DYNAMIC GATEWAY.
GROWING COMMUNITIES.
02 2013 HIGHLIGHTS
PRINCE RUPERT PORT AUTHORITY ANNUAL REVIEW 2013 03
2013 HIGHLIGHTS
TRADE
TRADE
SAFE HARBOUR
TRADE
SAFE HARBOUR
ENVIRONMENT
TRADE
ENVIRONMENT
IMPROVING
IMPROVING
ENHANCING
ENHANCING
FOURTH FOURTH
TERMINAL COMMENCES
TERMINAL COMMENCES
$90 Million Ridley Island Road, Rail & Utility Corridor – $90 Million Ridley Island Road, Rail & Utility Corridor –
Construction
began and continued throughout the duration of the
Construction began and continued throughout the duration
of the
yearby
on the port infrastructure project, funded in partnership by
year on the port infrastructure project, funded in partnership
the Government
of Canada, Government of British Columbia, CN
the Government of Canada, Government of British Columbia,
CN
andtrade
PRPA. The RRUC is critical to growing the west coast’s trade
and PRPA. The RRUC is critical to growing the west coast’s
gateway capacity, and growing Canada’s ability to turn toward
gateway capacity, and growing Canada’s ability to turn toward
Asian
markets that are driving world growth and commodity values.
Asian markets that are driving world growth and commodity
values.
CRANE
ARRIVAL
Fairview Container Terminal took possession of a new
container handling gantry crane, bringing the port’s
total complement of Super-Post Panamax cranes to
four. The 1,800-tonne crane strengthens Fairview’s
reputation for efficiency and reliability, and
contributed to increased capacity at the terminal.
BUSINESS
BUSINESS
COMMUNITY
COMMUNITY
GREEN
COMMUNITY
GREEN
DIALOGUE
DIALOGUE
WAVE
WAVE
The introduction of PRPA’s Environmental
Incentive Program for Vessels marked the first time
shippers using the Port of Prince Rupert could
qualify for a reduction in harbour dues based on
their ship’s environmental performance. The first
six months of the program saw six ships qualify
for $20,000 in savings based on their
Environmental Ship Index rating.
The To
introduction
of PRPA’s
Environmental
enhance open
communications
between
Incentive
for Vessels
markedthe
thePort
first time
PRPA Program
and community
members,
shippers
usingestablished
the Port ofthe
Prince
Rupert could
Authority
Community
qualify
for a reduction
harbour
based
Information
Forum.inThe
Forumdues
provides
anon
theiropportunity
ship’s environmental
performance.
The and
first
for local residents
to identify
six months
of
the
program
saw
six
ships
qualify
discuss port topics of community interest.
for $20,000
in is
savings
based
on to
their
The Forum
assisting
PRPA
better
Environmental
rating.
understandShip
localIndex
concerns
and suggesting
improvements to PRPA for consideration.
SUSTAINABILITY SUSTAINABILITY
OPERATIONS
CRANE
ARRIVAL
PRPA continued to support sustainable operations
throughout the port, including the expansion of
harbour water sampling and invasive species
Fairview Container Terminal took possession of a new
monitoring, the installation of a new environmencontainer handling gantry crane, bringing the port’s
tal monitoring station on the Prince Rupert
total complement of Super-Post Panamax cranes to
waterfront, and the launch of a port-wide
four. The 1,800-tonne crane strengthens Fairview’s
emissions inventory.
reputation for efficiency and reliability, and
contributed to increased capacity at the terminal.
COMMUNITY | TRADE | BUSINESS
COMMUNITY
The interactive exhibit-based attraction continued to be The interactive exhibit-based attraction continued to be
well utilized by both residents and visitors from across thewell utilized by both residents and visitors from across the
world, surpassing the 10,000 guest milestone. In addition
world, surpassing the 10,000 guest milestone. In addition
to welcoming walk-in visitors and leading tours, PRPA to welcoming walk-in visitors and leading tours, PRPA
hosted a new Trade Talks speaking series in the Centre hosted a new Trade Talks speaking series in the Centre
and co-hosted other local events with organizations like and co-hosted other local events with organizations like
the Prince Rupert & District Chamber of Commerce.
the Prince Rupert & District Chamber of Commerce.
To enhance open communications between
PRPA and community members, the Port
Authority established the Community
Information Forum. The Forum provides an
opportunity for local residents to identify and
discuss port topics of community interest.
The Forum is assisting PRPA to better
understand local concerns and suggesting
improvements to PRPA for consideration.
5
In the last four years, the Community
Investment Fund contributed more than
$1.5 million to 33 regional legacy projects.
In 2013 alone, over $400,000 was invested
in recreational, educational, environmental,
health care and youth initiatives.
PRPA
continued
to support
sustainable
operations
Pinnacle
Renewable
Energy
Group began
throughout
the port,
including
theWood
expansion
commissioning
of the
Westview
Pelletof
harbour
water
samplingthe
andStar
invasive
Terminal,
welcoming
Manxspecies
as the maiden
monitoring,
the installation
a new environmenvessel to load
cargo at theofredeveloped
industrial
talsite.
monitoring
station wood
on thepellet
Prince
Rupert
The dedicated
export
facility is
waterfront,
of a port-wide
the first ofand
its the
kindlaunch
in Canada,
and is facilitating a
emissions
transitioninventory.
from fossil fuels to biomass power
generation in Europe and Asia.
MARINE
MARINE
OPERATIONS
NAVIGATION
NAVIGATION
Pinnacle
Renewable
Energy
Group beganof
As a result
of a signed
Memorandum
commissioning
of the
Westview
Understanding
between
PRPAWood
and Pellet
the Canadian
Terminal,
welcoming
the agencies
Star Manx
as the maiden
Coast Guard,
the two
partnered
to
vessel
to loadacargo
at the redeveloped
industrial
introduce
new lighted
Aid to Navigation
in the
site.
The dedicated
wood pellet
export Point
facilitysector
is
Prince
Rupert Harbour.
The Philips
thelight
first is
of one
its kind
in Canada,
and is
facilitating
of several
measures
being
taken toa
transition
fossil fuels
to biomass
power
preparefrom
for growth
in vessel
traffic and
ensure the
generation
in Europe
and Asia.
overall safety
of mariners,
vessels and the
surrounding environment.
As a result of a signed Memorandum of
Understanding between PRPA and the Canadian
Coast Guard, the two agencies partnered to
introduce a new lighted Aid to Navigation in the
Prince Rupert Harbour. The Philips Point sector
light is one of several measures being taken to
prepare for growth in vessel traffic and ensure the
overall safety of mariners, vessels and the
surrounding environment.
COMMUNITY | TRADE | BUSINESS
3%VOLUME
TOTAL PORT VOLUME TOTAL PORT
Other
Other
The Ridley Coal Terminal moved a record volume of
energy products, surpassing its original design
capacity of 12 million tonnes and contributing to
another record year for total cargo volumes at the port.
3
5
Inthe
thestrength
last fourofyears,
the Community
On
these record
volumes,
Investment
contributed
morean
than
Prince
RupertFund
Port Authority
reported
$1.5 million
33 regional legacy projects.
annual
profit ofto
$16,483,885.
In 2013 alone, over $400,000 was invested
in recreational, educational, environmental,
health care and youth initiatives.
3
Fairview Container
Terminal
Fairview Container
Terminal
23%
23%
3
3%
The Ridley Coal Terminal moved a record volume of
energy products, surpassing its original design
capacity of 12 million tonnes and contributing to
another record year for total cargo volumes at the port.
Prince Rupert
Grain Terminal
On the strength22%
of these record volumes,
Prince Rupert Port Authority reported an
annual profit of $16,483,885.
Ridley Coal
Terminal
Ridley Coal
Terminal
52%
3
52%
Prince Rupert
Grain Terminal
22%
GLOBAL TRADE MAP
CURRENT CARGO
FUTURE CARGO
PRINCE
RUPERT
ENERGY
FORESTRY
NORTHERN ALBERTA
CONSUMER GOODS
NORTHEASTERN BC
CONTAINERIZED EXPORTS
PRINCE
GEORGE
AGRI–FOOD
BIOFUEL
ALBERTA
MANITOBA
SASKATCHEWAN
POTASH
LNG
MONTREAL
TORONTO
CHICAGO
SOUTH
KOREA
JAPAN
MEMPHIS
CHINA
MEXICO
INDIA
IRAQ
SRI LANKA
BRAZIL
NORTHERN
EUROPE
06 MESSAGE FROM THE CHAIR & CEO
PRINCE RUPERT PORT AUTHORITY ANNUAL REVIEW 2013 07
MESSAGE FROM THE CHAIR
MESSAGE FROM THE PRESIDENT & CEO
The Port of Prince Rupert has delivered on its promise to respond to the astonishing economic opportunities of the
Asia-Pacific region. It has become a safe, reliable link in global supply chains. What is becoming clearer now is the
indispensable part the gateway plays in supporting our nation’s trade agenda. Seaports like Prince Rupert are essential
to the success of evolving Canadian industries like mining, forestry, agriculture and hydrocarbon extraction.
Vigorous trade is the hallmark of the world’s most successful economies. The Port of Prince Rupert plays a key role in
enabling Canada’s commerce with other nations, and connects communities that flourish when their products reach
markets.
As with the natural resource sector, change is the only constant within the shipping industry. The impending completion of the
Panama Canal expansion project, increased container capacity at other west coast ports, and the trend toward larger ocean
carriers are only a few examples of external forces that will affect Prince Rupert’s business. The quality and degree of planning
currently underway to safely accommodate our projected growth demonstrate the adaptability and readiness of the gateway.
In 2013, despite a modest decrease in overall tonnage over the previous year, goods and resources—loaded containers,
grain, coal, and forest products—all flowed in greater volumes through the Port of Prince Rupert. Operating profits
saw a corresponding improvement. Our stature is well-established within the competitive logistics landscape. With the
realization of new developments as well as proposed expansion on an unprecedented scale, Prince Rupert is attracting
global attention as a safe, agile and forward-looking port.
For the Prince Rupert Port Authority, 2013 was a year of sustained high performance and singular achievements.
The industries and natural resource operations that rely on our gateway also experienced positive growth, producing
corresponding benefits for their communities.
That reputation comes with a significant responsibility: sustaining our commitment to safety, growth, and the highest
standards of environmental practices. It is a responsibility that we take seriously because our stakeholders recognize
these values are part of our identity.
In the increasingly competitive business of shipping and logistics, growth like this depends on well-informed strategy,
strong leadership, and hard work. These values are reflected in upswings in forest product and agri-food exports, the latter
influenced by a bumper crop year in the Canadian prairies. Growth of coal shipments remained strong. A major increase
in the number of loaded export containers showed that Fairview Container Terminal—originally conceived as an import
terminal for North American markets—is versatile enough to respond to shifting industry demands.
Those stakeholders include the communities depending on Prince Rupert to connect their products to overseas
consumers. Frequently throughout 2013, I had occasion to observe that we are just as much the Port of Burns Lake or
the Port of Grande Prairie—or dozens of other Canadian towns and cities—whose vitality depends on efficient market
access for local industry and natural resource production. When trade connects us, communities thrive. Employment
burgeons and opportunities for healthy living grow, attracting new workers and families.
The official start of the Road, Rail and Utility Corridor project at the Ridley Island Industrial Site launched a complex twoyear construction project that foreshadows terminal developments on Ridley and adjacent Lelu Island. Accordingly, terminal
proponents proceeded with consultation, assessment and preparatory work in potential future lines of business like potash
and liquefied natural gas. Westview Wood Pellet Terminal, which opened in late 2013, enhanced market access for inland
natural resource producers.
In particular, in 2013 the first new terminal since the conversion of Fairview Container Terminal began operations. The
Pinnacle Renewable Energy Group produces wood pellets at plants in Houston, Prince George and Quesnel. The new
Westview Wood Pellet Terminal unlocked the potential for this clean-burning energy source to reach generating stations
and domestic heating units in Asia and Europe, prospering the communities where it is manufactured.
The Port Authority’s job is to find safe, efficient and sustainable solutions for customers who want to move cargo in and out
of Canada. PRPA does not choose which products can or cannot be shipped. As the product mix at the Port becomes more
diverse, balancing the complex shipping needs of customers will increase as a priority for our whole community and corridor.
Of course, the rewards of trade are great for our community and those along the trade corridor. When new terminals and
port-related businesses come online, municipalities benefit from an expanded tax base. A host of civic-minded organizations
have completed projects with funding from the port’s Community Investment Fund. As the Port of Prince Rupert connects
Canada to the world, entrepreneurs and communities are linked to new opportunities for prosperity.
The successes of the last year would be impossible without the hard work and acumen of PRPA’s leaders and staff, for which
they deserve the commendation of the Board. My colleagues on the Board of Directors also merit thanks for their dedication
and clear-sighted governance. Like so many others, we are aware of the historic character of the port’s current initiatives.
As we plan for new terminals and cargoes, the strong relationships between our operational team and partners will
be more important than ever. Substantial preparation is taking place to ready the Port of Prince Rupert for dramatic
increases in marine traffic, and to better understand our environmental footprint. To complement the benefits of trade
and expansion, strategic contributions made through the Community Investment Fund are empowering regional initiatives
that make northwest BC an even better place to live.
Such a complex program would be impossible without a world-class team. I express my appreciation to the Port
Authority’s employees, whose perseverance, initiative and enthusiasm are demonstrated every day. Our gratitude extends
to our indispensable gateway partners, including CN, terminal operators, marine safety agencies and other organizations.
Today, trade connects us in important and meaningful ways. The Port of Prince Rupert holds to its successful course of
safe, responsible and environmentally sustainable operations and growth. Tomorrow, with persistent determination and
effort, our connections will be even richer and stronger.
On behalf of the Board,
Bud Smith Chair
Don Krusel President & CEO
GLOBAL LEADER.
SEIZING OPPORTUNITY.
TRADE
10 TRADE
PRINCE RUPERT PORT AUTHORITY ANNUAL REVIEW 2013 11
Canada’s prosperity depends on goods and
resources connecting with overseas markets
efficiently and reliably. Communities, families
and workers along Prince Rupert’s trade
corridor are responsible for making these
connections, resulting in the prosperity of
northwest British Columbia and beyond.
CONTAINERIZED EXPORTS
FOREST PRODUCTS
Although the majority of containerized exports through Prince Rupert are
forestry and agricultural products, shipment of scrap paper, metals and other
recyclables accounted for approximately 25% of export containers in 2013.
China and its flourishing economy is now the largest importer of lumber in the
world, and is the fastest growing market for Canadian lumber. The majority of
lumber going to China is lower-grade spruce, pine and fir products used for
concrete forming and furniture. However, the wood building market is gaining
noticeable traction due to newly-developed building codes.
Despite reduced demand, China’s recycling industry provides a strong market
for wastepaper from North America to Europe. Recycled products are used
to create 60% of China’s manufactured paper and paper board products,
which are used primarily to package China’s light manufactured exports. It
is estimated that China’s use of scrap paper saves over 50 million tonnes of
wood from being harvested for pulp each year.
Mineral concentrates, logs, aluminum and dried seafood—all local northwest
BC exports—are also transported in containers. While minor in volume, they
exemplify the export opportunity provided by intermodal supply chains to small
volume, high-value or sensitive goods in northern BC.
The BC forest industry remains a key driver of the provincial economy and
is a significant contributor to government revenue at all levels. Log harvest,
lumber production and pulp production in communities like Houston, Fort
St. James, Vanderhoof, Prince George and Quesnel provide over 50,000
direct jobs. These forest products are trucked to transload facilities in Prince
Rupert and Prince George before being stuffed into containers and exported
from Fairview Terminal.
CONSUMER GOODS
Containers are used to transport an almost limitless variety of goods for
North American consumers. In the midst of fierce competition by west
coast gateways for import traffic from Asian markets, Prince Rupert
offers a unique service that emphasizes speed, reliability and the ability
to match shippers’ specific needs. A supply chain has developed along
BC’s northern corridor to serve this business. It provides communities
with employment in marine, rail and truck operations, as well as cargo
handling and logistics services.
LADEN CONTAINERS
151,624
TEUs EXPORTED
21.75%
OVER
2012
More than 90% of the inbound container traffic to the Port of Prince
Rupert originates in China and is destined for major North American
distribution centres such as Toronto, Montreal, Chicago and Memphis.
Apparel, footwear, furniture, electronics and other household goods make
up approximately half of the product mix. Automotive components and
building materials round out the remainder.
FAIRVIEW CONTAINER TERMINAL
536,439
TEUs
5.03%
OVER
2012
TONNES
OVER
2012
FOREST PRODUCTS
68,502
TEUs EXPORTED
14%
OVER
2012
12 TRADE
PRINCE RUPERT PORT AUTHORITY ANNUAL REVIEW 2013 13
AGRI-FOOD
Canada is one of the largest grain exporters in the world, supplying food to
developed and developing nations around the globe. Wheat is the country’s
largest crop and is experiencing growing popularity in Asia with increases in
purchasing power. Similarly, canola and soybeans are used primarily in the
production of food oils, with increased demand being driven by use of canola
oil in China and India.
ENERGY
BIOFUEL
Coal and petroleum coke are highly valued for their energy content,
especially for use in steelmaking. Their use in Asia is building the
infrastructure to accommodate hundreds of millions of people seeking
to improve their quality of life. Despite fluctuating prices for these
commodities, global demand and consumption are forecast by the
International Energy Agency to increase by 35% in the next 20 years,
auguring well for one of BC’s most important industries.
Europe is the world’s largest market for wood pellet products, driven
largely by green energy policies that provide incentives to use renewable
wood fuel. Emerging energy policies in Asian countries are also expected
to drive increased wood pellet demand as growing cities strive to reduce
their carbon footprint.
Energy being exported through the Port of Prince Rupert to markets like
China, Japan, South Korea and Brazil supported thousands of direct
resource extraction jobs in Western Canadian communities. Just as
importantly, it provided well over $100 million in royalty and taxation
revenues to senior and local governments.
Wood pellets are manufactured in communities like Burns Lake and
Williams Lake using a process that compresses sawdust and other wood
waste from lumber mills in northern BC. The industry derives value from
the salvage of timber impacted by the mountain pine beetle infestation.
Hundreds of jobs are dependent on its vitality and its ability to access
international markets.
In 2013 the Pinnacle Renewable Energy Group completed construction
of the $42 million Westview Wood Pellet Terminal and began operations,
loading the Star Manx bulk carrier in late November. The facility is the
first purpose-built wood pellet export facility in Canada, and with an
estimated capacity of 2 million tonnes, supports hundreds of inland
workers responsible for wood pellet production and transportation.
PRINCE RUPERT TOTAL TONNAGE
MILLIONS OF METRIC TONNES
The ability to access international markets through Prince Rupert supports
thousands of direct jobs in Western Canada’s agricultural sector. The port’s
grain shipments are moved primarily from grain elevators and facilities
throughout Alberta, Saskatchewan and Manitoba by unit trains, and then onto
vessels by Prince Rupert Grain. Intermodal shipping of soybeans, ginseng,
cotton and animal feed from and to Asian markets is also supported by
Fairview Terminal.
BULK CARGO
2013
Container
BULK CARGO 2012
Bulk/Breakbulk
Metallurgical Coal
TONNES
% CHG
7,808,675
+13.28%
24
Wheat
3,373,819
+0.60%
22
Thermal Coal
2,783,515
-13.02%
20
Petroleum Coke
1,480,021
+2.97%
18
Canola
1,401,389
+32.73%
Logs
417,011
+28.60%
Barley
342,141
+11.64%
92,332
+31.69%
17,698,903
+6%
16
14
Miscellaneous
12
TOTAL BULK
10
CONTAINERIZED CARGO
2013
8
6
4
Import Containers
2
Forest Product Export Containers
0
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
1990
1989
Other Export Containers
TOTAL CONTAINERS
TEUs
% CHG
303,840
-4.47%
68,502
+14.1%
164,097
-12.1%
536,439
-5.03%
14 TRADE
PRINCE RUPERT PORT AUTHORITY ANNUAL REVIEW 2013 15
GATEWAY 2020 DEVELOPMENT PLAN
INVESTING IN INFRASTRUCTURE
PRPA emphasizes long-term planning, integrating activities and proactively
defining and reducing risk. As part of its ongoing commitment to safe,
responsible and sustainable growth, PRPA is planning and preparing for
new terminal developments, increases in vessel traffic, and potential new
cargoes.
At the heart of PRPA’s vision for the future is the Road Rail Utility Corridor,
which began construction in early 2013. The catalyst project consists
of a two-lane roadway, five parallel rail tracks, and a power distribution
system in an eight-kilometre loop around the Ridley Island Industrial Site.
Construction began in March under the project’s two contracting companies,
Prince Rupert Constructors and Coast Industrial Construction, both of which
are joint ventures between established construction firms and local First
Nations. Together the two companies employed a total of 103 people on
the RRUC project, more than 80 of whom are from the local workforce.
PRPA’s Gateway 2020 development strategy outlines a port growth strategy
for the responsible development of more than 400 hectares of industrial
land holdings. This vision ensures the needs of tenants, future trade
opportunities and regional economic development goals are coordinated
and balanced. PRPA’s plan identifies specific development sites,
appropriate terminal uses and ensures potential conflicts between future
terminal activities are mitigated. The Gateway 2020 development strategy
maximizes opportunity for bulk export terminals on Ridley Island, and
prioritizes expansion of the Port’s intermodal activities and services by
integrating them into the broader port complex. The result is the creation
of a well-planned and integrated port that anchors the Prince Rupert
Gateway and supports safe and intelligent development.
The infrastructure being created with the Road Rail Utility Corridor is
foundational to bringing PRPA’s Gateway 2020 vision to fruition.
By opening up defined development clusters on Ridley Island, this
common-user corridor provides the platform for billions of dollars of
capital investments, and provides a solution for Canada’s expanding
natural resource sectors to connect with world markets.
PROJECTS UNDER INVESTIGATION
Project
BULK CARGO 2012
Capacity
Estimated Completion
Fairview Container Terminal expansion
1.3 million TEUs
2017
Off-dock Container Yard and Logistics Park
N/A
2017
Canpotex Potash Terminal
13 million tonnes
2017
Pacific NorthWest LNG
18 million tonnes
2019
Prince Rupert LNG
21 million tonnes
2021
ROAD RAIL UTILITY CORRIDOR
90 MILLION
BY 2014
PROJECTED PORT CAPACITY
90 MILLION TONNES
BY 2025
POTENTIAL CAPITAL INVESTMENT
25 BILLION+
$
BY 2025
OPERATIONAL EXCELLENCE.
INNOVATIVE APPROACHES.
HARBOUR SAFETY
AND SECURITY
18 HARBOUR SAFETY & SECURITY
PRINCE RUPERT PORT AUTHORITY ANNUAL REVIEW 2013 19
PREPARING FOR GROWTH
PRPA places an emphasis on long-term planning, integrating activities and
proactively defining and reducing risk. As part of our ongoing commitment
to safe and sustainable growth, PRPA is planning and preparing for new
terminal developments, growth in vessel traffic and potential new cargoes.
In 2013, PRPA continued to review and revise its operational practices
and procedures. A collaborative Anchorage Review and 12-month trial are
establishing new anchorage positions within the Prince Rupert Harbour.
PRPA also commissioned a local marine risk assessment through the
globally-recognized firm Det Norske Veritas (DNV). DNV used recognized
methodology to compare and contrast the safety of the Port of Prince
Rupert with other ports worldwide, benchmark navigational risk with a
baseline profile, and make recommendations to further reduce and mitigate
identified risks. PRPA believes that managing navigational risk and avoiding
incidents is the most effective approach to ensuring a safe harbour becomes
even safer.
The foundation of our prosperity lies in
SAFE HARBOUR
practices and procedures designed to keep
The Port of Prince Rupert harboured 462 deep sea vessels
in 2013, a 16% increase from 2012. PRPA is committed to
going above and beyond its regulatory duties to ensure the safe,
secure and environmentally-responsible movement of vessels
and their cargoes through the port.
vessels moving safely – and goods flowing
securely. Our dedication to safe operations
means nonstop teamwork and vigilance,
and sees PRPA connected to a variety of
partners at all times.
Prince Rupert is blessed with one of the deepest natural
harbours in the world. It possesses direct, unobstructed
access to the commercial shipping lanes of the Pacific Ocean.
A collaborative effort between the Canadian Coast Guard’s
Marine Traffic Services, Pacific Pilotage Authority, BC Coast
Pilots, SMIT Marine and PRPA 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 more than doubles
over the next decade, maintaining that reputation continues
to be an operational priority.
In response to an environmental incident on the Prince Rupert waterfront,
PRPA led multiple agencies in remediation efforts after discovering a fluid
leak from decommissioned electrical transformers on port property. As a
result of vandalism, 1,500 litres of mineral oil escaped, a small quantity of
which entered the marine environment. Within 24 hours, a joint response
from Western Canada Marine Response Corporation, Quantum Murray,
SNC-Lavalin Environment and PRPA was mobilized, and site remediation
continued for several months following the incident.
In 2013, PRPA also signed a Memorandum of Understanding (MOU) with
Canadian Coast Guard (CCG) that saw the two agencies partner on a project
to introduce a new lighted Aid to Navigation in the Prince Rupert Harbour.
The fixed sector light at Philips Point in the Fairview Channel enhances the
safety of all vessels and mariners entering and exiting the Prince Rupert
Harbour, but is particularly useful to BC Coast Pilots navigating the deep
water channel to the Fairview Container Terminal, Westview Wood Pellet
Terminal and inner harbour anchorages.
RESPONSIBLE GROWTH.
SUSTAINABLE DEVELOPMENT.
ENVIRONMENT
22 ENVIRONMENT
PRINCE RUPERT PORT AUTHORITY ANNUAL REVIEW 2013 23
The Port of Prince Rupert is building long-
CONTINUOUS IMPROVEMENT
MEASURING AIR QUALITY AND CLIMATE CHANGE
term, sustainable connections between
The environmental impact of our operations is a key consideration
in the way we evaluate our business. Our environmental
commitment to the communities in which we operate is as
important as our reputation for fast, reliable service. Moving
forward, how we manage our growth is more important than ever,
and we are committed to moving beyond mandated requirements
and regulations.
PRPA is working with industry partners and regulators to track existing
baseline information on air quality in the Port’s airshed through realtime monitoring, including greenhouse gases (GHGs) and other air
emissions. This baseline data will allow PRPA to track future emissions
reduction progress and trends over time. PRPA’s strategy is to establish
GHG and other emission reduction metrics, and work with Port users
and stakeholders to emphasize energy conservation and develop
feasible emission reduction projects.
industry and environment.
By striving to be a leader among ports
in the environmental stewardship of port
lands and waters, we demonstrate respect
– for the environment, our neighbours and
future generations.
An important component of that commitment is the implementation
of foundational initiatives to support our proactive approach to
sustainable practices. PRPA’s 2020 Environmental Sustainability
Plan has been established to support the environmentally sound
development and growth of the Port of Prince Rupert. This plan
ensures that PRPA is guided in all of its activities by the key
principles of pollution prevention, preservation of environmental
integrity, efficient use of resources, and continuous improvement.
EXPANDING GREEN MARINE MEMBERSHIP
PRPA is a proud member of the Green Marine Environmental
Program, which requires the voluntary adoption of measurable
practices and rigorous external audits to ensure its members
operate in a progressively sustainable manner. In 2013, many
Port of Prince Rupert partners became Green Marine members,
including Maher Terminals, Ridley Terminals Inc., Pinnacle
Renewable Energy Group, SMIT Canada, Quickload Logistics,
Tidal Transport, Pacific Pilotage Authority, Western Canada Marine
Response Corporation, Pacific NorthWest LNG and BG Group,
creating a unified network of industry partners with a shared vision
for sustainable practices.
Following the redevelopment of the Westview Industrial Site in
2013, PRPA installed the first air quality monitoring station in Prince
Rupert, which measures particulate matter and collects basic weather
information to complement PRPA’s existing meteorological station.
PRPA also partnered with LNG proponents Pacific NorthWest LNG
and BG Group to establish a wet deposition station in Port Edward,
which collects rainfall that is sampled for concentrations of various
ions, like acid rain. This is the third such station to be established in
British Columbia, with the goal of creating a baseline for the airshed
in the Prince Rupert region, prior to development of large-scale LNG
terminals on Ridley and Lelu Islands.
MONITORING WATER QUALITY AND MARINE POLLUTION
PRPA’s water sampling program was expanded in 2013 to include
more than 20 sites in the harbour, helping further establish an
existing footprint of current water quality. This comprehensive
baseline will enable tracking of water quality trends over time.
To reduce the potential for marine discharges in the Prince Rupert
Harbour, PRPA’s water quality strategy includes the practice of
boarding and inspection of commercial vessels. These inspections
involve the review of vessel documents including ballast water
management reports, sewage plant certificates, and visual
inspections of the engine room to ensure discharge pumps are |ocked
and bilge pumps are clean.
24 ENVIRONMENT
PRINCE RUPERT PORT AUTHORITY ANNUAL REVIEW 2013 25
ENHANCING HABITAT STEWARDSHIP
Marine, foreshore and terrestrial habitat within the port has been and
will continue to be affected by port-related projects and activities. PRPA
has a responsibility to protect and restore the integrity of these habitats,
while maintaining shoreline access for port users and opportunities for
foreshore development. Through its membership in the Harbour Debris
Society and other associations, PRPA integrates marine activities related
to marine mammals, water and sediment quality, log management,
dredging and navigation.
ASSESSING NEW PROJECTS
REMEDIATING CONTAMINATED SITES
MITIGATING NOISE AND COMMUNITY USE CONFLICTS
New developments and major project expansions undertaken within
the Port of Prince Rupert require environmental assessment under the
Canadian Environmental Assessment Act (CEAA). The environmental
assessment process ensures that potential environmental effects
of projects and activities are identified, appropriate mitigation is
developed, and the need for and scope of monitoring programs is
determined.
PRPA has established an inventory of known and potential
contaminated terrestrial sites within the port, and is using this
information to inform specific recommendations for site remediation
and environmental impact mitigation. This will include the development
and implementation of best management practices and standard
operating procedures to prevent accidental spills, leakage or drift and
minimize the consequences of such releases if any should occur.
PRPA actively attempts to mitigate conflicts between port operations
and neighbouring communities, using ongoing engagement and
communication to identify and remediate issues. PRPA is measuring
and mapping existing noise levels related to the Port in order to
establish a better understanding of the current baseline. Identification
of future conflicts will be achieved through environmental assessments
and community engagement, and mitigated through best practices
that involve specific proponent performance requirements, real-time
monitoring, and integrating feasible technological solutions.
In 2013 PRPA expanded its Project Development department with the
addition of several positions, including the Director of Environmental
Assessment. PRPA is working with project proponents to help facilitate
the robust environmental studies integral to fully address local issues
and concerns. It also contributes to applications to the Canadian
Environmental Assessment Agency and the BC Environmental
Assessment Office.
PREVENTING AQUATIC INVASIVE SPECIES
PRPA is committed to monitoring the health of the aquatic environment
in the Prince Rupert Harbour. In partnership with Northwest Community
College and the Invasive Tunicate Network’s Plate Watch program,
PRPA continued a program that marks the first time invertebrate
species have been collected in Prince Rupert and reported to a coastwide network of experts. Through the quarterly monitoring of several
sites, PRPA is contributing to an early detection system for invasive
species not previously present in the Northwest Pacific.
In 2013, PRPA installed a noise monitoring station at the Westview
Wood Pellet Terminal to measure and track decibel levels of loading and
unloading operations. PRPA continues to work with Pinnacle Renewable
Energy Group and neighbourhood residents to implement noise reduction
measures that adequately address community comments.
STRONG PARTNERSHIPS.
REACHING POTENTIAL.
COMMUNITY
28 COMMUNITY
PRINCE RUPERT PORT AUTHORITY ANNUAL REVIEW 2013 29
COMMUNITY INVESTMENT FUND
The Community Investment Fund is a share of PRPA income that is
earmarked 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
is enabling millions of dollars in local improvement projects since its
inception in 2009. Each of these projects has filled an important role in
supporting sports, recreation, performing arts, healthcare, education, the
environment and other needs in the community.
In the last four years, the Community Investment Fund has contributed
more than $1.5 million in 33 projects. In 2013, $404,000 was committed
to nine projects:
• Developing the Coastal Pathways Partnership, a local skilled trades
training program with Ridley Terminals Inc., Northwest Community
College and School District 52
• Resurfacing the floor of The Growing Space community activity centre
for young children with the Growing Spaces Society
• Funding a feasibility study for the redevelopment of the Rushbrooke Trail
waterfront walkway with the Rotary Club of Prince Rupert
By connecting communities to
opportunities that improve their quality
of life, the Port of Prince Rupert is
strengthening the overall health and
cohesion of Northwest BC.
PRPA ensures growth is responsible, sustainable and reflects the values
and priorities of local communities and First Nations. This means
listening to and working with community partners to keep public interests
in balance with the economic development, employment and industrial
tax base of the community.
PRPA takes pride in the fact that port operations and developments
meet community standards and expectations in terms of marine safety
and environmental sustainability. In addition, PRPA administers several
programs that make sure residents are informed about and engaged in
port activities.
PRPA and its employees also dedicate significant resources back into the
communities in which it operates through donations, sponsorships and
investment of matched funds into community projects. In particular, the
Community Investment Fund has been responsible for contributing more
than $1.5 million in capital funds to local projects in its first four years.
• Installing new lighting at the downtown Sunken Gardens with the Prince
Rupert Garden Club
• Creating a round-the-clock recycling transfer station at the Prince Rupert
Recycling Depot with the Skeena-Queen Charlotte Regional District
• Digitization of northwest historical documents at the Prince Rupert
Public Library with Ridley Terminals Inc. and Prince Rupert Grain Ltd.
• Developing a community sports and recreation field in the First Nations
community of Metlakatla with the Metlakatla Governing Council
• Purchasing new lighting equipment for the Prince Rupert’s Tom Rooney
Playhouse with the Harbour Theatre Society
• Building a new Spirit Dancer Canoe and trailer with the Coastal Cultural
Canoeing Society
PRPA salutes the dedication of these organizations (most of them
volunteer-based) and the time they contribute to making our communities
dynamic places to live, work and raise families. The many funding partners
whose support complements that of PRPA also deserve special recognition.
“Prince Rupert is home to a flourishing
arts community of all ages, and the Prince
Rupert Port Authority’s generous contribution
dramatically improves the unique cultural
and artistic experiences we are able to
cultivate in this community.”
- James McNish,
President of the Harbour Theatre Society
30 COMMUNITY
FISCAL INTEGRITY.
ANCHORING THE FUTURE.
COMMUNITY ENGAGEMENT
FIRST NATIONS AND COMMUNITY DIALOGUE
In 2013 PRPA’s Port Interpretive Centre continued to welcome residents
and visitors to explore the products, vessels and vehicles moving through
the Port of Prince Rupert, the economic impact of port operations and
its trade route, and the people and partners who make it all possible.
After 18 months of operation, the Centre surpassed the 10,000 visitor
milestone, and PRPA used the venue to host a number of community
events, including the launch of its Trade Talks speaker series.
The Port of Prince Rupert is within the traditional territory of the Coast
Tsimshian, who have lived and traded in the area for thousands of years.
PRPA recognizes the importance of engaging with First Nations to ensure
an alignment of interests, particularly on mutually beneficial development
and the stewardship of port lands.
The Centre was also complemented by outreach to local schools,
including the launch of PRPA’s Learning Gateway, which includes lesson
plans for Kindergarten through Grade 12. The learning materials provide
educational resources designed to engage students in learning about the
port, its role in Canada’s expanding trade with the countries of the Pacific
Rim, and the diverse work and career opportunities that it supports.
Port presence in Cow Bay is enhanced by Northland Cruise Terminal,
which served to welcome 4,856 cruise passengers that arrived aboard
nine vessel calls in 2013. While the Alaska cruise market continues to
pose a challenge for ports of call like Prince Rupert, cruise passengers
represent a significant economic impact for local tour operators, retailers
and hospitality businesses.
PRPA also recognizes that community understanding and support of port
activities is essential to our continued development. PRPA continually
works to maintain that support by being a trusted and respected partner
that is committed to dialogue, collaboration and engagement. In 2013
this was supported through the development of a Community Information
Forum, a local stakeholder group that provides a context to share
information about PRPA’s operations and port development, and tackle
issues and challenges in the community. The Forum assists PRPA in
understanding the variety of opinions and concerns in the community
about PRPA’s activities, and proposes improvements to PRPA for
consideration.
32 OUR BUSINESS
PRINCE RUPERT PORT AUTHORITY ANNUAL REVIEW 2013 33
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
CONSOLIDATED STATEMENT OF CASH FLOWS
December 31, 2013, with comparative figures for 2012
Year ended December 31, 2013 with comparative figures for 2012
Year ended December 31, 2013, with comparative figures for 2012
Year ended December 31, 2013, with comparatives for 2012
2013
REVENUE
ASSETS
Current assets:
Cash and cash equivalents
$28,004,117
Term deposits
2,571,358
6,037,778
Accounts receivable
13,728,766
6,348,333
Prepaid expenses
370,596
261,748
Total current assets
44,674,837
34,428,650
$21,780,791
Non-current assets:
Term deposits
Property, plant and equipment
–
506,568
88,771,107
56,991,460
Total non-current assets
88,771,107
57,498,028
Total assets
$133,445,944
$91,926,678
LIABILITIES
Current liabilities:
Accounts payable & accrued liabilities
$13,643,200
Current portion of deferred revenue
Current portion of deferred contributions
3,642,177
6,790,897
2013
2012
$39,302,561
$36,761,717
2012
$ 7,338,165
5,583,500
2,379,805
2,302,657
Total current liabilities
26,456,079
15,224,322
Amortization
1,130,404
1,248,658
Operating and administrative
8,514,363
5,515,252
Payments in lieu of municipal taxes
1,998,792
2,673,617
Professional and consulting fees
4,568,171
4,023,511
Repairs and maintenance
779,836
2,579,536
Salaries and benefits
7,792,908
6,367,824
Total expenses
24,784,474
22,408,398
RESULTS FROM OPERATING ACTIVITIES
14,518,087
14,353,319
Interest income
533,845
Interest on long-term debt
(186,615)
(676,972)
Net finance income (costs)
347,230
(442,555)
Gain on sale of property, plant, equipment
1,618,568
Loss on disposal of equipment
–
(35,630)
1,618,568
(35,630)
PROFIT FOR THE YEAR
16,483,885
234,417
Employee benefits
1,070,000
2,722,000
Deferred revenue
1,633,912
–
13,875,134
Deferred contributions
15,232,406
286,212
Long-term debt
7,632,866
10,007,348
Total non-current liabilities
25,569,184
13,015,560
Total liabilities
52,025,263
28,239,882
Equity of Canada:
Contributed capital
36,212,811
36,212,811
Surplus
45,207,870
27,473,985
Total equity of Canada
81,420,681
63,686,796
Total liabilities and equity of Canada
$133,445,944
$91,926,678
1,250,000
(489,000)
Other comprehensive income (loss) for the year 1,250,000
(489,000)
Defined benefit plan actuarial gains (losses)
$ 36,212,811
2013
TOTAL
$14,087,851 $50,300,662
Profit for the year
$ 16,483,885 $ 13,875,134
Adjustments for:
– 13,875,134 13,875,134
Defined benefit plan actuarial losses
– (489,000) (489,000)
plant and equipment
Total other comprehensive loss
– (489,000) (489,000)
Net finance costs (income)
Other comprehensive loss
Total comprehensive income for the year $
BALANCE – DECEMBER 31, 2012
–
$ 13,386,134 $13,386,134
$36,212,811
$ 27,473,985 $63,686,796
Total comprehensive income for the year
Profit for the year
$
–
$16,483,885 $16,483,885
Other comprehensive income (loss)
Defined benefit plan actuarial gain (losses) –
Total other comprehensive income (loss)
Total comprehensive income for the year $
1,250,000 1,250,000
– 1,250,000 1,250,000
–
$17,733,885 $17,733,885
BALANCE – DECEMBER 31, 2013
$36,212,811
$45,207,870 $81,420,681
Amortization of property, plant & equipment
1,130,404 1,248,658
Loss (gain) on disposal (sale) of property,
FOR THE YEAR
$17,733,885
$ 13,386,134
(1,618,568) 35,630
(347,230) 442,555
15,648,491 15,601,977
Change in accounts receivable
(7,380,433) (1,153,734)
Change in prepaid expenses
(108,848) Change in defined benefit liabilities
(402,000) (333,000)
Change in accounts payable and accrued liabilities
6,305,035 3,408,853
Change in deferred revenue
(307,411) Net change in non-cash operating working capital
(1,893,657) 4,809,248
Net cash from operating activities
13,754,834 20,411,225
(51,074)
2,938,203
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
487,239 234,417
Proceeds from sale of property, plant and equipment
1,687,394 –
Acquisition of property, plant and equipment
(52,907,979) (6,625,069)
Sale of term deposits
5,019,593 Purchase of term deposits
(1,000,000) (6,108,626)
Net cash used in investing activities
(46,713,753) (4,294,371)
8,204,907
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of long-term debt
TOTAL COMPREHENSIVE INCOME
2012
CASH FLOWS FROM OPERATING ACTIVITIES
Profit for the year
–
OTHER COMPREHENSIVE INCOME (LOSS)
Non-current liabilities:
BALANCE – JANUARY 1, 2012
SURPLUS
Total comprehensive income for the year
EXPENSES
–
Current portion of long-term debt
CONTRIBUTED CAPITAL
(2,297,334) (2,121,162)
286,212 Contributions received from customers & government entities41,666,194 (186,615) (676,972)
Interest paid
Net cash used in financing activities
39,182,245 (2,511,922)
Net increase in cash and cash equivalents
6,223,326 13,604,932
Cash and cash equivalents at January 1
21,780,791 Cash and cash equivalents at December 31
8,175,859
$28,004,117 $21,780,791
34 OUR BUSINESS
BOARD OF DIRECTORS
Board of Directors as of May 1, 2014
Bud Smith
Chairman of the Board
Jennifer Clarke
Director
Elmer Derrick
Director
EXECUTIVE TEAM
Don Krusel
President & Chief Executive Officer
Lorne Keller
Vice President
Project Development
Andrew Mayer
Vice President and General Counsel
Commercial and Regulatory Affairs
Gary Paulson
Vice President and Harbour Master
Operations
Joe Rektor
Vice President
Finance
Shaun Stevenson
Vice President
Trade Development and Public Affairs
Bruce Hallsor
Director
Maureen Macarenko
Director