Province contributing $200,000 for port project study (Jul /06)

Old News but still noteworthy

Northern Sentinel
“News”
Also Here: http://www.dogwoodinitiative.org/newsstories/kitimatprovportstudy

Jul 12, 2006

During the first visit by a premier to Kitamaat Village, Gordon Campbell announced last Friday that the provincial government is contributing $200,000 towards a break bulk port study around Kitimat harbour.

“We would not be here today if it were not for the investments that have already been made locally,” Campbell explained to national company executives, local business leaders and Haisla band members at the Kitamaat Village recreation centre. ‘ I want to thank you for what you have done and I want to thank you for what you will do in the future.”

Chief councillor and president of the Kitamaat Port Development Society Steve Wilson told the Sentinel that there are a few locations that are being studied as potential break bulk ports.

Some of the potential locales for the port could be south of the Alcan port or around Beese Cove, Wilson explained.

Two study phases out of four will be complete within six months, he added.

Wilson also said he expects the port to begin operations in two years, but he pointed out that his job is not to organize the operations, instead it’s to gather the right people necessary to move this project forward.

One of these people was a business partner that presented the idea to Wilson – Cascadia Materials president Eric Tofsrud.

Although the company president was not at the announcement, Wilson pointed out that it was discussions with Tofsrud four years ago that truly sparked the idea of a bulk port with him.

Since that initial discussion other businesses partners including Alcan and the Kitimat Terrace Industrial Development Society came on board to form the core of the port development society.

“We didn’t always agree on things,” Wilson admitted, “ but we looked for common interests.”

Other parties such as Enbridge also emerged as backers of a Kitimat-based bulk port.

“On the port side we see a huge benefit,” company president Art Meyer explained.

Kitimat could become the marine terminal for 200,000 metric tons of pipe for Enbridge’s Gateway Pipeline project, he said.

On top of that all the valves, steel for tanks and a loading arm for the Gateway project could be shipped through the port.

As for longer term uses for the port, Terrace Lumber Company director Gerry Martin explained that the Port of Vancouver is too far away to economically viable for him and has become congested.

‘The Port of Vancouver doesn’t work for everyone,” he added.

Martin is also the president of KTIDS and the vice-president of the Kitamaat Port Development Society.

Business leaders who attended the announcement were not just limited to shippers, as transportation company representatives such as Larry Yurkiw, manager real estate and business development for CN were also present.

Yurkiw told the Sentinel that extending a rail line down to the water is a key part of the project and rail length coupled with the stability of the soil will be determining factors on where the port is located from a rail line perspective.

Despite the fact that a number of high profile political and corporate backers – including Terrace mayor Jack Talstra – were present at the announcement, the most notable group absent was the city of Kitimat.

The reason for the exclusion is that city council has yet to approve the protocol agreement between the two communities, Wilson explained.

“Until they do there is no way to trust the openness and accountability of the (city),” he said. “All businesses we deal with sign an agreement.”

The protocol agreement was developed by members of Kitimat and Kitamaat Village, was finalized in March and was unanimously passed by the village council months ago, but has yet to come before a city public council meeting, Wilson pointed out.

As for any conflicts with the city of Prince Rupert’s container port, Wilson assured there will be none and the two facilities will work in conjunction with each other.

But one difference between the two Northwest port projects, he noted is that First Nations groups are posing legal action against the Prince Rupert port, while the Kitimat project is lead by First Nations’ interests.

Kitimat & Rupert could both have ports says MP

And more good news…

The Northern View (Prince Rupert)
“News”
http://www.thenorthernview.com/portals-code/list.cgi?paper=142&cat=23&id=861480&more=
Mar 28 2007
By Shaun Thomas

With automotive manufacturers expressing interest in shipping their foreign-made cars into the North American market with a potential new port development in Kitimat, Skeena – Bulkley Valley MP Nathan Cullen says that he is confident that there is enough of a demand for successful port operations in both Prince Rupert and the Aluminum City.

“There is the possibility for all kinds of things, with Kitimat and Prince Rupert addressing different portions of the transportation question,” he said during a March 22 media call.

“The port capacity in western North America in general is very short and it is expected to become increasingly difficult for people to transport things.”

According to Cullen the Kitamaat Port Development Society, which is a partnership between the Haisla Nation, Alcan and the Kitimat – Terrace Industrial Development Society, could benefit from not only the demands of the Asian market, but from the abundance of land and the existing infrastructure in the area.

“Prince Rupert will go to a certain capacity and then, beyond that, it will be restricted by land and some other questions. If Kitimat can keep its eyes focused on something like that, especially combined with some manufacturing options available with the aluminum plant right there,

I think it could really enclose a loop and make for some really good economic development,” he said.

“I would encourage it and have since I took office.”

Last July the Kitamaat Port Development Society received $200,000 from the province for a break bulk feasibility study.

B.C. urges Kitimat to build community after court loss to Alcan

I would take this article with a very large grain of salt considering who the author is…

March 29, 2007
Canadian Press: by DIRK MEISSNER
http://www.cbc.ca/cp/business/070329/b032991A.html

VICTORIA (CP) – B.C.’s economic development minister says the northwest B.C. community of Kitimat needs to focus its energies on building a prosperous future after losing a bitter court battle with Alcan, the company town’s largest employer.

Kitimat should consider the B.C. Supreme Court loss as an opportunity to unite behind a proposed $2-billion Alcan smelter upgrade project, even if it means a loss of 500 full-time jobs, Colin Hansen said Thursday.

The B.C. Supreme Court ruled that aluminum giant Alcan faces no restrictions on what it does with the electricity it generates at its power stations.

Back in the 1950s, Alcan gained rights to water in the Nechako River system, allowing it to build the massive Kemano hydroelectric facility to power an aluminum smelter that essentially founded the community of Kitimat.

Kitimat argued unsuccessfully that the B.C. Industrial Development Act and the original 1950 power sales agreement between Alcan and the B.C. government allowed the company to only use its power to run the smelter or create jobs in the Kitimat area.

Kitimat argued Alcan stands to make huge profits selling power generated by a public water resource and ultimately will cut smelter jobs in favour of power sales.

“Alcan is very much committed to the generation of aluminum,” said Hansen. “Alcan has shown a commitment to British Columbia over the last 50-some-odd years, and in the discussions that I’ve had with senior Alcan executives, they certainly indicated to me that they want to continue to be a good corporate citizen in British Columbia.”

Alcan proposed a $2-billion plan last summer to upgrade its aluminum smelter in Kitimat. But the plan included a power sales plan which meant selling power to B.C. Hydro, and a loss of about 500 jobs.

The Kitimat smelter currently employs more than 1,500 people. It used to employ more than 2,500.

Alcan’s smelter upgrade proposal was put on hold after the power sales option was rejected as too expensive by the regulatory B.C. Utilities Commission.

The utilities commission decision is under appeal.

Alcan spokesman Michel Jacques said the court decision is a step in ensuring the sustainability of its operations in British Columbia.

The company still needs final approval for the upgrade project, he said.

Hansen said he believes the smelter project will proceed now that Alcan has the right to manage the power it produces.

“Now that the courts have decided what that interpretation should be it actually allows (Kitimat and Alcan) to sit down and move forward,” Hansen said. “Everybody wants what’s best for the residents of Kitimat.”

The most recent census results revealed that Kitimat registered the largest population decline of any community in Canada from 2001 to 2006.

Kitimat’s population dropped more than 12 per cent to about 8,900 people. During the early 1980s, Kitimat had about 14,000 residents.

The District of Kitimat issued a statement saying it was disappointed with the court ruling and is weighing its options.

“We have been fighting to protect our community and one of the largest water resources in British Columbia for a number of years now, standing in where the provincial government should have been,” said a statement attributed to Kitimat Mayor Richard Wozney and his council members.

“We are trying to make sure the benefits of our public resources go to British Columbians. If the provincial government had stood up for the use of this raw material in a value-added and profitable industry, the outcome surely would have been different. Why are they giving away our resources to multinationals?”

Kitimat district manager Trafford Hall said the community has yet to decide if it will appeal the ruling.

The Opposition New Democrats said the ruling is a sad day for Kitimat residents.

The potential loss of 500 jobs “is an enormous hit in the community,” said energy and mines critic John Horgan.

He said Kitimat’s future may now rest in the hands of Alcan shareholders who will consider if they want the company to reap huge profits selling power or invest in aluminum smelting where profit margins are bound to be lower.

Auto makers eyeing Kitimat port for imports

Finally a bit of good News, eh?!

Kitimat Sentinel
“Community News”

http://www.northernsentinel.com/portals-code/list.cgi?paper=16&cat=23&id=&more=
Mar 21 2007

The Kitamaat Port Development Society has another string to its bow.

Acting executive-director Roger Harris says it is getting “keen interest” from auto manufacturers.

And it’s all because of a shift in where vehicles are being made.

Harris noted Daimler-Chrysler, for example, had just shut down five plants in North America while opening new ones in China.

And that pattern was being seen with other manufacturers, creating a need to deliver those Asian-made vehicles to the North American market.

“All of a sudden, in the last little while we have been discovered,” Harris said.

One auto manufacturing official he had talked to recently admitted, “We actually grabbed a map quickly to find out where you were,” adding, “they couldn’t understand why there hadn’t been the development of any northern port north of Vancouver.”

Harris said one manufacturer – who he couldn’t name – was sending the society the technical specifications on what it would need here to use the port.

“That actually works well because we’re a green field (undeveloped) site. We have an opportunity to custom-build,” he pointed out.

Also, meeting the requirements of this one particular manufacturer would also mean being able to meet the needs of others.

Harris said there could be as many as 50,000 vehicles a year brought in through the port.

But it’s what happens once they get here where the real job creation opportunities lie.

Harris explained that vehicles are not just offloaded from ships and on the rail cars for onward shipment.

First they have to have things like radios installed, computers formatted, sometimes tires put on, and then there’s the body shop work needed to touch up any scratches or dings they received en route from Asia.

“There’s quite an infrastructure that builds around them as well as a loading facility to rail,” Harris said.

Kitimat is also in a unique position in that it has property available all along the railway line.

“They don’t need one giant lot, they just need to make sure that the lots are positioned with rail…to be loaded.”

Harris also noted it would be “a nice clean industry too.”

Harris said the interest represents a change for the society – up until now they had been hearing from shippers rather than manufacturers.

Any vehicles brought through a port here would be destined for the Canadian and US eastern markets.

Ex-reporter remembers Kitimat

Thank you Matthew!

Kitmat Sentinel
“Letters to the Editor”
http://www.northernsentinel.com/portals-code/list.cgi?paper=16&cat=45&id=&more=

Mar 28 2007

Dear Kitimatians,

I share your sense of bewilderment and frustration over the recent article in the Globe. But take my advice: do not let the words of a journalist from distant “Vancouver-stan” get your collective goat up too much.

Far from a decaying town on the verge of collapse, I know Kitimat to be a vibrant, family-oriented community. I lived in Kitimat from May 2000 to summer of 2001, when I worked as a reporter for the Sentinel.

Perhaps this fellow from the Globe never had the opportunity to be invited into your homes or attend your community events, as I did – as a reporter, but more importantly, as a guest.

Having moved to Beirut, Lebanon six years ago, I can tell you that this city is also unfairly portrayed by the media. This city has its shared of decaying, dilipidated (and bombed-out buildings), but to consider these images – endlessly recycled on cable news channels – as the sole emblem of this city is as offensive as it is ignorant.

A lot of people who have visited Beirut are impressed by its economic vibrancy and hospitality.

So too with Kitimat. Several of the friends I made during my year’s stay who are now scattered across Canada and the globe (no pun intended) speak well of Kitimat.

No conversation ends without a least one reminiscence.

Although myself and others only “passed through” for one or two years, we all still take comfort in the memories of our time spent in your northern community.

Thanks to the Internet, I’ve been able to check in almost weekly and keep on eye on how you guys are doing. Just fine, by my reckoning, just fine.

I salute you, Kitimat.

Warmest regards,

Matthew Plain,

Beirut, Lebanon.