JUNE 2015
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VOL. 2, ISSUE 3
Finall spike Fi ik opens R Ridley idl IIsland l d tto endless opprtunities
Planning Ahead
Caring Contractor
Kristoff Trucking meets a growing demand
Size doesn’t matter for Flintstone Mining
Setting Sail
Business Boom
Delta Spirit departs as modernization winds down
Industrial interest sparks Terrace business growth
Pathways to Success Left to right: BG Canada’s Simon Nish and LNG Canada’s Dana Bellis and Sam Adkins proudly support the Pathways to Success launch event on May 4, 2015
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To boot, Pathways to Success is an important step in leading the way to having a “We do want construction-ready work force for the budding LNG industry to be hiring in northwestern B.C. Joan Goldhawk, Senior Advisor for local...” Local Benefits at LNG Canada adds, “We do want to be hiring local so while we don’t have jobs right now, this preparatory program offers an opportunity for local First Nations to get introductory training and job placement,” she says. “If LNG Canada goes ahead, hopefully some of those who participated in the program will consider working on our project.”
LNG Canada is pleased to have contributed $200,000 alongside government and other LNG industry proponents in support of a First Nations training program. The program, called Pathways to Success, is a $1.2 million job development and readiness program that focuses on essential skills, from literacy and computers, to job specific skills such as first aid and construction safety. The other supporting industry partners are BG Canada and Pacific NorthWest LNG. LNG Canada’s Aboriginal Consultation Manager, Sam Adkins, says, “LNG Canada is committed to an approach that will see Aboriginal Groups and local communities in the northwest realize economic benefits from our proposed project. The Pathways program certainly fits in with our priorities of hiring locally and supporting skills training and workforce development initiatives for First Nations. We’re excited about the opportunities the program can afford students to create strong futures for themselves.”
This space is a collaborative promotional venture by LNG Canada and N2K Editor Cameron Orr
Goldhawk said the Pathways project is aiming to reach 192 people, and noted that the fact that the programs will be offered in Terrace and Prince Rupert means it can reach the widest range of people possible. “This is really terrific because it’s offered from two different locations,” she said, adding, “It’s a great stepping stone for the advancement of a lot of people.” There are six Northwestern B.C. First Nations involved in this program: Kitselas, Kitsumkalum, Lax Kw’alaams, Gitxaala, Metlakatla and Gitga’at. Adkins says it’s a true grassroots initiative and its the communities themselves which will recommend the best candidates. The Nicola Valley Institute of Technology (NVIT), an Aboriginal post-secondary institute, will be delivering the program. Pathways to Success itself is provided through the Aboriginal Skills Training Development Program, a provincial government initiative that will invest up to $30 million towards new Aboriginal skills training projects and partnerships over the course of the next three years.
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AU T H O R I Z E D B U I L DE R
Publisher Todd Hamilton Editor-in-Chief Shaun Thomas Prince Rupert Ed Evans, Sales Melissa Boutilier, Sales Martina Perry, Reporter Kevin Campbell, Reporter Terrace Rod Link, Editor Brian Lindenbach, Sales Bert Husband, Sales Erin Bowker, Sales Kitimat Louisa Genzale, Sales Cameron Orr, Editor Smithers Grant Harris, Sales Nick Briere, Sales Chris Gareau, Editor Alicia Bridges, Reporter Houston Mary-Anne Ruiter, Sales Jackie Lieuwen, Reporter Burns Lake Laura Blackwell, Sales Flavio Nienow, Editor Fort St. James/ Vanderhoof Pam Berger, Sales Rebecca Watson, Reporter Haida Gwaii Quinn Bender, Sales
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s final investment decisions loom around the corner, established industry and businesses across the Northwest are spending millions of dollars to ensure the region is ready to welcome major projects. Just some of the steps being taken in this regard are highlighted in this month’s issue of N2K, including the cover story by Shaun Thomas that celebrates the completion of a $97 million Road, Rail and Utility Corridor that will open up Ridley Island to future development. With three inbound tracks, two outbound tracks, a two-lane roadway and power distribution infrastructure contained within an eight kilometre loop, Ridley Island is now move-in ready for projects as diverse as the Canpotex potash export facility, the BG Group LNG export terminal and other industrial players who have laid claim to a piece of land on the previously brownfield island. Just down the highway in Port Edward, a partnership between locally-owned Kristoff Trucking and internation logistics powerhouse Kuehn + Nagel are preparing to welcome industry of every shape and size to the North Coast through the Port Edward Logistics Park. With more than 25 acres of cleared land available, the park can handle anything from necessary warehousing to a laydown area and everything in between. In Terrace, Rod Link looks at eight businesses that are expanding to meet the needs of the booming economy. From increased warehousing space to new construction to new business occupying formerly vacant storefront locations, the community is seeing unprecedented growth. All of this activity is taking place in the shadow of new projects moving closer to reality — including a project development agreement reached between the Province of B.C. and Pacific NorthWest LNG. When industry comes to the Northwest, we will be ready. With many questioning how the region will handle a massive influx of workers, this type of preparation is something readers across the province need to know. Todd Hamilton N2K Publisher publisher@thenorthernview.com
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Volume 2 • Issue 3
June 2015
TRUCKING SUCCESS Kristoff Trucking riding high 6
GREAT GROWTH Fairview the fastest growing terminal 9
GOING GREEN LB Paving focused on environment 10
BUILD EVERYTHING Size unimportant for Flintstone Mining 12
LELU AGREEMENT Province signs LNG project deal 14
SETTING SAIL Delta Spirit moves on from KMP 16
FINAL SPIKE Corridor opens up Ridley Island 18
DOING DIVERSITY M-4 Enterprise has a range of focus 20
MINING TALKS Bulkley Valley marks B.C. Mining Week 22
BUSINESS BOOM Industry interest drives expansion 23
PAVING AHEAD A day in the life of Terrace Paving 26
GOING ONSHORE WCC LNG gives project update 28
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Port Edward
Kristoff Trucking looking to a bright industrial future By Shaun Thomas
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hen Kristoff Trucking began operations in Port Edward in 2004, it would have been tough to imagine the business growing into the regional logistical juggernaut it has become. “At the beginning it was just my wife and myself. She was raising the kids, I was driving and she was doing the books. We were really learning the business from the ground up,” said owner Murray Kristoff. “Kristoff Trucking started off hauling live fish for Marine Harvest. We did that for about a year and a half and I was an employee of Marine Harvest. We had a few trucks on and we would haul the live fish every three or four months, once the supply became big enough, from the hatchery here onto a live boat in Port Edward. We did a little bit of gravel hauling on the side with the same trucks for a little while and eventually the business just grew to where we needed
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“Just about anything to do with logistics, we can handle it.” - Murray Kristoff more trucks.” But everything changed for the literal mom-andpop shop when the Prince Rupert Port Authority announced plans to convert Fairview Terminal from a break-bulk facility to a container terminal. When that happened, Murray saw not only an opportunity but a gap on the North Coast that would need to be filled. See Page 7
“Once the container port was announced we made the decision to go forward and get into the container hauling business. Eventually it grew to the point where we had enough business to make a full go of it,” he recalls. “The growth was definitely because of the opening of the container port. We met some key people at the right time that we learned from and worked for. They helped us get some key contracts to start growing the business ... we’ve just grown and expanded ever since.” Kristoff Trucking now employs 25 people split between drivers, mechanics and office staff, and has a fleet of 20 trucks. While the head office remains in Port Edward, on a large parcel of land the company purchased in 2013, the business has grown to include sites in Kitimat and Terrace. “Our Kitimat/Terrace domain started with our partnership with Kuehne + Nagel. They are an international freight forwarder who had the logistics contract in Kitimat to provide Rio Tinto Alcan with almost 100 per cent of their cargo. We are their local trucker here, hauling everything from Prince Rupert to Kitimat,” said Kristoff, noting the company is adapting to a change in business that comes with the wind-up of the smelter modernization. “We’re doing a fair amount of long-haul now. The trucking business is a fluid business, you have to roll
“We knew it would be a good fit ... providing trucking and storage capabilities all in one.” - Murray Kristoff with the times and adapt to different strategies around where you get your revenue from. Now that Kitimat is winding down, which is a good chunk of our work, we’re going out on the highway and getting the trucks needed for that.” Along with the head office, a former drive-thru restaurant, the site in Port Edward included a large, though somewhat old, warehouse. While some would have seen an unusable building, Kristoff once again saw opportunity. “We quickly knew that we would utilize those warehouses for several of the projects we are working on. Red Chris Mine had a lot of stuff stored here during delays in construction, same with the Kitimat Modernization Project. Late in the project they realized there wasn’t enough storage space in Kitimat itself,” he said. See Page 8
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“We knew it would be a good fit for us providing trucking and storage capabilities all in one.” But with so much attention coming to the North Coast from industry of all type, Kristoff Trucking is working with Kuehne + Nagel to ensure everything industry may need is available in the region. With that is an eye to the future that looks beyond just trucking and includes plans for the Port Edward Logistics Park. “That came about through our really great relationship. We’re their people on the ground and anything we do will enhance their work on the projects as well. It allows them to be a more competitive bidder on their logistics contracts because of the amenities they can provide — lay-down yards, warehousing, trucking, crane service. Just about anything to do with logistics we can handle it,” said Kristoff, noting the site will be developed as needed. “We are clearing the land getting it ready to develop and we will build to suit for whatever customers need on that site. If they need warehousing we will build warehousing, if it is just a lay-down yard we can build that yard ... hopefully by summer we will have some areas ready, but we will wait and see with the LNG industry how it plays out and what the immediate need will be.” While some question whether LNG will proceed or to what extent its impact will be felt on the North Coast,
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“Now that we are on the verge of LNG, we are situated in a really good spot.” - Murray Kristoff Kristoff said the future looks bright for both the region and the company. “With the container terminal it is amazing to get that kind of increased volumes in a small town like this, so we’re ready either way. If LNG doesn’t come through, we’ll fall back on more container work, which is our bread and butter anyway,” he said, adding that finding experienced drivers has become less of a challenge with the downturn of the Alberta economy. And while many think of Prince Rupert, Kitimat or Terrace when they think of industrial headquarters, Kristoff says he has no plans of moving the business from the scenic shores of Port Edward. “The council is very friendly to the business community here, taxes are much cheaper, so it is just a great spot,” he said. “Now that we are on the verge of LNG, we are situated in a really good spot.”
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he Journal of Commerce has released its list of the fastest growing container ports in North America and Prince Rupert’s Fairview Terminal sits alone at the top of the list of 25.
Prince Rupert experienced a growth of 13.8 per cent in the number of loaded containers being handled, a number that just beats out the 11.23 per
cent growth experienced by the Port of Manzanillo in Mexico and the 11.2 per cent growth experienced by Boston, Massachusetts. However, the growth experienced in Prince Rupert is well above the 2.5 per cent growth experienced by all North American terminals and significantly higher than the 1.6 per cent growth seen across all Canadian terminals.
PRETIVM IS ADVANCING ITS HIGH-GRADE GOLD BRUCEJACK PROJECT IN NORTHERN BC.
Paving a L.B. Paving stays ahead of the environmental curve By Alicia Bridges
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Smithers asphalt plant built in 1938 has evolved into a state-of-the-art facility with a focus on being green. When L.B. Paving Ltd. opened in the early 1980s the company transported the then 43-year-old plant to its current site at the corner of Tatlow and Pacific Street in Smithers. In 2010, the company started major upgrades to meet new environmental regulations and reduce costs to offset increasing oil prices. In the past five years the company has replaced its drum, burner, mixer, silo and other aspects of the plant. Area manager Dan Boissevain said the result was a plant that could process recycled materials with a low emissions output. “We wanted to be ahead of the curve so we started our upgrades long before the regulations took effect,” he said. “When we do our testing now for emissions we far exceed the Lower Mainland specifications. We emit less than half of what we’re permitted for in the north.” The upgrades also gave the plant the capability to
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“We emit less than half of what we’re permitted for in the north.” - Dan Boissevain process recycled material in the asphalt mixes. The company can now crush and re-process raw material and waste from construction and excavation jobs in the Bulkley Valley. Boissevain said the benefits were both environmental and financial. “With the rise in the price of oil it has allowed us to recycle oil from old asphalt and help us keep our costs in line,” he said. “We haven’t had to increase the price of our asphalt significantly since 2009 because of that and, needless to say, because we’re recycling it affects the bottom line. It’s good for us as well.” See Page 11
Based in Smithers, the company services an area from east of Burns Lake to the Highway 37 intersection at Kitwanga, and north to Stewart and Dease Lake. Approximately 50 employees work for L.B. Paving Ltd. and its two subsidiaries, Canyon Contracting Companies which does civil construction, and concreting company Boreal Pacific Enterprises. Despite the company’s large geographical reach, Boissevain said the market was small so the company needed to offer a diverse range of services. Specializing in road construction and asphalt, the Smithers plant produces a variety of asphalt recipes known as “mix designs”. Different mixtures of asphalt, rock and oil have different uses, from filling the pot holes on public roads to laying airport runways. Asphalt production is seasonal and only operates between May and October but the company also keeps a range of cold mixes that can be used to fill potholes during winter. In addition to the upgraded facility in Smithers, L.B. has a mobile plant which can be reconstructed in other locations. In May the company was in the process of reconstructing its mobile facility near Terrace to complete a Ministry of Transportation contract. The Smithers facility will not be used while the mobile plant and crew are away so the company will take the opportunity to sandblast and paint the updated infrastructure.
In 2015, Boissevain said the company will be using a newly acquired warm mix pump to further reduce emissions. “The people who work here live here so they have an interest in looking after the environment and doing what we can to keep material out of landfills,” he said. “It pays on the bottom-line as well. Some people think it’s a cost but actually, if you’re doing it properly, it’s worth it financially.”
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Size doesn’t
MATTER
Big or small, Flintstone Mining works on them all By Flavio Nienow
R
egardless of the size of project being considered, one Northwest company is ready to tackle the challenge head-on. “We’re big enough to serve you, but small enough to care,” is how president and co-owner Randy Hamp best describes Flintstone Mining Division Ltd., located in Burns Lake. Hamp said that although the company’s overhead is “extremely low” compared to some of its competitors, the company does not allow its size to dictate what kind of clients they serve. “We are a small company that does very large projects,” said Hamp. In 2005, the humble - yet ambitious - company took over the job of building the tailings facility for Kemess Mine, an open-pit copper and gold mine located in the Omineca mountains. The job included the placement and compaction of cycloned sand on the dam; the excavation, hauling, placing, and compaction of the till core of the dam; the sealing of the abutments of the dam with the use of shotcrete and grout; and survey. “Some years we placed well over a million cubic
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“We’re big enough to serve you, but small enough to care.” - Randy Hamp metres of material on the dam,” he said. After the dam was completed, the company reclaimed the area by placing overburden and old trees, planting new trees and grass seed, and placing drainage control ditches. “We were even hired to construct a fence to keep the caribou away from the tailings pond during construction,” he said. In 1990, Hamp founded Flintstone Concrete Ltd., primarily a concrete, earthworks, sand and gravel company. See Page 13
In the spring of 2005, Hamp and Gary Worthing sealed their partnership and Flintstone Mining Division Ltd. was born. Daily work activities of the company include services such as road building and ditching for the Ministry of Forests, Lands and Natural Resource Operations; road building and road improvements for the Ministry of Transportation and Infrastructure; summer and winter road maintenance; logging; as well as water and sewer line installations. According to Hamp, not even offering a diverse range of services can protect companies from suffering from radical changes in commodity prices.
“Low commodity prices have been causing mining closures, and new mines to have stalled development plans,” he said. “This will change, but I’m not sure how soon; mining is very cyclical.” In order to thrive in such a challenging and competitive environment, Hamp said having good working relations with customers is a must. “Our customers have always praised us for how easy we were to work with,” he said. “With a competent and energetic crew, our company is ready to work.”
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Forging Ahead Agreement provides certainty for Lelu Island terminal By Shaun Thomas
T
he provincial government and Pacific NorthWest LNG signed a project development agreement on May 20 that both parties say moves the project closer to becoming a reality. “For Pacific NorthWest LNG and Progress Energy, the issue of the highest importance was stability and predictability in relation to an investment decision on a $36-billion project ... this is a good day for stability and predictability,” said Pacific NorthWest LNG president Michael Culbert. “This is extremely good news and is indicative of the B.C. government’s commitment to develop an LNG industry.” The agreement, which includes a long-term royalty agreement that covers 2016 through to 2038, is anything but final as it will need approval from both. “The agreement is subject to internal approval from Pacific NorthWest LNG and Petronas and it will then be introduced into the Legislature,” said Premier
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“This is a good day for stability and predictability.” - Michael Culbert Christy Clark. “It will not come into effect until approved by the Legislative Assembly and all of its members. Once the agreement is tabled and debated, it will be available for public viewing and scrutiny and I am sure that there will be no stone left unturned.” Once approved the agreement will not come into effect until Pacific NorthWest LNG reaches a final investment decision, something Culbert said may also come in different stages.
“I am sure there will be no stone left unturned.” - Christy Clark “We are looking to make a, hopefully positive, commercial final investment decision in the next few months. That would then be followed by a final investment decision once all of the regulatory approvals are in place, which we anticipate will be in the coming months,” he said. The Lelu Island terminal hit a wall of opposition from members of the Lax Kw’alaams band last month, but Clark said she is confident it is a hurdle that can be overcome. “It has been my view all along that we can get agreements in place with First Nations and that is what we have done with 28 First Nations ... we are likely to see this succeed as well,” she said, noting a statement from the band acknowledged possible project benefits and did not entirely close the door on energy projects. “There is clearly a basis to proceed and I think that with that goodwill around the table that will be done.” B.C. government officials estimate $8-billion in LNG royalty revenue from the project over the 23 year royalty agreement.
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Setting sail
Delta Spirit moves on as modernization projects winds down By Cameron Orr
T
he sudden departure of the Delta Spirit Lodge, Rio Tinto Alcan’s floating worker accommodation vessel, is a sign of the project’s rapidly approaching conclusion, says company spokesperson Kevin Dobbin. “We’ve started our transition. We’ve peaked around 3,2003,400 people and now we’re starting a pretty quick transition, close-out,” said Dobbin. At the moment he said there is approximately 2,800 workers on the KMP site and that will further dip to just the hundreds by the fall. “It’s going to be fairly quick. There will be another switch in May, June, and it will keep going down,” he said. “Essentially all the pots are in place and now they’re just fine tuning them, getting them ready to go and starting to begin the commissioning and start-up.”
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The Delta Spirit ship itself — its actual official name is the Sija Festival — was contracted for housing until the end of March, with a one month extension requested by RTA. The ship is owned by Bridgeman Services. At the end of April the ship was in port in Vancouver. The departure of the ship does mean good things for the project, said Dobbin. “It’s not a bad sign, for sure, for the project. It’s a good sign... It’s been a long project with lots of challenges so everybody on site is very excited to get it up and running,” he said. “It’s becoming a reality.” The persons who lived on the ship have either been moved to RTA’s land camp, in to town, or have left due to their portion of the project being over.
As for the work camp at the site, Dobbin said the ATCO trailers are leased so it will be up to that company to decide where they will go once the project closes out. He said there have been thoughts to re-using the trailers in other projects in the area and even potentially using the existing camp site for other possible projects. “It could be. I wouldn’t rule it out, but again it’s timing for the other projects,” he said, also noting it would be a decision by ATCO as well. The Kitimat LNG project has a camp facility near the former Eurocan mill for their early works. The other project likely to use a camp is the LNG Canada proposal. The company didn’t specifically state that they were interested in using it. “LNG Canada will build a worker accommodation village
“Everybody on site is very excited to get it up and running.” - Kevin Dobbin to house the majority of the workers during the construction phase. Our worker accommodation village will provide a quality living environment to attract and maintain our workforce, while also ensuring that we prevent or reduce any added pressure on the local community services,” said a company spokesperson.
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Opening the island
Last spike driven into Road, Rail and Utility Corridor By Shaun Thomas
A
bank of fog may have been blocking out the sun, but there was no masking the excitement of those gathered on Ridley Island on May 19 to celebrate the driving of the last spike in the Road, Rail and Utility Corridor (RRUC). The fact that the $97 million project was completed on time and on budget after two years of construction by local contracting companies comprised of First Nations joint venture partnerships was reason enough for the funding partners to be proud of what had been accomplished. But it’s what the completion of the corridor means for the future of Prince Rupert that had many in the crowd excited. “We want to celebrate more than just the completion of construction of that project, we want to celebrate the RRUC’s role in shaping the future of Canada and B.C.’s trading relationship with the world,” said Prince Rupert Port Authority president and CEO Don Krusel. “The RRUC is going to be Ridley Island’s backbone. It is
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“The RRUC ... is going to allow the Port of Prince Rupert to grow and prosper for decades to come.” - Don Krusel the foundational piece of infrastructure that is going to allow the Port of Prince Rupert to grow and prosper for decades to come.” The completed corridor includes an eight-kilometre loop of five parallel train tracks, a two-lane roadway and a portowned power distribution system. That, however, is just the start of the vision for Ridley Island. See Page 19
“In and of itself it is an impressive engineering project that has been worked on for the past 24 months, but in the bigger picture it is a project that has major implications for the future of both Canada’s trade, B.C.’s gateway industry and the sustainable development of our communities on the North Coast,� said Prince Rupert Port Authority director of public affairs Ken Veldman. “The completed project is actually the first phase of the RRUC and includes three inbound rail and two outbound rail lines ... when future projects are developed, the common right-of-way has the ability to be expanded to 14 inbound and 12 outbound tracks through subsequent phases.� For Krusel, who has guided the Prince Rupert Port Authority through the conversion of Fairview Terminal to handle containers, the completion of the RRUC is another long-term vision he has seen come to life. “Ten years ago the Road, Rail, Utility Corridor was nothing more than a concept. It was a drawing on a map or just a red line or red circle people saw on a powerpoint presentation. It was an idea about how we could open up the vast lands of Ridley Island to make them accessible and usable for the continued expansion and growth of Canadian trade going through the Prince Rupert gateway,� he recalled. “I believe this will be known as a very important event in the history of the Port of Prince Rupert.� The project not only improved access to land for proposed terminals including a Canpotex potash export terminal and the BG Group’s liquefied natural gas terminal, but a portion of the 1.2 million cubic metres of rock that were excavated helped create 40 rock reefs in the surrounding waters to create 73,600 square metres of new and diverse marine habitat.
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Vanderhoof’s M-4 Enterprises puts the focus on variety By Rebecca Watson
F
rom the foundation of Nak’albun School in Fort St. James to the sub-structure of LNM sawmill’s massive green energy turbines in Vanderhoof, there’s a reason M-4 Enterprises is recognized as a leader in the construction industry, said M-4 site supervisor Marvin Funk. “Just like any business that’s successful, you have to look at the employees. Here we run machinery, drive truck, fix the machines, do installations (water and sewer) and even speak for the company quite accurately,” he said with a smile. “It takes a long time to learn all the different aspects of any business, but M-4 has the experience of 35 years.” Since 2008 the Vanderhoof-based general contracting company has been making a strong name for itself in the north. Known for his transportation of quality aggregates and installation and construction of foundations, owner Paul Manwaring has more than three decades of working experience behind him and says a big reason M-4 has growing respect in Vanderhoof is because of his employees’ versatility. “We’re not specialized in one thing, we all wear many hats. If you need a road built, basement dug, sewer system installed or anything transported we can do the job.
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“We’re not specialized in one thing, we all wear many hats.” - Marvin Funk I’ve also prided myself and my business in quality and outstanding service,” he said. Unlike many companies in the north that diversify by pushing their operations boundaries, M-4 has built their reputation locally without going to remote areas. “A lot of industry in the north is delegated through camp life but we’ve been fortunate that our support and business is local,” Funk said. “Theres also an appeal if you get to go home every night. Paul, A.K.A. captain of the crew, has maintained a healthy qualified work crew with little turnover, therefore you stay away from training new employees and maintain consistency.” See Page 21
Rob Anthony, M-4 heavy equipment operator, agrees the company’s success has a lot to do with the employees. “I take a lot of pride in the job I do. It’s not just settling, you have to do the job the way you would want it done for yourself. We always try to set ourselves a high standard so its a job people say ‘oh wow’,� he said. Anthony was one of the main diggers for the Murray Creek Restoration project in Vanderhoof. The job was a collaboration between Freshwater and Fishers B.C. and Avison Management consulting services in Vanderhoof, with M-4 Enterprises doing the digging to re-route the flow of Murray Creek into the Nechako River. Right now M-4 is working on the new Nautley Community Centre and school in Fort Fraser that is expected to be complete as soon as next year and are continuing improvements at the local LNM lumber mill along with various other projects in the community. “I’m really happy to have been part of the turbine project at LNM,� Funk said. “The company is working very strongly to move into the direction of conserving energies that have not been used or abused in the past.� M-4 also supports the community not only by sponsoring local youth sports but, most recently, donating three large machines to Project Heavy Duty in partnership with School District No.91. “It gives the kids hands on experience, yes, but it’s good for organizations like mine to see first hand what kind of qualified people are coming out of the system,�
Manwaring said. “But overall, our company is proceeded by our employees reputations. M-4 is a Swiss army knife and the key to our success is handiwork, honesty and our valued customers.�
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By Chris Gareau
B
ulkley Valley business leaders joined Mining Association of British Columbia president Karina Brino at the Smithers Exploration Group’s annual gathering to celebrate B.C. Mining Week on May 8. The event included a panel of business owners in a variety of sectors discussing the effect mining has on how they operate. Energy Alternatives owner Kevin Pegg helps people live off the grid. He recited a long list of minerals that are required to live such a lifestyle. “The renewable energy industry relies heavily on mine resources. Simply put, our technologies would just not exist without it,” he said. “Renewable energy also has the potential to dramatically reduce the impacts of mining operations, improve the sustainability goals, reduce operational costs for remote mines — a win-win situation.” He added that the Olympic rings in Vancouver were powered by one of his company’s automated hybrid power systems, improved by testing a prototype at a mineral exploration camp near Vanderhoof. Less obvious uses of mine resources were pointed out by Sedaz Lingerie owner Amy Brandstetter. “Everything in my store is a product from natural resources: from my retail display units, mannequins, debit machine, to the actual products themselves,” said Brandstetter. She explained metal is used in every step of production, displaying a sample on stage to demonstrate.
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“Everything in my store is a product from natural resources.” - Amy Brandstetter Resource Works executive director Stewart Muir brought a lot of data on the industry in B.C., including poll results that showed while 72 per cent of people see resource development as a good thing, only half believe B.C. is a leader in sustainable development. Brino acknowledged work needed to be done to prove mining can be sustainable. She also spoke of the Mount Polley tailings dam breach last year. “It is the primary goal that we have today, to ensure that not only British Columbians but people in Canada have confidence in the mining industry,” said Brino. “Although our safety record is very good, Mt. Polley did happen and it did raise questions.” She said transparency with third party review of mine sites is how that is being done. “It has a community audit, a community validation aspect to it. There is a community panel that actually looks at the reports; all of the results are made public, they’re posted. This panel has representation from labour, bankers, community leaders, aboriginal leaders, industry people — a general representation from the public,” said Brino.
Driving the boom
Industrial interest creating tidal wave of business growth By Rod Link
W
ith the number of business licenses in the city of Terrace now over the 1,100 mark at 1,133 – up approximately 100 from a year ago – and the business cycle about to enter its busy time, a number of new enterprises have arrived as other changes have taken place. Terrace and District Chamber of Commerce general manager Carol Fielding describes this spring as very much a waiting game for people within the local business community. “A lot of the [liquefied natural gas projects] either have their environmental approvals or are in the final stages. And now everyone’s waiting for those final investment decisions,” she said. “There’s a lot of anticipation for what’s coming and perhaps it’s not coming as quickly as everyone thought.” She noted that the economic impact from BC Hydro’s Northwest Transmission Line, which finished construction the middle of last year, has now subsided, giving the business community a chance to catch up and prepare for the next round of large-scale economic activity. “Compared to even four years ago, this has been a
“There is a lot of anticipation for what’s coming.” - Carol Fielding good winter,” she said of recent activity. “I think the message for the business community is don’t stop, keep moving forward. Because once it breaks loose, there’s no catching your breath.” Below is a representative sampling of recent activity.
Simson Maxwell The light-industrial and service area of Keith Avenue west of the Sande Overpass continues to grow. The western Canadian firm of Simson-Maxwell, which sells as well as services industrial engines, is about to open a local branch in a building being constructed by Progressive Ventures. See Page 24
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It’ll be Simson-Maxwell’s sixth branch, with the next closest one being Prince George and the others in Nanaimo, Port Coquitlam, Edmonton and Calgary. “We see a lot of potential in the area with LNG and other development,” said company official Ben Beeching of its decision to locate in Terrace. The company already has customers who would be involved in one way or another through LNG plant and pipeline construction, making it important for SimsonMaxwell to have a branch here, he said. Terrace’s central location as a sales and service centre and transportation hub within the region makes it additionally attractive, Beeching added. “From Terrace we can cover the region,” he said.
freight transportation, with the latter prospect depending on general economic activity.
Terrace Mini Storage Where once stood a propane business on Keith Avenue there is now Terrace Mini Storage, which opened late last fall. One of the owners, Claudine Basaraba, speaking from Kamloops, said the business plan had been to sell the property when the economic climate here was in a slump some years ago. “But when business took off, we decided to do this,” she said of the 107-unit storage facility.
Bandstra
Andrew Sheret
Just off of Keith Avenue, on Blakeburn, Bandstra Transportation is expanding its Terrace depot. And it’s doing so thanks to two property purchases – a road allowance from the City of Terrace and a westerly portion of land which once belonged to the now-defunct Terrace Lumber Company and, before that, Skeena Cellulose. Work at Bandstra has already started on a 10,000 square foot warehouse that will more than double the size of the company’s current warehouse space. “We were getting pretty tight for space,” said Sid Bandstra of the decision to expand. “We’re also developing our parking area and putting in a lay down area,” he said of space where the company’s trucks and trailers and other equipment can be kept. The company is anticipating hiring several people as summer nears, mostly for its moving business but also for
Founded 120 years ago in Victoria, Andrew Sheret, which sells plumbing, heating, HVAC and other supplies, is making Terrace its 22nd sales location within the province. “We can see the growth in the area and believe there’s an opportunity there,” explains company vice-president Eric Findlay of its expansion decision. Its Terrace home is to be the former Coast Tractor building on Keith Avenue, east of the Sande Overpass. Andrew Sheret has had a branch in Prince George for a number of years, giving it a northern base from which to expand into the northwest, said Findlay. The company also has a retail arm called Splashes in 20 of its other locations and will have a showroom here as well, he added. See Page 25
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Dulux Paints Another new company to the area is Dulux Paints which now has an outlet on the block of Greig Avenue behind the Terrace Chrysler dealership. “It’s because that’s where the economic activity is,” said Dave Rimmer, who is responsible for the company’s western Canadian corporate stores. “We looked at the economic indicators and we knew we needed to be in northern B.C. That’s where we think we should be in anticipation of the next five years, 10 years.” The company’s closest location is Prince George, where it’s been for 35 years. Aside from Terrace, the company went on a provincial expansion program last year, adding six stores in the Lower Mainland and one in the Okanagan for a total of 33 outlets. “We’re expecting big things in B.C.,” said Rimmer of the company’s investment in the province. Nation-wide, Dulux has 250 outlets reaching from coast to coast.
Terrace Redi-Mix A cement company called Terrace Redi-Mix is opening up in an industrial area located between Canadian Tire and Skeena Sawmills. The company is a division of West Fraser Concrete Ltd. and has serviced the Terrace area since 1992. West Fraser Concrete head offices are located in Telkwa. In December it purchased the company from local owner Richard Green who is still currently the manager in Terrace. “Because things are going to be happening around here pretty soon we could probably spend a little money and pay some more taxes and go from there,” said Green of the expansion of his business into the lots next door. “Everything is heavy in this businesses,” he said of concrete.
Redi-Mix sells paving and other stones and a lot of precast products they make themselves for infrastructure, septic tanks, etc. The PNG gas main will also be extended 60 metres north on Earl and a new stop light will be attached to a hydro pole on the currently undeveloped site. “The full costs shall be at developer expense,” reads the development permit which was approved by city council in March after some discussion about possible dust impact on residences above the cut bank behind the site.
MacCarthy Motors Terrace’s General Motors dealership on Highway 16 has also expanded by putting in a new storage area for tires and parts in response, a total of an extra 5,000 square feet. “Our business has picked up a lot in the last 24 months,” said assistant controller Kevin MacCarthy. “Tires is a big part of our business now. We ran out room for storing them.” There will be another building too for a detail shop, he said, however he is still waiting to see if the local economic surge continues to finalize that expansion.
Timber Mart Increased business volume is also the reason for a 8,400 square foot warehouse being built at Timber Mart on Keith across from Walmart. “It is designed so you can drive in and get what you need, tie it down, and drive out the other side,” said store principal Derrick Gair of the warehouse which doubles the existing size of the store. Being under cover won’t expose products or customers to the elements, Gair added. The business this year notes its 30th anniversary.
VANDERHOOF and DISTRICTS CO-OPERATIVE ASSOCIATION 15 Cardlock Locations: Fort St. James To Quesnel, Terrace To Valemount. Fuel Tanks Sales & Rentals, Bulk Fuel and Oil Deliveries: Vanderhoof Toll Free: 1-888-545-2667, Quesnel: 1-888-992-2667, Prince George: 1-866-309-2667 Houston: 1-800-848-6347, Terrace: 250-635-9595
A day in the life of Terrace Paving By Rod Link
T
he heat rises steadily from the rich black layer of material which extrudes from the back of the Terrace Paving machine. At 140 Celsius the asphalt is soft and workable and the crew uses rakes and shovels to quickly smooth out any bumps and fill any gaps on top. Meanwhile foreman Ray Garneau walks back and forth along a narrow walkway on the back of the paver as it slowly crawls forward. Using what looks like a ski pole, Garneau occasionally reaches out and pushes the device into the just-laid asphalt to ensure it is the right depth. Later, a roller goes over the layer, compacting it into a harder consistency. “I’ve got three boxes here today,” says Garneau, referring the dump trucks that make the round trip from the Terrace Paving asphalt plant in Thornhill to the job site, the back lot of the just-opened Andrew Sheret plumbing and heating business on Keith Avenue/Highway 16 in Terrace. Depending upon the size of a truck’s box, 13.5 tonnes of asphalt is tipped into the holding tank of the paver before its forced out onto the ground.
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“Last year was our biggest year.” - Ray Garneau In technical terms the mixture is called either concrete asphalt or asphalt concrete, said Mirko Rutar, the area manager of Terrace Paving. Either way, asphalt is made up of two key ingredients – crushed rock called aggregate and an oil product. The latter acts as a binding agent for the former. Oil companies produce different kinds of product for asphalt but, generally speaking, for northern climates a softer oil product is used. “That’s because of the freeze/thaw cycle,” said Rutar. “You want something with more flexibility for the temperature range.” Oil companies also have other ingredients applicable for the type of surface needed – ones where there’s more traffic, a harder surface is wanted. See Page 27
Terrace Paving uses basically one type of oil product to help keep its costs down, noted Rutar. “We’re about 20 hours away from our source of supply,” he adds. Terrace Paving is a division of a company called YCS Holdings which itself is part of a larger company called Terus Construction Ltd. The YCS office is in Prince George and oversees a network of 11 asphalt plants, including the one in Thornhill and a new one in Kitimat. In Kitimat YCS is known as Kentron Construction, its operation is called Adventure Paving in Prince Rupert and LB Paving in Smithers. Crews can be shifted around the region depending upon project needs, said Rutar. That explains why a major paving job of Highway 16 through Thornhill and into Terrace will be handled by LB Paving. That project will be done at night and, with the Terrace Paving crew busy during the daytime, Rutar said bringing in a Smithers sister company made perfect sense.
His list of projects this year includes work at Rio Tinto Alcan’s aluminum smelter reconstruction project in Kitimat, several Terrace municipal projects and paving at one hotel being built in Thornhill and two in Terrace. “We’ve got a lot on our plate. And last year was our biggest year,” said Rutar. His 2014 list included 15,000 tonnes of asphalt at the Rio Tinto smelter project and his 2012 project list included a $400,000 contract to pave the intersection of Highway 37 South and the City of Terrace’s Skeena Industrial Park. A $1.3 million paving contract was even taken on in 2011 at the new ferry terminal in Klemtu on the mid-coast of the province. For that project, asphalt of a special oil mixture that could be used at a lower temperature than otherwise normal was loaded onto a barge and then covered with insulated, fireproof tarps. “Doing it that way, it’s good for four or five days,” said Rutar. A small amount was left over and taken back to Kitimat where, even after five days, a portion was used in the back lot of the Kentron complex, said Rutar.
WCC LNG confirms on-shore terminal design By Martina Perry
M
embers of the Prince Rupert and District Chamber of Commerce were given an update on the proposed WCC LNG project during their monthly luncheon on May 20. Scott Pinhey, vice-president of WCC LNG, provided an overview of the tasks being undertaken for the planning phase of the project. As a partnership, ExxonMobil Canada Ltd. and Imperial Oil Resources Limited are looking to develop a liquefied natural gas export facility on the southern portion of a piece of city-owned property on Tuck Inlet, known as District Lot 444. WCC LNG submitted a project description in January and has started its environmental assessment process. The National Energy Board granted WCC LNG an export permit for 30 MTA per year in March 2014, with Pinhey informing chamber members that the government recently extended the permit lifespan from 25 to 40 years and in April, WCC LNG advised the B.C. Environmental Assessment Office that it had selected
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“We would look at expansion ... up to as many as five trains.” - Scott Pinhey the onshore concept for the facility based on feedback from stakeholders, as opposed to the marine facility concept. “We would start out with a two-train foundation project ... we would look at expansion from there, up to as many trains as five,” said Pinhey, noting the group is considering a 400 hectare footprint in its environmental assessment. “We’re continually looking to try to minimize the footprint.” See Page 29
“We found that we could easily turn in the Tuck Inlet area in all of the conditions.” - Scott Pinhey WCC LNG has already completed work gathering baseline information on the archeological, geotechnical and environmental aspects of the site on Tuck Inlet. Pinhey told chamber members WCC LNG recently established ambient air quality monitoring stations at the site and across the harbour at Seal Cove and will start regular water quality sampling at Shwatlans Lake and Woodworth Lake later this year. Starting in June, WCC LNG will hold working group meetings as part of the project’s environmental assessment process, meeting with First Nations stakeholders and undertaking traditional use studies. “We need to earn trust as we go through this process with how we’re engaging and what actions we actually take, so we’re respecting the community values here,” said Pinhey. With the Prince Rupert Port Authority, WCC LNG simulated LNG carrier transits through the Prince Rupert harbour to Tuck Inlet to ensure it could be done safely. “We found that we could easily turn in the Tuck
Inlet area in all of the conditions and scenarios where there were emergencies ... the end result we’re pretty confident with,” said Pinhey, noting a detailed simulator with real bathymetry and weather conditions was used for the simulation by B.C. marine pilots with experience in the area. Pinhey encouraged residents to visit the WCC LNG community office in Prince Rupert, located in Suite 111 of 101 First Avenue East, for further information on the project.
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Mike Wiegele Helicopter Skiing in Blue River, BC is hiring for the following summer positions beginning early to mid-June:
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A New Opportunity for Northwest BC
We’re committed to hiring as many local workers as possible for construction and operations jobs at our facility. Photo credit: Santos GLNG
New local jobs will give young people and future generations more opportunities to stay in northwest BC instead of having to move away to find good jobs. We have developed and are working to develop additional training programs for local workers interested in a job in the LNG sector. We will be posting more details of these programs, including how to apply, on our website PacificNorthWestLNG.com in the near future. Pacific NorthWest LNG will also create new vendor opportunities for businesses and contractors in the northwest.
Pacific NorthWest LNG would generate approximately $1 billion in annual new tax revenue income that could be used to provide public services in BC communities.
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Canadian Energy. Global Reach.
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Trade is building stronger communities. The Port of Prince Rupert is growing opportunities and prosperity by connecting the communities of northern BC. Last year, port activity was directly responsible for the equivalent of 3,060 permanent full-time jobs. Watch and share our video tribute to the workers and families of BC’s gateway industry: youtube.com/rupertport.
rupertport.com | @rupertport
