Welcome Back, Stelco

[StEC]

Really hope we get a shipping container cargo port and looking forward to many more movie studios setting up shop here. We really are becoming quite the film & TV production city!

[ScreamingViking]

Container shipping on the Great Lakes is still a very uncertain proposition, IMO. The economics of it aren't great, though it may work for specific cargoes. There are not enough domestic shipments to make intra-Seaway container freight viable, and it would be competing with trucks and trains -- both are much faster and there's a larger "last mile" issue for marine shipping, adding time to transfer cargo between modes... the goods have to get to the port from the producers or from the port to customers. International shipments either have to be transferred from larger ships to lakers at ports like Montreal, or travel on smaller ocean freighters that can transit the St. Lawrence Seaway, which tends not to be as efficient for global trade; again the truck and train services are faster and handle the last mile problem more readily, so it makes more sense to transfer the containers to those modes once at the port of entry instead of having a second transfer in Hamilton.

Best bet is to develop a niche and try to grow it over time, as they have been trying to do (just with scrap metals between here and Montreal, so far... not sure that service still runs but it was on a limited basis). A small container facility may be worthwhile, or at least protecting pier-side land for one by giving it a complementary use for a while. But I think bulk goods are by far still going to represent most of the tonnage in Hamilton. I expect to see some inter-modal facilities that handle more bulk goods as part of this development, taking advantage of the confluence of the harbour, rails, and roads.


We've talked here about how Barton St. has languished. Having another 20,000+ people working not far north could be a big shot in the arm for the closest "commercial" street. There would need to be a lot of residential revival too for that to happen, but removing more of the heavy industry will make those north-end neighbourhoods much more attractive and a portion of those eventual thousands of workers will want to live closer to their jobs. The currently vacant or underused industrial properties between Burlington and Barton streets will become more attractive to businesses as well, many that have linkages to whatever locates on the Stelco lands, adding to the spin-off effect for commerce, retail, and services in the lower city. This could change not only the city's economy, but its urban fabric.

[ericmacm]

Massive news and fantastic to see. Industrial space is in very high demand in the GGH, so I will imagine that this will start to fill in pretty quickly once remediation/environmental work comes to a close. I also hope it will see lots of varied industrial uses and not just become a warehouse area, it'd be nice to see a mix of fabrication, logistics/shipping and film/TV uses. I'm also very excited for the implications of cleaning that area up too and what it will do for Hamilton's image.

I honestly think the 2020s are going to be one of the best decades for Hamilton with everything coming down the pipeline.

[ScreamingViking]

Uncertainty about when the death knell will toll for the coke facilities. I don't doubt it will happen at some point.

The conceptual image shows a slightly wider angle than the version on the previous page of the thread.


Does Stelco land sale mean the end is near for polluting coke plant on Hamilton’s bayfront?
A public lease agreement appears to show Stelco’s aging bayfront coke plant could be gone by 2029. But the steelmaker says it has ‘no plans in place’ to stop baking coal in Hamilton any time soon.

https://www.thespec.com/news/hamilto...ront-land.html
Free link: https://12ft.io/proxy?q=https%3A%2F%...ront-land.html


By Matthew Van Dongen
The Hamilton Spectator
Tue., June 7, 2022






A lease agreement filed by Stelco appears to suggest the steelmaker could demolish its most polluting Hamilton facility — a coal-baking coke plant — within seven years.

A summary of a five-year lease for the bayfront “battery” of coke ovens, plus a single optional two-year extension, was filed June 1 on Ontario’s land registry as part of Stelco’s historic sale of 800 acres of land to Slate Asset Management.

The steelmaker’s own press release says it must “vacate and demolish” buildings at the end of its various leases.

But Stelco spokesperson Trevor Harris said via email the steelmaker “has no plans in place” to stop making coke at the plant. He said the lease document, which is signed by officials from Stelco and its new landlord, was “filed in error” on the publicly accessible land registry.

Harris did not respond to questions about how long Stelco wants to keep the aging coke ovens in service, whether they could be relocated or if a longer lease is under consideration. A separate operating agreement filed to the land registry, however, suggests it is possible for the coke battery lease to be “amended, extended or restated” in future.

The fate of the plant is “hugely significant” to city residents, said Environment Hamilton’s Lynda Lukasik, because its closure would signal the looming end of more than a century of coal-fired pollution on Hamilton’s bayfront.

Bayfront neighbour ArcelorMittal Dofasco also uses vast amounts of coal to make steel — but it has already publicly vowed to stop doing so by 2028, if not sooner, as part of a “green steel” transition funded in part by taxpayers.

Stelco announced the massive sale of its mostly vacant Hamilton port lands to Slate June 1 — along with plans to lease back 75 acres of land needed to continue steel finishing and coke-making operations that still employ 914 people.

Stelco’s announcement specified it is leasing back cold rolling and galvanizing operations for 35 years to start — with multiple 20-year renewal options. “We look forward to continuing to operate in the community that we have called home for over 100 years,” said Stelco CEO Alan Kestenbaum in a release.

But land registry records obtained by The Spectator show shorter proposed leases for both the company’s head office and Stelco’s last remaining Hamilton coke plant, where coal is baked at high temperatures in a battery of 83 ovens to make the high-carbon coke used in traditional steelmaking.

Slate also released conceptual art of its proposed redevelopment of the Stelco lands that did not include any visible smokestacks for the current coke plant operations. Via email, the developer called the rendering “aspirational” rather than literal and added it does not have a confirmed end date for coke-making that it can share.

Slate did not respond to specific questions about the lease agreement.

The prospect of ending coal use on the waterfront is tantalizing for anyone breathing the air downwind of the two steelmakers, argued Lukasik.

Aging coke plants at both steelmakers are responsible for much of the carbon emissions and cancer-causing benzene and benzo(a)pyrene pollution in Hamilton — not to mention occasional fallouts of “black snow” on homes near the industrial northeast and along the beach strip.

“The sooner these players can transition away from coal in a climate emergency, the better,” said Lukasik.

The suggested lease deadline is “concerning” for the 150-plus unionized workers who run the coke plant and related equipment, said United Steel Workers Local 1005 president Ron Wells.

Wells said he had not previously seen the proposed lease agreement, but has heard from some workers worried about the concept art that appears to not include the coke plant.

“We’ll want to get more information about plans for the site, for sure,” he said, noting the union is in contract talks with Stelco now. “We will always fight to protect jobs for our members.”

But Wells also said he believes Stelco still relies heavily on the coke produced in Hamilton.

Stelco finishes steel in Hamilton, but no longer manufactures it on the city bayfront. Instead, Hamilton Hilton Works produces coke that is shipped to the company’s integrated mill on Lake Erie, which has undergone nearly $300 million in upgrades in recent years.

The coke is used in a blast furnace at Lake Erie to make iron, and then steel — some of which is then sent back to Hamilton for finishing.

[Innsertnamehere]

I mean the 75 acres lease-back doesn't include the Coke Ovens, only the Galvanizing Line.. so to me that suggests that yes, Stelco will indeed be closing up and demolishing their Coke operations.

I strongly suspect Stelco is trying to dodge the shutdown press here with those statements until they can properly manage the PR around it, and that it was not intended to be released news as a part of the sale. They are just trying to cover their asses until they can formalize it and send out the news in a pretty PR package.

I suspect they will keep operating for a few years as Slate builds out the rest of the site, but eventually they'll shut down.

[ScreamingViking]

I was in the yard watering some plants this morning and heard a big BOOM! Initially thought it had come from the west of the house, toward the CP rail yard, and the thought crossed my mind that a tanker car carrying something hazardous had blown up... but this must have been the source.

When I drive home across the High Level Bridge the sprawling shorefront industrial complex that was the "original" Stelco has been looking more and more sparse.


Last Stelco blast furnace demolished on Hamilton bayfront
The towering structure was felled by a controlled explosion just after 9 a.m.

By Matthew Van Dongen
The Hamilton Spectator
Wed., Aug. 17, 2022

https://www.thespec.com/news/hamilto...-bayfront.html
https://12ft.io/proxy?q=https%3A%2F%...-bayfront.html


• Video Link


Goodbye Big “E” — it was a blast.

The last Stelco blast furnace in Hamilton was demolished Wednesday using a controlled explosion that cut out the supports under the towering steelmaking relic that dominated the western bayfront skyline for more than half a century.

A massive boom that echoed around the harbour was followed by a slow collapse of the roughly 200-foot-tall “E” blast furnace built in 1968 on Pier 16.

Hamilton police warned the public early this morning about what was expected to be a “very big and very loud” explosion. The new owner of the former Stelco lands and blast furnace, Slate Asset Management, worked with Stelco and a contractor on the demolition.

...

[ScreamingViking]

Putting this here out of convenience, since it's near the Stelco lands


Federal government funding new steel-handling facility at Hamilton port
Rail transloading facility at Pier 15 will eventually allow more finished steel to travel by rail.

https://www.thespec.com/news/hamilto...lton-port.html


Matthew Van Dongen
The Hamilton Spectator
Wed., Nov. 9, 2022

New federal funding for a rail “transloading” facility will help move more steel through Hamilton’s busy port — and cut carbon pollution along the way.

Liberal Transportation Minister Omar Alghabra was in Hamilton on Wednesday to announce nearly $5 million for a 60,000-square-foot, indoor rail transloading facility at Pier 15, not far from the ongoing Randle Reef pollution capping project.

The government said the $10-million facility is meant to “relieve supply-chain congestion” at the Hamilton-Oshawa Port Authority, which is the largest transportation gateway for finished steel in Ontario.

...

[Innsertnamehere]

I noticed this week they were demolishing more of the main Stelco building along Burlington St. Appears to be mostly the western end of the building which I believe falls on Slate's lands now.

Also - Slate won an award for this sale:

https://www.costar.com/article/13755...ndustrial-park

Slate Asset Management Decision To Buy 800 Acres Sets Stage For Massive Industrial Park
Sale/Acquisition of the Year for Toronto


Slate Asset Management's $518 million purchase of 800 acres in Hamilton, about 65 kilometres southwest of Toronto, establishes plans to create a massive industrial park on land once owned by steel producer Stelco.

The June 2022 transaction at 386 Wilcox St. earned a 2023 CoStar Impact Award for the sale/acquisition of the year in Toronto, as judged by real estate professionals familiar with the market.

“I understand firsthand the history and significance this site has had in the Hamilton community and in broader Ontario for well over a century,” said Blair Welch, founding partner at Slate, who grew up in the area, in a statement.

The site is located at the western end of Lake Ontario within the Golden Horseshoe, an industrialized region of nearly 10 million people surrounding the city of Toronto, which accounts for 20% of Canada’s GDP.

The area has strategic access to major U.S. markets, with a population of 130 million people within a 500-mile radius, and also includes on-site railways, deep water ports and access to the Atlantic Ocean via the St. Lawrence Seaway.

According to data from EY, Slate’s planned redevelopment could create up to 23,000 unique jobs across the Greater Toronto and Hamilton Area and inject up to $3.8 billion into Ontario’s economy.

Slate began conversations to acquire the site at the end of 2020 when many investors were slowing down as global markets were thrown into a state of paralysis by the outbreak of the COVID-19 pandemic.

The site, which Stelco had occupied for close to a century, was underutilized, with only a tiny portion of the land and buildings actively used for production, while the rest sat derelict.

Slate negotiated a long-term sale-leaseback with Stelco comprising 75 acres of land and 2 million square feet of buildings for 35 years. As part of this process, Slate had to work closely with Stelco to ensure that its operations could continue effectively during the interim and throughout the site's redevelopment.

About the Project: Slate envisions a complete reimagining of the site with redevelopment bringing new industry to Hamilton and supplementing traditional steelmaking jobs with more advanced manufacturing and logistics opportunities that will provide high-quality employment and be more symbiotic with the surrounding neighbourhoods.

What the Judges Said: "The impact of this acquisition will continue for years. There is plenty of risks associated with the acquisition. The site has multiple challenges/opportunities," said Keith Reading, senior director of research at Morguard.

They Made It Happen: Blair Welch, founding partner of Slate Asset Management. Brady Welch, founding partner of Slate Asset Management. Scott Antoniak, managing director of Slate Asset Management. Doug Podd, managing director of Slate Asset Management. Steven Dejonckheere, senior vice president of Slate Asset Management. Alan Kestenbaum, Executive Chairman, Chief Executive Officer of Stelco Holdings.

[ScreamingViking]

Originally Posted by Innsertnamehere

I noticed this week they were demolishing more of the main Stelco building along Burlington St. Appears to be mostly the western end of the building which I believe falls on Slate's lands now.

It was this one, right? One of the long buildings, the one with the darker roof? https://goo.gl/maps/tnsD9bYsgeUvrZr26

I haven't driven past Gage recently until this evening, and I looked over as I was going by and both ends of it were wide open.

It appeared they were also doing something to the south end of the one immediate east of it, closer to Industrial Drive just before it curves and rejoins Burlington St. at the Wilcox overpass.

Those are some long-ass buildings!

[King&James]

Slate Asset Management has unveiled what it calls a “preliminary vision” for its 800-acre industrial redevelopment property on the Lake Ontario waterfront in Hamilton, which will be known as Steelport.

From Renx

https://renx.ca/slate-unveils-prelim...lton-steelport

[Innsertnamehere]

[King&James]

Thanks for pulling off the renders, interesting that the plan includes waterfront trails and public space. That seems promising.

[akiraredacted]

Are the plazas... boats? That's interesting for sure

[King&James]

[QUOTE=Innsertnamehere;9945302]




the future is near

[ShavedParmesanCheese]

Originally Posted by akiraredacted

Are the plazas... boats? That's interesting for sure

It is said that when filling in the harbour, they used the hulls of old vessels to make the retaining walls. It's a very nice touch

[akiraredacted]

It's going to be so wild looking back on how the harbour used to be when this is finished

[Crapht]

That’s a massive plan and a very exciting one. New public access to the waterfront essentially doubling the length of the trail at west harbour. That’s a game changer for me. Stipley and Keith are nearby with plenty of potential development properties for residential. I wonder if there is some plan (other than climate change) to keep the canal and harbour open year round for shipping.

[Innsertnamehere]

They don't typically bother with the Canal as Lake Erie usually freezes over in the winter, restricting access to the western lakes.

If they limited access to Lake Ontario it may be possible, as it typically doesn't freeze, but even then they would need some large icebreaker operations through the canal itself. And given that the Port of Hamilton is the only real major port on Lake Ontario.. I'd be surprised if they thought it was worth it.

[TheRitsman]

My understanding is that HOPA was eyeing 12 month operations of ships.

[ScreamingViking]

Originally Posted by TheRitsman

My understanding is that HOPA was eyeing 12 month operations of ships.

Presumably just to/from Montreal and beyond, given Erie's ice conditions as noted by Innsertnamehere. Though it would require some icebreaking in the harbour, the ship channel, and probably along portions of the St. Lawrence... I don't know what freezes, given that it's a big river with strong flow; though I imagine those Seaway locks are closed during winter for maintenance, just as the ones along the Welland Canal are, which would limit shipping. Perhaps some operations within the harbour could still be maintained so ships are ready to go when things open up.

I love the harbourside paths and public amenities. Whether container shipping will be a busy activity remains to be seen, and based on the market for it. But it's a good goal. I just hope this isn't largely dominated by warehousing and storage tanks... it would be nice to see some manufacturing or processing that requires marine transportation and generates more employment.

This change could be a boon for the neighbourhoods to the south that really suffered when heavy industry shrank or closed up altogether.