Port of Prince Rupert APM reviews challenges and opportunities ahead for the Northwest Gateway

Port President and CEO Shaun Stevenson reviewed the results of 2019 and
charted the course through 2020 and beyond at Wednesdays APM

It was a very different look to the Annual Public Meeting for 2020, with the COVID pandemic shifting the traditional public presentation to a virtual mode, with Ken Veldman Vice President of Public Affairs and Sustainability serving as the Master of Ceremonies and host for the ninety minute overview of Port Highlights and plans for the future, which was streamed live from the Atlin Terminal in Cow Bay.

While delivered in a virtual mode, the meeting followed pretty faithfully to the blueprint of the past public sessions, highlighting a range of themes on Port operations and development.

The presentation began with remarks from Board Chair Frans Tjallingii who provided an overview of the Boards efforts and delivered recognition for Shaun Stevenson the Port President and CEO and team he has in place at the Port.

The introduction provided the opportunity for Mr. Stevenson to relay some of the key themes on Port performance both in the way of throughput, financial returns and impact on the Northwest economy.

In his review, the Port CEO noted how the Port of Prince Rupert is now the third largest port in the nation and hailed the growth of employment at the Port, as well as the development of new markets and the continued growth of port facilities and dedication towards diversification of cargo that will pass through the terminals in Prince Rupert.

"Our purpose is to build a better Canada through growing trade and by extension better communities by growing trade. That starts with not only growing our capacity as a Port but also diversifying our capabilities. Diversification of our trade base ensures that we build the capabilities to support Canada's growing trade and evolving trade agenda. Fundamental to Canadian economic vitality and the well being of our communities that we serve. Locally that means that we can support an economy and the employment it generates that is resilient and less exposed to the ups and downs related to industry and economic cycles"-- Port of Prince Rupert President and CEO Shaun Stevenson

As part of his focus on the local, Mr. Stevenson relayed the findings of the most recent data on employment creation and how that has delivered for the Northwest.

"In 2019 we released the latest study and it illustrated impressive growth in employment across all segments of the Port Industry.  Our employment has grown from 5200 jobs to 6200 jobs since 2016, that's remarkable growth for any sector. That's a thousand new permanent jobs across Northern BC associated with the Gateway operations and illustrates the connection between our plans for growth, expansion and diversification and the economic prosperity of the communities that we serve"

With the Port forecasting cargo throughput exceeding 50 million tonnes of cargo by 2030, he expressed confidence that the port would have the capacity in place to support that level of activity.

The Port President and CEO also outlined some of the work currently being advanced at this time, including work on the Fairview Connector Corridor, the Master Planning underway for Container Port expansion, planning for infrastructure required for expansion and new terminal developments on Ridley Island

As, well he made note of efforts to secure investment from Federal funding towards infrastructure in excess of 100 million dollars. As Mr. Stevenson explains it, that investment will ensure that the Port can continue to invest and support private sector investment in facilities at the Port of Prince Rupert.

He reviewed some of the land use and planning decisions made in the  last few years, calling attention to their work to protect Flora Banks with a development moratorium now in place, that after the Port heard from the community about the importance of that area.

As well, the Port CEO outlined how the Port has approached a failure in process when it came to an Open Burn environmental incident on Ridley Island in 2017 and how it has followed up on its procedures to ensure that such an event does not take place again.

"While this wasn't intentional and we've taken full responsibility for it, our follow up on our own practice and procedures and other protocols in place ensure that we won't do this again, It was a process failure by PRPA. It's led to a significant review of our processes and procedures and we're committed to ensure that the environment is considered and impacts on environment are mitigated in our operations our development and the way we conduct ourself going forward. When mistakes are made we are committed to taking responsibility and doing things better" -- Port CEO and President Shaun Stevenson on the 2017 Ridley Island Burn incident

Mr. Stevenson also explored some of the Marine Safety and engagement on issues of concern in the region, as well as to a review of the efforts of engagement with First Nations as partners in the development of the Port, providing one example of the work they have done together by way of the Fairview-Ridley connector road.

He also provided an overview of some of the Community Investments that the Port has delivered to communities around the region to improve quality of life on the North Coast.

"I''m proud to announce this year, based on our 2019 financial results, the Port will be contributing an additional 1.7 million to the Community Investment Fund, bringing out total contributions to this fund to in excess of 12.5 million since the funds' inception in 2010."

For the Financial Review, Vice President for Finance Joe Rektor took viewers through the tour of the results of the last year, making note of an overall net income of 27.1 million, up nine percent from the previous year.

Of note for municipal governments in the region, was a slight decline in the payments in lieu of taxes which was noted at $2.4 million, down 2 percent from the year previous.

The financial presentation noted the growing volumes for the Port of Prince Rupert which have now placed the Port of Prince Rupert in third place as of 2019 for all Canadian ports with volumes of cargo just under 30 million tonnes.

When it comes to revenues, the Port or Prince Rupert generated just over 66 million dollars in 2019, placing it again in third place for Canadian Ports.

The full review of the financial statements for the last five years is available on the Port Website here.

Brain Friesen offered up the glimpse of the Business Development and trade environment themes for the Port facilities, highlighting the success of Ridley Terminals, which has seen strong volumes in coal shipments and added LPG shipments to their list of volumes in 2019.

He also reviewed notes from Prince Rupert Grain, Westview Terminals, the Northland Cruise Terminal, Fairview Container Terminal, Raymont Logistics.

As well as the progress of plans by Vopak to develop an export terminal for liquid bulk products, noting that the proposal is currently in the environmental stage, with facility design underway with a final investment decision anticipated for  2021.

When it came to the overview of planning for the future, the list of projects was delivered by Kurt Slocombe.

His review of project was led off on a look at the Fairview-Ridley Connector Road and how it will remove much of the truck traffic through the city.

Also on the preview list, was the Fairview Terminal Expansion plans as well as the planning in place for to improve rail capacity, the road and rail corridor as well as the plans for the Metlakatla led logistics park on south Kaien Island.

A snapshot of the Port's Public Affairs and Sustainability plans was presented by Ken Veldman, he provided an outline of which projects require an environmental review and other elements towards the Ports work  on assessments.

The list of projects reviewed in 2019 included the Wolverine Marine Fuels Terminal, the Ridley Terminals berth expansion project.

Mr Veldman also noted that the environmental review work on the proposed Vopak Terminal is ongoing, as well as to review some of the ports ongoing initiatives towards environmental overview.

Also explored were some of the public affairs projects hosted by the Port, including the volume of visitors to the Interpretive Centre and the community engagement that the Port takes to the communities around the North Coast.

Included in the review, was the Port's participation in the City of Prince Rupert's 2030 Vision planning and its commitment towards it for the future.

"Designed as Prince Rupert's dream for its future, the Prince Rupert 2030 vision process engaged over 30 local organizations in a process to identify principles, intentions and the actions necessary to grow a vibrant city hosting a vibrant port. We recognize the importance of ensuring and planning for a sustainable community and we remain committed to supporting that ongoing collaboration and the initiative needed to implement that vision over the decades to come. -- Port Public Affairs and Sustainability VP Brian Friesen on the Prince Rupert 2030 vision plan

The work ahead towards labour attraction and retention was also part of the segment of the presentation as was a look towards the Ports Land Use Update plans and a wider overview of the Port  Community Investment funding in the last year.

The last half hour of the APM was turned over to a Question and Answer period, with Port officials responding to questions from those viewing at home.

Among the themes explored in the final part of the night:

The impact of COVID-19 on port operations,  questions related to a number of current projects that are  underway or are planned for the next few years, sustainability issues and relations with the Department of Fisheries, the acquisition of Stapeldon Islands from the District of Port Edward, the ports plans for Seal Cove, the potential impact of any invasive species in Prince Rupert waters and whether there are any potential LNG projects on the horizon for the Prince Rupert area.

Port of Prince Rupert VP Ken Veldman provided a short
tutorial on the revenue streams delivered to the 
City of Prince Rupert through port operations

One of the final questions on the night focused on the complaints often delivered by the City of Prince Rupert when it comes to the ports return of sufficient taxation to the community for the amount of port activity.

That enquiry provided for a fairly extensive overview on the financial dynamic between the Port and the City  from Mr. Veldman.

"Obviously the City of Prince Rupert in particular, has had some financial challenges over the last decade and we can appreciate that. In terms of port activity and how it impacts city revenues. While we haven't done the research based on their last annual report, the Port Authority actually returns about 10 million dollars per year in revenue towards the City of Prince Rupert. 

And that comes in the form of payments in lieu of taxes, so essentially when we have vacant land that's a form of taxation that moves back to the city. When we lease different properties to terminals for example, or other tenants they are subject to taxation as well. And last but not least, as a compensation for the cap on property taxation mill rates that can apply to terminals, the province actually returns a port competitiveness tax transfer back to the municipality as well

And in total that equals about 10 million dollars which is a significant tax base for this community.

And notwithstanding the challenges that the municipality may have, that is a very strong return. And I think where we are aligned with the City and with the community is that, as we continue to grow and diversify that tax base, whether it be directly through the port or ancillary businesses that are continuing to expand with the port's expansion. 

Ultimately in the long term that is going to be the way that we can build the most robust tax base for this community and whether it's through direct taxation, or whether it's through our investments into the community through vehicles such as the Community Investment Fund we'll continue to ensure that we're doing out part, to invest back into this community and ensure that it remains its vibrancy"

The full APM can be viewed below, forward the video bar about four minutes to get to the launch of the presentation.




The Port has also provided for some companion notes to go with the Wednesday night meeting.

On Tuesday the provided for an information release that made note of the most recent shipment data, which you can review here.

As for the APM documentation, the resources that they offer up can be examined here.

For more items of interest about Port Developments see our archive page here.