The terminal, which handles bulk cargo and is a major export terminal for B.C. coal, has been viewed by coal exporters as a key to the Pacific Gateway strategy to improve export links with Asia.
But at a news conference Thursday, federal Minister of State for Finance Ted Menzies said the Crown corporation has grown in value to the point where federal ownership is no longer required.
"Ridley Terminals no longer (requires) support from Canadian taxpayers," he said "Ridley Terminals now has real value. In fact, the terminal made more in operating profit last year than the total sales price in 2005.
"Private ownership could allow the terminal to maximize its contribution to economic growth, jobs and new investments," Menzies said.
The terminal operated at a loss when the Liberal government tried to sell it to an Ontario company for a reported $20 million. The Harper government is not putting a dollar figure on the terminal's value, but its finances have improved significantly since 2006. Revenues have climbed from $5.5 million to $73.8 million, operating profits have climbed from zero to $33.5 million, and government support has dropped from $4.5 million annually to zero.
The terminal cost $250 million when it was built in 1981.
The sale is to be handled by the Canada Development Investment Corp.
The major concern in B.C. in 2006 was whether a new owner would continue to provide open access to the coal sector, which was at the beginning of what turned out to be a long run of high prices for the metallurgical coal from the province's northeastern coal fields. The drive for profits by a privately run enterprise could put B.C. coal mines in an uncompetitive position with Australia, coal companies feared then.
The government says it intends to address the issue of open access through the sales process.
"Our government will protect the interests of the users of the terminal by requiring that any buyer continue to operate Ridley Terminals on an open-Ridley Terminals on an open-access, commercial basis," Menzies said. "Ensuring open access for multiple users at Ridley Terminals is a non-negotiable condition in this sale. If no such buyer comes forward, Ridley Terminals will not be sold." B.C. Transportation and Infrastructure Minister Mary Polak said that the province's goal is to maintain open access to Asia-Pacific markets regard-
to Asia-Pacific markets regardless of the terminal's owner. She described the terminal as "a key part of Canada's Pacific Gateway." "Our government will seek the best value from a buyer that will operate Ridley Terminals with open access on a long-term, sustainable basis," Stephen Fletcher, federal minister of state for transport, said in a news release. Selling the terminal to the private sector "would align it with other major marine terminals in Canada," Fletcher said. The terminal is operating at its capacity of 12 million tonnes of bulk cargo a year, and is undergoing an expansion to increase that capacity to 25 million tonnes.
Original Article
Source: canada.com
Author: Gordon Hamilton
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