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Shodan
Sep 12, 2007, 12:42 PM
New B.C. port boosts city's role as Asian gateway
Capital region to become marshalling centre for goods en route to U.S., Central Canada

David Finlayson
The Edmonton Journal

Wednesday, September 12, 2007

http://a123.g.akamai.net/f/123/12465/1d/media.canada.com/idl/edjn/20070912/33668-11118.jpg

Capital region to become marshalling centre for goods en route to U.S., Central Canada


PRINCE RUPERT - The $170-million investment is modest by the standards of Alberta oilsands projects.

But in Prince Rupert, B.C. -- whose economy has long been as gloomy as the thick fog that rolls in from the Pacific -- the container port that opens today is literally a lifesaver.

"I can't put it into words what it means to get to this point," says Don Krusel, CEO of Prince Rupert Port Authority. "It's been such a long journey and there have been such small milestones along the way, it seems almost surreal.

"When I was down at the terminal (three weeks ago) and saw those giant container cranes for the first time, it was overwhelming," says Krusel, who celebrates 20 years with the authority later this year.

Only five years ago this port, 1,460 kilometres northwest of Edmonton, was on the rocks. It had lost its vital pulp business to container facilities in Vancouver, and its lumber and coal volumes had declined alarmingly.

"We were looking death in the eyes," Krusel recalls.

Now, the Fairview container port is being talked up as the biggest thing to hit northwest B.C. since the railway reached the West Coast. Today's opening ceremony is expected to draw business leaders and politicians from the many communities that have a stake in the venture's success.

The list is long. It includes Chicago and Memphis, key centres on Canadian National's connection to the U.S. heartland; New York, home of Maher Terminals, which invested $60 million in the project; China, which will be a critical first user of the port; B.C. communities such as Prince George and the Tsimshian First Nations.

And it will benefit Canada's Pacific Gateway, especially Edmonton, Krusel says.

To mark the significance of the terminal to the city, Mayor Stephen Mandel leads a large Edmonton contingent flying out this morning and returning tonight.

CN's Edmonton container yard will be the main marshalling centre for huge trains of containers taking goods from booming Asian markets to the U.S. heartland and Central Canada.

Not only will communities along the corridor benefit from incoming container traffic, there is a new opportunity to fill empty containers going the other way, Krusel says.

"Our relationship with Edmonton is very important in the development of two-way trade. We have a tsunami of trade coming from Asia, but we don't yet have the same volume to go back."

He's confident it will come, and points to CN's specialty grain centre in Edmonton and other centres in northern Alberta and B.C. that can send forest products and other manufactured goods to Asia at more favourable shipping rates than in the past.

Traffic back to Asia is already higher than expected, and the first container ship from China doesn't hit Prince Rupert until the end of the month, Krusel says.

CHANGE THE FACE OF WEST

Former Alberta highways minister Walter Paszkowski, now economic development officer for Grande Prairie County and the province's representative on the port authority board, says the project will change the face of Western Canada by creating a whole new economic stream.

And major centres such as Edmonton and Prince George won't be the only beneficiaries, he says.

"There's a big need for container service to outlying areas. We're trying to get a satellite depot in Grande Prairie so some of our companies can take advantage of export opportunities.

"The exciting part is that Phase 1 is on budget and on schedule. That's a good indication of the quality of the planning that's taking place."

Like Krusel, Prince Rupert Mayor Herb Pond can't believe it's finally happening.

"It's hard to put into words how important it is. We've been working on this for so long, and it's going to bring a major shift in economies for the whole corridor."

It will bring family-supporting jobs to a community that desperately needs them, and the city is already seeing a stream of investors interested in the area, he says.

"Two years ago you had to explain where Prince Rupert was. Now shippers around the world know all about us."

If things unfold according to the grand plan, with the $600-million Phase 2 due for completion in 2011, the Fairview terminal would eventually rival Vancouver and Seattle-Tacoma's vast container complexes, but without their transportation bottlenecks.

And with the first phase expected to hit capacity by this time next year, Krusel is confident it will happen. But just getting to this point has been a stormy trip, he says.

"People said we had a snowball in hell's chance of building a container port in such a remote area with no local market.

PHENOMENAL ADVANTAGE

"But we have a phenomenal geographic advantage. We are the shortest land and sea route to and from North America, we have a safe deep-water port, and we have a railway line that's only running at 15 per cent of capacity."

Still, it took a breakdown of the whole North American West Coast container port system during the initial flood of Chinese goods in 2001 for people to start looking for alternatives.

Krusel says B.C. Premier Gordon Campbell, then Opposition leader, was a key driver. He promoted Prince Rupert nationally and internationally, and people began to take notice.

Maher Terminals and CN came on board, the provincial and federal governments promised money, and the pieces came together much more quickly than anyone expected.

"We are celebrating the opening Wednesday, but in reality it's much bigger than that." Krusel says. "We've created a whole new business model for container ports.

"It's not just a transportation infrastructure but a transformation infrastructure."

BY THE NUMBERS

- Prince Rupert is 30 hours closer to key Asian markets than any other West Coast North American port, and has the deepest harbour on the continent.

- The Fairview container port's $170-million first phase, which opens today, can handle the equivalent of 500,000 standard, six-metre-long containers a year.

- The $600-million Phase 2 will bring capacity to two million containers by 2011, doubling to an expected four million by 2020 -- just a million short of Vancouver's expected capacity that year.

- The three giant cranes that will load and unload the ships each weigh 1,800 tonnes and soar 30 storeys.

Journal Staff
© The Edmonton Journal 2007

Copyright © 2007 CanWest Interactive, a division of CanWest MediaWorks Publications, Inc.. All rights reserved.

Blue_Cypress
Sep 12, 2007, 1:36 PM
I liked having to explain where Prince Rupert was.

Coldrsx
Sep 12, 2007, 4:20 PM
Edmonton is positioned very very well for this.

brento79
Sep 12, 2007, 4:49 PM
Edmonton is positioned very very well for this.

Now let's hope the city of Edmonton and companies doing business here take our physical location and dublicate the business position. They are doing fairly well so far, but hopefully the general public is made aware of the potential.

Still think we need to combined air into the Edmonton port more.

Coldrsx
Sep 12, 2007, 4:50 PM
^port alberta at the YEG needs to go NOW!

CanadianCentaur
Sep 12, 2007, 5:11 PM
Looks like Rupert's in for a lot of growth down the road! I've noticed that in mls.ca that housing prices are already climbing quite a bit.

Grande Prairie's pretty well positioned for this as well, if they can get container depot up there going again (it was apparently stalled especially after CN took over the rail line from GP to Dawson Creek, which is pretty strange, IMO).

I'd love to see Port Alberta cashing in on the Port of PR boom - the sooner the better. Same goes for YEG.

Riise
Sep 12, 2007, 9:40 PM
This is a wonderful and very ambitious project; it's good to see some proactiveness and drive. However, I have a few questions:

1. Is the time advantage still maintained when you take into consideration the Northern locations of the Seaport, Prince Rupert, and Intermodal/Warehouse hub, Edmonton?
2. Although "smaller" companies or those being pushed out of ports in Vancouver, Seattle, and Portland, may flock to the cheaper alternative in Prince Rupert will the others who are willing to pay for premium port fees too?
3. Will it suffer from the Apple Dilemma? Initially it can provide alleviation but will it too become congested?

The people behind the project seem quite confident and if they can produce the numbers they are talking about that is really commendable! Especially if they pry people away from Vancouver and Portland/Seattle, bravo! Things look promising too!

murman
Sep 12, 2007, 9:55 PM
New B.C. port boosts city's role as Asian gateway
Capital region to become marshalling centre for goods en route to U.S., Central Canada

David Finlayson
The Edmonton Journal

Wednesday, September 12, 2007

"Our relationship with Edmonton is very important in the development of two-way trade. We have a tsunami of trade coming from Asia, but we don't yet have the same volume to go back."

He's confident it will come, and points to CN's specialty grain centre in Edmonton and other centres in northern Alberta and B.C. that can send forest products and other manufactured goods to Asia at more favourable shipping rates than in the past.


It is this particular aspect of the back-and-forth that will determine to what extent Edmonton will benefit.

Shodan
Sep 13, 2007, 12:46 PM
Port opening a great day for Canada: Campbell

David Finlayson
edmontonjournal.com

Wednesday, September 12, 2007

PRINCE RUPERT - B.C. Premier Gordon Campbell Wednesday called the opening of the $170 million Prince Rupert container port a great day for the community, the province and Canada.

He said people will look back in 50 years the same way we look back now at the St. Lawrence Seaway, which is a half century old.

But it wouldn't have been possible without the determination of the people of Prince Rupert who "had the vision to say this is what we can do," Campbell told an audience gathered in the shadow of the three gargantuan cranes that will unload containers full of goods from Asia bound for continental North America.

He also said the project's first phase, which initially will handle containers from China's Cosco container company, shows the power of partnerships between First Nations, the private sector and governments.

The new port, and future expansions, sit on Tsimshian First Nations land., and Maher Terminals, CN and the B.C. and federal governments are major investors.

"The partnership will grow and expand to Japan and Korea, and I can feel today that we are sitting here at a historic time as we open the door to the Pacific world."

The port and the province welcome their friends in Chicago, Memphis, Saskatoon and Edmonton to be part of the economic growth, Campbell said, adding "we are going to create magic for the whole country."

The large Edmonton delegation here for the opening certainly expects some economic magic.

Mayor Stephen Mandel had to cancel his trip at the last minute but said in a video message Edmonton sees a great future working with Prince Rupert.

The city is facing tremendous growth and sees itself as one of the main links between North America and Asia, he said.

Edmonton Economic Development Corp. vice-president Myron Borys said Edmonton is the first major stop en route to anywhere in North America.

"But we don't want containers just flying by at night while we're sleeping with no value to us. We've been pro-active in contacting shipping companies to make them aware of what we can offer in terms of infrastructure, and the opportunities to repackage and trans-ship goods."

EEDC also sees an opportunity for large retailers such as Wal-Mart to build large distribution centres in the area to take advantage of the new container service, he said.

Chamber of Commerce chairman Greg Christensen said the port is a key in the organization's goal to make Edmonton a major transportation hub.

"It's critical to the sustainability of communities in the long-term so we're not always relying on oil with its up and down cycles."

"It's not just about making Edmonton succeed, it's about the long-term benefits for all the communities on the corridor."

The port is a key link in the development of a transportation corridor through Edmonton to the prime U.S. distribution centres of Chicago and Memphis via CN's network. Prince Rupert is 30 hours closer to Asia than all the other North American West coast ports, which are often gridlocked by the increasing volume of container traffic.

The container terminal's first phase is expected to hit its capacity of 500,000 TEUs, or 20-foot equivalent units, by this time next year. The $600 million second phase, slated for completion by 2011, will quadruple capacity.

The ceremony included the signing of a friendship agreement between the Prince Rupert Port Authority and representatives from Ningbo, China's fourth largest port by volume and the country's state-of-the-art container handling centre.

Vancouver-based singer and musician Jim Byrnes paid a musical tribute to Chicago and his home town of Memphis.

© Edmonton Journal 2007

Copyright © 2007 CanWest Interactive, a division of CanWest MediaWorks Publications, Inc.. All rights reserved.