Province Takes Critical Role in Port Proposal

Finance Minister Don Downe said the province of Nova Scotia is playing a critical role in the proposal to build a new shipping-container terminal in Halifax. A successful bid by Halifax would double container business through the port.

The proposal calls for a partnership between the province, Halifax Port Corp. and Halifax Regional Municipality that would own a new one-to 1.5-kilometre-long (3,500-to 4,500-foot) container facility at Rockingham, on the shores of Bedford Basin. The facility would be leased to the shipping consortium Maersk-Sealand.

"This proposal is a tremendous opportunity for the people and the economy of Nova Scotia," said Mr. Downe. "The construction phase would see more than 1,700 people directly employed at various times on the project, while the operation would see 2,000 permanent good-paying jobs for people in Nova Scotia."

The project is also expected to create 4,200 indirect jobs during construction and an additional 3,000 ongoing indirect jobs.

The proposal for the construction of a new container pier is in response to a request from two shipping lines, Maersk and Sealand. Halifax is the only Canadian port asked to bid. The proposal is to be submitted to Maersk-Sealand on Friday.

The facility would be capable of handling post-Panamax container ships -- giant vessels capable of holding more than 6,000 containers, compared with the 3,000 to 4,000 containers on regular container vessels. Cranes would handle more than 360,000 container lifts a year. Even larger ships are expected to be built within a few years.

"We believe the province has a significant role to pay in helping to create the necessary infrastructure to support a competitive bid for the port of Halifax," said Mr. Downe. "Our proposal calls for a partnership between the Halifax Port Corp., the Province of Nova Scotia and the Halifax Regional Municipality to own the new facility and lease it to the Maersk-Sealand group for it to operate."

Capital costs of the project total nearly $500 million, or more than $322 million US. The amount includes fill to create a new pier at Rockingham and new cranes to handle the extra-wide post-Panamax ships. Also included is the $42 million US estimated cost to the operator, Maersk-Sealand, for movable equipment. Canadian National rail links would be an additional investment not included in the $322 million US capital costs.

The financing will come from the province and the federal government, commercial loans and operator contributions.

"The Province of Nova Scotia is prepared to make a significant investment in this partnership," said the finance minister. "The benefits for the province are clear. But the benefits for the whole country are also clear, and that is why we want the federal government to make a commitment too.

"The return in the form of income taxes and sales taxes for the federal government from the direct jobs alone runs to $15 million every year once the terminal is operating."

Premier Russell MacLellan received formal national support for the project at the annual premiers' conference last week in Saskatoon.

A delegation of Nova Scotia officials is in Ottawa today meeting with their counterparts to explain the bid and the benefits for Canada. An all-party delegation of elected officials is expected to conduct followup meetings over the next day or so.