If this were a race, I think we'd have to say that Melford has just taken the lead.

News out of Seattle, Washington is that Melford International Terminal has inked a deal with SSA Marine and Cyrus Capital Partners to develop the long-planned, 315-acre marine container terminal at the Strait of Canso.

Here's the news release:

America Gets New First Port of Call

Melford Atlantic Gateway project in Nova Scotia Will Connect Canadian and US Markets to Rail

Seattle, Washington - SSA Marine, Melford International Terminal and Cyrus Capital Partners, L.P. have announced their joint venture and investment in the Melford Atlantic Gateway. The 315-acre marine container terminal will be constructed at the Strait of Canso, Nova Scotia, and will become the closest North American port on the Great Circle Route to Europe and Asia via the Suez Canal. The fully permitted terminal is specially designed to accommodate Ultra Large Container Vessels for both trans-shipment throughout North America’s East Coast and intermodal service to Eastern Canada and US markets through a connection to the Canadian National (CN) rail system.

“This is an exciting initiative for SSA Marine,” said SSA Conventional President Mark Knudsen. “We have spent considerable effort over the years examining terminal opportunities on the East Coast of North America and we believe Melford, with its 20 meters of draft and the ability to reduce delivery time to US and Canadian markets by 2 to 6 days, via a local rail connection to the CN network, excellent workforce and private ownership combines all the beneficial attributes to quickly establish itself as the preeminent first port of call for North America.”

“The Melford team is elated with this partnership,” said Melford President Paul Martin. “We have been working on this project for a number of years and the investment by SSA Marine, the leading terminal operator in North America, demonstrates a huge vote of confidence in this initiative. SSA Marine’s relationships and service history, with the world’s leading steamship lines, will assure the lines of receiving the highest level of service,” he said.

Mr. Martin also recognized Nova Scotia’s well-known skilled labor force, and said their support for this project, combined with the support of the local community and community leaders, create a unique opportunity for streamlined construction and startup activities.

Taking advantage of the extensive network and superior service of CN in Canada and the United States, the Melford Terminal has the potential to serve Eastern Canada and Midwest US markets in a very competitive and efficient manner.

The Honorable Stephen McNeil, Premier, Nova Scotia said, “We welcome this new private investment that recognizes our strong system of existing infrastructure, our training abilities, our skilled workers, and business friendly environment that the Province of Nova Scotia provides to companies investing in our region.”

Rodger Cuzner, Member of Parliament in the Government of Canada, said, "What is most remarkable to me is that this incredible deal was developed with independent financing and no public funds. The team that developed this project is to be commended for the establishment of partnerships and the continued efforts to increase activity in the Strait of Canso region and all of Nova Scotia.”

About SSA Marine

SSA Marine is the world's largest independent, privately-held marine terminal operator, with activities at nearly 250 terminal facilities and rail operations throughout the U.S., Canada, Mexico, Central America, South America, Asia, New Zealand and South Africa. Since its foundation in 1949, SSA Marine has continued to grow, always focusing on its customers' interests. The SSA terminal in Panama has doubled its handling capacity in time for completion of the canal. Other affiliates of SSA Marine are also working on significant expansion projects in the United States, Mexico, Chile, Colombia and Vietnam.

About Melford Terminal

Melford International Terminal is a privately-held developer, the owners of which include a partnership of Nova Scotia businessmen as well as majority owner Cyrus Capital Partners, L.P. of the US and UK. The Nova Scotia owners as well as Cyrus will continue to play an active role in the development of the Melford Atlantic Gateway Terminal.

UPDATE

I emailed Mark Knudsen of SSA Marine to ask a few questions and here are his responses:

1. Did you consider Sydney harbor as an option for a terminal?

Yes, we have looked at both terminal locations, and in our view, rapid, efficient, and cost effective rail service is key to the success of this project, and we believe that the Straits [sic] of Canso location provides superior connectivity to the CN network. Both locations have the ability to develop a terminal to support the vessel activity, but the superior rail connection, and the ability to design and build a terminal from the start for the specific purpose of efficient cargo movement led us to work with the terminal proposal on the Straits of Canso.

2. Does this deal involve an actual financial investment by SSA Marine or Cyprus Capital? If so, can you tell me how much it will be worth?

Yes, both SSA Marine and Cyrus Capital are making financial investments in the project. The project has incurred significant expenses to date to get it as far as it is, and will require significant investment to complete the construction. Order of magnitude cost to bring a terminal like this on line will be at least $250 Million.

A project of this size will normally be funded by a combination of debt (borrowed at commercial rates from financial institutions) and equity (supplied by the investors). It is premature to estimate what the split between those two funding sources will be at this time, and it is premature to say what the conditions of the debt issuance may involve.

3. What is the next step for the project?

Now that we have formed and announced our partnership, we will be reaching out to shipping lines, cargo owners, and others to complete the commercial aspects, reaching out to financial institutions to develop the funding mechanisms, developing the pre-constructions packages and work, and the many other steps necessary to get the project ready to start construction.