Westshore Terminals at Roberts Bank in Delta is moving closer to completing a major project to begin shipping potash overseas.
Westshore, in a recent news release, says it has made “significant progress” on building the infrastructure to ship potash from mining company BHP Billiton (BHP), which is developing a new $7.5 billion potash mine in Saskatchewan called the Jansen Mine.
Potash is a common fertilizer used to provide nutrients to agricultural crops and house plants.
BHP previously proposed a potash terminal at Fraser Surrey Docks, but that application was withdrawn.
Since the project began at the end of 2024, Westshore says it has spent $545 million, which is being reimbursed by BHP, subject to a five per cent holdback as provided in an agreement.
Reimbursement of Westshore’s expenditures by BHP is limited to the amount of the initial budget agreed in 2021, at approximately $1 billion, after which costs incurred by Westshore to complete the project will not be reimbursed.
Westshore admits it will incur cost overruns.
Significant factors in the increase in project costs over the budget include inflation having been higher than anticipated and delays in the completion of outsourced design engineering, which will result in increased labour and other costs to maintain the tight project schedule, the news release notes, adding the corporation does not anticipate any liquidity concerns resulting from Westshore’s obligation to fund the cost overruns.
The project is on schedule to be completed in 2026 and Westshore “anticipates meaningful revenue” for potash handling to start in 2027, Westshore adds.
Alpine Bulk Materials Handling has been awarded acontract by Westshore Terminals for the design and supply of ship loaders and conveyors for the potash expansion for handling and shipment of 4.5 million metric tonnes potash per year.
The project will receive potash shipments by rail, offload it into a new storage building, transfer it via a closed conveyor system to a ship loader for export from Berth 2.
The potash totals would displace the same amount of current coal handling capacity at the site.
According to the Port of Vancouver, the project was approved “subject to 50 permit conditions that Westshore Terminals Limited Partnership must meet to ensure the project does not result in significant adverse environmental effects.”
According to Westshore during the application process, an analysis anticipated emissions will be similar to existing levels.
Westshore also pointed out the emissions have decreased over the years as the company has implemented technology and procedural changes to reduce dust emissions, independent of any permit requirements.
A report by Westshore on a summary of its public engagement noted, from the feedback it received, there was no clear indication of either support or opposition to the project.
A City of Delta report to council noted civic staff “believe that overall the project is a positive step forward.”
