon was in Hong Kong last week to meet shipping companies and the Airport Authority to tell them about the expansion of airport, port, road and railway infrastructure in British Columbia.

Danish shipping conglomerate AP Moller-Maersk Group had been picked as the preferred bidder by the provincial government to invest in a C$650 million expansion plan in Prince Rupert, the minister said.

The new facility will quadruple the port's capacity to two million 20-foot equivalent units when it opens in 2012.

In the next two to three years, British Columbia is also planning a C$1.2 billion new terminal in Prince Rupert, which will double the capacity of the whole port area to more than four million teu by 2020.Currently Cosco is the port's main customer. [3/7/08]

Port merger recommendation panned by Cullen

"Vancouver sucks up a lot of the oxygen in the atmosphere as it is."— NDP Member of Parliament Nathan Cullen

In the always suspicious towns and cities of the Northwest, their Federal representative seems to have his finger on the pulse of the voters most conspiracy tainted thoughts.

Nathan Cullen, the Member of Parliament for Bulkley Valley-Skeena has added his voice to the nay column, when it comes to calls to merge the Port of Prince Rupert with the recently combined ports of Vancouver.

CFTK TV 7, reports that Cullen during the course of a media scrum today suggested that Port of Prince Rupert can stand on its own and do very well.

He was responding to the details of a report delivered in late January to Trade Minister David Emerson which provided a number of soon to be controversial options, including the merger of all ports in British Columbia under one banner.

For the Northwest, the thought of the local Port Authority being forced into a merger with the Vancouver ports is a non starter for the most part, ever suspicious that the folks in the southern reaches may not always have our best interests at heart.

It’s perhaps the easiest bit of politicking there is, with virtually no downside to coming out in favour of the home side.

Port Merger Panned
CFTK TV 7
Thursday, February 7, 2008 6:13 PM
Local News

The Northwest's Member of Parliament says the Port of Prince Rupert can stand on its own and do very well.

Nathan Cullen opposes the notion put forward in a recent report that Prince Rupert's port authority should be merged with Vancouver's.

"The idea of merging with Vancouver would I believe push many of the interests of the Northwest to the side," said the New Democrat during a weekly media scrum today. "Vancouver sucks up a lot of the oxygen in the atmosphere as it is."

Three advisors, including Prince Rupert Grain President Jeff Burghardt, called for the merger in a report to Trade Minister David Emerson last month.

The report also recommends development of container capacity in Prince Rupert before further investments in Vancouver, and numerous other changes to port governance, labour arrangements and railways it says would make Canada's Pacific Gateway trade with Asia more competitive.

Port celebreated for year of achievement

Saturday nights Chamber of Commerce awards show was a bona fide love in for the Port of Prince Rupert and its various partners.

With the Fairview Container Port the symbol of a new era for transportation on the North coast and for the Pacific Gateway, it was no surprise that the past year's events on the Prince Rupert waterfront dominated much of the night's discussion and celebrations.

The Daily News reviewed some of the highlights of the celebration of the year of the Port.

Port partners thrilled with chamber accolade
By Kris Schumacher
The Daily News
Wednesday, January 30, 2008
Page three

Prince Rupert turned the corner in the business world during the past year, and while many people were responsible for the growing prosperity of the community, one group shone brilliantly in the starry sky.

The Prince Rupert Port Authority, along with its Fairview Container Terminal partners CN Rail and Maher Terminals of Canada, were awarded Business of the Year at Saturday's Chamber of Commerce Business Excellence Awards. After being announced winners of the category, ahead of nominees the Crest Hotel and Northern Savings Credit Union, representatives from the three Fairview partners addressed the audience.

"I'd like to thank the Chamber for recognizing this as a partnership. This dream would not have occurred without that partnership," said Don Krusel, president and CEO of the Prince Rupert Port Authority.

"Without CN, we wouldn't have the corridor, and without the commitment from Maher very early in the game this facility would not have occurred."

Representing Maher Terminals Canada was Mark Schepp, assistant vice president of terminal operations, who has been heading things locally for the company since moving to Prince Rupert from his home in New York back in the middle of 2007. As excited as Schepp is about an upcoming visit from his wife, he was clearly elated at the level Maher has been embraced by the business community.

"What an honour, and on behalf of Maher we're very happy to be a part of the community here," said Schepp. "As Don mentioned our partners, I'd like to mention that an important part of what's happened here is the local labour. We don't do anything at our facility unless the men and women who walk through those gates do the work, and that's a part of this community I'd like to acknowledge."

Last on the mic was Chris Daniele, mechanical supervisor with CN Rail and the company's representative in Prince Rupert.

"I was born and raised in Prince Rupert, and I'm very proud to be a part of a project that's helping not only the economy in Rupert, but the community itself," he said. "I just want to thank everyone for their hard work in contributing to this project, and on behalf of CN, thank you."

Praise and applause for the port didn't end there, as the Prince Rupert Port Authority was also crowned Newsmaker of the Year for putting Prince Rupert in the media spotlight worldwide.
"It wasn't that long ago that we had to go through a lot of effort just to let people know where Prince Rupert was, or that the Port of Prince Rupert existed" said Krusel after taking the stage to a standing ovation.

"I still remember being in a boardroom at a shipping line in another part of the world, and we were trying to sell Prince Rupert as a future container port. And we quite literally had to get a map off the shelf to show them where it was. It's a David and Goliath story that we're able to tell, making it inviting for media all over the world to tell the story, and it's exciting to be a part of it."

Port success proves to be positive headline

The Daily News made the weekend reading an upbeat experience as they reviewed the numbers put out by the Port of Prince Rupert earlier this week.

The recitation of facts and figures was found as the headline story in Friday's paper.

BOOMING PORT ENJOYS ONE OF ITS BEST YEARS ON RECORD
By Leanne Ritchie
The Daily News
Friday, January 18, 2008
Pages one and three

The Port of Prince Rupert continued its impressive annual growth in shipment volumes, surpassing 10 million tonnes in 2007 for the first time in a decade.

The 2007 total volume cargo of 10.6 million tonnes is a 36.8 per cent increase over 2006 and a 237 per cent jump compared to 2005.

Don Krusel, president and CEO of the Prince Rupert Port Authority, said growing global demand for industrial fuels including coal and petroleum coke, continued strong markets for agricultural products, the start-up of new lines of business including containers and wood pellets, and competitive advantages of shipping through Prince Rupert were all contributing factors to the port's exceptional 2007 performance.

"While 2007 represents a significant milestone and turning point for the Port of Prince Rupert on a number of fronts, Ridley Terminals and Prince Rupert Grain continue to lead the way," said Krusel. "Both terminals continue to elevate their performances and, combined with the opening of the Prince Rupert Container Terminal and start-up of other operations such as wood pellets, have positioned us for strong growth in 2008 and beyond."

Ridley Terminals' (RTI) throughput of 5.09 million tonnes was an increase of 80.7 per cent on 2006 and 500 per cent increase over 2005.

RTI also began shipping coking coal from Alberta as well as wood pellets from Houston, B.C., through its newly-constructed facility to world markets as a biodegradable fuel and a coal substitute. Prince Rupert Grain (PRG), recognized as one of the most productive North American grain terminals, achieved in excess of five million tonnes of throughput in 2007 for the first time since 1994 and for only the fourth time since the facility was built in 1984. Shipments were up 7.6 per cent compared to 2006, and 87 per cent higher compared to 2005.

The arrival of the first container ship from COSCO on Oct. 31 at the recently-completed Prince Rupert Container Terminal, the first dedicated intermodal container facility in North America, marked the opening of a new Asia-North America express trade corridor and heralded a new era for the Port of Prince Rupert.

COSCO's weekly service moved 16,703 TEUs through the facility during the first two months of operation in 2007.

"Overall, the Prince Rupert Port Authority exceeded its throughput targets for 2007 while completing the ambitious container terminal project on time and on budget," said Dale MacLean, chair of the Prince Rupert Port Authority's board of directors. "Our focus now is to achieve full utilization of the 500,000 TEU facility and complete the groundwork to begin the construction of Phase 2 of the Prince Rupert Container Terminal by early 2009."

Port history seen through the words of a long time employee

The last day of December seems to have been the time to bring out the gather the family round the Christmas tree stories for the Daily News.

Monday’s paper featured a front page human interest story, looking at the past of the port and where it’s future may be, all through the words of long serving employee Dave Fisher.

PORT VETERAN PROUD ABOUT PAST, EXCITED BY THE FUTURE
By Kris Schumacher
The Daily News
Monday, December 31, 2007
Pages one and two

For someone who's been working as a Port of Prince Rupert employee longer than anyone else, Dave Fisher is still just as excited about his job in 2008.

Beginning with overseeing the construction of Ridley Island's water supply system in 1982 for what was then called the National Harbour Authority, to the development of Prince Rupert's Fairview Container Terminal, Fisher has seen the city through some of its best and worst times in his 25 years of employment.

"From the National Harbour Authority, we changed our name to the Prince Rupert Port Corporation, and then to the Prince Rupert Port Authority," said Fisher. "Through the years, we've gone through quite a few changes, and several general managers as well. It's a long time to be in one place, but the job is forever changing and it's always very interesting."

In the 80s Fisher was maintenance manager, and since has expanded quite a bit to encompass all maintenance and security operations, as well as managing operations for the larger vessels that dock in Prince Rupert, including summer cruise ships.

It is a large portfolio of activity to deal with on any given day, but Fisher enjoys the surprise of waking up to find out what needs to be done each new workday.

"The operations of the port are 24 hours a day, seven day a week, year-round, and in the wintertime we have more freighters and other issues to deal with, whether operations or maintenance," said Fisher. "This is also when I do a lot of the reviews of our security plans and emergency response plans to get ready for the upcoming year."

Fisher, who is also a master machinist and millwright by trade, says each facility must have their evacuation plans and fire drills reviewed and updated every year, and all changes must be approved through Transport Canada.

With some 120,000 cruise ship tourists expected this year, there's obviously a lot to plan for from an operations and security standpoint.

“It’s a big change from when I started, where there were 12 of us working in the entire operation, compared to over 30 today.” said Fisher. “It’s grown vastly. We have over 365 kilometres of coastline that we patrol. Everyone thinks it’s just the inner harbour, but we also have the outer harbour as part of our jurisdiction that we have to enforce as well.”

Fisher remembers having to use a four-by-four to access Ridley Island, due to the mud road back then. He can also recall the 1,500 - man camp for Ridley Island workers that existed during construction of the grain terminals in his first years on the job. Looking back, Fisher says a container terminal was the last thing on anyone back then for the future.

“In those days, we were only really concerned about bulk, the 50 to 100 logging trucks bringing lumber in each day and the three trains a day bringing lumber,” said Fisher. “As the saw mills kept closing down and lumber prices kept falling, we went into a long stage of dormancy where nothing happened. But with the container terminal, we’ve been slowly making our way back up, and there’ll be quite a number of spin-offs to benefit everybody,”

Looking back at his tenure with the port and the many projects he oversaw in his 25 years working in Prince Rupert , Fisher is thankful for one thing above all others.

“My wife Jeanie is the biggest reason for any success I’ve had,” said Fisher. “She’s the rock that keeps me grounded, along with my kids. Without the support of family, it doesn’t work.”Going into his 26 year with the port, and approaching his 50th year as a resident of Prince Rupert, he still isn’t sure what the distant future holds. But with another exciting year of work ahead of him, and soon toe be a grandfather for the first time, 2008 looks to be another great year for Dave Fisher.

A tale of two ports

While Prince Rupert prepares to receive the first container ship at the new Fairview Container port in late October, across the continent they're bemoaning the decline of shipping at one of Eastern Canada's longtime ports.

In an Editorial page piece, the Halifax Chronicle Herald traces the decline of shipments from their container port, which is losing traffic to Montreal and the US Eastern seaboard, a fact that they suggest has not been lost on CN Rail, given their support and investment in Prince Rupert.

It's an interesting look at how trade patterns can change quickly in these modern times, where one day a port can be rendered to a back up role, seeking out a new markets and a new purpose all due to the whims of a change in the trade winds.

So much for new strategy

Halifax Chronicle Herald

Editorial Page

September 30, 2007

WHAT’S MOST galling about the Port of Halifax’s stagnation is the fact it comes when other ports are booming.

Halifax continues to lose business to ports in Montreal and along the U.S. Eastern Seaboard. The most recent figures show container cargo through the port was down nearly three per cent in the first six months of this year. (Halifax’s two existing container terminals are sitting idle almost half the time.)

Many promoters hoped Halifax could be the North American launch point for cargo coming from China and India through the Suez Canal, to avoid the backlogs building on the West Coast.

Since there’s plenty of overcapacity at the Halifax terminal, there is little wonder the Crown agency has been focused on China as the solution to the dwindling containers being unloaded in Halifax.

Unfortunately, this hasn’t happened. Even annual container cargo growth of three to four per cent, considered to be industry norm, isn’t happening in Halifax. So what is the Halifax Port Authority doing?

The Halifax Port Authority was born under disgraceful circumstances back in 1999, a creation of former prime minister Jean Chretien, who stacked the board with well-connected Liberals.

Sure, there’s lots of travel to be had. In its most recent semi-annual report, it noted officials travelled to 12 countries trying to sell the Port of Halifax.

It’s tempting to blame the patronage-ridden board for the lack of business being attracted to the port. But the fact is, Halifax is experiencing a tectonic shift in global trade – a shift to the other side of the world.

Earlier this month, a new container terminal on the West Coast opened; it basically circumvents any cargo coming to Halifax from Asia. The Prince Rupert terminal has become the Gateway for Pacific trade, reducing shipping times between Asia and Chicago by two days.

Last week, at the annual Halifax Port Days conference, a senior representative with CN Worldwide, Paul Tonsager, said Halifax needs to change its marketing strategy and not focus on China. Halifax faces several hurdles in attracting cargo business from Asia, including the long distance and lots of competition for China’s business. Plus, it’s getting more expensive to do business there, he said.

Mr. Tonsager described containers coming to Halifax from China as "a stretch."
CN knows this. The proof is it invested $25 million in the Prince Rupert terminal, not in Halifax.

The end of the Port's perfect day

Through the wonders of YouTube, a local resident has posted some pretty impressive samplings of Wednesday nights Grand Finale to the Port of Prince Rupert's Big Day...

Shipping line looking forward to calling on Rupert

COSCO, the China Ocean Shipping Company is getting ready to call on the “major new gateway” of Prince Rupert, taking advantage of the reduction in transit time and less congestion that the Port of Prince Rupert will offer.

Having signed a contract with the Port and Maher Terminals to utilize 25 per cent of the port’s annual capacity they are considering their options to secure more capacity as the port grows, in fact they have first refusal on any new capacity based on the ports anticipated growth.

The shipping company outlined the advantages of the Port in an article in Logistics Management, a trade paper for the world of shipping. The article was posted on the magazines website today.


COSCO ready to launch service at Port of Prince Rupert
Jeff Berman, Senior Editor Logistics Management

August 17, 2007


SECAUCUS, N.J.—The China Ocean Shipping Company (COSCO) said earlier this month that beginning during the fourth quarter of this year it will begin calling Maher Terminals new container terminal at the Port of Prince Rupert in British Columbia, Canada.

The company said it is the first ocean carrier to officially sign up with the Port of Prince Rupert, and it will provide shippers with “a major new gateway to and from the West Coast of North America and Asia,” as well as alleviate the congestion experienced by virtually all United States West Coast ports.

A COSCO spokesman told Logistics Management this initiative is a cooperative effort between Maher Terminals, the Port of Prince Rupert, and the Canadian National Railway Company (CN).
“[COSCO] have secured 25 percent of the port’s annual capacity, and have first refusal on new capacity as the port grows,” said the spokesman.” He added that importing and exporting out of the port is not new to COSCO, as they have been calling the break-bulk terminals there for several years.

Railroad collaboration:Under the terms of COSCO’s partnership with CN, the carriers will provide rail service from Prince Rupert to several North American-based markets, including Chicago, Memphis, Nashville, Detroit, Toronto, and Montreal, according to the spokesman. A COSCO statement added that this railroad partnership was created to give shippers access to CN’s on-dock, high-capacity, double-stack rail network.

According to an article in the Memphis-based Commercial Appeal published in March, CN has invested approximately $140 million in port facilities in Prince Rupert, which will provide shippers with a shorter route across the Pacific Ocean and less congestion when moving freight into various North America markets. The article added that CN expects to be annually transferring 500,000 TEUs from ships docked at Prince Rupert.

Transit time reduction:COSCO added that the port provides exporters and importers with the shortest route between Asia and North America and North America’s deepest port, with a 1,295-foot berth and a 55-foot draft at mean low water (MLW).

The spokesman pointed out that this “shortest route” is in regards to the shortest time to market, as opposed to sea miles/ocean transit times.“

Shortest time to market is the true measure for shippers,” said the spokesman. “ At issue is how the lack of congestion at Prince Rupert speeds getting containers in and out of the port. The congestion in Southern California is well documented, after that it’s just a question of doing the math. Time saved for delivery to many Mid West destinations can be 2-3 days faster than when containers are delayed by the congestion in Southern California.”

Along with avoiding the congestion of West Coast ports, other benefits for shippers exporting and importing out of the port, said the spokesman, include new, higher capacity equipment, and quicker clearances. He also noted that the Port of Prince Rupert is strictly intermodal, eliminating any gate congestion.

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."

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.