Although global demand for sulphur remains very strong, western Canadian supplies of sulphur from gas processing are decreasing and are forecasted to continue to do so for the near future.

PCT has handled more than 1,000,000 metric tonnes per year of ethylene glycol, however volume in the past two years has reduced significantly due to a handling contract which expired in 2010 and was not renewed. PCT has been exploring alternative commodities to grow our business that align with current operations and can also support local operations until sulphur and ethylene glycol volumes return.

While contract negotiations are still underway with potential clients, PCT wants to be proactive in keeping residents informed as to potential changes on our site and to seek feedback on our plans.

PCT has a history of handling potash and is familiar with the commodity and its handling procedures. The technology currently used to handle sulphur applies to potash. As the handling process is the same, we will be able to ensure our award-winning commitment to safety and our exceptional environmental record is maintained.

Potash will be transported to our Port Moody facility by train from Saskatchewan. Incoming trains will be unloaded via a new unloading system and transported by conveyors to a storage warehouse that will be constructed that will be required as potash is water-soluble.

From the storage warehouse, potash can be transported to vessels via a covered conveyor system.

The reduction of ethylene glycol shipments has resulted in capacity on site that can be used for handling other liquid products.

All technology used to handle ethylene glycol applies to food-grade canola oil. As the handling process is the same, we will be able to ensure our award-winning commitment to safety and our exceptional environmental record is maintained It is anticipated that PCT may handle up to 750,000 metric tonnes of food-grade canola oil, on an annual basis, that will be shipped to markets primarily in Asia.

Handling of food-grade canola oil will be done through a closed loop system, the same handling procedure for ethylene glycol. Incoming trains will be unloaded and food-grade canola oil pumped to storage tanks.

PCT will be constructing up to three new additional tanks, which are proposed to be slightly larger than the existing tanks. From the storage tanks, food-grade canola oil will be transported to vessels via a pipeline system.

o A new railcar unloading station will be built with specialty equipment to unload potash railcars.

o New conveyor systems to transport potash from the railcar unloading station to the new storage warehouse and from the warehouse to our existing shiploading system.

o New storage warehouse is proposed to be approximately 85 metres wide, 265 metres long and nearly 33 metres tall. The building will to store up to 160,000 metric tonnes of potash fertilizer sorted into three separate grades.

o Modifications to the shiploader and conveyors to add environmental covers and provide dust-free loading.

o Extension of rail track west of the terminal to accommodate trains up to 2600 metres in length.

o Upgrades to our water treatment system to increase water storage capacity and efficiency with a new storage tank.

o Deepening of the Port Moody Arm shipping channel to 13.5 metres to improve vessel safety.

o New tank car unloading equipment to allow top unloading of liquid railcars.

o Construction of three additional tanks (38 metres in diameter and 15 metres tall) to provide storage for food-grade canola oil.

o New liquid shipping lines from storage tanks to the loading facility

o New articulated marine-loading arm for shiploading of food-grade canola oil.

o Installation of over 325 metres of floating containment boom to provide vessel containment during loading, as required in our handling procedures

Potash will be loaded into bulk carriers of the same size and configuration as the existing sulphur vessels. Vessels capable of carrying up to 70,000 metric tonnes of potash can be loaded at PCT.

Food-grade canola oil will be loaded into liquid parcel tanker vessels of the same size and configuration as the existing glycol vessels. Vessels capable of carrying up to 45,000 metric tonnes of bulk liquid can be loaded at PCT.

Potash will be transported via specialty built railcars similar to those carrying grain and other dry bulk commodities.

Food-grade canola oil will be transported via closed rail cars – similar to the cars that are currently used to transport ethylene glycol.

There will an increase of both train and vessel traffic for potash and food-grade canola oil, but activity will remain below peak traffic levels seen between 2003-2008.

Yes, handling sulphur and ethylene glycol will remain our core business.

An amendment to PCT’s current Air Emissions and Water Discharge Permits, issued by Metro Vancouver, is required.

Both Metro Vancouver permits will contain the same restrictions on water and air quality but not the addition of new products being handled on site and control equipment used. A Project Permit Application will be submitted to Port Metro Vancouver that will contain details on what the project will mean for their property. An Environmental Assessment (EA) Document will accompany the permit application and will report on social and environmental impacts the project will have.

Port Metro Vancouver will consult First Nations, the City of Port Moody, Metro Vancouver, Province of BC and the Federal Regulatory Bodies for input prior to making their decision on the permit application.

As the handling process for potash and food-grade canola oil is very similar to the current products we handle, we will be able to ensure our award-winning commitment to safety and our exceptional environmental record is maintained.

PCT will be using best practices in the facility design and utilizing the best available control technology to mitigate environmental concerns.

Our relationship with the community, safety and the environment remain our top priorities.

As you have come to expect from us, we will provide transparent and regular communications to our stakeholders via our website and newsletter on the handling of potash and food-grade canola oil.

Residents will in all likelihood not notice any impact or change at PCT other than the presence of new equipment and buildings. When complete, operationally this new business will integrate into our terminal seamlessly.

Currently PCT contributes approximately $1 million in taxes on an annual basis to the City of Port Moody. New business at our facility may result in future contributions of up to $2 million per year.

It is anticipated that the new business will result in up to 90 new full-time equivalent jobs in Port Moody.

PCT is committed to sharing information about our new business development and listening to Port Moody’s residents through both face-to-face and online feedback opportunities:

- The company’s website will continue to have regular updates on changes that are being proposed for the site with comments being requested.

- Special “Community Updates” will be mailed to all Port Moody residents and businesses outlining proposed changes with comments being requested.

- PCT will remain active on their Facebook Page and Twitter Feed with timely and relevant information.

It is anticipated that negotiations with potential project partners will be finalized in the fall and a public Open House will then be held with detailed designs and plans available for viewing and comment.

Jennifer McKinnon

Community Relations Coordinator

604-931-9253

feedback@pct.ca

PCT can also be found on Twitter or on Facebook.

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