Corner Brook Port Corp.

Port of call┬áA small Canadian port run for the benefit of the community promises to deliver value to all stakeholders and become a benchmark for the divestiture model, as John OÔÇÖHanlon finds out. It sounds pretty, and it is. Corner Brook, Newfoundland and Labrador, sits on the spectacular Humber estuary on the west coast of the province and is fringed by hills. Originally surveyed by Captain Cook in 1767, Corner BrookÔÇÖs Bay of Islands provides a sheltered, deepwater port.It is not altogether the ÔÇ£cornerÔÇØ that its name implies, though. With a population of around 20,000, the modern city is a major service hub, a home to several thriving industriesÔÇöincluding tourism, paper and an emerging environmental sectorÔÇöand a vibrant cultural community with theaters, museums, a university fine arts program and a reputation for hosting stellar national and international events, such as the 1999 Canada Winter Games.But it owes its very existence to its port, as the original town evolved around the paper mill strategically dependent on the water. Until very recently the port was owned and administered by Transport Canada, the government department that manages everything from road, rail and aviation to sea transport. ÔÇ£When Transport Canada was operating the port at Corner Brook,ÔÇØ says Jackie Chow, ÔÇ£it was run from St. JohnÔÇÖs, which is 400 miles from here. They had a local harbormaster, but there was nobody really looking at long-term strategic planning as to how the port could impact the future of the community.ÔÇØFive years ago Chow was director of corporate services for the City of Corner Brook and acting chief administrative officer. As such, she was involved with discussions among Transport Canada, the city and the port corporation that led to the divestiture of the port and its establishment as an independent commercial entity. ÔÇ£The idea started in 2001 with people in our local Chamber of Commerce who felt that if it was under local control, the port could make a really big impact on the community.ÔÇØAccordingly, the Corner Brook Port Corporation was set up as a not-for-profit company, its profits reinvested to ensure the long-term sustainability of the operation. Under the divestiture terms it received $15 million from Transport Canada, to be spent solely on the maintenance and operation of the transferred asset. In other words, all subsequent development has to be paid for out of operating revenues. ÔÇ£Our ultimate objective is to be able to afford to operate the port after the Transport Canada funds run out. We need to be self-sustaining in the long term,ÔÇØ explains Chow, who became port manager and CEO of Corner Brook Port Corporation shortly after divestiture.The good news is that current revenue is sufficient to cover operating expenses, and the port is able to fund major development projects such as the crucial $2.6 million new crane the dock needed to enable Oceanex to bring its largest container ship into Corner Brook. Oceanex, the portÔÇÖs major tenant, runs a weekly shipping service between Corner Brook, St. JohnÔÇÖs, Montreal and Halifax. ÔÇ£We were always interested in getting OceanexÔÇÖs new vessel, the Avalon, into Corner Brook, but the old crane couldnÔÇÖt service it.ÔÇØIn 2007 a new fixed-pedestal Liebherr crane was purchased, though before it could be installed the dock had to be given a new concrete base to support it. ÔÇ£Once the crane became operational last August, the Avalon started coming in on a weekly basis, and it continued to do so until early November.ÔÇØ The ice in the Gulf of St. Lawrence prevents the Avalon from including Corner Brook on the winter schedule, though icebreakers keep the waterway clear, says Chow.Her job is to run the port on behalf of the community and attract new life to the port area. The principal tenant is Oceanex, which leases the crane, office space and a yard for the storage and shipment of containers on its weekly services. A cold store hires further facilities. The original deal transferred the dock, six acres of land, the transit shed and several waterlot leases; however, in 2007 the new company acquired a further 16 acres and two substantial buildings at 59 and 61 Riverside Drive, providing much-needed area for expansion.The building at #59 was originally a railway engine repair shed, but that use ended in 1988 and the building had fallen into disrepair. Under the old order, it would probably have continued to be an eyesore or have been demolished, but now it has been restored, and Chow is looking forward to its new tenant, a metal fabricator, increasing tonnage through the port. ÔÇ£The other building, a freight-forwarding warehouse, was in very bad condition too. The year we acquired it we put a new roof on it, and now weÔÇÖre turning the front half of the building into a high-end two-story office building as part of the waterfront revitalization,ÔÇØ says Chow. The port offices will move into the building in July, and an additional 10,000 square feet of office space will provide income to help pay for this $4 million project. The property has been renamed in honor of R.A. Pollett, three-time mayor of Corner Brook and first chair of the Corporation. ÔÇ£I feel weÔÇÖre a great example of the success of divestiture, because if the port had stayed in Transport CanadaÔÇÖs hands, itÔÇÖs unlikely that projects like these would ever move forward.ÔÇØ Although the waterfront is used by a few people to walk their dogs and so on, it isnÔÇÖt really the best place for that because of the industrial use. However, the new development includes walking trails and landscaping that will make the area more accessible for the community, Chow says.Cruise ships are a growing revenue source for the port, and Chow wants to see more of them calling. Corner Brook is already a four-season destination for tourists, and cruise ships arrive especially to see the stunning fall foliage. But tourism was never a priority for Transport Canada, which was really only interested in the leasing side of the business. It did no marketing, so thereÔÇÖs real potential to grow port revenues and boost local businesses by bringing in more visitors.This summer will see a visit by Fred Olsen LineÔÇÖs Balmoral. While the port continues to welcome calls from major cruise lines, it has also served as a homeport for the smaller adventure lines that have discovered the unique destination of Newfoundland and Labrador.However, thereÔÇÖs no indoor facility at the port to cater to cruise passengers, and fewer than 20 ships a year doesnÔÇÖt provide the critical mass to justify that investment.The corporation will continue to grow its three lines of business, focusing on creating economic activity for the region and meeting the transportation needs of the community, and Chow is committed to ensuring that long-term sustainability is achieved. ÔÇô Editorial research by Ryan Kirkey┬á