The Port of Vancouver USA reports that it has allowed an agreement that held nearly 100 acres at the port’s Terminal 5 for BHP Billiton’s exclusive use to expire as of June 16. The property was selected by BHP Billiton in 2010 as its preferred site for a potash export facility to support the development of its Jansen Project in Saskatchewan, Canada.
The port said the decision by both parties to allow the agreement to lapse enables the port to move forward on developing a prime piece of property and, at the same time, keeps the option open to continue discussions with BHP Billiton about locating a potash export facility at the Port of Vancouver in the future.
“Fortunately, we have multiple properties, including Columbia Gateway, that could support this project, which enables us to be flexible,” said Todd Coleman, CEO for the port. “And because our relationship with BHP Billiton remains positive, we’re in a strong position to work with them in the future.”
Columbia Gateway includes more than 500 acres of property available for future development and would allow the port to accommodate the needs of BHP Billiton or other similar world-class companies. Also, because the Terminal 5 acreage is no longer under an exclusivity agreement with BHP Billiton, the port can now market this property for other uses, creating more immediate benefits to the port and the community.
“We’re confident that we can find a new tenant for Terminal 5 in the near future,” said Coleman. “It’s an extremely attractive property due to its size and access to river, road and rail transportation.”
The exclusivity agreement between the port and BHP Billiton was included in the Agreement for Lease, one of three definitive agreements the two parties entered into in February 2012. The two other agreements include a Site Improvement Agreement and an Entry Agreement. All three agreements expired on June 16. A final lease between the parties was not signed.
BHP Billiton said it has opted to allow the exclusivity agreement for Terminal 5 at the Port of Vancouver, Wash. to lapse. It said this will allow it to actively investigate and assess alternative rail and port options for the Jansen Potash Project. “We have said we will continue to modulate the pace of Jansen development as we time our entry into the potash market to meet market demand,” the company said in a statement. “This disciplined approach gives us the flexibility to consider a broad range of options for the rail and port, including the Port of Vancouver, Wash.”
“BHP Billiton has been engaged in discussions with Burlington Northern Santa Fe (BNSF) and Canadian Pacific (CP) regarding the provision of rail services to the Port of Vancouver for four years, but has been unable to reach agreement regarding the rail service in to Terminal 5,” continued BHP.
“BHP stressed that it remains committed to the Jansen investment. “We believe that Jansen is the world’s best undeveloped potash resource and is likely to be one of the lowest cost sources of supply once fully developed. Investment in Jansen could underpin a potential fifth pillar of BHP Billiton, given the opportunity to develop a multi-decade, multi-mine basin in Saskatchewan,” it added.