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Archived - Ridley Terminals Inc. on course for record year

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No. H095/10
For release - August 17, 2010
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PRINCE RUPERT, B.C. — Ridley Terminals Inc. (RTI) is on course to set a record for product handling this year, the Honourable Rob Merrifield, Minister of State (Transport), along with Bud Smith, interim chairman of Ridley Terminals Inc., announced today. Results for the first two quarters of 2010 indicate that the corporation is on its way to achieving record throughput volumes of bulk products, particularly coal, over the entire year.

"Our government is committed to ensuring RTI's continued long-term operation and prosperity in a way that supports Canada's economic objectives," said Minister Merrifield. "Due to this government's decision to operate the terminal in a commercial manner, RTI is in the best financial shape it's been in years, and we fully expect the success to continue."

"RTI's mandate to operate in a commercial manner informs a discipline to derive full value from our services," said Mr. Smith. "We expect to remain in a position to respect these operating principles in the long-term."

Year-to-date figures up to June 2010 show that RTI has handled 3.9 million tonnes of bulk products moving through the terminal, 3.3 million tonnes of which were coal.

The corporation operates as a commercial entity from the revenues received from the terminal's bulk shipping activities. The government's expectation is that RTI will charge market rates to support its ongoing business needs.

"Under this Board's leadership, RTI has become a great success, not only financially, but also through its ongoing commitment to partnering with First Nations to increase the participation of those communities in economic activity generated at RTI," added Minister Merrifield.

Ridley Terminals Inc. is a federal Crown corporation that operates a bulk-handling terminal for the efficient and reliable movement of coal and other bulk commodities from trains onto ships, on land leased from the Prince Rupert Port Authority. The Government of Canada sets the broad policy direction of Ridley Terminals Inc. while respecting its operational autonomy.

A backgrounder is attached.

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Backgrounder

RIDLEY TERMINALS INC. — FINANCIAL SUMMARY

Ridley Terminals Inc. (RTI) expects the coal market to continue to improve and is forecasting significant increases to its revenue, volume and net income for the 2010 fiscal year.

Statement of operations — profits and losses (millions $)

For the years ended December 31, 2005 to 2009:

Year
2009 2008 2007 2006 2005
Revenue 25.0 24.7 23.1 12.9 5.5
Operating expenses 21.0 23.5 18.6 12.5 10.1
Government contributions* 0 0 0 1.8 8.1
Net income 3.3 0.9 4.2 1.6 0.3
Total throughput volume(Million metric tonnes) 4.2 4.1 4.4 2.7 1.1

* Provided to the corporation on an exceptional basis when it could not meet its financial operating requirements.

Source: Audited financial statements for the years ended December 31, 2005 to 2009, reported on by the Auditor General of Canada.

2009-2010 year-to-date volumes (million metric tonnes)

January to June 2009 (Actual) January to June 2010 (Actual)
Throughput 1.4 3.9

Planned capital expenditures

In 2010, RTI plans to upgrade the facility and its equipment in order to grow its business and improve use of its assets. The corporation will acquire a new ship-loading cab and a dedicated wood pellet ship-loading chute. It will also replace one of two aging D9 dozers, and begin an extensive structural repair and specialized painting program.


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