2015 Annual Report
A Diversified Trade Gateway
The strongest ports are those that can handle a variety of cargoes, helping them balance the ups and downs of world markets. At the Port of Prince Rupert, cargo diversification is an essential part of our strategy. Throughout 2015, the port built new relationships and prepared to enhance the capabilities of its existing terminals. We took steps to increase trade through the gateway while practicing stewardship over one of the world's most pristine harbours. And we developed innovative ways to support Canada's trading economy while benefitting the communities where we do business. Ready to explore our picture of success? Watch this introduction to the Port of Prince Rupert.
The Prince Rupert Advantage
Prince Rupert has an outsized impact on global trade for a community of 12,000 people. The reasons start with the harbor’s geography. For connecting North America to the Asia Pacific, no other port can match Prince Rupert’s natural advantages.
Prince Rupert is 1-2 days closer to Asia than other West Coast ports. That means less fuel, less risk, and more reliable performance.
Following a shorter transit across the Pacific Ocean, commercial vessels and the cargoes they deliver enjoy safe, efficient access to Prince Rupert's world-class terminals.
Room to grow
Prince Rupert is home to the deepest natural harbour in North America, and among the deepest in the world. Combined with direct access to trans-Pacific shipping lanes, we have room to safely manage growth.
CN’s rail network offers premium reach into North America’s resource economies and consumer markets, on the flattest available grade through the Rockies.
Whether through direct employment or investments that improve local quality of life, residents of Prince Rupert and its neighbouring communities are invested in the continued growth and success of port operations.
Building on those advantages, the Port of Prince Rupert and its partners have created a track record of excellence in Trade, Community Impact, Safety, and Sustainability.
Building Economic Prosperity
Natural attributes paired with industry-leading efficiency have translated into years of solid performance for Prince Rupert—and the promise for much more in the years to come.
Fairview Container Terminal handled a new record of 776,411 TEUs, making the Port of Prince Rupert once again the fastest-growing intermodal port in North America in 2015. Under the direction of new terminal owner/operator DP World, construction of the Phase II North expansion was launched, a project that will see annual capacity increase to 1.3 million TEUs when complete in mid-2017.
The addition of Mediterranean Shipping Company (MSC) and Maersk Line’s weekly TP8 service at Fairview Container Terminal expanded the port’s reach in trans-Pacific trade and supports further growth and expansion of containerized trade through Prince Rupert.
Westview Wood Pellet Terminal continued to establish itself as Western Canada’s gateway for biofuel, growing its annual throughput by 44% of 2014 for a total of 734,000 tonnes. The terminal gained further notoriety for its involvement in setting a new world record when it loaded the POPI S bulk carrier with 60,000 tonnes of wood pellets. The loaded vessel arrived safely in the United Kingdom’s Port of Immingham, completing the largest ever single movement of wood pellets.
On the heels of a record performance in 2014, the Prince Rupert Grain Terminal experienced its second best year shipping over 6 million tonnes of crops from Canadian farms. While wheat shipments declined by 16%, record volumes of canola and oats moved through the port to dozens of international markets, supporting thousands of jobs in Canada’s agri-food sector.
The Ridley Island Project Cargo Offload facility completed its first full year of operation, moving over 2,000 tonnes of cargo destined for western Canada. The $10-million ramp-to-rail facility, operated through the CT Terminals joint venture partnership of Tidal Transport and Tsimshian Enterprises, providing a Canadian solution to shippers moving cargo too large for shipping containers
Coal volumes through Ridley Terminals declined by over 40% from 2014, with thermal coal surpassing metallurgical coal in annual export volume for the first time in over a decade. RTI continued to seek opportunities to diversify its operation with alternative cargoes and stabilize throughput and preserve its local workforce during the continued downturn in global coal markets.
Our portfolio of terminals handles a variety of cargo, each of which is affected by its own market cycle. Through continued investment in trade infrastructure, the Port of Prince Rupert enables an even greater array of commodities to flow in and out of Canada. This ensures we can remain stable—even grow—year to year, particularly when individual terminals have down years, as the Ridley Coal Terminal did in 2014.
A coordinated effort between the Port of Prince Rupert and its many partners exerts positive control over every vessel, ensuring round-the-clock safeguards. The result has been the evolution of a global reputation for navigational safety. As the number of vessels potentially doubles over the next decade, maintaining that reputation continues to be a top priority.
Our practices and procedures keep vessels moving safely and goods flowing securely. Working closely with a variety of partners, the Port of Prince Rupert exerts positive control over the harbour and ensures round-the-clock safeguards.
A new shore-based radar regime for the Prince Rupert Harbour was announced, which will provide coverage that extends west to Haida Gwaii and north to the Alaska border. Once operational, the system will improve vessel monitoring and management to prevent vessel incidents in the harbour and increase transportation system efficiency.
Kaien Island Sector Light
Working with the Pacific Pilotage Authority and Canadian Coast Guard, the Port funded the construction of the Kaien Island Sector Light, the second navigational aid to be introduced to the Prince Rupert Harbour under this partnership. The $500,000 project provides mariners with a visual aid that clearly indicates the centre of the safe navigation channel for ships arriving and departing the inner harbour.
Port Authority staff responded to a leaking fuel pipe on the industrial waterfront, and worked with the City of Prince Rupert and Western Canada Marine Reponse Corporation to prevent contamination of the marine environment. The City has since advanced plans to decommission several World War II fuel tanks in Moresby Park, determined to be the source of the fuel leak.
Several projects were completed by the Port in 2015 to remove derelict structures and debris posing risks to navigational safety. We completed an $800,000 project that saw the demolition of the old airport ferry dock and installation of new pilings to allow the Prince Rupert Airport to continue receiving fuel deliveries via barge. The old Odin Seafood dock on the Prince Rupert waterfront was also dismantled and disposed of, and Prince Rupert Harbour Debris Society remained active in removing logs and other objects impairing safe transit throughout the year.
In an effort to ensure the safety of vessels contracted to conduct field studies in vicinity of Lelu Island and Flora Bank for the proposed Pacific NorthWest LNG project. The Port Authority’s harbour patrol vessel and crew provided escort and monitored activities in the area.
Our commitment to safety extends beyond the secure movement of vessels and cargoes. We recognize our role in preserving the beauty and integrity of our environment, and our operations demonstrate respect – for the environment, our neighbours and future generations.
Through our environmental incentive program for commercial vessels, we offer discounted harbour dues to ships that implement emission reduction measures and other environmental practices. IN 2015 a total of 133 vessels qualified under the programs three-tiered system, meaning 48% of the unique vessels calling on Prince Rupert were awarded savings for a combined total of $140,000.
Carbon Emissions Inventory
A significant indicator of our environmental footprint is the airborne emissions related to port activities. To date we have completed reports for greenhouse gases, air contaminants and energy consumption for a five year period. While total port-related emissions have increased, when comparing emissions intensity (accounting for annual commodity throughput), we’ve improved our performance with a decrease of over 13% since 2010.
Our water quality monitoring program has grown to include 28 unique sampling sites throughout the harbour. The program monitors levels of nutrients, chlorophyll, metals, hydrocarbons and bacteria, and sites are tested quarterly (bi-weekly in summer months). Water Quality Index scores established by the Canadian Council of Minister of the Environment were ‘Good’ to ‘Excellent’ at all sites.
Through Prince Rupert’s first air quality monitoring station, we are able to measure particulate matter and collect weather information that complements our meteorological station. In partnership with LNG project proponents, we established a wet deposition station to sample rainfall for concentrations of ions, like acid rain. The third such station to be established in British Columbia, it is helping create a baseline for the airshed in our region, prior to development of new large-scale terminals.
In partnership with Northwest Community College and the Invasive Tunicate Network’s Plate Watch program, we continued a program that marks the first time invertebrate species have been collected in Prince Rupert and reported to a coast-wide network of experts. Through the quarterly monitoring of several sites, we are contributing to an early detection system for tunicates and green crab not previously present in the Pacific Northwest.
One trade we’ll never make: exchanging our future for short-term gain. Our current success is rooted in decades of ambitious yet practical planning, and reflected in the careful consideration we apply to every project and program we activate. The result is a growing gateway that supports an extensive workforce, abundant opportunities and a robust regime of environmental safeguards.
The Port of Prince Rupert emphasizes long-term planning, integrating activities and proactive partnerships. As we prepare for new terminal developments and growth in vessel traffic, ensuring a balance between industry and environment is a key measure of our success.
The Port of Prince Rupert is planning for more than $25 billion in capital investment in the next 10 years. In order to minimize the environmental footprint of port operations, the Port is investing in common infrastructure that aligns local community interests with significant growth opportunities for Canadian trade. In 2015 the completion of the Road Rail & Utility Corridor on the Ridley Island Industrial Site unlocked the potential of 500 hectares of development lands for large-scale future bulk export terminals.
Diversified Port Complex
As global commodity prices and demand fluctuate, it is increasingly important for the Port of Prince Rupert to ensure its portfolio includes a diverse array of cargoes. This includes working with project proponents to identify the need for export capacities, as well as existing terminals to potentially support new cargoes through their operation. In 2015 the Port worked with Ridley Terminals Inc. and AltaGas to advance a project that would see liquefied propane gas exported through RTI’s currently leased lands
Our approach to sustainable growth is reflected in the Port of Prince Rupert’s formal participation in the environmental assessment process for all projects within our jurisdiction. In the case of projects that involve new cargoes like liquefied natural gas (LNG) or liquefied propane gas (LPG), we’re working closely with proponents to define best practices necessary to safely move their vessels and cargoes in and out of the harbour.
Building Local Capacity
We’re ensuring Prince Rupert is home to a skilled workforce and companies capable of constructing the infrastructure required for the expansion projects and new developments on the horizon. Through new partnerships with Coast Tsimshian First Nations and reputable contracting firms, the Port of Prince Rupert is creating mutually beneficial developments that are employing locally from their construction through to their long term operation.
In order to accommodate the scale of growth currently under investigation within the Port of Prince Rupert, we’re engaging with partners like the City of Prince Rupert and Province of BC to forecast potential impacts from large-scale developments. In By sharing information and analyses, we’re contributing to a framework that will prepare our region for the opportunities and challenges this growth will bring.
The Port’s growth vision and accompanying strategy ensures the needs of port tenants, future trade opportunities and regional economic development goals are coordinated and balanced. The result is a slate of well-planned, integrated and diversified development proposals that anchor Prince Rupert’s future as a gateway for trade.
Pacific NorthWest LNG
Pacific NorthWest LNG is a proposed natural gas liquefaction and export facility on Lelu Island which is undergoing a federal Environmental Assessment. The $11-billion project is forecast to create 4,000 full-time jobs during construction, and 330 long-term jobs once operational. Following a request for more information from the Canadian Environmental Assessment Agency in early 2015, the proponent conducted intensive 3D modelling to determine potential effects of their marine berth structure on the environmentally sensitive Flora Bank. In early 2016 CEAA issued a Draft Environmental Assessment Report.
Fairview Phase II South
In December 2015 DP World announced a feasibility study agreement to explore further expansion of the Fairview Container Terminal, which already holds an approved environmental assessment through CEAA. With the Phase II North expansion underway and slated for completion in mid-2017, the terminal operator is currently weighing market demand to determine if further growth opportunity exists. Current expansion will bring annual capacity to 1.4 million TEUs, and the full buildout of Phase II South has the potential to achieve well over 2 million TEUs.
Ridley Island Propane Export Terminal
Working with Ridley Terminals Inc., AltaGas advanced plans to construct a $400-500 million terminal on Ridley Island. The proposed development would utilize RTI's existing berthing structure to accomodate the shipment of up to 1.2 million tonnes of liquefied propane gas annually. In 2015 AltaGas completed preliminary engineering and began community consultations with local First Nations and municipalities.
Prince Rupert LNG
Proposed for a 200 hectare site on the southwest corner of Ridley Island, Prince Rupert LNG continued investigatory work and engagement with First Nations and surrounding communities. While the project proponent changed with Royal Dutch Shell’s acquisition of BG Group, Prince Rupert LNG continues to work towards filing a project description with the Canadian Environmental Assessment Agency in 2016.
WCC LNG Ltd.
WCC LNG is a proposed project to develop and operate a liquefied natural gas (LNG) export facility within the Port of Prince Rupert, on lands adminstered by the City of Prince Rupert. The project is being advanced in partnership by ExxonMobil Canada and Imperial Oil Resources, and in 2015 initiated the environmental assessment process by filing a project description with the BC Environmental Assessment Office.
The success of our trade gateway results in continuous improvements to the health and cohesion of northwest British Columbia. We take pride in ensuring our operations reflect local values and that a significant portion of our resources are allocated back into our communities. To achieve this we have created programs and initiatives that keep residents informed and provide funding to local improvement projects that contribute to longterm community vitality.
Local community development is an imperative for us. The people of Prince Rupert and its neighbouring communities are what make our operations possible, and are invaluable partners in our efforts to keep this region healthy and sustainable future generations. Over the last six years, we’ve helped enable more than 40 local improvement projects that enhance the quality of life on BC’s North Coast: arts organizations, civic projects, recreational clubs, education initiatives, and more.
Gitxaala Community Kitchen & Greenhouse
A $244,000 investment is helping preserve traditional food production, increase nutritional education and develop new skills within the Gitxaala Nation of Kitkatla, BC. Two new community spaces were created in the remote coastal village: a garden and greenhouse where local produce will be grown, and a kitchen and eatery for food preparation and training.
Transition Society 'Robin's Place'
A new trailer on the property of the North Coast Transition Society is providing much-needed space for family counselling services and meetings. Robin's Place is a spacious and private facility for the Society's work with women, men and families who experience abuse and addiction issues, and complements its numerous outreach and emergency assistance programs.
Lax Kw'alaams Outdoor Leadership & Smart Community Programs
A total of $540,000 was invested into two projects that are enhancing the digital connectivity of the coastal village as well as providing new recreation opportunities for local youth. The Smart Community infrastructure project will modernize Lax Kw’alaams’ information technology systems, enabling the effective and efficient management of the community’s computerized systems. The Outdoor Leadership Adventure Program allows the Coast Tsimshian Academy and recreation centre to offer activities like kayaking, biking and camping to residents interested in exploring their pristine territory.
A $50,000 contribution to the Prince Rupert Garden Club allowed for the installation of new lighting and irrigation in Prince Rupert's historic Sunken Gardens site. The enhancement project not only improves the vitality of the plant life, but enhances awareness of the site through new signage and extends the hours of enjoyment by illuminating the garden landscapes and pathways.
Lester Centre for the Arts
The City of Prince Rupert's Lester Centre for the Arts was in dire need of new roof system to insulate and cover the 20,000 square-foot surface. The Port of Prince Rupert provided $125,000 in matching funding from its Community Investment Fund to ensure civic activities and performances from both local and international artists will continue to thrive with a dedicated space in the community.
As we grow, we must do it with an eye on sustainability and environmental protection. We are guided in all of our activities by the key principles of pollution prevention, environmental integrity, efficient use of resources, and continuous improvement. With these in mind, our operations demonstrate respect – for the environment, our neighbours and future generations.
Port Interpretive Centre
Now in its fourth year of operation, the Port Interpretive Centre welcomed over 20,000 visitors in 2015 to explore the products, vessels and economic impact of the Port of Prince Rupert’s trade gateway. In partnership with Tourism Prince Rupert, the space is also home to Prince Rupert’s Visitor Centre, providing tourists with timely information about the community and the many businesses that drive its success.
Community Information Forum
Community understanding of port activities is essential, and we strive to maintain public support by committing to open dialogue and engagement. One way we do this is through regular meetings of our Community Information Forum, a local stakeholder group that provides a context to share information about the Port’s operations and tackles issues in the community. Through the Forum, a variety of opinions and concerns are brought forward and improvements are proposed for our consideration. In 2015 topics such as air quality monitoring, sediment disposal and the environmental assessment process were discussed.
Community Investment Fund
Each year we earmark a share of our income for local projects that contribute to the region’s quality of life and create long-lasting benefits. In combination with funding from other businesses, community groups and government agencies, the Fund enables millions of dollars in local improvement projects to take place every year in the Prince Rupert area. Each of these projects fills an important role in the support of sports, recreation, performing arts, healthcare, education, the environment and other needs in the community.
We are committed to creating opportunities for future generations to prosper in their own communities. One way we demonstrate this is through the Learning Gateway, which provides educational resources designed to engage students in K to 12 in learning about the port’s role in international trade, and the diverse career opportunities it supports. We also partner with local education providers to increase local programming available for students and residents. Whether that’s promoting literacy with our Read With the Rampage program that brings local hockey heroes into classrooms, or sponsoring the introduction of news skilled trades training, we are dedicated to improving educational excellence in the communities we operate.
Sponsorships and Donations
Every year in Prince Rupert, dozens of events, recreational leagues, conferences,organizations and venues require assistance to deliver their services. The Port of Prince Rupert is proud to be able to annually support a number of worthy causes that require financial aid. Our scholarship and bursary program provides several high school students with funds to pursue careers in trade-related fields. Many recreational teams and clubs require equipment or space to pursue their passions. As a local business, the opportunity be involved with so many projects, programs and people is something we have never taken for granted and will continue to improve upon as the Port grows.
Employing Fiscal Integrity
Sound financial management drives the responsible stewardship of our resources. Each year, the Port of Prince Rupert releases its financial statements. The bottom line? These figures detail our organization’s committment to the sensible and effective use of our assets, year after year.
These are the conditions we’re fighting to create as we steward the incredible natural resource that is the Port of Prince Rupert. Thank you to our local communities, our shippers, supply chain partners, terminal operators, service contractors, and everyone else who made 2015 a success in each of those categories. A special thank you to the women and men on the water, in the terminals, and on the trains and trucks that are moving Canada’s trade through the Port of Prince Rupert.
Explore in-depth at rupertport.com