Property Investment: Alabama, Metro Vancouver

Metro Vancouver Approves Proposed Coal Transfer Facility

Port Metro Vancouver has approved the proposed direct coal transfer facility at Fraser Surrey Docks. The decision comes following a two-year project review process and including extra measures taken to assess any potential environmental and human health risks. In granting the permit, Port Metro Vancouver requires Fraser Surrey Docks to meet a set of conditions to ensure environmental and safety standards.

The C$15 million project will provide 25 direct and 25 indirect full-time jobs. Once constructed by Fraser Surrey Docks, the facility will handle up to four million metric tons of coal per year. The coal will be loaded onto barges at the facility and transported to Texada Island for transfer to deep-sea bulk carriers.

The coal will arrive at Fraser Surrey Docks via rail, resulting in one additional train per day along the BNSF railroad. The quantity to be shipped from Fraser Surrey Docks represents about 10 percent of the coal now shipped through the port. Coal terminal operators within Port Metro Vancouver’s jurisdiction have been shipping coal safely for more than 40 years.

Port Metro Vancouver says its priorities during the review process were to consider all public, municipal, agency, First Nations and other stakeholder concerns and questions and to mitigate any risk of adverse impacts to acceptable levels.

"The decision to permit the proposed coal transfer facility at Fraser Surrey Docks was not one we took lightly," said Peter Xotta, vice president, planning and operations, at Port Metro Vancouver. "Through our comprehensive project review process, stakeholder consultation, as well as third-party validated environmental and health studies, it was determined there are no unacceptable risks and the project could be permitted."

Fraser Surrey Docks submitted the assessment in November 2013 and Port Metro Vancouver initiated a 30-day comment period allowing full public input. Following a review of the assessment by Port Metro Vancouver and an additional review by independent environmental consultant, Port Metro Vancouver determined in February 2014 that more information around the potential impacts to human health was needed.

Port Metro Vancouver required Fraser Surrey Docks to conduct further studies, and Fraser Surrey Docks submitted a Human Health Risk Assessment according to methods and guidance set out by Health Canada. Port Metro Vancouver again retained a consultant to verify the findings.

In addition to requiring the proponent to provide thorough and well-documented studies on potential impacts to the environment and potential risks to human health, Port Metro Vancouver was responsive to the public following concerns that coal dust could escape during the transport of coal.

In September 2013, Port Metro Vancouver announced new requirements for the proposed project including the prohibition of on-site storage of coal and requirements for barges to take additional measures to prevent coal dust escaping during transit to Texada Island.

Port Metro Vancouver also asked Fraser Surrey Docks to work with its rail provider to address issues of potential coal dust from rail cars and in May 2014 BNSF announced that it was adding a re-spray of a dust suppressant agent to the train cars before they enter Canada.