Coal ships will now be loaded on Fraser River
$50M project will handle U.S. coal going to Asia
Port Metro Vancouver has approved changes to a planned Surrey Fraser Docks coalloading terminal that will see transport on the Fraser River switched to ocean-going vessels from barges.
The proposed $50-million project will enable thermal coal from the U.S. — used to fire electricity plants — to be loaded onto ships for direct transport to energyhungry Asia.
The earlier project plan was to load up to 640 barges annually, which would be towed to Texada Island where the coal was to be transferred to ocean-going ships. The new plan will see 80 Panamax-size ships — 225 metres in length — loaded each year.
About 275 ocean-going vessels called at the Surrey Fraser Docks in 2014.
The volume of coal that will be loaded — four million tonnes a year — will not change, with the switch to ships from barges made to reduce operating costs.
However, some realignments of planned buildings will be needed and a taller and longer ship loader will be installed.
Surrey Fraser Docks is evaluating timing of construction due to a coal slump that has hit the industry hard.
Major U.S. coal producer Cloud Peak Energy is paying a contract penalty at Westshore Terminals in Delta that allowed them to halt coal shipments because prices are down 25 per cent since the beginning of the year.
“The market is not as strong as what we would like it to be at this point in time. But we still think our capacity is required,” Fraser Surrey Docks president and CEO Jeff Scott said Tuesday. “We’re working with our customer to determine the right timing.”
Surrey Fraser Docks must start construction within one year and must have the project completed within four.
The coal-loading terminal has faced significant opposition from environmental and community groups, as well as some municipalities. Concerns have focused on air pollutants, noise, increased rail freight traffic and also on greenhouse gas emissions from the coal that will be burned to produce power.
Voters Taking Action on Climate Change (VTACC) is helping spearhead a court challenge of Port Metro Vancouver’s permit, which they expect will be heard in court next year.
They say the port failed to consider the effect exporting coal will have on climate change, and the port failed to meaningfully consult local governments and the public on the project.
Coal generally has a higher rate of carbon emissions for the amount of energy it produces than other fossil fuels such as natural gas or renewable sources such as hydro power.
“The world is meeting in Paris to discuss radical action on climate change. Coal is literally on the chopping block and back here in Vancouver we have the Vancouver Port Authority and Surrey Fraser Docks pushing ahead with a new coal port for U.S. coal,” said Kevin Washbrook, a director with VTACC. “It sort of flies in the face of where the world is going and what needs to happen.”
In a written response, Port Metro Vancouver spokeswoman Jennifer Hunt said federal legislation directs port authorities to review environmental impacts of operations only, not the climate effect of coal exports. “We don’t decide trade policy,” she said.
Scott, the Surrey Fraser Docks president, said coal remains a key electricity generation source for about 40 per cent of the world’s population.
“And we don’t see that changing significantly,” he said. “Our job is to look at the transportation of goods and ensure we can do that without impacting the community.”
The Surrey project has plans to reduce noise and dust — including covered storage for coal and the use of water spray — which remains unchanged with the switch to ocean-going ships.
Because coal will be loaded into holds with doors on the ships, dust should be reduced, said Scott.