City supports Essar bid for Sault port

City Council has endorsed a bid by Essar Shipping Ports & Logistics Limited (ESPLL) for federal funding for a port in the Sault Ste. Marie.

Applications for funding under the federal government P3 Canada Fund are due June 30.

If the application is successful, up to 25 percent of eligible costs for the estimated $170 million project will be covered.

That still leaves a lot of cash to raise, some Sault Ste. Marie City councillors pointed out last night.

"That's a startling amount of money," said Ward 1 Councillor Steve Butland. "Not that we're opposed, since it's our top priority."

Bill Theriault, the City's transportation infrastructure initiative co-ordinator updated councillors on the status of the initiative to create a local port.

Theriault said that the $170 million estimated cost could turn out to be even more startling because that estimate was done in 2009.

Theriault also said the P3 Canada Fund doesn't cover some of the costs associated with creating a port - like, say, dredging.

But a port is vital for any significant growth for Sault Ste. Marie industries like Essar Steel Algoma and Tenaris Algoma Tubes, he said.

"This is not just an Essar project," said Theriault. "There are a lot of other potential users of this port."

He said the port would spur new industrial development in the area.

There's even a possibility the port could be operating year-round sometime down the road, Theriault said, especially with the upgrades to the commercial lock on the United States side of the St. Marys River.

Mayor Debbie Amaroso believes there could be some money coming from the province for the project.

"This initiative is part of the Northern Growth Plan's multi-modal transportation pillar and that's where we would be looking as this develops," the mayor said. "I spoke with Sault MPP David Orazietti today and he agrees that we would sit down with our MP and have some dialogue about this and any other initiatives that may deal with all levels of government, as soon as Mr. Hayes returns."

But Council's action last night didn't cost the City any money, Theriault said.

Council reiterated its support of Essar's application for P3 Canada Funding for a Sault port.

It also gave permission for Mayor Amaroso to provide a letter of support to accompany the Essar Ports and Terminals P3 Canada Fund application.

The letter will emphasize the benefits of the port initiative to Sault Ste. Marie and the economy of Northern Ontario and will encourage the federal government to look favourably upon Essar Ports and Terminals' application.