In a very quick turn around time for Government, the feds have allowed RTI to borrow the necessary funding for their proposed expansion plans from the capital markets. This enables the company to proceed with their ambitious expansion programme that was instigated by the upturn in export figures and the new five year contract with an American mine. Turnover is expected to double over the next five years and with the refurbishment of existing equipment and the installation of a brand new docking facility, their will be an immediate benefit in contruction employment followed by an estimated 50 new full time jobs.
This announcement comes only two weeks after the Port of Prince Rupert announced that First Nations agreements have been signed and construction of phase two of the port will begin in 2012.
At the rate these positive announcements are being made I will probably be updating this blog daily. If you have yet to buy property in Prince Rupert or Port Edward I suggest you get a move on. 250-622-8546 gets you access to every residential and commercial listing.
Thursday, March 31, 2011
Friday, March 25, 2011
Federal budget failure may impact Ridley Island expansion plans
The federal budget released on March 22 proposed financial support for the expansion of Ridley Terminals Inc, allowing it to borrow from capital markets to fund its expansion plans.
But those plans may be put on hold for the time being if opposition parties defeat the budget in the House of Commons this week, which would trigger an election.
It doesn’t look promising. All three opposition parties have already expressed opposition to the budget, citing shortcomings on a variety of issues. “Overall, it was a net disappointment,” said Skeena-Bulkley Valley MP Nathan Cullen in a teleconference with reporters Tuesday afternoon. “I think an election is definitely on its way.”
A non-confidence motion will be introduced in the House of Commons Friday afternoon (eastern time), which will probably cause the government to fall and trigger an election. The budget bill would die on the floor.
But not everyone wants that to happen. Bud Smith, chair of Ridley, supported the budget, especially its reference to “approval for the borrowing that is critical to our expansion plans.”
In an email to Muskeg News, Smith didn’t say the budget’s defeat would stop expansion at Ridley. But he said the defeat wouldn’t help with expansion.
“Clearly not passing the budget won’t help RTI create its new capacity and add additional jobs that new capacity will bring to Prince Rupert,” Smith wrote.
Smith’s email also said four government ministers are working with Ridley today to try and get the borrowing approved before an election begins. “If their efforts prevail RTI will move ahead as scheduled,” he wrote. “If not then not passing the budget will hurt RTI and all who depend on RTI.”
There is work being done without the help from the budget, however. Smith wrote that engineers are continuing their design work, and the company is also buying a new replacement dumper system, which will be installed this December. Ridley will pay for the dumper through its own cash flow, he wrote.
Ridley Terminals is a Crown Corporation under broad policy direction from the government of Canada. It operates as a commercial entity through revenue received from its shipping activities. Although revenue has been increasing steadily, government contributions of $8.1 million and $1.8 million were provided in 2005 and 2006 when the corporation could not meet its financial operating requirements.
Things appear to be getting better, however. Throughputs at the terminal reached record levels in 2010, and are expected to increase in coming years with continued growth of the coal market.
According to data from the Prince Rupert Port Authority, Ridley shipped over 8 million tonnes of throughput in 2010, most of it coal. And, at the end of January, the terminal signed a contract with Arch Coal, based in St. Louis, to ship at least 2 million tonnes of coal each year until 2015. The Arch contract will contribute to expansion plans that have been in the works for the past few years.
According to a press release from August 2010, RTI is currently undergoing improvements to its facility and equipment to better meet customer demand.
Ridley Terminals ships metallurgical and thermal coal, as well as other bulk commodities. It operates 24 hours a day on land leased from the Prince Rupert Port Authority. The terminal has an annual shipping capacity of 12 million tonnes, and the possibility for expansion to 24 million tonnes. The terminal uses a computer-based technology for rail car unloading, product storage, and vessel loading.
~Written by Liz Williams, with files from Chris Armstrong. Story first appeared at www.muskegnews.com
But those plans may be put on hold for the time being if opposition parties defeat the budget in the House of Commons this week, which would trigger an election.
It doesn’t look promising. All three opposition parties have already expressed opposition to the budget, citing shortcomings on a variety of issues. “Overall, it was a net disappointment,” said Skeena-Bulkley Valley MP Nathan Cullen in a teleconference with reporters Tuesday afternoon. “I think an election is definitely on its way.”
A non-confidence motion will be introduced in the House of Commons Friday afternoon (eastern time), which will probably cause the government to fall and trigger an election. The budget bill would die on the floor.
But not everyone wants that to happen. Bud Smith, chair of Ridley, supported the budget, especially its reference to “approval for the borrowing that is critical to our expansion plans.”
In an email to Muskeg News, Smith didn’t say the budget’s defeat would stop expansion at Ridley. But he said the defeat wouldn’t help with expansion.
“Clearly not passing the budget won’t help RTI create its new capacity and add additional jobs that new capacity will bring to Prince Rupert,” Smith wrote.
Smith’s email also said four government ministers are working with Ridley today to try and get the borrowing approved before an election begins. “If their efforts prevail RTI will move ahead as scheduled,” he wrote. “If not then not passing the budget will hurt RTI and all who depend on RTI.”
There is work being done without the help from the budget, however. Smith wrote that engineers are continuing their design work, and the company is also buying a new replacement dumper system, which will be installed this December. Ridley will pay for the dumper through its own cash flow, he wrote.
Ridley Terminals is a Crown Corporation under broad policy direction from the government of Canada. It operates as a commercial entity through revenue received from its shipping activities. Although revenue has been increasing steadily, government contributions of $8.1 million and $1.8 million were provided in 2005 and 2006 when the corporation could not meet its financial operating requirements.
Things appear to be getting better, however. Throughputs at the terminal reached record levels in 2010, and are expected to increase in coming years with continued growth of the coal market.
According to data from the Prince Rupert Port Authority, Ridley shipped over 8 million tonnes of throughput in 2010, most of it coal. And, at the end of January, the terminal signed a contract with Arch Coal, based in St. Louis, to ship at least 2 million tonnes of coal each year until 2015. The Arch contract will contribute to expansion plans that have been in the works for the past few years.
According to a press release from August 2010, RTI is currently undergoing improvements to its facility and equipment to better meet customer demand.
Ridley Terminals ships metallurgical and thermal coal, as well as other bulk commodities. It operates 24 hours a day on land leased from the Prince Rupert Port Authority. The terminal has an annual shipping capacity of 12 million tonnes, and the possibility for expansion to 24 million tonnes. The terminal uses a computer-based technology for rail car unloading, product storage, and vessel loading.
~Written by Liz Williams, with files from Chris Armstrong. Story first appeared at www.muskegnews.com
Friday, March 18, 2011
Federal Government and Prince Rupert Port signs historic agreement with First Nations
Minister of Transport Chuck Strahl visited Prince Rupert on Monday 14th March 2011 to announce an agreement reached between the government of Canada, the Prince Rupert Port Authority, and the Coast Tsimshian (Lax Kw’alaams & Metlakatla) to expand the Fairview container terminal.
“We’re building a foundation for the future,” said Strahl in his remarks in front of about 50 people in the maintenance building at Fairview. “That future involves first nations, and that’s a great thing.”
Strahl and other speakers – including Chief Councillor Harold Leighton of Metlakatla and Chief Councillor Gary Reece of Lax Kw’alaams praised the agreement as contributing to economic growth while recognizing aboriginal title, but they offered few details on what it actually contained.
“This deal brings us certainty that we can do business in partnership with our neighbours,” said Leighton in his remarks to the audience.
According to a backgrounder distributed by the Port, the agreement lasts 40 years and pertains to “consultation and accommodation for potential infringements of aboriginal rights and title arising from the construction and operation of Phase I and Phase II of the Fairview Container Terminal.”
The backgrounder also states there will be payments from the Port and the government of Canada, as well as a transfer of land from the Province to the Coast Tsimshian and a lease-back from the Port. The agreement also features “sole source contracting opportunities for PRPA projects valued at over $20 million.”
Exactly how much money and how much land are at question is unknown except to those involved in the negiotiations. More details may be made public once the agreement is officially signed in a few weeks.
“We’re building a foundation for the future,” said Strahl in his remarks in front of about 50 people in the maintenance building at Fairview. “That future involves first nations, and that’s a great thing.”
Strahl and other speakers – including Chief Councillor Harold Leighton of Metlakatla and Chief Councillor Gary Reece of Lax Kw’alaams praised the agreement as contributing to economic growth while recognizing aboriginal title, but they offered few details on what it actually contained.
“This deal brings us certainty that we can do business in partnership with our neighbours,” said Leighton in his remarks to the audience.
According to a backgrounder distributed by the Port, the agreement lasts 40 years and pertains to “consultation and accommodation for potential infringements of aboriginal rights and title arising from the construction and operation of Phase I and Phase II of the Fairview Container Terminal.”
The backgrounder also states there will be payments from the Port and the government of Canada, as well as a transfer of land from the Province to the Coast Tsimshian and a lease-back from the Port. The agreement also features “sole source contracting opportunities for PRPA projects valued at over $20 million.”
Exactly how much money and how much land are at question is unknown except to those involved in the negiotiations. More details may be made public once the agreement is officially signed in a few weeks.
Subscribe to:
Posts (Atom)
