Long-term lease agreement with British Columbia Railway Company will
revitalize port facility
NORTH VANCOUVER, BC, April 3 /CNW/ - The British Columbia Railway Company
(BCRC) announced today that it has entered into an agreement with Kinder
Morgan Canada Terminals ULC (KMCT) regarding a long-term lease to operate
Vancouver Wharves, its bulk marine terminal in North Vancouver and the
purchase the terminal assets, which include on site rail infrastructure, dry
bulk and liquid storage, and material handling systems.
The 40-year lease agreement will see Kinder Morgan make much needed
capital investments to revitalize Vancouver Wharves while retaining ownership
of the underlying real estate on which the facility operates.
"This agreement will bring new investment and opportunities to Vancouver
Wharves and its customers and will secure its future as an integral port
facility for British Columbia", said Kevin Mahoney, BCRC President and CEO.
"After a rigorous selection process that included input from many of our
customers, employees and other key stakeholders, BCRC has chosen to enter into
a long term lease agreement with Kinder Morgan that will bring real benefits
to our customers, our employees, our community and our province."
The comprehensive agreement with KMCT covers a number of matters
including: a commitment for KMCT to maintain existing contracts with
customers, a full transfer of employment for all current employees, and future
access to the facility by the mining and sulphur industries that rely on
Vancouver Wharves to help transport their products to market.
This agreement will also enable Kinder Morgan to bring its environmental
expertise to Vancouver Wharves. "Kinder Morgan's broad experience in
environmental management of port facilities and commitment to environmental
stewardship were key factors in this agreement", said Mahoney. Mahoney also
pointed to the commitments made by Kinder Morgan to establish a strong
relationship with the Squamish First Nation.
The agreement announced today is the result of a call for proposals
issued by BCRC last May, which led to considerable interest from a number of
potential operators. The selection process involved many months of due
diligence and negotiation by both parties, through which the company benefited
from the professional support and analysis of its legal advisor, Borden Ladner
Gervais and its financial advisor, CIBC World Markets.
Kinder Morgan Energy Partners, L.P. is one of the largest publicly traded
pipeline limited partnerships in America. KMP owns an interest in or operates
approximately 26,000 miles of pipelines and approximately 150 terminals. Its
pipelines transport more than two million barrels/day of gasoline and other
petroleum products and up to seven billion cubic feet/day of natural gas, and
its terminals handle over 90 million tons of coal and other bulk materials
annually and have a liquids storage capacity of about 70 million barrels for
petroleum products and chemicals. KMP is also the leading provider of CO(2)
for enhanced oil recovery projects in North America.
The general partner of KMP is owned by Kinder Morgan, Inc., one of the
largest energy transportation, storage and distribution companies in North
America. Combined, the two companies have an enterprise value of more than $35
Vancouver Wharves is located on the north shore of the Burrard Inlet and
offers a variety of both in-bound and out-bound services and handles four
primary commodity groups: mineral concentrates, pulp, agri-products and
sulfur. It is one of two major sulfur export terminals in the Port of
Vancouver and is the only facility capable of handling mineral concentrates
such as copper, lead and zinc for the Canadian mining industry.
For further information:
For further information: Michael Kaye, Vice President, Finance & CFO,
British Columbia Railway Company, Phone: (604) 678-4747