Work resumes at Westshore B.C. coal port
Westshore Terminals [WTE-TSX] said its Westshore Terminals LP unit has reached an agreement with Local 502 of the International Longshore and Warehouse Union (ILWU), related to Westshore’s coal export terminal at Roberts Bank, British Columbia.
It said the new six-year agreement expires on January 31, 2028, and is subject to a ratification vote by the end of October, 2022.
Meanwhile, work resumed at the terminal, commencing on the afternoon of October 9, 2022.
“Negotiations with Local 502 were the first of three locals and talks with the other two ILWU locals (514 and 517) will be scheduled in the near future,’’ Westshore said an in a press release.
Westshore had previously been in negotiations since October, 2021, with local 502 for a new collective agreement. The previous collective agreement and those of two other ILWU locals at the terminal expired on January 31, 2022.
Westshore Terminals is Canada’s premier coal export terminal and handles over 33 million tonnes of coal annually. The Westshore Terminals Ltd. partnership is owned by Westshore Terminals Investment Corp.
“Our annual throughput volume for 2022 is estimated at 24-25 million tonnes, a reduction from the previous estimate of 27.5 million tonnes,” Westshore said. “The throughput reduction reflects the impacts of labour disruption as well as less than expected performance from BNSF (the rail carrier for our U.S. customer) for the second half of the year,’’ it said.
“The estimated throughput volume assumes no further work stoppages or other disruptions to the regular business operations. The anticipated loading rate for 2022 is slightly above $12 per tonne.’’
On October 8 ,2022 Westshore Terminals shares closed at $25.34 and currently trade in a 52-week range of $37.70 and $24.97.
Westshore recently entered into a conditional agreement to provide services that triggered BHP Billiton Ltd. [BHP-NYSE] final investment decision to proceed with the $7.5 billion Jansen Stage 1 potash project in Saskatchewan.
The Jansen S1 project is expected to produce approximately 4.35 million tonnes of potash annually and has a basin position with the potential for further expansion. First ore is targeted for the 2027 calendar year, with construction expected to take approximately six years, followed by a ramp up period of two years.
Jansen S1 includes the design, engineering and construction of an underground potash mine and surface infrastructure, including a processing facility, a product storage building and continuous automated rail loading system.
Product will be shipped through Westshore in Delta, B.C. and the project includes funding for the required port infrastructure to support the Jansen operation for a term to 2051, subject to extension.