Issue link: http://read.dmtmag.com/i/146868
Market Update ("Building a Gateway to Asia" continued from page 21) infrastructure, marine terminal and expansion projects, with more than $20 billion in new development anticipated by 2020. This spring, ground was broken on the port's $90 million road, rail and utility corridor project that'll boost trade capacity and exports to Asia-Pacific markets. The project includes construction of five parallel rail tracks, a two-lane roadway, and a power distribution system along six miles, providing shared use facilities for proposed potash, LNG, and other new terminals. The first phase of private sector investment should be completed in December 2014. The utility corridor will be funded by the federal and provincial governments at $15 million each, and by Canadian National Rail and the port authority at $30 million each. The authority's Gateway 20/20 plan foresees reaching an annual throughput capacity of 100 million tons of cargo as proposed terminal developments are completed. Prince Rupert projects underway or waiting in the wings include a British Gas LNG terminal, a $10 billion Petronas LNG facility, and a $200 million expansion of Ridley Terminals doubling capacity to 24 million tons. In addition, there's a $400 million potash export terminal, a $650 capital expansion of Fairview container terminal, and the $42 million Westview wood pellet terminal. Down the coast at what's grandly branded as "The Private International Port of Kitimat – A Marvel of Nature and Industry," much more is in the works besides LNG processing and marketing. Cascadia Materials Inc. will build a break-bulk terminal to export valuable sand and aggregate construction materials from the Kitimat Valley to the California market. There's a $3.5 billion smelter modernization project shaping up to increase aluminum ingot production capacity by more than 48 percent to 420,000 tons per year. A company called Kitimat Clean Ltd. has submitted a proposal to build a large refinery to process crude oil delivered by pipeline; with construction to begin in 2014, Kitimat Clean has signed a Memorandum of Understanding with the Industrial and Commercial Bank of China to serve as financial advisor. And there's the $6 billion Enbridge Northern Gateway marine terminal and twin pipelines project to transport crude from Alberta to Kitimat that's now undergoing Joint Review Panel hearings, with a final decision expected by the end of this year. Kinder Morgan Inc. has a rival plan to expand its Trans Mountain pipeline between Alberta and its marine terminal in Vancouver. Always controversial, the flurry of B.C. pipeline construction and expansion proposals may be looked at by critics more favorably as a mode of inland transportation because of a tragedy in Quebec July 6. A runaway train carrying crude oil in 73 tanker cars barreled into scenic Lac Megantic, jumping the rails in the downtown core. Fire caught, explosions were triggered likely by propane tanks in the town, and 38 people have been confirmed dead; another 12 were listed as missing when CED went to press. Oil has to be moved to market somehow, and pipelining is looking like a much safer option. But that has always been the case, although not always readily acknowledged. According to the U.S. State Department, rail has historically had a higher safety-related incident rate than pipelines, in terms of both fire/explosion and injuries. The State Department says the risk of death is three times higher when trains transport hazardous liquids compared to pipelines, the risk of fires or explosions nine times higher. Still, over the past five years, the amount of crude shipped by rail in the U.S. has jumped from 20,000 barrels a day to 500,000; in Canada, the number of train cars carrying crude has climbed from 500 to 140,000. Liquid Gold But enough crude talk! LNG is the liquid gold upon which B.C. businessmen, builders and politicians are largely staking their future claims. Natural gas cooled to -160 degrees, LNG is nontoxic, odorless, noncorrosive and takes up 600 times less space than in conventional form, Deputy Premier Coleman intones. If it spills, LNG will warm, rise and dissipate into the atmosphere. A stable, low-risk fuel, LNG has been safely used and transported around the world for 50 years. Assuming all environmental approvals are granted, B.C. is committed to having three LNG facilities in operation by 2020. That could mean more than $20 billion in direct investment, 9,000 new construction jobs, about 800 long-term positions, thousands of spin-off jobs, and more than $1 billion a year in additional revenues to the provincial government. But the golden goose won't land in the province's lap without it being ready. Coleman says B.C. has been preparing for a decade with progressive royalty programs, infrastructure upgrades, clean energy policies, comprehensive environmental assessments, and direct engagement with industry, First Nations, and local communities. Overseas marketing is being ramped up, skills training is being upgraded, and a steady source of power at affordable rates will be ensured. "We have the supply, we have the technology, and we have a great geographic advantage in establishing a thriving, competitive LNG industry that sets new standards for environmental and social responsibility." n Tom Van Dusen Jr. has written for daily and weekly newspapers in Canada for more than 40 years. A freelancer based near Ottawa, Ont., his specialties include the general economy, politics, agriculture and the environment. He can be reached at 613-445-3407, tomvandusen@sympatico.ca. 22 | www.cedmag.com | Construction Equipment Distribution | August 2013 18_Canada_Feature_KP.indd 22 7/25/13 12:32 PM