is $300,000. These tractor-trailers will also be built in British Columbia.

Cassiar Asbestos Corporation Ltd. have a Transport Division at Whitehorse
which operates and maintains a fleet of 17 tractor-trailers used to transport

fibre from the Clinton Creek mine (and to some extent the Cassiar mine).

With the closure of the Clinton Creek mine in mid-1978, it is proposed that

these Transport Division operations be transferred to British Columbia. This
transfer of operations will require a new truck terminal to be constructed in
British Columbia, for a capital cost of $1 million; the relocation in British
Columbia of some 65 operating and administrative personnel now employed in the
Whitehorse office (1976 payroll cost $1.8 million); and the relocation of mob-

ile equipment (1976 book value $1.5 million).

The direct benefits to British Columbia from the transport of fibre over the
Cassiar-Stewart Highway include new employment opportunities resulting from the
construction of transport equipment .and.terminal facilities, as we | as sales
taxes on equipment and assets transferred from Whitehorse, municipal taxes for the
terminal facilities and income taxes collected from employees relocate. to

British Columbia as well as from new employees.

2-4 Tug and Barge Transport

Rivlow Straits Ltd., in conjunction with the proposed routing of asbestos
fibre, has proposed to construct a marine terminal in Stewart. The facility
would be constructed on a 7-acre site leased from the provincial Department
of Lands, Forests and Water Resources on the west side of Stewart Harbour.
The facility will accommodate a general barge and truck terminal, a bulk
handling petroleum products facility, and a scow and barge moorage.2/

Exhibit 2.4 presents a map showing the location of the proposed facility in
the harbour and Exhibit 2.5 is a photograph of the proposed facility. The
new facility is expected to have a capital cost of nearly $2.3 million .4/
Mobile equipment required to move containers at the terminal will likely

3/ See Harbour Development Plan - District of Stewart, April 1976, for
additional details.

4/ See Appendix C for cost details.