Atlantic Canada is pushing to compete with booming drayage traffic on the West Coast as a new $300 million container terminal at the mainland side of the Strait of Canso has been given the green light.
According to the (Halifax) Chronicle Herald, the terminal will be located at the Melford Industrial Reserve in Guysborough County. It is expected to jump start the region's economy by providing further marine cargo lanes to and from China and other parts of Asia by 2010.
The Melford International terminal will be privately funded by a consortium of Nova Scotia firms, led by Trident Holdings.
The project is expected to bring about 500 construction jobs and, later, 200 full-time jobs once opened -- not to mention the additional work in the region as a result of increased trucking and shipping activity.
The strait terminal is expected to give a big boost to the
emerging Atlantic Gateway. (Image courtesy of Strait Superport Corp.)
With the Port of Vancouver and other ports along the Western seaboard getting more congested and overcapacitated, officials in Atlantic Canada see market opportunities in opening up their own staging facilities and trade lanes with Asia.
Container cargo is expected to exceed capacity at North American ports by 2013 and will continue to grow for years after. Because of that, many observers think there'll be enough container freight for both the Strait and the Port of Halifax.
Tim Gilfoy, CEO of the Strait of Canso Superport Corp., which currently operates the Mulgrave Marine Terminal and the Port Hawkesbury Pier, says the announcement bodes well for the potential of the strait and agrees that projected demand means there's room for multiple operators in the Atlantic gateway.
"The projections (of increased freight) are consistent for the East Coast. I think it's a real plus for the provinces to have a few ports in the geographical area that can compete for the larger pie," he tells TodaysTrucking.com. The cargo routing is expected to pass through the Suez Canal, making Atlantic Canada the closest North American point of entry.
Bob Stevens, CEO of both Trident and Melford, told the Herald there are risks with such a project, but "we are convinced it (cargo growth) will happen." He says the terminal will offer value-added services through distribution and warehouse facilities within a logistics park.
The rail network, which is all but extinct in Atlantic Canada, is expected to get a big boost from the project as well. The terminal will have on-dock rail linked to a planned spur line connected to the Cape Breton and Central Nova Scotia Railway that operates between Truro and Sydney, according to the Herald.
It is believed the short line's owner, RailAmerica, may get involved in the construction of the spur line if it finds the whole project viable. CN is also reportedly interested in the project but has not committed any money.