Region Archives: Canada East

Joe Fratesi

“We are the old grey mayors,” Steve Butland was saying, referring to himself and Joe Fratesi. …For most of the past two years, the two former mayors have been spearheading a deadly serious campaign: to save the Sudbury-to-Sault Huron Central Railway. It’s been a steeper climb than either of them expected, fraught with unanticipated complications. …Genesee & Wyoming Canada served notice last fall that it would discontinue operations on March 31 unless it gets $40 million of government funding over five years for track and crossing upgrades. …”We’re frustrated… but in the last month, things have sort of come together and we’re somewhat more optimistic,” Butland said. …”Domtar has only one rail going into it. If this rail does not operate, Domtar most likely would shut down.” …Representatives of EACOM attended the Feb. 20 session in Toronto.

There are some signs of optimism in the forest industry, as prices improve and tariffs drop.  “Prices since Christmas have picked up,” said Unifor spokesman Steve Boon, who represents laid off sawmill workers in Kenora. …Boon added the decrease in American tariffs being imposed on sawmill exports to the U.S. from 20 per cent to eight per cent will help. Bankruptcy filings showed Prendiville Industries had about $9 million tied up in tariffs.  Kenora Forest Products has been closed since last September, as American softwood tariffs took their toll. …A court-imposed deadline of Feb. 14 for bids on the sawmill was extended until April 3, when banktruptcy trustees are expected to offer a proposal to creditors. 

Genesee & Wyoming Canada is postponing its end-of-March decision to chop rail freight service between Sault Ste. Marie and Sudbury, citing “notable progress” in their talks with Ottawa and Queen’s Park on much-needed track maintenance funds. Christian Richard, the chief commercial officer with the railroader [said] he’s seen enough headway in recent weeks to defer their March 31 drop-dead date “as long as there continues to be positive signals.” But it’ll only be a stay of execution unless the feds and the province can cobble together a $40-million package for track maintenance and safety upgrades to the 278-kilometre line. …The rail line services Domtar’s pulp and paper plant in Espanola and EACOM’s sawmill operation in Nairn Centre. …The loss of the line would likely jeopardize 200 with EACOM, and 500 jobs at Domtar …For Domtar, rail is the primary mode of moving their specialty paper products to market.

Karen Casey

HALIFAX – Nova Scotia’s Liberal government is opening the spending taps for roads and hospitals as economic growth is projected to flatten in what could be an election year. The 2020-21 provincial budget tabled Tuesday features $11.5 billion in spending with a modest surplus of $55 million and a record-setting capital plan of just over $1 billion for school building, highway twinning and hospital renovations and redevelopment. …However, her high hopes come amid projections of a major hit to the economy with the closure of the Northern Pulp mill in Pictou County. The Finance Department says the decline in forestry will deprive the province of $32 million in personal and corporate taxes this year. …Premier Stephen McNeil said the infrastructure spending is not connected to the mill closure.

Grain Growers of Canada (GGC) and the Canadian Federation of Agriculture (CFA) are among the agrifood groups calling on the federal government to quickly end the blockade of rail lines by activists supporting a faction in a British Columbia native community. The Canadian Produce Marketing Association, CropLife Canada, Fertilizer Canada, the Canadian Meat Council, Food Processors of Canada and Food & Consumer Products of Canada are among the groups supporting the wider business community including the Forest Products Association of Canada and the Mining Association of Canada. At latest count, close to 70 ships are waiting off B.C. ports for cargo and the delay will cost the Canadian shippers mounting demurrage costs.

NEW BRUNSWICK — Lumber producers in New Brunswick are calling on Parliament to ratify the new Canada-United States-Mexico Agreement. The trilateral free trade agreement, which has already been ratified by the U.S. and Mexico, is still being studied by a House of Commons standing committee. New Brunswick Lumber Producers (NBLP) said ratification may allow for a final settlement in the ongoing softwood lumber dispute. “Currently, the majority of NBLP members are paying a crippling duty of over 20 percent on exports to the United States,” said the NBLP. …On Wednesday, Deputy Prime Minister Chrystia Freeland urged her fellow MPs to ratify the new agreement as quickly as possible.

The Natural Resources Commitee in Ottawa will be taking a closer look at the issues facing the forest industry. Kenora MP Eric Melillo says…“I’m pleased… The forestry sector has seen reduced revenues, mill closures and job losses across the country, and the Kenora riding has not been immune.” The committee’s work will be a wide-ranging study that will incorporate insights from a variety of experts and stakeholders. It coincides with work at the provincial level. …The news comes sawmill workers deal with the bankruptcy of Kenora Forest Products, in part due to American tariffs on softwood. The deadline for bids to purchase the facility passed Feb. 14, and a proposal by the bankruptcy trustee is expected in early April.

Trustees have until Apr. 3 to make a proposal, related to bankruptcy proceedings for Prendiville Industries and Kenora Forest Products. The court had set a deadline of yesterday, Feb. 14, for bids on the sale of the sawmill.  Documents filed with the court showed there was some interest from potential buyers. However, no sale has been announced. Plant manager Glen Hansson reserved comment on the issue yesterday. Earlier this week, the city applied for help with finding new work for laid off workers last week. Kenora Forest Products announced they were laying off their staff of more than 100 last September. A letter to creditors issued in December noted the company hoped to sell the assets, so that the sawmill could restart.  Bankruptcy proceedings started in early December, with Prendiville listing $28.7 million owing, including $13.7 million to CIBC. Another $8.8 million is owing to federal and provincial governments and agencies.

ADVOCATE HARBOUR, N.S. – In a garage filled with a massive — and idle — road grader, Scott MacGillivary’s anxiety grows as he wonders what’s to become of his family following the closure of a Nova Scotia pulp mill that paid his bills.  The mothballing of the Northern Pulp factory located 200 kilometres east of his Advocate Harbour, N.S., business has already meant the layoff of his sole employee and the parking of an almost new Volvo construction machine used to clear and plow forestry roads.  “I have a family and 16-year-old boy who dreamed of working in the forestry industry. But that’s almost gone now. I really don’t know what to do now,” he said in a recent interview, his voice breaking with emotion.  The 46-year-old says that without work from Northern Pulp, his income has plummeted to one-fifth of normal levels, and he’s making daily calls to a government help line.

HALIFAX — Dozens of people from Nova Scotia’s forestry industry pressed their concerns Feb. 12 over the sector’s future to members of a government transition team tasked with providing assistance following the closure of the Northern Pulp mill. Woodlot owners, sawmill operators, and industry contractors packed a hotel… for a chance to provide feedback to team chairwoman Kelliann Dean and to Julie Towers, deputy minister of the province’s Lands and Forestry Department. …“We should talk about alternative markets but we don’t have anything tomorrow,” Matt Willett, of Wagner Forest Management, told the gathering. …Robin Wilber, president of Elmsdale Lumber Company, questioned whether the province wants the mill to reopen at some point. …Jim Verboom of Nova Tree Company in Debert, NS, said there’s an air of anger, fear and mistrust over the government’s decision.

CN Rail said on Thursday it has  been forced to initiate “a disciplined and progressive shutdown” of its operations in Eastern Canada as a result of a continued blockade of the rail line that could have a dramatic affect on customers in Atlantic Canada. …The blockades – in solidarity with opponents of a natural gas pipeline that would cross the traditional territory of the Wet’suwet’en First Nation in British Columbia – are also disrupting the shipment of forest products in this region. …The blockades are also creating uncertainty for the forestry industry, said Derek Nighbor, president and CEO of the Forest Products Association of Canada. …“These rail lines are really important arteries for us to get our products to market,” he said. [to access the full story a Chronicle Herald subscription may be required]

NEW BRUNSWICK — …Trees are back, baby. Paper bags, utensils and a host of other wood fibre-based products are replacing plastic. Wood is being used more in construction – even as the core structure of multi-storey buildings. Guess what? This is an area where New Brunswick excels. When most of North America was cutting down its trees to develop agriculture, we kept most of our forest land. …New Brunswick generates relatively more GDP (as a share of the total) from our forests than any other province in Canada well above British Columbia in second place. …As the rest of the world leans into using forests as both an economic driver and a tool to address environmental challenges (climate change, plastics, et cetera) we shouldn’t be backing off in New Brunswick.

HALIFAX — Nova Scotia’s forest industry must look to investment and innovation in order to stabilize the sector in the wake of the Northern Pulp mill’s closure, an executive with the province’s only surviving paper mill said Wednesday. …Allan Eddy, manager of business development at Port Hawkesbury Paper LP… likened the industry to a ship that’s been struck down but has the ability to right itself. …He said Port Hawkesbury Paper is being driven by the low-carbon economy and constantly looking for ways to be more energy-efficient while developing new product lines in order to be competitive. …He said it is also looking to create renewable fuels and fertilizer from the byproducts of its paper-making process. The mill is also looking to develop an eco-industrial park on its property where various businesses will be able to work in concert with the mill.

Iian Rankin

The Nova Scotia government is topping up the $50-million fund established to help the forestry sector transition in the wake of the Northern Pulp closure. Lands and Forestry Minister Iain Rankin said the $13.5 million that has already been spent or allocated will be replenished, and the fund will be put into a trust where it will be administered by three government-appointed trustees. Two of the officials will be nominated by the forestry transition team. Rankin delivered the news to members of the forestry industry Wednesday in Halifax at the annual general meeting of Forest Nova Scotia. …There aren’t specific plans for the replenished transition fund, yet, and Rankin said his department and the recently assembled forestry transition team will look to industry members for ideas.

The provincial government is stepping in to help former mill workers at Kenora Forest Products (KFP) find new jobs after they were laid off back in September. The City of Kenora is partnering with the Ministry of Training, Colleges and Universities to open up a temporary job re-employment site in Kenora for the 115 workers affected by layoffs after the sawmill announced a temporary closure effective Sept. 23, 2019.  Kendra city clerk Heather Pihulak advised council that the city will be the lead applicant on the funding application for the site at the committee of the whole meeting on Tuesday, Feb. 11. “They provide opportunities such as training, referencing new jobs or new opportunities for careers, as well as assisting with resume writing,” Pihulak said of the site “It’s just there to assist those people and then it closes.”