VANCOUVER, Jan. 17, 2013 /CNW/ - Westshore Terminals Investment Corporation (TSX: WTE) (the "Corporation") advises today, and by way of follow up to the December 13, 2012 press release, that good progress is being made in the repair efforts to the damaged trestle at Berth 1, which was damaged when a large cape size vessel, the Cape Apricot, ran through it. Most of the clean-up work is complete and construction of a new trestle is underway. Based on current plans, the repair work required to bring Berth 1 back into operations is anticipated to be complete by approximately mid-February 2013, with further work to rebuild a permanent road way on the trestle to be completed by the end of April. This time frame, which is ahead of prior expectations, may still be impacted somewhat by weather and the timely delivery and installation of the replacement trestle components. There have been no environmental issues arising from any of the clean-up or repair efforts.
Berth 2 has continued operations in the ordinary course throughout this repair period and Westshore has been working with its customers and the railroads to reduce the impact as much as possible.
Until such time as all repair work has been completed and Berth 1 is up and running in the ordinary course, the total cost of the incident will not be known. The Corporation has commenced efforts to pursue recovery from the ship owner and/or its insurance carriers for its losses, but the ultimate amount to be recovered and time do so are not known at this time. The Corporation carries property and business interruption insurance which, net of any deductibles that apply, is expected to cover the remaining costs to repair the damaged trestle and related equipment and most of the lost profits and the Corporation is working with its insurers to progress this recovery. As the timing for recovery of the repair costs and recoverable lost profits from the insurance companies are 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.
The Corporation's distribution reinvestment plan (the "Plan") will be effective for Q1 2013 distributions. Shareholders that wish to participate should contact their broker to subscribe to the Plan. 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. A copy of the Plan text will be posted on the Westshore website (www.westshore.com) next week.
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.
The foregoing statements concerning anticipated timing and extent of repairs, and cost recoveries, 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 achieved.
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 referred to above and to other risks inherent in a project of the scale of the Berth 1 trestle repairs, as well as those 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
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