Prince Rupert’s $530 Million Port Expansion Delayed

(Bloomberg – Hugo Miller)

The port of Prince Rupert in British Columbia will delay a C$650 million ($530 million) expansion slated for next year by at least 18 months, the Globe and Mail reported, citing a report prepared for the federal government.

The port authority’s finances have worsened because of a decline in shipping revenue, the paper said. The company has exceeded federal debt limits and can’t borrow C$200 million it needs for the expansion, the newspaper reported.

Canadian National Railway Co., the country’s largest railroad, opened a C$170 million facility at the port last year to offer an alternative to Los Angeles and Long Beach, California for cargo shipped between Asia and North America.

Don Krusel, president of the port authority, attributed the delay to the economic slump rather than its borrowing difficulties, the paper said.