Original news was published on 05 October, 2015
When global breakbulk, project cargo and heavy-lift shipping operator AAL announced it had selected British Columbia’s Port of Prince Rupert for a call on its Pacific Service it undoubtedly raised a few eyebrows; Prince Rupert is not known for its project cargo prowess.
But snaring AAL was no quick-win for Prince Rupert. Attracting this international operator was the result of a five-year planning and development journey, which began when Prince Rupert Port Authority set its Gateway 2020 vision back in 2010 and culminated in the completion of Ridley Island Project Cargo Facility this year.
Gateway 2020 was developed with a goal to deliver a “well-planned, integrated and diversified port” that would anchor the Prince Rupert Gateway as a North American hub for a variety of cargo streams. It identified specific development sites, identified appropriate general terminal uses, and attempted to mitigate the potential for conflicts between future terminal activities.
To kick-start project cargo volumes, Gateway 2020 highlighted the potential of the port’s Ripley Island. But to realize that potential the port authority needed to co-fund a road, rail and utility corridor to facilitate easy access to the hinterland and beyond.
Officially completed in May, that intermodal corridor project included an access road, rail loop, utilities, onshore terminal infrastructure and marine components. The first phase consisted of three inbound and two outbound tracks for coal, potash and other bulk terminal developments, two additional tracks that form a loop around the main part of Ridley Island and one new track that extends off the rail loop towards Ridley Terminals.
And there’s more to come: by completion the corridor will feature a two-lane access road running parallel to the rail loop, with an underpass and an overpass at opposite ends of the loop. Also planned for a later phase is a new 3.4 kilometer 69 kilovolt power line, owned by the port authority, to connect Ridley Island and proposed development sites to the existing power transmission system. At full build out, there will be 7,818 meters of rail loop with capacity for 14 inbound tracks and 11 outbound tracks.
Under the jurisdiction of the port authority, the Ridley Island industrial site is located some 8.5 kilometers from downtown Prince Rupert. It boasts a roll-on roll-off ramp, a 2.6 hectare laydown area, and commercial-only access to the Canadian National, or CN, rail network and the Trans-Canada Highway 16.
Michael J. Gurney, manager for corporate communications at Prince Rupert Port Authority, confirms that the investment in the Ridley Island Project Cargo Facility enabled the AAL service, which the port hopes will be the first of many project cargo services in the future.
“The Prince Rupert Port Authority, and the terminal operator (CT Terminals) have been working with shippers to provide insight into the attributes and advantages of Prince Rupert as a project cargo gateway,” Gurney said to Breakbulk. Gurney believed that accessible energy, mining and other resource sectors should be a draw for project/breakbulk/heavy-lift operators considering Prince Rupert.
“Prince Rupert’s proximity to fabrication centers in Asia and large BC and Alberta energy, mining and resource projects provides a cost, distance and reliability advantage over traditional project cargo gateways in North America. We do expect to attract more project cargo volume due to our strategic location,” he said.
While Gurney is reluctant to be tied down to a projection for project cargo, breakbulk and heavy-lift volumes, the port does expect to see growth in the short to medium term. With its newly established road and rail links it has already emerged as an important new gateway for project cargo imports to the oil-rich mining area of Alberta, Canada, and the wider Pacific Northwest.
AAL is particularly excited by this access to oil and gas fields, citing that as a key selling point in its choice of Prince Rupert. Felix Schoeller, general manager of the company’s Pacific Service, said to Breakbulk: “The Port of Prince Rupert, with its newly established road and rail links, has emerged as an important new gateway for project cargo imports to the oil-rich mining area of Alberta and the wider Pacific Northwest. There is a lot of container activity in addition to shipments for the oil and gas industry and a burgeoning wind energy sector in the region.”
He continued: “AAL has extensive experience in serving the oil and gas, mining and energy sectors, for which British Columbia is a key market. Customers in these sectors rely upon us to provide the reliability and cargo security that they require within their supply chains and, at a time when cost pressures are leading some carriers to compromise on safety, we see cargo safety as our first priority.”
AAL’s inaugural sailing from Prince Rupert’s Ridley Island ro-ro cargo terminal was made in May by the 31,000-deadweight-ton AAL Brisbane, with a cargo of process units for a major new oil sands project in Alberta.
AAL has further scheduled calls to make at Prince Rupert to complete an important ongoing project. While Prince Rupert is not a permanent feature of its monthly Pacific Service, AAL has retained the flexibility to resume calls there based on future customer demand, whether on a scheduled or project-by-project basis and with whatever frequency is required.
Said Schoeller: “By expanding our Pacific Service and port network across the Pacific Northwest – with both popular and more remote ports – we multiply our customers’ options and choice, ultimately impacting on the efficiency, delivery and overall competitiveness of their projects. In the region of British Columbia and Alberta, there is significant potential to expand our network.”
AAL’s melting pot of tramp, projects and liner services on a global basis has allowed it the flexibility to include a Prince Rupert option, which can be offered through its liner services or on a project-by-project basis through its tramp and projects division.
Looking ahead, the shipping operator believes that Prince Rupert is well-positioned to snare additional project cargoes in the future, given the increased rate of infrastructure development in the region. AAL goes so far as to describe the port as a convenient port of loading or discharge for any cargo that might need to be transported into Central Canada.
“As the shipping time is much shorter than going through Houston, there are significant cost and efficiency savings to be made,” said Schoeller. “The frequency of cargo operations to Prince Rupert will always be dictated by customer demand, and we have the flexibility and the relationships with local partners in Prince Rupert to respond positively to whatever our customers require.”
*NEWS SOURCE