Brian Morton, Vancouver Sun, February 28, 2011

VANCOUVER — A huge dry bulk cargo terminal proposed for Cherry Point in Washington state is moving ahead with a comprehensive environmental review, it was announced Monday.

Denis Horgan of Westshore Terminals, the operator of the Roberts Banks coal terminal, says he doesn't see a potential Gateway Pacific cargo terminal at Cherry, Point., Wash., as a business threat. (Photograph by: Wayne Leidenfrost, PNG files)

The proposed Gateway Pacific cargo terminal by Seattle-based SSA Marine would initially handle about 25 million tons of coal per year, about the same as B.C.'s Roberts Bank coal terminal.

Ultimately, it could handle 48 million tons of coal, and another six million tons of other commodities such as grains and potash.

Despite the size of the proposed terminal, the operator of Roberts Bank doesn't see it as a potential threat.

"Last year, we handled six million tons of coal from the U.S., about 20 per cent of our business, a record," Denis Horgan, vice-president and general manager, Westshore Terminals, said in an interview. "We're [taking] everything we can handle. It [the SSA Marine proposal] may mean nothing."

Horgan said he was aware the site at Cherry Point was being looked at as a new coal terminal, but didn't know the details.

He said he suspects any new terminal is several years away from completion, because of a lengthy approvals process.

SSA said Monday it hopes to have all permits in place by December 2012 and ship the coal to Asian countries, including China, Japan, South Korea and India.

SSA said that the lack of a deepwater bulk cargo terminal on the U.S. west coast leaves U.S. producers at a disadvantage, "because they must send their goods out of ports in Mexico and Canada. That increases costs and sends jobs over the border. Gateway will provide producers from the Northwest to Chicago with a new efficient route to Asian markets and keep the economic benefits here at home."

Bob Watters, vice-president-director, business development of SSA Marine, said in a statement that "our submission today represents both extensive preparation and a great deal of work to come."

The documents submitted to Whatcom County, the state of Washington, and the U.S. Army Corps of Engineers outline the need for and scope of the project and provide a preliminary list of potential environmental and economic impacts, SSA said.

According to a report in the Bellingham Herald this week, the $500-million project could be operating by early 2015, allowing two years for the permit process and two years for construction.

The article also quoted Bellingham mayor Dan Pike as saying that he's willing to support the SSA proposal as long as potential negative impacts are addressed.

Watters says the company welcomes a thorough environmental review. "SSA Marine has been pursuing this project a long time," Watters said. "We have a shorelines development permit from Whatcom County, we have an agreement with a number of environmental groups and agencies for special studies and mitigation, and DNR [Department of Natural Resources] has adopted a Cherry Point Aquatic Reserve plan that acknowledges the terminal. Now we're ready for the next step. America needs this terminal and Northwest Washington will benefit from it," said Watters. "We're ready to proceed."

SSA noted that Cherry Point has the combination of naturally deep water, rail access, industrial zoning, and large land area to meet this need.

SSA could not be reached for comment on the proposal by The Vancouver Sun Monday.

bmorton@vancouversun.com

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