Long awaited Pulp Mill sale almost announced

Three groups that have been at loggerheads over the future of Prince Rupert’s harbour have put aside differences, at least for now, to enter in to an exclusivity agreement with the City of Prince Rupert to negotiate a purchase of the Watson Island site.
According to a press release put out by the City earlier this afternoon, the Metlakatla Development Corporation, Lax Kw’alaams and the Prince Rupert Port Authority have begun a joint venture and are “considering the acquisition of the Watson Island site from the City of Prince Rupert.” With due diligence and a feasibility study, the whole process could take anywhere from six months to a year, states a press release put out by the City.
The key for the City is that it will no longer be required to pay for the maintenance costs at the old mill site during the length of the deal: in exchange for exclusivity rights, the joint venture will pay for the maintenance costs at Watson Island, states the press release. Maintenance, minus the external costs for security on site, has come with a $600,000-plus price tag since the city took ownership fo the site in September 2009.
The tripartite agreement between the Prince Rupert Port Authority and Tsimshian nation leadership in Metlakatla and Lax Kw’alaams appears to signal a warming of the cool relations between the stakeholders, who have yet to sign a protocol agreement that would set out the formal relationship between both sides – a fact that has frustrated aboriginal leadership in the past.
According to Shaun Stevenson, the Port’s vice president for marketing & business development, the deal was not of the Port’s making. “We were approached by representatives of the Coast Tsimshian to consider this opportunity and thought it was a good project to explore,” explained Stevenson in an email. “Through our broader dialogue with First Nations groups, the concept of joint ventures figures prominently as a strategic opportunity to create economic development and opportunity in the community and region.“
The deal could prove to be a testing ground for both stakeholders to see how well they can work together.
“For the PRPA, if the acquisition proves of value, this could be an opportunity to pilot Joint Venture businesses with First Nations groups, acquire another asset to support the growth and expansion of the Port, creating more economic opportunity for the community and region,” stated Stevenson in the email.
While the deal is slated for six months to a year, it could go longer depending on the needs of the new partnership.
A peculiarity of the Wednesday afternoon announcement was that it was not publicized by the partners of the joint venture, but by the City through a press release. Mayor Jack Mussallem said the city wasn’t intending to jump the gun on this announcement, but that it was important to let the community know as soon as possible the City had entered in to an exclusivity deal.
“We are getting a lot of enquiries regarding the site and we wanted people to know that there is now a group that is looking at it and make residents aware who that is,” said Mussallem.
Mussallem also said CN was never the transportation firm that he alluded to in previous articles published regarding the mill site. It appears that firm was indeed the PRPA, who have replaced the North American Indian Charter of Shipping and Trade Inc. as the main partner in place to make the purchase.
While Prince Rupert has put the mill on the auction block for $13 million, the PRPA may yet have other ideas as to the value of the site. In his email, Stevenson said the Port will now move forward with a due diligence process that will include completing a physical and environmental assessment of site, identification and assessment of the business opportunities that could be accommodated on the property to determine its utility, and development potential to the joint venture partners. From all this information, they will work a determination of value.
(With thanks to George T Baker of Muskegnews.com)

More investment announced for Port

Stockwell Day, the Minister for the Asia Pacific Gateway was in Prince Rupert on September 15th to make an important and unique announcement. A new $3.5 million investment will be made in the port which will enable all container ships to access shore power. This will be the only port in Canada with this facility. There are two major benefits to this new arrangement;
1. Ships will no longer have to keep their engines running to supply power to on-board systems whilst loading and unloading. This will save the shipping lines' money which makes Prince Rupert Port even more attractive to international shippers.
2. As the engines will be off, there will be a considerable environmental advantage as air and marine pollution is expected to be severely reduced.
The port is now operating at 80% capacity and it is surely only a matter of time until the powers that be have to begin breaking ground on the expansion of this huge Canadian success story.