Troubled waters on Sault port project: sault "soldiering on" with port plans despite Essar uncertainty.

• Author: Ross, Ian
• Position: CONSTRUCTION

Sault Ste. Marie's $147-million port plans are in limbo, pending the outcome of Essar Steel Algoma's restructuring. But the city's economic development department head vows they're pressing on to make this high-priority infrastructure project a reality.

The city's hands are tied on who will eventually take control of the troubled Sault steel producer, however Tom Dodds, CEO of the Sault Ste. Marie Economic Development Corporation, insisted they've made way too much progress to stop now.

"We are soldiering on. This is the best we've ever gotten in terms of forward momentum." Dodds regards the public-private venture they've established with Essar, through the Port of Algoma project, as providing the Sault with a surefire competitive advantage that will drive freight and new business into the city, now and into the future.

"From the city's standpoint, we need a public access port."

But until the steel mill's ownership situation is sorted out, all parties involved--including potential shippers and government funders--are "hitting the pause button" until all the matters are resolved through the courts.

The Sault steel producer filed for creditor protection under Companies' Creditors Arrangement Act (CCAA) in November 2015.

Questions were raised during the CCAA proceedings on the complicated cargo-handling and payment arrangements between Essar Ports and Essar Steel Algoma.

The Port of Algoma was created as a business entity in September 2014 when Essar Steel spun off its dock facilities as part of a restructuring deal.

The port is 99 per cent owned by Essar Ports, a subsidiary of Essar Steel Algoma's parent company, Essar Global Fund.

The City of Sault Ste. Marie owns the remaining one per cent.

Whether Essar Ports stays in the picture or not as a development partner, Dodds said the city intends to stay the course.

"The players may change but the idea continues," he said. "If this is a good idea and has merit, someone else will pick it up.

"We have to look beyond this current situation with CCAA. We simply can't let that distract us."

With control of the century-old steelworks up for grabs, new ownership could conceivably scuttle much of the project's preparatory legwork and decide to keep outsiders off of its dock facilities on the St. Mary's River.

"That would be our concern," admitted Dodds.

"What I'm hopeful for is that any new owner would recognize the value and the priority that the city places on having this infrastructure in place."

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