New Stacker Reclaimer Project

Public Engagement Summary Report

September 2012

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1.0 Project Overview

As part of ongoing upgrades and modernization of terminal infrastructure, Neptune Terminals is

continually making strategic investments to i pro e the ter i al’s steel aking coal handling

operations.

Neptune Terminals has announced that, it will be installing a new stacker reclaimer replacing an older,

smaller unit currently in use. This new equipment will be installed within the ter i al’s e isti g footprint and will allow the terminal to improve efficiency and operating flexibility by simultaneously

moving steel-making coal from trains to the stockpiles and directly from stockpiles onto vessels. The

e sta ker re lai er ill further e ha e Neptu e’s e iro e tal easures ith a est-in-class dust

suppression system.

2.0 Notification & Outcomes

In May 2011, Neptune Terminals publicly announced a $63.5 million dollar investment in their steel-

making coal operations. The largest component of this announcement was the purchase of a $45

million stacker reclaimer, to be built in British Columbia.

In November 2011, Neptune Terminals and Ramsay Machine Works announced the new equipment

would be built at the Ramsey yard in Sidney, B.C. The Government of British Columbia celebrated the

announcement with Neptune and Ramsey. Then Minister of Transportation and Infrastructure, Blair

Lekstrom participated in the media event, local MLA Murray Coell was quoted in the news release and

Victoria based Minister Ida Chong and Minister Naomi Yamamoto from North Vancouver also attended

the announcement.

The media coverage surrounding both releases focused on the economic investment and job creation

for North Vancouver and Sidney, making note of BC manufacturing and the increased capacity that

would result from the stacker reclaimer project. Media coverage has entirely been through various print

outlets, the North Shore Outlook has covered the staker reclaimer investment through-out the entire

process.

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As part of Port Metro Va ou er’s PMV regulator re ie pro ess, Neptu e has undertaken two

recent community notification processes for other terminal improvements: phosphate rock investments

(known as Project Craig) and additional steelmaking-coal investments (known as Project Allison). In the

communication materials prepared and distributed to municipal and provincial elected officials,

adjacent residents and businesses as well as First Nations (by Port Metro Vancouver), Neptune has

ensured the new stacker reclaimer has been included in the

list of recent and planned terminal improvements.

In addition to the public announcements and

communications material referred above, Neptune has held

two Community Open Houses (2011 and 2012) at the

terminal to allow local residents and neighbours to learn

about the Neptune’s operatio s a d the plans for new

investments; information about the new stacker reclaimer

equipment was prominently displayed at these events.

Neptune Terminals also brought its model display to this

ear’s COHO festi al i Septe er a d Part -at-the-Pier

event in July 2012.

The attendees asked questions of all the terminal

improvement projects, including the new equipment and

were very interested in learning about the best in class dust

suppression technology being installed on the stacker

reclaimer.

Activities included:

Two public announcements

Mentioned within two separate news letters distributed to local community

Informal briefings with elected officials as part of the ongoing communications regarding

terminal improvements

Updated Neptune website with information about new equipment

(http://www.neptuneterminals.com/terminal-operations/terminal-improvements/)

2.1 Engagement Feedback

Neptune has received strong support from all levels of government about the overall terminal

improvements. Senior levels of government have been particularly supportive of the decision to

procure the equipment in Canada. The new stacker reclaimer will result in more permanent jobs at

Neptune Terminals and construction jobs at Ramsay Machine works in Sidney where the equipment is

being built.

Neptune is prepared for and fully anticipates ongoing community interest in the new stacker reclaimer.

While there has been considerable support and positive feedback from senior levels of government

public feedback specifically on the new equipment has been minimal.

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Overall, comments have been

overwhelmingly positive about the terminal

improvements and the installation of the

new equipment is part of the improvements.

Most importantly, the community has

appreciated Neptune Terminals efforts to

keep them informed and for the chance to

ask questions at various public functions

regarding the many projects underway at the

terminal. Concerns raised with Neptune

have been of a general nature regarding

operational noise and potential impacts on

neighbours in the community, as opposed to

specific inquiries or concerns about the

stacker reclaimer.

2.2 Neptune Outreach to Stakeholders

The following stakeholders were notified about the project and have the opportunity to submit

comments or questions to Neptune Terminals and/or directly to PMV:

Stakeholders Engagement

North Shore Waterfront Liaison Committee

Mentioned in other improvement update

presentations.

City of North Vancouver Mentioned as part of ongoing briefings to

keep mayor and council apprised of Neptune

Ter i al’s i est e ts a d upgrades.

District of North Vancouver Mentioned as part of ongoing briefings to

keep mayor and council apprised of Neptune

Ter i al’s i est e ts a d upgrades.

North Vancouver residents, Parkgate area

businesses and adjacent North Shore Trade

Area terminals

Mentioned in two community householder

brochures distributed through Canada Post.

Delivered to postal codes:

LC0123, LC0141, LC0121, LC0327

North Vancouver businesses in Park &

Tilford and along Brooksbank Avenue

Mentioned in two community householder

brochures distributed by hand

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Stakeholders Engagement

Businesses & industry associations:

E.g. Cargill, Richardson International,

CN Rail, CP Rail, Kinder Morgan

Terminals, Seaspan, Univar Canada,

Allied Shipbuilding, Canexus Limited,

Mountain Equipment Co-op,

Vancouver Pile Driving

BCMEA

Mentioned as part of the ongoing dialogue to

keep them apprised of terminal improvements

Community partners:

North Shore Neighbourhood House

North Vancouver Chamber of

Commerce

Capilano University

North Shore Little League

North Shore Community Resources

Lower Lonsdale Business Association

Mentioned as part of the ongoing dialogue to

keep them apprised of terminal improvements

Neptune employees, ILWU foremen &

longshoremen

Mentioned as part of the ongoing dialogue to

keep staff apprised of upcoming terminal

improvements

North Vancouver MLAs & MP

Minister Yamamoto

Jane Thornthwaite

Ralph Sultan

Andrew Saxton

Mentioned as part of the ongoing dialogue to

keep them apprised of terminal

improvements, including informal

conversations, sending community

newsletters and at Community Open House.

North Vancouver Chamber of Commerce Mentioned as part of the ongoing dialogue to

keep members apprised of terminal

improvements

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3.0 Going Forward

As Neptune Terminals works to secure final approval for the new stacker reclaimer it will continue to

provide the community, stakeholders and Port Metro Vancouver with regular updates o the o pa ’s website.

Specifically, the website will be updated with current information on the project status to help ensure

members of the community and public can remain informed of developments of the project, including:

PMV permit approval

Equipment installation start

Construction completion

The public will also be notified of any new information that impacts the adjacent community, as

necessary, throughout the process. The site can be found at:

http://www.neptuneterminals.com/terminal-operations/terminal-improvements/

In addition to the website updates, Neptune Terminals will continue to keep various staff at PMV

apprised of any developments on the terminal during equipment installation.

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Appendix

News Release - May 2011

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News Release – British Columbia Government November 2011

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Community Householder (cover page)

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Website Homepage and Terminal Improvements Page

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Sample of media clips of Stacker reclaimer

NEPTUNE Terminals president Jim Belsheim stands in the soon to be expanded coal handling

facility on the North Vancouver waterfront.

By Jane Seyd

North Shore News

May 29, 2011

NORTH Vancouver's Neptune Terminals has announced plans to invest in $63.5 million worth of

equipment for its coal-handling facility that will eventually add 50 to 70 jobs to its 250-person

workforce.

Most of the investment will go into a new $45-million stacker-reclaimer, a large piece of equipment that

takes coal arriving from rail cars, delivers it to coal piles in Neptune's yard, then scoops it back on to

conveyers when it's time to load ships at the terminal's berths.

"It's a modern, sophisticated piece of technology," said James Belsheim, president of Neptune. He

added he expects the new stacker to be manufactured in British Columbia.

The new stacker will replace the smaller of two similar pieces of equipment currently used at the

terminal and allow the terminal to unload rail cars at the same time as ships are being loaded.

It will also increase the terminal's coal-handling capacity to 12.5 million tonnes annually from its present

eight million tonnes.

The $65-million investment also includes a $6.5 million mechanical rail car positioning system, designed

to move trains quietly on the site, and a $12 million power-system upgrade.

All of the projects are expected to be completed next year.

The big investment comes at a time when the 40-year-old terminal is handling record volumes of both

coal and potash. The coal boom is being driven by demand from Asian steel mills. Last year, Neptune

shipped more than six million tonnes of metallurgical coal. Results of this year's first quarter show

"we're on a similar and increasing pace," said Belsheim.

"It's a long-term investment," he added. "It's in response to what we see as the future of steel-making

coal around the world."

At the same time, Neptune is also in the midst of upgrading its potash-handling facility, which will boost

the terminal's handling capacity by 1.5 million tonnes annually to 10.5 million tonnes.

Shipments of potash -- a mineral used to make fertilizer -- soared by 143 per cent to 5.5 million tonnes

at the port last year. The lion's share of potash is shipped through Neptune Terminals.

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Last year, Neptune handled a total of 11.45 million tonnes of commodities, beating out the previous

record of 11.4 million tonnes set in 1998.

Coal loader deal buoys Ramsay: $20-million contract means security, hiring for Sidney firm

Andrew A. Duffy

Times Colonist

Published: Wednesday, November 30, 2011

A $63.5-million upgrade to a North Vancouver shipping terminal will translate into more than 20 new

jobs and more than a year of steady work for Sidney-based Ramsay Machine Works.

Neptune Terminals' investment in its facility includes a $20-million stacker-reclaimer - used to move coal

between stockpiles and vessels - that has been designed by EMSTech of Belleville, Ont., and will be built

in Sidney by Ramsay.

"This is definitely about job security," said Dave LeDrew, a Ramsay fabricator. "The last few years have

been a real struggle, every week wondering and waiting for that next job to come through the door.

"But to now be awarded a contract like this means for the next couple of years we don't have to worry

about being laid off and we can put all our talents and ambition into the product, and hopefully that will

lead to more things and kicks us over the downturn in the economy."

Greg Ramsay, president of the 108-year-old family-owned firm, noted the company has been able to

keep operating, if not busy, through the global economic downturn because of its reputation. But he

admits it feels like they have been waiting in the ondeck circle, itching to get back up to bat.

"The last few years have been tough, but it seems like things are turning around," Ramsay said.

He noted the company intends to add 20 new positions to its team and the project will mean work for

more than 100 subcontractors in Victoria. "This has a huge multiplier effect," Ramsay said.

The fabrication of the components of the machine will take about six months and it will then be

assembled on land at the airport and transported along the main runway before being loaded onto a

barge on Patricia Bay for shipping to North Vancouver.

Ramsay said there are signs from the resource industries that the economy is starting to pick up on the

West Coast and his company can take advantage of it.

"Things are happening in the province - mining is taking over from forestry and there are more projects

we can go after because of our location," he said. "And now companies are committing to

manufacturing in B.C. and that makes a big difference - we will be there for those customers over the

long term.

"It's a fundamental approach and I sure hope it carries on."

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Transportation and Infrastructure Minister Blair Lekstrom, on hand for the announcement Tuesday,

noted steelmaking coal exports to China have increased to 4.4 million tonnes from 140,000 tonnes over

the last four years.

Lekstrom said that increase is in part due to B.C.'s ability to ship coal efficiently, and Neptune's

investment is a sign that will only improve.

"From the government perspective this is about the private sector investing and investing significant

dollars, which creates jobs," he said.

The new stacker-reclaimer equipment and other upgrades are expected to increase coal handling

capacity at Neptune to 12.5 million tonnes per year up from nine million tonnes. Teck Resources, one of

Neptune's major shareholders, is expanding its steelmaking coal production in B.C. to meet global

demand.

Ramsay will now be looking for new workers and hope to attract and keep them with its "family

approach" and promise of long-term employment.

"Some people like to work for companies that have concern for their employees and their longterm

future," said Ramsay, noting they will be working with local trades schools and hoping good word-

ofmouth will bring them the talent they will need.

But there will be little rest for the company, which spent a year landing the deal for this stacker-

reclaimer.

"Even though the project is a year's duration we will soon be looking for something else," said Ramsay.

He said while the vast majority of the shipbuilding work contracted to Vancouver Shipyards by the

federal government in October will be done in Vancouver, there's hope his company might find some

work when the projects start rolling out. "We are pursuing that - it's about figuring out how we can fit in

and what we can offer," he said.

2011 exports a record for Neptune

By Jane Seyd

North Shore News

March 4, 2012

POTASH exports from North Vancouver's Neptune Terminals continued a skyrocketing climb last year,

pushing the overall volume of commodities shipped from the North Vancouver terminal into a record

year.

Neptune handled just under 13 million metric tonnes last year - the most ever shipped through the

terminal, according to Neptune president Jim Belsheim.

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About half of that was potash. Fuelled by a jump in global food prices, exports of potash - a mineral

mined in Saskatchewan and used in fertilizers - have gone sky high in the past two years, more than

tripling since 2009.

In 2011, a record 7.2 million metric tonnes of potash was shipped through Neptune, a 30 per cent

increase over the year before.

The biggest markets for potash are Brazil, China and Indonesia.

Last year the company completed an expansion of its potash-handling facility to improve speed and

efficiency and allow faster loading of ships. The project has increased Neptune's annual potash handling

capacity to 11 million tonnes and boosted its workforce.

There are now about 300 people working at Neptune - compared to about 250 before. Belsheim said

those ranks could swell again to about 400 once the terminal completes the upgrade of its coal-handling

facility, currently underway.

Neptune is in the midst of investing $63.5 million worth of new equipment for its coal-handling facility

that will increase the terminal's coal-handling capacity to 12.5 million tonnes annually from its present

eight million tonnes.

The biggest component of that upgrade is a new $20-million stacker-reclaimer - the piece of equipment

that actually moves the coal - currently being built at Ramsay Machine Works near Victoria. "We made

the decision to have it built in British Columbia," said Belsheim. "We believe we'll get a higher quality

machine. "It'll be installed faster and easier."

A total of 20.9 tonnes of metallurgical coal and 11.7 million tonnes of thermal coal was shipped last year

through all of the port's terminals. Neptune only handles metallurgical coal, which goes to steel mills in

Asia. Most of that comes from mines in southeastern British Columbia.

Belsheim said he expects the record setting pace to continue this year.

"I'm very optimistic," he said. "Everything we know points to strong markets for both our primary

products."

Belsheim said that has direct spinoff benefits for the economy in North Vancouver. In a typical year past,

Neptune might spend $3 million buying from local businesses. "This year we will be $20 million or

higher," he said.

According to 2011 statistics recently released by Port Metro Vancouver, other significant volumes

shipped through port terminals last year included 5.8 million tonnes of wheat, 5.8 million tonnes of

canola and 4.6 million tonnes of lumber.

China, Korea and Japan were the biggest export markets.

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Canada imported 2.9 million tonnes of household goods and 1.8 million tonnes of construction materials

through the port last year, most of that from China.

New coal stacker-reclaimer for Ramsay Machine Works; no, it's not the new Transformer

By Darron Kloster

Times Colonist

August 18, 2012

Ramsay Machine Works is building another industrial monster, and this one's a bright teal colour and in

the open for everyone to see.

The Sidney-based manufacturer started to roll out a 1,500-tonne coal stacker-reclaimer on airport land

near its shop along MacDonald Park Road, where more than 50 workers will begin assembling the $20-

million machine.

The stacker-reclaimer, looking not unlike a giant Transformer toy, will eventually rise to 30.5 metres and

stretch 107 metres in length when completed over the coming months. After making sure everything fits

- including a massive bearing system to within five onehundredths of an inch - the company will take the

main sections apart and prepare it for transport to North Vancouver, probably in March.

The stacker-reclaimer is being built for Neptune Terminals and will be used to handle coal from Teck

Resources operations in B.C. for export to overseas markets. The machine will eventually be transported

down the main runway at Victoria International Airport and onto a barge at Pat Bay, where it will sail to

the mainland to be installed in North Vancouver.

The stacker-reclaimer will move coal between stockpiles and vessels bound for Asia. Teck is a major

shareholder in Neptune Terminal, which is undergoing a $65-million upgrade.

The contract win for the stacker-reclaimer, designed by EMS Tech of Belleville, Ont., meant more than a

year's work and 20 new jobs at Ramsay, a 109-year-old Victoria company. Since late last year, it has also

produced spinoff work for several local contractors, said president Greg Ramsay.

"It's not our biggest project, but it's up there," said Ramsay, citing a shiploader two years ago also bound

for Vancouver that was even larger. "It really turns a lot of heads when we get one of these things out

on the airport lands near the highway. People must wonder what the heck these things are when they

drive by."

Ramsay said the company has a 25-year lease agreement with the Victoria Airport Authority to use land

for larger projects and have access to the main runway to transport major pieces to the Pat Bay marine

terminal.

The provincial government said steelmaking coal exports to China have increased to 4.4 million tonnes

from 140,000 tonnes over the past four years. It said the increase is in part due to B.C.'s ability to ship

coal efficiently, and Neptune's investment is a sign that will improve.

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The new stacker-reclaimer equipment and other upgrades are expected to increase coal handling

capacity at Neptune to 12.5 million tonnes per year from nine million tonnes. Teck Resources is also

expanding its steelmaking coal production in B.C. to meet global demand.

Ramsay, 60, said the company is an active bidder on projects globally, but admitted he is hamstrung by

U.S. federal projects, which by law can only go to American firms. The same does not apply in Canada,

where U.S. firms often bid on Canadian projects.

Companies are also using offshore markets to build major machines because labour is so cheap. Ramsay

expressed dismay at Friday's announcement by businessman David Black, who is proposing to build a

$13-billion oil refinery near Kitimat. Black said most of the refinery pieces would be manufactured in

Asia to contain capital costs and make the project viable.

"In China, they pay $1 an hour. Here, the base wage is $30 an hour," said Ramsay.

"It's pretty tough to compete with that. I think the provincial government has to start offering some sort

of incentives for companies to build locally or our manufacturing industry is going to disappear

completely."

Ramsay hopes the federal government's $35-billion shipbuilding program in the next several decades

will provide spinoff work.

"We are pursuing that. It's about figuring out how we can fit in and what we can offer," he said.