Deep-water port planned for Red Rock

Chronicle Journal
By: Bryan Meadows
Thursday, March 19, 2015

Red Rock may soon have a deep-water port on its Nipigon Bay shores.

A memorandum of understanding was signed Wednesday between the Port of Algoma Inc. and North Port Canada, a subsidiary of Riversedge Developments, for the design, construction, operation and maintenance of a deep water port at the former Red Rock linerboard mill site.

“This is a major first step in the redevelopment of the entire mill site and we look forward to continue working with Riversedge and its new partner, the Port of Algoma Inc.,” Red Rock Mayor Gary Nelson said Wednesday.

Riversedge, based in Tillsonburg, Ont., took over the dormant mill about a year ago, purchasing it from the municipality for $10 but assuming all environmental liabilities. The company also purchased the Red Rock Inn last October.

Riversedge president Justice Veldman noted that “Red Rock is interestingly positioned to realize significant opportunities for Northern Ontario. We’re fortunate to be working with Essar Ports and the town of Red Rock to make that happen.”

The agreement signed Wednesday is for a 15-year period exclusively with Port of Algoma, which is a subsidiary of Essar Ports Global Holdings.

Essar Ports Global Holdings is a subsidiary of Essar Global Fund Ltd., a global investment fund with majority ownership in a number of assets diversified across energy, metals and mining, ports and infrastructure, and services. The portfolio has revenues of more than $30 billion, employing more than 60,000 people.

The Port of Algoma management, with strong expertise in developing state-of-the-art port facilities globally, will be responsible for overseeing all assessment and development of the new Red Rock Port.

Anshumali Dwivedi, CEO of Port of Algoma, said that the company is “happy to be a part of the development of Red Rock and identifying it as a feeder port to the Port of Algoma” in Sault Ste. Marie.