egy

tax revenues to the provincial and municipal governments.

A truck service terminal similar to the existing facility in Whitehorse will

have to be constructed. A replacement facility is expected to cost $1 million.2/
A marine terminal will also have to be constructed at Stewart by Rivlow Straits

to load the barges and store fuel. This facility will likely cost some $2.3
million including the docks and warehouse construction, as well as fuel tank
installation. Both construction projects will generate employment opportuni-
ties, sales tax revenues on building materials, and so forth.

Transportation equipment manufacturing will also be required to support the
route concept. Cassiar Asbestos Corporation will require some $1.9 million
in new tractors, trailers and fuel tankers during the initial start-up period.

Rivlow Straits Ltd. will also have transportation equipment expenditures.

In the initial start-up period an existing barge will have to be modified at

a cost of $250,000. In the third year of operation, two $900,000 barges will
be required for the service. In the tenth year, a replacement tug valued at
$2 m Jlion will be required; half of the tug's available time will be allocated

to the proposed route.

Fabrication and assembly of this transportation equipment will provide British
Columbia with increased employment, employment income and tax revenues. In
addition, mobile equipment currently valued at $1.6 million will be transferred
from Whitehorse to British Columbia, resulting in increased sales tax revenue
to the Province.

It is recognized that the concept will also require some construction
expenditures by the Department of Highways to strengthen the bridges on the
Cassiar-Stewart Highway. However, no specific costs are available, although
it is assumed that existing capital expenditure allocations to up-grade the
highway could be re-allocated if the highway were to be reclassified to a
Resource Road.

7/ It is assumed, in calculating direct benefits, that the truck terminal
facility will require 10 acres, constructed on an existing 37 acres site
owned by Cassiar Asbestos Corporation Ltd. in Stewart. The facility,
however, could be located either at Stewart, Cassiar or Dease Lake.