February 03, 2011
Port to reassess its plans
Development: Saint John Port Authority says it still intends to concentrate on cruise industry after Fort Reliance cancels headquarters at Long Wharf
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Reid Southwick and Paola Loriggio
Telegraph-Journal
SAINT JOHN - After years of planning and negotiations, dreams of a grand development to anchor Saint John's waterfront suddenly came to an end Tuesday, leaving the two corporate players to retrench to reconsider their strategy.
Peter Walsh/Telegraph-Journal
Captain Al Soppitt, right, president & CEO of Saint John Port Authority, answers questions about the Long Wharf deal during a presser held at the Marco Polo Crusie Terminal.
Fort Reliance Co. Ltd., Irving Oil Ltd.'s parent company, announced it would focus on its core business instead of pursuing a $30-million investment in a new headquarters at Long Wharf, a deal some say would have paved the way for future revitalization along the waterfront.
The company's sudden withdrawal from the project stunned the Saint John Port Authority, which had been expecting significant long-term revenue from the deal, as well as a second cruise ship terminal in the new building.
Left to reassess its plans, the port authority said it still intends to concentrate on the cruise industry, now its second highest source of revenue after potash.
"Our priority will be the cruise business," Port Authority president and CEO Capt. Al Soppitt said at a news conference at the Marco Polo Cruise Terminal. "We absolutely need to be able to handle two ships at once," he added, citing steady growth that brought nearly190,000 passengers to the port city last year.
The deal would have seen Fort Reliance buy the old Lantic Sugar site from the city, remediate the land, then leave it to the port in exchange for a 99-year lease on Long Wharf. The company was negotiating the cleanup with the city when it called off the exchange.
Though Fort Reliance has fared well even in the lagging economy, "we felt it would not be responsible to go ahead with a project of this nature at this time," said company spokesman Daniel Goodwin.
"As tough as this decision was, this is a decision about a building," Goodwin said about the firm's move to pull out of the deal. "It's not a decision about our commitment to Saint John."
The announcement disappointed business and political officials across the province who believed the project would have attracted future investment. Many were still reeling from Irving Oil's decision last year to scrap plans for a second refinery with its partner BP Plc.
At the time, Irving Oil officials said the demand for refined fuel had dropped and the capital costs of a new refinery were higher than expected. Still, the company remained focused on creating a northeast energy corridor. In January, Fort Reliance launched Portage Energy Ltd., a new firm aimed at forming a regional electricity transmission system.
Bob Manning, chairman of Enterprise Saint John, called the loss of the Long Wharf project "disappointing," but said the city would recover.
While he wouldn't speculate on alternate plans for the waterfront, he added the land remains open for commercial development, and the cruise business can continue to expand without the deal.
"(The port authority) built the new terminal last year, and they can still lay ships outside Long Wharf," welcoming passengers with tents in lieu of a terminal, he said.