Location: Prince Rupert, British Columbia
Summary of Issue/Background
- Ridley Terminals Inc. (RTI) is a Crown corporation in the Transport Portfolio created to support the shipment of coal from two now defunct coal mines in northeastern British Columbia.
- RTI currently operates a bulk commodity terminal on Ridley Island, in Prince Rupert, British Columbia on federal land leased from the Prince Rupert Port Authority with a commercial mandate to provide continuous, high-quality, and high-performance rail car unloading, product storage, and loading services as a marine terminal.
- The Terminal primarily handles metallurgical and thermal coal, and petroleum coke. Since the spring of 2019, AltaGas has been shipping liquefied propane from the terminal in partnership with RTI. As a commercial Crown corporation, it does not receive appropriations from Parliament. In 2018, RTI had an annual revenue of $117.8 million and expenditures of $70.7 million.
- On August 9, 2018, the Government announced it was undertaking consultations in advance of Ridley’s potential sale. During the summer and Fall of 2018, Transport Canada and Finance Canada officials consulted with regional Indigenous groups to meet Canada’s duty to consult regarding the likely divestiture. On November 5, 2018, the Canada Development Investment Corporation (CDEV), on behalf of the Government of Canada, launched a competitive process to sell RTI.
- During the fall of 2018 and the winter of 2019, benefits packages were concluded with local Indigenous Groups, including Lax Kw’alaams, Metlakatla, Gitxaala, Gitga’at and Kitselas. Officials have also engaged with Kitsumkalum with a view to concluding a benefits agreement.
- On July 11, 2019, CDEV announced that Canada had reached an agreement to sell 90 per cent of its shares in RTI to a company owned by Riverstone Holdings and AMCI Group, with the remaining 10 per cent of Canada’s shares to be transferred to a limited partnership jointly owned by the Lax Kw’alaams Band and the Metlakatla First Nation at the close of the sale.
- The purchaser has agreed to pay Canada $350 million for 90 per cent of Canada’s shares in RTI. The sale is subject to a number of closing conditions, including successful completion of a review by the Competition Bureau. The Competition Bureau’s review is ongoing.
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