Questions raised on why Nova Scotia needs new box shops

CONTAINER industry expert Steven Rothberg has raised questions on whether there is enough cargo to support two new container terminals in Nova Scotia, particularly at Halifax, which now runs at one-third capacity.

"It does seem highly curious to me," he said. "There aren't any compelling advantages that I can see."

Mr Rothberg's comments come amid plans by developers in Nova Scotia to build the new box terminals in the eastern Canadian province, with a US$350 million terminal proposed for Melford and a similar facility planned for Sydney on Cape Breton.

A report by New Brunswick's Saint John Telegraph Journal said the developers announced a deal with Maher Terminals in July that would enable the New Jersey company to operate the terminal as a part owner in the venture. Maher Terminals currently owns and operates a terminal at Port Elizabeth, New Jersey, as well as the Fairview Terminal in Prince Rupert, British Colombia.

The Melford terminal, to be located on the mainland side of the Strait of Canso, is expected to open in 2013, the report said.

According to Mr Rothberg, it's unclear which shipping lines would make Melford a port of call given that it is further from North American markets, and its connecting railway would likely need to be upgraded to accommodate double-stacked cars.

"I don't see what the compelling story line is," Mr Rothberg said. He is a partner with Mercator International, LLC, a Seattle-based port and shipping industry consulting firm.

"If cargo is going to stop in eastern Canada, why would it go to Melford as opposed to Halifax?" he said. "Is there a specific shipping line willing to reconfigure its Atlantic vessel network so that Melford is featured as a hub port?"

As for Sydney, the Sydney Marine Group signed a memorandum of understanding with the ports of Philadelphia and Delaware in January to develop a deep-water container terminal on Cape Breton Island.
(Source:www.schednet.com)