THE US$500 million purchase price for the Maher terminal at Prince Rupert port in British Colombia, paid by DP World last month shows huge confidence in its growing volumes.
In 2014 the terminal handled 600,000 TEU, and its throughput capacity is to be raised to 1.35 million TEU, with studies on the feasibility of a further expansion to 2.5 million TEU.
In the past years, Prince Rupert has been the fastest growing port on the west coast of North America, with most boxes US Midwest bound, a market potential of three million TEU at year.
That is quite an achievement given the fact that it is 500 miles longer from Prince Rupert to the Midwest than from the Los Angeles-Long Beach port complex, and 1,500 miles longer than either New York or US Gulf ports.
A commentary by UK Port Strategy said: "The 'Prince Rupert proposition' seems to rely deeply on the competitiveness of rail rates from CN Pacific, and one or more shipping lines willing to call Prince Rupert as the first North American port.
"Thus, one could have thought that a joint-venture structure with a shipping line and/or CN and a terminal operator would be most likely, as this would commit more players to the Prince Rupert proposition.
"The fact that DP World has followed a go-it-alone approach further suggests confidence in the Prince Rupert proposition. And all this in a context of the Panama Canal expansion, pressure to improve labour practices in the US west coast ports, ongoing 'playing field' debates between the US and Canada."
PORTS
30 April 2015 - 20:49
DP World's big payout for Prince Rupert shows strong market confidence
THE US$500 million purchase price for the Maher terminal at Prince Rupert port in British Colombia, paid by DP World last month shows huge confidence in its growing volumes.
PORTS
30 April 2015 - 20:49
DP World's big payout for Prince Rupert shows strong market confidence
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