New Stacker Reclaimer Project Public Engagement Summary Report September 2012

1.0 Project Overview As part of ongoing upgrades and modernization of terminal infrastructure, Neptune Terminals is continually making strategic investments to iproe the terial’s steelaking 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 terial’s eistig 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 staker relaier ill further ehae Neptue’s eiroetal 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 .

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, participated in the media event, local MLA was quoted in the news release and Victoria based Minister and Minister 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 Vaouer’s PMV regulator reie proess, Neptue 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 operatios ad 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 festial i Septeer ad 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 Terial’s iestets ad upgrades.

District of North Vancouver Mentioned as part of ongoing briefings to keep mayor and council apprised of Neptune Terial’s iestets ad upgrades.

North Vancouver residents, Parkgate area Mentioned in two community householder businesses and adjacent North Shore Trade brochures distributed through Canada Post. Area terminals Delivered to postal codes:  LC0123, LC0141, LC0121, LC0327

North Vancouver businesses in Park & Mentioned in two community householder Tilford and along Brooksbank Avenue brochures distributed by hand

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Stakeholders Engagement Businesses & industry associations: Mentioned as part of the ongoing dialogue to  E.g. Cargill, Richardson International, keep them apprised of terminal improvements CN Rail, CP Rail, Kinder Morgan Terminals, Seaspan, Univar Canada, Allied Shipbuilding, Canexus Limited, Mountain Equipment Co-op, Vancouver Pile Driving  BCMEA

Community partners: Mentioned as part of the ongoing dialogue to  North Shore Neighbourhood House keep them apprised of terminal improvements  North Vancouver Chamber of Commerce  Capilano University  North Shore Little League  North Shore Community Resources  Lower Lonsdale Business Association

Neptune employees, ILWU foremen & Mentioned as part of the ongoing dialogue to longshoremen keep staff apprised of upcoming terminal improvements

North Vancouver MLAs & MP Mentioned as part of the ongoing dialogue to  Minister Yamamoto keep them apprised of terminal  Jane Thornthwaite improvements, including informal  conversations, sending community  Andrew Saxton 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 opa’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 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.

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