Cando CEO says employment figures were misinterpreted

Jan 15, 2016 | 9:33 AM

KAMLOOPS — The head of Cando Rail Services says the company’s statement that its BC operations ‘could employ hundreds’ may have been misinterpreted.

Cando announced the purchase of the former Weyerhaeuser sawmill property on Mission Flats road this week.

The company intends to base its BC operations in Kamloops, but CEO Brian Cornick says it will only employ between 20 and 50 people in the Tournament Capital.

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“When we talk about looking to hire hundreds, we’re really talking about the province of BC there,” said Cornick. “In the city of Kamloops itself, I would say full employment would be sub-50 people.”

Cornick says the terminal should be ready for limited operation by this summer, and fully operational within two years.

He adds the full investment in the Kamloops location will be $7 to $10 million, not including the property purchase price.

Cornick would not disclose the purchase price, but said reports that it was $5.1 million are off base.

The property includes Rabbit Island in the Thompson River, and Cornick says Cando has no operational requirement for that land.

He says it could become part of the City of Kamloops parks network.

“We did discuss the possibility of ceding the island – or parts of the island – over to the city,” said Cornick. “Perhaps it could be used for a canoe stop. Maybe the city could put a small dock on it and put barbecue pits on it for people who, let’s be honest, probably do use it in that way anyway.”

CFJC Today asked Cornick about complaints of other heavy industrial property owners with respect to the City of Kamloops tax rate, but he said the benefits of locating here couldn’t be ignored.

“Yes, the higher tax rate than normal was a negative aspect to it,” said Cornick. “But all the positives outweighed that particular negative for us at this stage.”

“Perhaps when I get my first tax bill next year, my mind might change, but I have to pay taxes wherever I am. That’s reality, and we’re fine with that.”

As for a company in a commodity-reliant industry expanding when commodity markets are struggling, Cornick called the business “to a degree, recession-proof.”

“Commodity prices go down, the larger companies want to look for cost savings. We are a cost savings versus having CN or CP do the exact same work,” said Cornick.

“At the same time, we talk about rail car storage. These companies will have (up to) 6000 cars in their network fleet on the CN and CP line. Well, they won’t require all those cars in the fleet because there’s a reduced demand for their product.”

The 89-acre property has been vacant since Weyerhaeuser closed its sawmill in 2008, resulting in 196 job losses.