With coal forecast to reach record-breaking export volumes through the ports of Prince Rupert and Vancouver this year, a British Columbia trade mission to Asia is arguing the province is positioned to substantially increase its share of the world export market.
Transportation Minister Shirley Bond, who is leading the trade mission, points to the quality of B.C.'s coal, a competitive tax system and significant expansion at the ports of Vancouver and Prince Rupert. "We can actually see a point when coal exports from B.C. could double and that would mean tremendous rewards for our provincial economy," said Bond, who is on the trade misson with the heads of the two B.C. ports.
The trade mission includes officials from the Port of Prince Rupert, Port Metro Vancouver, CN, Canadian Pacific, Vancouver International Airport and the railroad BNSF.
Coal shipments are expected to reach 37 million metric tonnes this year, with Prince Rupert forecast to ship seven million tonnes. That's well above the 4.4 million 2007 shipments and 4.1 million in 2008.
The trade mission was told by Asian industry representatives that they like B.C.'s reliable supply chain, but that it must also be able to grow, noted Bond.
The province would also have to look at how to develop new coal deposits, including mines that were closer to ports, she said.
The province's coal production, in southeast and northeast B.C., are quite a distance from the ports of Vancouver and Prince Rupert.
The trade mission received a message of grown from Asia, with five companies in Korea and Japan which invest in coal mines indicating during a meeting they had an interest in expansion of coal exports to their respective countries.
"The message coming from our meetings is that Asia is anxious to secure new and expanding sources of coal and British Columbia is of particular interest to them because of our well-developed transportation infrastructure that has been made possible by the Pacific Gateway strategy," said Don Krusel, president and CEO of the Prince Rupert Port Authority.
"This is a great opportunity for the northern corridor through the Port of Prince Rupert because of the abundance of coal resources in the area as well as the available rail capacity and potential expansion of terminal handling capacity," said Krusel.
Coal volumes are forecast to reach record-breaking volumes at both Vancouver and Prince Rupert.
In Vancouver, the volume is expected to surpass the port's previous record of 28.5 million metric tonnes of coal in 1997. In Prince Rupert, 2010 coal volumes through the Ridley Terminals facility is currently up 83 per cent over last year.
Both two ports each have about additional coal-handling capacity of five million tonnes annually. Both ports are also working on adding incremental capacity, with Prince Rupert port examining a more significant expansion.
Coal that flows through Prince Rupert comes from the Tumbler Ridge region, where, after a pair of mines shut down in the a decade ago, rising prices have resulted in increased production.
Western Coal, one of two operators in the area, has significant expansion plans in the region, about 175 kilometres directly north of Prince George.
