OVERVIEW AND ADMINISTRATION
The company is approaching the end of its “concept stage”. Over the last two years the company and its predecessor have developed the concept of the development of small portions of Jervis Inlet as a Port to serve primarily the Asia Pacific Gateway. To date the management of our activity has been done on a volunteer basis by our Board of Directors with significant assistance from professionals, senior industry leaders and other volunteers.
We are now about leave the concept stage and move into the “early development stage” if we are asked to submit our “comprehensive business proposal”. That submission will essentially be an application for funding to undertake engineering and environmental studies to establish feasibility and cost estimates for the corridor.
Marketing, environmental and capitalization areas will be discussed separately, but general management requires advancing as well. Here are our thoughts:
- There are a host of clerical tasks to be done in a timely way. Part time employment should begin in the summer of 2019. These activities will increase if we are invited to submit our plan to NTCF. The list will grow but completion of our stakeholder map is urgent. An appropriate title might be Executive Assistant
- A host of letters to senior people will be required in the very short run. Content will be under supervision of the President. Production and monitoring follow up employment is needed.
- If our discussions with First Nations is successful and if our NTCF grant application is successful a modest office in Powell River will be required.
- Part time professional engineering staff will be needed for preparation of terms of reference, requests for proposals and liaison with successful engineering and environmental candidates.
Upon completion of the Class D studies a major evaluation will be made to decide whether or not to proceed to the next level of study. This huge decision will depend on many factors including, findings of the studies, first nations commitment, marketing evaluations, environmental considerations and capitalization plans including funding for the next level of study. However, the perceived capacity to successfully operate and manage the port will need to be demonstrable. We need to demonstrate that capacity before we will move to the next level of study in late 2020 or early 2021.
FIRST NATIONS COMMITMENT
Our immediate need is to acquire the other half ($40 million) of the required funding by the time we are to submit our application (expected date, December 31, 2019). Our probability of securing that funding increases as we get positive indications from stakeholders that they have an interest in considering locating at, or doing business with, Jervis Ports Inc. The stronger these indications are, the more likely is our success probability for the balance of funding.
On the other hand at this point our strongest possibility is that we are making our application, so it is not likely that we will get firm commitments. The immediate need is to devise a scale of possible commitment and solicit responses from stakeholders. The first wave of solicitation should begin now (June 30, 2019)
The next waves of solicitation should be when we are asked to submit our proposal, then when we submit it and then when our application is approved. This marketing effort will continue with increasing probabilities and indications of support throughout the entire process. We need to design our expectations at various levels as we advance the work.
We have committed to operate the greenest port in the world. We are not alone in this quest. Green Marine, headquartered in Montreal, is the most specifically related organization in North America. We should most likely be active in this organization. Additional consideration is required.
Everyone is truly an environmentalist these days, and so are we! Rabid confrontation gets everyone nowhere. Harmonization of everyone’s interests is in order. Our Directors have consulted with several experts seeking resolution. There is not one environmental issue: there are many. Each issue is argued vehemently with too much emotion and too few facts and almost no resolution. Its time to come to terms and make effective decisions at all levels. Seeking solutions is our goal. We have enlisted the help of experts as we have been able to. Hear are our conclusions… so far
- Global warming. It’s a fact. The world has gone through several “ice ages”. Nobody, at the time, knew why it happened, but the impacts were huge. What’s different this time is that scientists understand the causes and they are real. It’s time to find solutions. There is not likely one quick fix – “leave it (fossil fuels) in the ground” is not a solution.
- Fossil fuels. The number one cause of Green House Gas (GHG) emissions. We agree, but lets move towards understanding a few complications. All fossil fuels are not the same. Coal is the biggest emitter and China is the biggest user of coal.
- Emissions are measureable. In terms of pounds of CO2 per million BTUs of energy coal averages 216 pounds. Diesel and heating oil are 161 ponds; gasoline, 157 and propane, 139. But the winner is natural gas at 117, only 54% of coal, almost half!
- Total annual emissions are 36.0 kilotonnes. China is the biggest emitter at 10.6 kilotonnes, almost 30% of world emissions, significantly more than India, with a similar population. The reasons: China is a colder country and industrialization is higher. (Here is a good place to note that Canada too, is a cold country and distances are vast. Our substantial use of natural gas mitigates our emissions).
- Imagine, if we could shift Chinese use of coal to natural gas, their emissions could be cut by 5.7 tonnes per annum – that’s more than the total annual emissions of the USA, the world’s second largest emitter.
The Salish Sea, where we live is a huge, delicate ecosystem. It needs to be looked after by everyone
If the NTCF application is successful, we will have successfully funded the eligible costs of the Class D study. We need to quantify the ineligible costs that we will incur and we need to insure that the unfunded 50% of eligible costs is secured. These needs are immediate. Before we submit our application we need to:
- Secure the balance of 50% funding of the expected Class D study costs. The primary expected sources of that funding are the BC Ministry of Transportation & Infrastructure and the railways, probably CN. Assistance should be available from Alberta and Saskatchewan who may be able top source Western Diversification funding. Additionally, Trans Canada Highway funding and other sources may be available.
- Prepare a forecast of ineligible expenditures to December 31, 2020 and be sure that we have adequate capital to fund those expenditures.
- Prepare an Offering Memorandum and solicit share subscriptions from friends and members of the Third Crossing Society and others.
- Seek financial participation from First Nations
- As the studies advance beyond the D level, we need to seek increasing commitment from stakeholders, including financial commitment
- At the appropriate time we need to apply for a listing on the TSX and do an initial public offering, or a private placement. The decision on which of these options to pursue will be made in due course.