On December 15, 2015, DP World and Prince Rupert Port Authority announced an agreement to study further expansion of the Fairview Container Terminal in Prince Rupert. The agreement was signed by DP World Canada Group General Manager, Maksim Mihic, and Prince Rupert Port Authority President & CEO, Don Krusel, further strengthening the commitment of their respective organizations to the development and growth of the port of Prince Rupert.
DP World Ltd., the Dubai government-owned global ports operator, acquired the Terminal from Deutsche Bank earlier in 2015 for the reported sum of $580 million as it aims to benefit from expected growth in trade between Asia and North America. Fairview “offers the fastest access for vessels travelling between Asia and North America,” Mohammed Sharaf, DP World’s group CEO, said in the statement. The terminal has an efficient rail link to the hinterland, while the long-term concession and the potential to expand the facility “presents a fantastic opportunity for DP World,” he said. The lease period runs to 2034 with an extension to 2056 after completion of the current Phase II North expansion.
In early 2015, construction for the Phase II North expansion was launched, which is expected to increase capacity from about 850,000 to 1.3 million TEUs by 2017. Government of Canada approval has been received for the Phase II South expansion of the terminal further to the environmental assessment (Comprehensive Study Report) completed on terminal expansion in 2012 in accordance to the requirements of the Canadian Environmental Assessment Agency. Under the Feasibility Study agreement, DP World intends to study current marine liner services and container volume growth forecasts for trans-Pacific trade on the West Coast, weighing demand for activation of Fairview’s Phase II (South) expansion to align the project schedule with market demand. This study is critical to the future growth of port operations within British Columbia and will serve as the basis for moving forward with this project in a timely manner. Additionally, the agreement included the intention to establish a cohesive and systematic approach to information sharing as well as environmentally sustainable port initiatives.
Maksim Mihic, DP World Canada Group General Manager, said: “Phase II South, which could potentially be delivered within the next three to five years, depending on demand, would increase the total capacity of Fairview Container Terminal to in excess of 2 million TEUs, and would provide capacity to meet Canada’s Pacific container terminal capacity requirements for decades to come in a cost-effective and environmentally responsible manner.”
Don Krusel, Prince Rupert Port Authority President & CEO, said: “The growth in traffic at the Fairview Terminal, North America’s fastest-growing intermodal gateway, has been a validation of the Prince Rupert advantages in transpacific shipping. We are pleased to see DP World ready to seize those advantages and move forward with planning the terminal’s continued expansion.”