Coal from the Fraser docks and trucks for Site C dam

Port Metro Vancouver has approved changes to a planned Surrey Fraser Docks coal-loading 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 energy-hungry 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.

Surrey Fraser Docks is evaluating timing of construction due to a coal slump that has hit the industry hard.

For example, 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 and are nearly half of their highs in 2011.

“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,” he said.

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) are helping to 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 also because they say 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 biggest thing is 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,” he said.

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, noted that coal remains a key electricity generation source for about 40 per cent of the world’s population, providing light and heat.

“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.

Transportation Ministry creating more routes for heavy truckloads

The province is paving the way for easier hauling of heavy equipment and materials from the Lower Mainland to major northern development projects like the Site C dam.

Last week the Transportation Ministry hacked down some of the red tape slowing up 85-tonne loads through Tsawwassen, Delta and Surrey, and is now looking at easing restrictions for even bigger cargo.

The changes will allow companies to move big machinery intact, rather than breaking it down into multiple loads, something that will reduce the number of large trucks on the road and make roads safer, said Louise Yako, the president and CEO of the B.C. Trucking Association.

The decision adds Hwy 17, the South Fraser Perimeter Road, to the existing network of roads pre-approved to handle 85-tonne loads, connecting shipping terminals on the Fraser River to Hwy 1.

The move is something Yako’s association had been asking for to help truckers move heavy cargo shipped to the region and destined for northern B.C. or Alberta.

While oversized loads are already making their way through the province, pre-approving a route like Hwy 17 “makes the permitting process a lot simpler, less administrative and bureaucratic,” Yako said.

The number of requests to move project cargo has been on the rise, according to the ministry. Yako said customers had been facing waits of a week to a month for a permit and the changes will reduce that delay to as little as 48 hours.

The province also announced it was extending the Hwy 16 route from Terrace to Kitwanga, creating a continuous heavy-haul route from Kitimat to Alberta.

“I think what this does is it illustrates the province’s support for commerce in B.C. and for ensuring that all of the large resource-related projects go forward and don’t end up having to deal with really minor glitches (like permit delays). It just moves us all in the right direction,” Yako said.

Todd Stone, the transportation and infrastructure minister, said expanding the network will benefit businesses, LNG development, the shipping industry and the provincial economy.

“When we put these transportation improvements into effect, we’re enabling our LNG, mining, energy, forestry, tourism and other industries to thrive,” he said in a news release.

While northern ports are closer to many of the major projects in northern B.C. and Alberta, Yako said it can be easier and safer to transport heavy cargo through the Lower Mainland.

Yako said Hwy 16 is curvy, steep in spots and “not as robust a highway as Hwy 17 (which is) four-laned, it’s new, we know that it can take the weight.

“Hwy 16 is just a little bit harder to drive when you’ve got a two-lane highway and you have the public driving on it who may not be accustomed to driving around big trucks. It can cause a safety issue.”

Yako said the decision makes moving heavy equipment a safer proposition.

“What used to happen is a lot of this equipment would be broken down and it would be multiple loads. And now, with this network you don’t have to break it down, so it’s efficient on both ends. Plus, it means a reduced number of truck trips.”