New Equipment Replacement Project - $210 Million Capital Program

About this update from Westshore Terminals Investment Corporation

[{"type":"text","content":"\n\n\n\n\n\nVANCOUVER, Feb. 14, 2013 /CNW/ - Westshore Terminals Investment\n Corporation (TSX: WTE) (the \"Corporation\") announces today that the\n board of directors has approved a $210 million capital expenditure\n program which will see the replacement of the three oldest\n stacker-reclaimers (all over 30 -40 years old) with new equipment. By\n acquiring three new stacker-reclaimers of the same model, Westshore\n will be able to significantly enhance its operational efficiencies in\n several respects, including by standardizing spare parts, repairs and\n maintenance, and by reducing overall maintenance downtime time and\n costs involved in maintaining older equipment. The project will also\n involve replacing the 42 year old outdated and inefficient\n administration, operations and maintenance offices, shops and\n warehouses with one consolidated complex, together with storage\n optimization. The project is expected to take 4-5 years to complete in\n stages.\n\n\nNo additional equipment is being added to the site, nor is the site\n footprint being increased. Any additional throughput capacity would\n only result from the improved productivity of the new equipment,\n operating efficiencies, and reduced maintenance downtime, and would\n only be realized if other participants in the coal chain can also\n improve efficiencies. Currently, it is estimated that 2-3 million\n tonnes per year might be possible, but in any event not before 2017.\n\n\nThe expenditures also include approximately $7 million for new, state of\n the art dust suppression systems and related environmental control\n equipment which will be completed this year.\n\n\nOver the last five years through the end of 2012, Westshore has\n implemented significant changes to its operations and enjoyed strong\n and steady growth.  Over that time, Westshore has reinvested\n approximately $110 million in the terminal operations to upgrade and\n replace some equipment, and add a fourth stacker-reclaimer in 2008. The\n anticipated results of these efforts are that Westshore's capacity\n going forward has increased to an estimated 33 million tonnes per\n year.  With the customer agreements currently in place, and which were\n secured over the last two years, most of that capacity is committed\n through to 2021- 2022.\n\n\nIn order to maintain these throughput level...

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