Canadian Government to sell Ridley Terminals
Ridley Terminals Inc. with MV Guinomar Bast at the berth.
Transcript of remarks by Ted Menzies, minister of state (finance), announcing the government's intention to sell Ridley Terminals Inc.
"Thank you, and good afternoon, ladies and gentlemen, I am very pleased to be here today to talk about Ridley Terminals Inc.
Ridley Terminals provides highly-skilled and well-paying jobs in the Prince Rupert community.
The terminal has recently played a key role in the development of the mining sector in Western Canada and is an important component of Canada's Asia-Pacific Gateway.
Current investments by Ridley Terminals to increase shipping capacity will help further strengthen the competitive advantage of the terminal and better position Canada as the gateway of choice for global supply chains between Asia and North America.
However, this hasn't always been the case.
In the early 2000s, Ridley Terminals was undervalued and was to be sold with no guarantee that the terminal would be run on an open-access, commercial basis. The terminal recorded losses in four of the five years leading up to 2006 and required millions in government support. As soon as we formed government, we stopped the privatization of the terminal and we committed to improving its operations. We have been successful in our efforts.
- Ridley Terminals has a strong management team at the helm;
- It is an asset of considerable value; and,
- Stability has been provided to terminal users.
Ridley Terminals has:
- Broken records in terms of the revenues, profits and volume in 2011;
- Signed 11 contracts with customers; and,
- Reduced its debt by 70 per cent.
This has resulted in Ridley Terminals no longer requiring support from Canadian taxpayers. Ridley Terminals now has real value. In fact, the terminal made more in operating profit last year than the total sales price in 2005.
Our government has been undertaking a systematic and very deliberate review of selected corporate assets. This Corporate Asset Management Review also examines opportunities for transferring certain assets to the private sector where there is no ongoing rationale for public ownership, with the objective of stimulating additional economic activity.
Ridley Terminals is the only major marine terminal still owned and operated by the federal government.
I am pleased to announce today the Government's intent to sell Ridley Terminals. Ridley Terminals has tremendous growth potential and that potential can best be realized through private ownership.
This decision is consistent with good governance and our commitment to responsible and efficient use of Canadian taxpayers' dollars.
In seeking a buyer, our government will ensure that we maximize value for Canadian taxpayers.
Let me reassure everyone here today that our government will protect the interests of the users of the terminal by requiring that any buyer continue to operate Ridley Terminals on an open-access, commercial basis.
Ensuring open access for multiple users at Ridley Terminals is a non-negotiable condition in this sale. If no such buyer comes forward, Ridley Terminals will not be sold.
Moving away from government ownership of Ridley Terminals would align it with other major marine terminals in Canada, which are owned and operated by the private sector.
For example, since the 1980s, Transport Canada has divested over 179 ports that were formerly owned and operated by the government.
The decision to consider a sale of Ridley Terminals is consistent with previous and long standing efforts to ensure that the private sector manages transportation assets.
The Canada Development Investment Corporation (CDIC) will serve as the government's agent to ensure that any sale process is conducted fairly, impartially, and uses best commercial practices.
Our government's first priority is creating high-quality jobs for Canadians and driving economic growth and long-term prosperity. We recognize the strategic importance of this asset to the region and to Canada. On Friday, our government announced new rules for state-owned enterprises wishing to acquire Canadian companies.
Consistent with the Prime Minister's announcement, any bid on Ridley Terminals will be assessed with full consideration of the importance of free market principles, and the impact of the proposed investment on employment, production and capital levels in Canada. Furthermore, our government will assess any bids from foreign state-owned enterprises in accordance with the new guidelines announced last week.
To conclude, today's announcement is one more example of our government's commitment to the efficient use of taxpayer dollars, and is fully consistent with the goal of our ongoing asset management review. Our government believes private sector ownership of Ridley Terminals — like every other major marine terminal in Canada — will allow it to reach its full potential and maximize its contribution to economic growth, jobs and new investments, here in Prince Rupert and in surrounding communities."
