Nova Scotia port poses challenge to Panama Canal by using Suez route

NOVA SCOTIA's Sydney harbour is primed to become a US$400 million transhipment port to compete with Panama Canal by siphoning trade from Asia via the Suez Canal.

The area of the municipality of Cape Breton has struggled to revive trade since the 1960s when its steel economy hit the doldrums with more recent attempts to revive its status as a deep water container terminal stalled by the global economic downturn.

The municipality is seeking a partner/s to take a concessionary agreement up to 50 years on the 500 acres of greenfield land assigned to the port's development with phase 1 to cost an estimated $350 million to $400 million.

Its initial annual capacity will be one million TEU and with a newly dredged channel will be able to handle larger containerships without problems unlike some US east and Gulf ports struggling to get dredging plans off the starting block.

Sydport project spokesman Gordon Forsyth said it will be the only port on the east coast outside of Norfolk able to handle containerships above 8,000-TEU capacity and a full day closer from Suez than US east coast ports.

Container and terminal operators, investment banks and infrastructure funds have raised interest in the scheme, which is thought to offer a 'Prince Rupert terminal model'," said Mr Forsyth. Prince Rupert boasts of a quicker transit from Asia than via US Pacific ports. Sydney aims to capture cargo from pendulum liner services and offer feeder links to US and Canadian east coast ports or double stacked intermodal rail to US Midwest.

Using Canadian ports to land cargo also avoids the US Harbour Maintenance Tax (HMT), which has riled America who allege Canada subsidise its ports, though this has been denied.