VANCOUVER, March 21 /CNW/ - Westshore Terminals Income Fund (TSX: WTE.UN) (the "Fund") announced today that a cash distribution of $20,410,522 (representing $0.29 per trust unit) will be paid on or before April 15, 2006 to unitholders of record on March 31, 2006 as compared to $14,076,222 (representing $0.20 per trust unit) for the same period in 2005. The Q1 2005 distribution is solely derived from the operations of Westshore Terminals Limited Partnership. For the first quarter of 2006, Westshore anticipates that its tonnage throughput will be approximately 4.2 million tonnes as compared to 5.7 million tonnes for the same period in 2005. This represents one of the poorest quarters for throughput at Westshore for several years. It is more than usually difficult to assess the level and timing of throughput volumes for 2006. The uncertainty is reflected in the March 20, 2006 news release issued by Fording Canadian Coal Trust, which owns 60% of Elk Valley Coal Partnership, Westshore's largest customer which accounted for 92% of the terminal's throughput by volume in 2005. Fording has indicated that the uncertainties are such that it can only provide a range of sale tonnages of between 22 million and 25 million tonnes for the 2006 calendar year. That range of tonnages suggests that Westshore's throughput for 2006 will be in the range of 18 million to 21 million tonnes. As also announced in the Fording Canadian Coal Trust news release, the Elk Valley Coal Partnership has achieved sufficient settlements to indicate that its average price for coal sales in the period April 1, 2006 to March 31, 2007 is expected to be approximately US$109. This represents a reduction of approximately 11% from the US dollar prices realized by Elk Valley for the coal year ending March 31, 2006, which were over 100% higher than the average U S dollar price realized in the coal year ending March 31, 2005. (These prices represent sales for all products, not only those exported through Westshore). Coupled with the recent further rise in the value of the Canadian dollar relative to the US dollar, these prices indicate that Westshore's loading rate for tonnage shipped at a variable rate, and hence its average loading rate, for the 2006/07 coal year will be lower than for the 2005/06 coal year. For 2006, tonnages shipped at fixed rates are expected to account for approximately 20% of the Terminal's throughput; tonnages shipped at variable rates but subject to a cap, in effect for this year, are expected to account for 30% of throughput; and finally, tonnages shipped at full variable rates are expected to account for approximately 50% of throughput at the Terminal. Because of a combination of possible variations in tonnage, the US dollar denominated coal price and exchange rates, it is not possible for the Fund to predict accurately the level of its distributions for 2006. However, based on the most current information available to it, the Fund is budgeting for distributions for the 2006 calendar year to be at approximately the same level as for the 2005 calendar year. On that basis, the first quarter distribution of $0.29 per unit has been fixed by reference to an annual distribution of approximately $1.16 per unit, the same as in 2005 as a whole. Performance in subsequent quarters will determine the sustainability of this level of distribution. If that level of distribution is maintained, incentive fees will be payable by Westshore to Westar under the Management Agreement as was the case in 2005. The foregoing statements concerning tonnages, coal prices, loading rates, taxation and variability of distributions are forward-looking statements but reflect the current expectations of the Fund and Westshore with respect to future events and performance. Wherever used, the words "may," "will," "anticipate," "intend," "expect," "plan," "believe," and similar expressions identify forward-looking statements. Forward-looking statements should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at which, such performance or results will be achieved. Forward-looking statements are based on information available at the time they are made, assumptions made by management, and management's good faith belief with respect to future events, and are subject to the risks and uncertainties outlined in the Fund's annual information form that could cause actual performance or results to differ materially from those reflected in the forward-looking statements, historical results or current expectations. All forward-looking statements will be impacted by and are subject to the risks set out under Risk Factors in the Fund's annual information form.