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 directly: Redwood City, Pier 92 in the Port of San Francisco and Petaluma through a terminal operated by Landing Way Depot, Inc. In February, 2013 the Company commenced sales on an ex-quarry, or Free-on-Board, basis to a company with its own shipping capacity, these materials being delivered into Pier 94 in the Port of San Francisco.
In respect of Pier 92 and Landing Way Depot 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, that was previously permitted to receive, store and distribute up to 3 million tons per annum of aggregates imported by barge from various offshore sources. The Company has applied for the necessary permits to begin importing from Orca Quarry in ocean-going vessels and announced that it would commence development of the site at the beginning of 2014. Operations are expected to commencemid-2014.
ERA continues to be involved in discussions with port authorities in additional locations that could eventually become terminals for the receipt of its construction aggregates. These locations include San Diego and Hueneme in Southern California and also locations in the Pacific North West.
CSL Acadian passes under the Golden Gate Bridge carrying Orca Quarry materials