In an emailed statement, BHP Billiton said that letting the exclusivity agreement with the port lapse will allow the company to “actively investigate and assess alternative rail and port options” for its 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. This disciplined approach gives us the flexibility to consider a broad range of options for the rail and port, including the Port of Vancouver, WA,” the statement read.
The decision not to extend the agreement “didn’t come easy,” said Coleman, but with its expiration, the port can begin to market the 90-acre site to other potential customers.
“We’re looking at a tremendous asset in the Terminal 5 project. Our intent is to proactively market a very marketable asset,” Coleman stated.
A good place to start that marketing effort, said Coleman, are the potential port customers who have expressed interest in the port’s Columbia Gateway property. Those customers may be interested in Terminal 5, because it is what Coleman referred to as a “one of a kind” site – shovel ready, utilities already installed, able to accommodate unit trains that are 8,600 feet in length. In addition, Coleman said, BHP Billiton invested in soil stabilization on the site, and the port may be able to reuse some of the dock permitting that has been done in the port’s name, if the new customer plans to build a similar facility to BHP Billiton’s.
And, while the port looks to interest new customers in Terminal 5, they hope to keep BHP Billiton as a customer as well. Coleman said the port’s 450-acre Columbia Gateway property may interest BHP Billiton – the port has a draft environmental impact statement for the site, and will start permitting soon, targeting customer construction beginning in 2018, which is close to BHP Billiton’s current timeline.
Coleman said that while the leadership team at the port experienced a little disappointment with the delays in the BHP Billiton project, the overall attitude is excitement.
“We’re optimistic about keeping BHP in play,” said Coleman, “and we value the six-year relationship we have with them.”
Additionally, Coleman said, the idea of being able to move quicker on Terminal 5 “is pretty exciting.”
“Terminal 5 completed in 2009. It’s time for that site to be developed,” he said.
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