VANCOUVER, Dec. 13, 2012 /CNW/ - Westshore Terminals Investment
Corporation (TSX: WTE) (the "Corporation") announced today that a
payment of $20,418,754 (representing $0.275 per share) will be paid on
or before January 15, 2013 to shareholders of record on December 31,
2012 as compared to a distribution of $19,397,817 (representing
$0.26125 per unit) for the fourth quarter of 2011. The Q4 2012
distribution is a dividend only payment and is therefore not comparable
with the Q4 2011 distribution which was comprised of a dividend of
$0.13 per unit and an interest payment of $0.13125 per unit. The change
in the form of distribution payment results from the corporation's
capital restructuring completed in July 2012, and previously reported.
The Q4 distribution has been negatively impacted as a result of the
incident that occurred on December 7, 2012 when the ship Cape Apricot
ran through the trestle at Berth 1, rendering ship loading at Berth 1
impossible for the balance of the year and likely into mid to late Q1
2013. Fourth quarter 2012 dividends prior to this interruption had been
contemplated at $0.34 per share.
Damage investigation continues in and around the trestle area at Berth 1
and it is anticipated that the extent of the damage and the required
schedule of repairs will be better known by early next week. In the
meantime operations at Berth 2 will continue in the ordinary course and
Westshore will work with its customers and the railroads to reduce the
impact as much as possible. The repair time period will be updated as
additional information becomes known.
Despite the damage done at Westshore, there were no injuries. The ship
suffered only minor damage, was subsequently loaded at Berth 2 and left
Westshore. Clean-up operations are underway to remove the debris of the
trestle and conveyor system from the water. There is minimal
environmental impact from the small amount of coal spilled into the
water as coal is inert and not harmful in its natural state. The water
lot located between Berth 1 and the terminal site contains several man
made rock reefs which contain very active healthy ecosystems that have
thrived and have coexisted over the many years the terminal has been in
business. The man-made reefs provide fish habitat and vibrant seaweed
growth, some of which can be seen in the reported aerial photographs,
and which appear to have been misinterpreted as coal in the water.
During Westshore's 42 year history, over 8,300 ship dockings have
occurred without incident. Transport Canada is investigating this
incident. All ship dockings are under the control of an independent
marine pilot and the ship crew.
The Corporation will be pursuing recovery from the ship owner and/or its
insurance carriers for its losses. The Corporation also carries
property and business interruption insurance which, net of any
deductibles that apply, are expected to cover the remaining costs to
repair the damaged trestle and related equipment and most of the lost
profits. As the timing for recovery of the lost profits from insurance
companies is unknown at this time, the Corporation will not pay
dividends based on assumed insurance recoveries. This will be assessed
once total losses are known and recovered.
For the eleven months ended November 30, 2012, Westshore loaded
24.9 million tonnes as compared to 24.7 million tonnes for the same
period in 2011. For Q4 2012, Westshore anticipates it will load
approximately 5.9 million tonnes compared to Q4 2011 of 7.0 tonnes.
This lower volume is materially impacted by the trestle incident. On
that basis, Westshore anticipates volumes in 2012 will in total be
approximately 26.4 million tonnes. It was anticipated that without the
trestle incident, throughput volumes for 2012 would have been about the
same as volumes loaded in 2011 at 27.3 million tonnes (notwithstanding
the operational interruptions at the terminal described below which
occurred throughout the year), but at higher average loading rates than
the average for 2011 as a whole.
Planned interruptions at the terminal occurred during the last week of
March and first week of April 2012 (when the chutes in three of the
major transfer towers were successfully replaced and the terminal took
the opportunity to perform some significant accelerated longer term
maintenance and upgrades to the site). Approximately seven weeks of
additional interruptions occurred from the beginning of October 2012 to
late-November when a new double rotary railcar dumper was installed,
replacing the old single dumper. These interruptions were part of
previously announced maintenance and capital expansion projects. With
the completion of these projects (and completed repairs to the
trestle), it is anticipated that the capacity of the terminal will be
approximately 33 million tonnes per year, based on certain regular
For 2013, throughput levels will be negatively impacted during Q1
because of the ongoing repair work to the trestle and related equipment
and the subsequent need to ramp up production over time. As a result,
and factoring in this disruption, total volumes are anticipated to be
28 million tonnes or more for the year as a whole. In the absence of
this incident, it had been anticipated that throughput levels would
have been approximately 30 million tonnes or more at average rates
higher than 2012 as a whole.
The Corporation announced in September that it will introduce a
distribution reinvestment plan (the "Plan"). The Plan will be
effective for Q1 2013 distributions. Under the Plan, Canadian resident
shareholders will be able to designate that all or a portion of the
quarterly distributions payable on their shares be applied towards the
purchase of additional shares through the facilities of The Toronto
Stock Exchange at prevailing market prices. Participants in the Plan
will not pay administrative or brokerage costs associated with the
purchase of shares under the Plan.
Computershare Investor Services Inc. ("Computershare") has been
appointed as Plan Agent and will be responsible for the administration
of the Plan. Computershare will hold shares acquired under the Plan in
an account on behalf of Participants.
Further details regarding the Plan, including the documentation to be
completed by those shareholders wishing to participate in the Plan,
will be made available to shareholders before the end of January 2013.
The Corporation's predecessor previously had a similar plan that was in
existence from June 2007 - December 2010.
The foregoing statements concerning anticipated throughput volumes,
future capacity, timing and extent of repairs, cost recoveries and
dividend levels, are forward-looking statements that reflect the
current expectations of the Corporation with respect to future events
and performance. Forward-looking statements should not be read as
guarantees of future performance or results, and will not necessarily
be accurate indications of whether such performance or results will be
Forward-looking statements are based on information available at the
time they are made, assumptions made by management, and management's
good faith belief with respect to future events, and will be impacted
by and are subject to the risks and uncertainties outlined in the
Corporation's Annual Information Form that could cause actual
performance or results to differ materially from those reflected in the
forward-looking statements, historical results or current expectations.
SOURCE: Westshore Terminals Investment Corporation
For further information: