Despite a global economic downturn that has resulted in declining traffic through most other North American West Coast ports, the Port of Prince Rupert experienced a moderate increase in tonnage last year.

Led by a surge in container traffic through the Fairview Terminal, the Port of Prince Rupert handled 10,596,863 tonnes in 2008, a moderate increase over 2007.

During its first full year of operations, Fairview Container Terminal handled 181,890 TEUs (20-foot equivalent units) from 78 vessels.

The terminal's throughput for the first six months was 42,555 TEUs, before jumping more than 300 per cent in the second half of 2008 with 139,335 TEUs, as a result of the addition of the second COSCO/CKYH Alliance service in July.

In the fourth quarter, the terminal operated at greater than 60 per cent of its 500,000 TEU per year capacity, with a throughput of 79,106 TEUs.

"The opening of the Fairview Container Terminal in 2007 was an important step toward connecting the Canadian economy to the developing economies of Asia and solidifying Canada's position as a leader in international trade in the Asia Pacific Region," said Dale MacLean, chair of the PRPA board of directors.

"The new express gateway is providing shippers with unparalleled speed and reliability, a competitive advantage in their supply chain management, while the Fairview Terminal has created a solid foundation for economic activity in Western Canada and a stimulus for new investment across the region."

PRPA President and CEO Don Krusel said the surge in traffic during the second half of 2008 is reflective of a growing confidence among shippers in the competitive advantages of moving their cargo through the new Asia-North America express gateway corridor.

"The PRPA, in conjunction with our CN, Maher Terminals and the COSCO-CKYH Alliance partners, are delivering on our commitment to providing our shipping customers with unparalleled reliability, speed and cost effectiveness," said Krusel.

"This is more crucial now than ever before because the global economic turmoil is drastically affecting their businesses. The competitive advantages of shipping through Prince Rupert are delivering value to their bottom lines," said Krusel.

Ridley Terminals Inc. (RTI) handled 4,847,031 tonnes in 2008, down slightly from 5,085,771 tonnes in 2007.

RTI experienced an increase in coking coal, petroleum coke and wood pellets, but a decrease of nearly 300,000 tonnes of coal as a result of production cutbacks among its coal-producing customers.

Also declining was throughput at Prince Rupert Grain (PRG), which decreased 26.3 per cent in the calendar year, from 5,098,402 tonnes to 3,759,517 tonnes, as a result of a 33.6 per cent drop in wheat traffic. However, PRG, which handles about 30 per cent of grains moving through Canadian West Coast ports, saw an increase in barley, canola and grain screenings in 2008.

Prince Rupert did experience its best cruise season in five years of operations, welcoming 63 ships and a record 103,635 passengers, up from 99,135 in 2007. The 2008 season also saw a 21 per cent increase in passengers participating in shore excursion tours, and passengers spent nearly $2.4 million in the city on tours and excursions in 2008, up 32.4 per cent from 2007.

The total economic impact of the cruise industry in Prince Rupert is estimated to have exceeded $10 million in 2008, but will be significantly less in 2009.

Mayor Jack Mussallem cannot say exactly when it happened or who decided it, but he confirms it is a fact that the city's Corporate Administrator Doug Jay is no longer with the city.

Mussallem confirmed the city had parted company with Jay after an ad was placed in Wednesday's edition of the Daily News.

Citing city policy, Mussallem said he could not speak about the details of the contract's termination, only that he could say it has happened and that the city was set to move on.

"We're moving on and Mr. Jay is moving on and that's all I can say about it," said Mussallem...

Fingers are crossed that resumed negotiations taking place tomorrow between the International Longshore and Warehouse Union (ILWU), Local 514 and the British Columbia Maritime Employers Association (BCMEA) with two federally appointed mediators, will result in a settlement, avoiding a strike or lockout that would drastically affect Prince Rupert and Vancouver ports.

Local 514 has been without a contract since March 2007 and is in a legal position to issue strike notice as of Jan. 2.

If the union, representing 450 ship and dock foremen - 11 in Prince Rupert - does strike, 5,000 port workers - 200 in Prince Rupert - are expected to walk off the job in support.

Issues on the table include pension payments and working conditions.

In a telephone conversation, the office administrator at the ILWU 514 office in Vancouver said the union was not issuing further statements as of this morning, but did confirm that the two sides will resume negotiations tomorrow morning at 9:30 a.m.

According to a Canadian Press article dated Dec. 29, only grain shipments would be guaranteed in the event of a disruption, because they are protected by federal law.

"Specialty crops that move by containers are not covered by the law," the article stated.

In past strikes, workers have been legislated back to work, but with Canada's parliament temporarily suspended, federal action would not be possible until after Jan. 27 when parliament resumes.

According to Lloyd's List, the potential strike has already induced some shippers to divert cargo away from Prince Rupert to the U.S. Pacific Northwest ports of Seattle and Tacoma.

Prince Rupert Port Authority's president and CEO Don Krusel voiced concern about the potential impact of unresolved negotiations in a letter to Minister of Labour Rona Ambrose, dated Dec. 22.

"A labour disruption would likely result in the long-term loss of hard-won trade through Canadian West Coast ports, which may never be recovered. Canadian importers and exporters, already reeling from the global economic turbulence that is eroding their financial health, will be forced to find alternate, more expensive shipping routes," wrote Krusel.

"This domino effect would result in significant job losses and adversely impact families across this new northern Canadian trade corridor as well as the Canadian economy," Krusel stated.

Tim McEwan, president and CEO of Initiatives Prince George Development Corporation, echoed Krusel's concerns in a letter to Minister Ambrose, composed on New Year's Eve.

"Initiatives Prince George has very strongly supported the development of the Fairview Container Terminal [at] the Port of Prince Rupert in opening up Northern British Columbia as a new international trade corridor that will catalyze job and wealth creation," stated McKewan on behalf of the Economic Development Authority for the City of Prince George .

"Prince George's opportunities moving forward are based on the investment community's continuing confidence in Northern British Columbia corridor opportunities."

McKewan said investor confidence levels will be strongly influenced by the level of services provided by the port, which, to date has been superior.

"Volumes have been building in recent months at the Port of Prince Rupert," McKewan added.

Both Krusel and McEwan have asked the federal government to actively work to prevent disruptions at the ports in Prince Rupert and Vancouver. In addition, Krusel stated the Prince Rupert Port Authority would appreciate the federal government's "consideration for structural changes, either through essential service legislation or amalgamating the two ILWU entities into one council, to avoid similar future potential disruptions."

A telephone call to Minister Ambrose's office indicated her office will open again on Jan. 5. She could not be reached for comment.