Group plans key port at Canso Strait

A consortium plans to build a $300-million container terminal on Nova Scotia's eastern shore.

The privately funded terminal will go up in Melford, along the Strait of Canso, the partners announced Tuesday.

"It's what we call a green field site," said Paul Martin, with Trident Holdings, a Nova Scotia-based merchant bank that has invested heavily in the plan.

"It's like having a blank canvass if you are a painter. We have the ability to construct, at a very good cost,the kind of container terminal that everyone wants."

The idea is tohave a deep-water port and a 600-hectare logistics park to develop from scratch, ata time when goods from Asia areexpected tocrowd other ports.

Though Martin said the group will not seek government money for the project, public funding will be needed to improve roads and railways.

The projecthas attracted one of the biggestindustrial property managers in the United Statesand one of the biggest terminal operators.

Industry experts say east-coast traffic could double or triple over the next 10 to 15 years.

Environmental assessment needed

Amarket assessment and feasibility study found that Melford is one of the best sites left on the east coast of North America for a new terminal, the consortium said.

The Melford proposal has to pass an environmental assessment before construction can begin and the first phase of the terminal can be ready by 2010.

RailAmerica, which runs the Cape Breton and Central Nova Scotia line, has agreed to provide rail service to the site, but the consortium has to find shippers who want to bring containers to Nova Scotia.

As many as 500 people are expected to be employed for the construction phase, and 200 once the terminal is open.

Political and business leaders are expressing their enthusiasm for the project, from the premier down to shop owners in three counties.

"There are no guarantees, but I think this has a very good chance," said Guysborough County Warden Lloyd Hines.

"It's understandable the cynicism that exists aroundNova Scotia, but the reality is you have a deep-water harbour that is ice free and vacant, industrial land that can be developed."

There has been a lot of talk about an Atlantic Gateway and there's also a proposal for a terminal in Sydney.

Percentage of overall traffic going down: expert

Charles Cirtwill, acting president of the Atlantic Institute for Market Studies, a Halifax-based think-tank, said there are already facilities in place, with the Halifax port terminals operating at about 50 per cent capacity and CN running at 30 per cent.

"When you start talking about a second container terminal, basically you're talking about having to twin that highway from New Glasgow to the Strait region," Cirtwill told CBC News.

"But if you're only doing it because you suddenly have gateway funds, it's a big issue about subsidizing new competition to existing infrastructure that's basically being underutilized."

Cirtwill wonders if officials have done enough to build up traffic to the whole region. Traffic is still going up in Halifax, thoughthe percentage of the overall traffic is going down, he said.