Vancouver, B.C. - The Vancouver Port Authority has reached an agreement with TSI Terminal Systems Inc. (TSI) to enter into a new 50-year operating lease upon completion of the proposed expansion of Deltaport.

The Vancouver Port Authority's plan to add a third berth will see a 50 per cent increase in capacity at Deltaport. Currently undergoing an environmental and regulatory review by provincial and federal agencies, a decision is expected by early 2006.

"This agreement is meaningful as it demonstrates the confidence of our operators in the future of the Port of Vancouver and, in particular, our container expansion program at Roberts Bank" said Captain Gordon Houston, President and Chief Executive Officer of the Vancouver Port Authority.

"TSI is committed to working with the Port to enhance the efficiency of this gateway," said Captain Norman Stark, President and Chief Executive Officer of TSI. "We have already made significant investments to increase capacity at the Vanterm container terminal by almost 30 per cent to 600,000 TEUs (twenty-foot equivalent units), and Deltaport represents the next step in that process."

A capital investment of approximately $300 million will be required to complete the third berth. Upon completion of the expanded terminal, expected by January 1, 2009, the 50-year lease agreement will replace the existing leases and operating agreements that TSI has with the port.

TSI has operated container terminals in the Port of Vancouver for over 35 years and in 2004, handled more than 1.3 million TEUs at Vanterm and Deltaport combined. Committed to the environment and communities in which they operate, TSI is activity involved in numerous environmental initiatives and local community programs. TSI is a wholly owned subsidiary of Orient Overseas International Ltd. of Hong Kong.

The Port of Vancouver is Canada's largest and most diversified port, trading more than $43 billion in goods with more than 90 trading economies annually. Port activities generate 69,200 jobs in total with $4 billion in Gross Domestic Product and $8.9 billion in economic output.

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For more information, please contact:

Anne McMullin,
Director, Corporate Communications and Public Affairs
Vancouver Port Authority
604.665.9069 (office)
604.665.9073 (fax)
778.231.6978 (cellular)
anne.mcmullin@portvancouver.com

Morley Strachan
Vice-President, Business Development
& Strategic Planning
TSI Terminal Systems Inc.
Tel 604.251.9360
Cel 604.649.6688
mstrachan@tsi.bc.ca


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