Shipping & Terminals
In 2010, Polaris entered into an amended and restated 20-year shipping agreement with CSL International Inc. for the bulk transportation of sand and gravel from the Orca Quarry (Orca), primarily to locations in California. Through this action, Polaris secured the long-term ability to supply existing and future terminals using rapid self-discharging Panamax vessels, which are a vital, cost-effective, component in the overall supply chain.
Through its US subsidiary company, Eagle Rock Aggregates, Inc. (ERA) Polaris supplies Orca sand and gravel to a combination of owned and third-party terminals. In northern California, supplies are made to the Company's own Richmond Terminal within the Port of Richmond, which commenced the storage and distribution of Orca aggregate in 2008.
Three additional locations are supplied: Redwood City; Pier 92 south of San Francisco; and Petaluma through a terminal operated by Landing Way Depot, Inc.
In respect of Pier 92 and Landing Way deliveries, sand and gravel is loaded into customers' barges while the Panamax vessel is at anchor in San Francisco Bay. In this way, the residual cargo can be discharged directly into the Richmond or Redwood City terminals, where shallow water prevents access to a fully loaded Panamax vessel.
In respect of supplies to Vancouver and Hawaii, Polaris loads customer-supplied barges and self-discharging vessels respectively at the Orca ship loader.
In July 2010, the Company secured a five-year lease, extendable to 20 years, on approximately eight acres of land within the Port of Long Beach, California. Subject to obtaining variations to an existing permit to receive, store and distribute up to 3 million tons per annum of marine imported aggregate, operations are expected to commence in 2012.
Concurrently, ERA is negotiating with the Port of San Diego for rights to construct a marine aggregate terminal within the 10th Avenue port facility. Assuming a successful outcome, ERA expects to commence operations in the Port of San Diego in 2014 which, together with the Port of Long Beach terminal, would enable the maximization of production at the Orca Quarry.
CSL Acadian passes under the Golden Gate Bridge carrying Orca Quarry materials