Port of Saint John officials are calling it a serious loss, but there remains room for optimism.
Earlier this month, Tropical Shipping announced it will be moving its container business to Halifax at the end of the year. Tropical currently accounts for about half of the container traffic at the port.
“It could affect almost half the hours that we work at the container terminal so it’s very significant,” said Pat Riley of I.L.A. Local 273 International Longshoremen’s Association in Saint John.
READ MORE: Port of Saint John losing major shipping customer to Halifax
This news might be a much tougher pill to swallow had it not been for two major announcements made at the port this year. All the funding pieces are in place for a $200-million modernization to the West Side Terminal which will almost triple its container handling capability. As well, shipping giant DP World signed a long term lease to run the terminal with the aim of drawing in new business.
There is also the ongoing MSC container business, the second largest container company in the world.
Nonetheless port officials say losing Tropical is a serious loss.
“So now rather than looking at the aggressive growth plans that DP and ourselves have been working on, some of those plans accelerated to ensure we backfill the service requirements in our port to ensure that those customers in New Brunswick can continue to look to Port Saint john as the solution,” said port president and C.E.O. Jim Quinn.
READ MORE: Port Saint John signs deal with DP World for container terminal operation
Quinn points out about 80 per cent of Tropical’s business out of Saint John constitutes New Brunswick clients.
“We have a good opportunity to dialogue with those businesses to ensure that they understand that there is an option for them,” he said.
Tropical Shipping is expected to move its business from Saint John to Halifax in late December. DP World is expected to assume control of the West Side Terminal in Saint John in early January.
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