STEPHENVILLE, N.L. - Mayor Tom Rose says a very serious issue with major consequences is being faced by the Port of Stephenville that could have a major effect on existing and future business in the town.
He said the port facility has always required only one tug or pilot to bring ships into the wharf and now with a new measure imposed by the Atlantic Pilotage Authority requiring two tugs to dock a ship at Port Harmon, it becomes unaffordable.
That’s because a second tug will result in the ship having to pay an extra $130,000 to $180,000 to dock in Stephenville.
“This could shut down businesses in Stephenville and result in the closure of our port,” Rose said at the Stephenville town council this past Thursday.
He wants representatives of the Atlantic Pilotage Authority to come to Stephenville and explain why the change and why the Port of Stephenville is being singled out, when ports at nearby St. George’s, Lower Cove and Corner Brook don’t have the same measures.
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Rose wants to know who or what is behind this and likened it to when Canada Customs was moved out of Stephenville to Deer Lake.
“We know we can fight this and we’re asking our provincial and federal government representatives to join the fight,” he said. “This could shut down our port and our economic development plans.
“It’s that serious.”
In a letter sent out to officials by Theresa Keeping and Dale Merkel, operators of the Port of Stephenville, they said the facility has been a "Compulsory Port" since it became a federally regulated port when Transport Canada took over from the American Military.
Due to the low ship intake of recent years, there was a PRMM (Pilot Risk Management Methodology) study conducted in 2013 to remove the port from the Compulsory List.
That was to no avail and the Port of Stephenville remained on the list of compulsory ports due to majority of intake being petroleum products at the time.
Now the port only receives two ships a year with petroleum products for Irving Oil.
“Recently the APA has placed stronger stipulation for the guidance of vessels entering our harbour without any prior discussion or notification to our management,” Keeping said.
She said they already had one ship go to Corner Brook and another ship due in this month to collect scrap metals is in jeopardy because of the two-tug demand.
Keeping said this situation poses the logical solution for a charterer to opt out of the Port of Stephenville for their intake and travel to a "nearby" port, such as Corner Brook, that does not require such absurd stipulations.
The port owners are pleased the Stephenville town council is on side and is hoping others government representatives will help out to have this decision reversed.
The Atlantic Pilotage Authority in Halifax was contacted for comment; however at press time on Friday a representative had not called back.
Port of Stephenville users:
Present:
- Irving Oil’s Asphalt Import. (Petroleum)
- Salt Intake. (Non - Petroleum)
- Newco Metal’s Scrap Steel Export. (Non-Petroleum)
Future:
- Marine Harvest’s Construction Phase Importing. (Non-Petroleum)
- Polaris Construction’s Indian Head Quarry Operation. (Non-Petroleum)
- Stephenville Industrial Facility’s adjacency to port-side capability (More than $10 million injected from the provincial government for refurbishing to allow economic development growth).
Source: Port of Stephenville