Halifax Port Group Responds to Maersk/Sea-Land Decision

The Port of Halifax's future remains bright, said representatives of the Halifax Port Group, a partnership of the provincial government, Halifax Regional Municipality and Halifax Port Authority.

The group was responsible for putting together Halifax's bid for Maersk and Sea-Land's post-Panamax container ship contract. Group representatives made the comments in response to the announcement earlier today that New York-New Jersey was selected by Maersk/Sea-Land as its main northeast port.

Halifax will continue as a port of call for Maersk/Sea-Land. A letter received today from Maersk/Sea-Land states that "...it is our intention that Halifax will continue to be a port of call and factors large into Maersk and Sea-Land's future plans for growth."

"Halifax will be a significant player in the post-Panamax era," said Finance Minister Don Downe. "Maersk and Sea-Land have indicated that volumes will remain at current levels, with the potential of significant increases in the future. The future for the Port of Halifax is very positive."

The competition for Maersk and Sea-Land's contract has given the Port of Halifax increased international exposure.

"This competition has put Halifax on the world stage of shipping," said David Bellefontaine, president and CEO of the Halifax Port Authority. "We have demonstrated our attractiveness as a competitive port. We are confident that this positive exposure will translate into new business and increased activity in the future."

"We are extremely grateful for the team effort and community support shown throughout this process," said Halifax Regional Municipality's deputy Mayor, Larry Uteck. "Thanks to everyone for their hard work and commitment. Your continued support will be important as we move forward in promoting the Port of Halifax."

In addition to the Halifax Port Group, other players in the bid included the International Longshoremen's Association, the Port Development Commission, CN, the Metropolitan Halifax Chamber of Commerce, the Greater Halifax Partnership, Dr. John Hamm and the Progressive Conservative caucus and Darrell Dexter and the NDP caucus.

Halifax was one of seven ports in North America and the only one in Canada asked to submit a proposal by Maersk and Sea-Land in May 1998. In December, Halifax made the short list, beating out Norfolk, Virginia; Quonset Point, Rhode Island; and Philadelphia, Pennsylvania. Boston decided not to compete. The other finalists with Halifax were New York-New Jersey and Baltimore.

EDITOR'S NOTE: The following is the text of the Maersk Sea-Land letter to Finance Minister Don Downe:

"Dear Minister Downe:

Maersk and Sea-Land today confirms that it is our intention that Halifax will continue to be a port of call and factors large into Maersk and Sea-Land's future plans for growth.

Although we have selected our long-time partner New York-New Jersey as the principle port for the development of a world-class deepwater centre, Halifax will continue as an important port in our vessel rotation with good growth potential.

We congratulate the Nova Scotia team for a comprehensive and competitive proposal. We look forward to our continued business relationship building into the future."

Signed,

Charles G. Raymond President, Domestic Shipping Co. Sea-Land Service, Inc.

Tommy Thomsen President, Maersk, Inc.