On June 23 Ridley Terminals Inc. released its annual report, which outlines the numerous successes the company had in the record breaking 2010 as well as some of the plans for 2011 and beyond.
According to the message from chair Bud Smith, the compnay had total revenues of $61,561,000, up146 per cent from 2009, a net operating income of $31,764,000, up 694 per cent from the net operating income in 2009, and $16,900,000 cash on hand for the fiscal year that ended on December 31,2010. Smith notes that this is a stark contrast to just five years ago.
“Our success implementing the mandate can be measured by noting that in 2005 RTI’s negative $300,000 Net Income was derived from two contracts, without minimum guaranties, serving two geographies. By contrast at Yearend 2010 RTI had 11 contracts, and handled 5 products from 8 geographies,” he wrote, adding that the increased volumes have had a significant impact on the local economy.
“Operating in a commercial manner has resulted in the creation of 52 new permanent jobs at RTI, and has enabled many more jobs to be created between our terminal and where the products we handle originate. Most of those new jobs are located in northern rural Canada.”
Company president George Dorsey also commented on the increased employment the comany has seen in his message.
“Our current viability will enhance our ability to provide and assist others in supplying high paying and rewarding jobs for the next fifty years. As stewards of this enterprise, our initial objective to preserve and expand the RTI workforce by roughly 50% will have been exceeded by mid 2011. This growth has happened during some difficult years, but in relative harmony with our workforce,” he wrote.
“This clearly meets our responsibility to the Prince Rupert community.”
At the same time as total revenue more than doubled, the company was able to keep operating expense growth to 42 per cent.
Looking at 2011, Ridley Terminals is forecasting another record year that includes reaching the current capacity and expanding the workforce.
“Terminal throughput for the period is estimated to reach the current design capacity of 12 million tonnes. RTI’s customers have plans to increase production at existing facilities and plans are also in the works for additional facilities to come on line in the near future,” says the report, noting that the future also looks extremely bright.
“In Canada alone roughly 12 million tonnes of new coal production is estimated to be created in the next two to three years. Demand for products moving through the Terminal is strong and indications of continued growth are evident by increased interest from parties to enter into new service agreements.”
As a result of the projected growth, Ridley Terminals is planning an over $180 million upgrade to double the capacity by 2013, and the report provides some more details on what that entails for 2011.
“RTI is targeting the end of 2011 for the completion of an upgraded Dumper facility with the ability to affectively handle both steel and aluminum rail cars. During th period, plans will get underway to approve the Terminal’s stockyard capacity and the ability to simultaneously unload rail cars and load vessels at high feed rates. Two dozers will be purchased bringing the total to three new dozers on site, replacing the two outdated and high maintenance ones. The commencement of an extensive multi-year structural repair and specialized painting program will begin. On a smaller scale, the Company plans to replace outdated and high maintenance service vehicles and upgrade the critical spare parts inventory,” it reads.
And the report says discussion remain underway to ship liquid bulk through the terminal.
“RTI owns a nearly completed liquid bulk handling facility which includes two 20,000 metric tonne storage tanks. RTI continues to search for a compatible partner for the movement of liquid bulks through the Terminal. Once established this will further diversify the Company’s product handling portfolio and will also increase the overall utilization of the facility.”