Blaze at Westshore Terminal Raises Fears of Prolonged Coal Export Delays
A massive machinery fire erupted at the Westshore Terminals coal facility near Delta, British Columbia, early Saturday morning, sending plumes of thick black smoke into the air and causing widespread operational disruptions. The blaze broke out on one of the facility’s conveyor belt systems, a critical component for coal handling, and affected one of the terminal’s four stacker-reclaimers.
The Vancouver Fraser Port Authority confirmed the fire has been extinguished, with no injuries reported. Delta Fire Department responded immediately, working alongside Westshore personnel to contain the flames. Emergency responders remained on-site through Saturday to monitor the aftermath and assess any potential hazards.
In a statement, the port authority said, “Operations at the terminal have been temporarily suspended while damage assessment and recovery efforts are underway. Neighboring operations at GCT Deltaport were also briefly halted but have since resumed.”
Video footage posted on social media showed the fire raging along the conveyor system, with flames engulfing parts of the machinery as black smoke darkened the sky over the Tsawwassen area. The fire was visible from the Tsawwassen ferry terminal, sparking concern among local residents and travelers.
The fire’s timing is expected to have significant implications for the global coal supply chain. Westshore Terminals is Canada’s largest coal export terminal, handling metallurgical (met) coal and thermal coal shipments destined for markets across Northeast Asia and beyond. Companies like Teck Resources Limited (NYSE: TECK) and Glencore (LSE: GLEN) heavily rely on Westshore’s infrastructure to export their coal products.
Industry analysts have already flagged potential delays in coal shipments. Joe Aldina, an industry expert with The Coal Trader, noted the fire’s likely effect on the supply chain. “Westshore Terminal plays a pivotal role in met coal exports, particularly for Teck and Glencore,” Aldina explained in a post on X. “Loadings are sure to be slowed, and this disruption could prompt upward price movements in the coal market, especially as demand remains robust in Asia.”
Teck Resources, a leading exporter of metallurgical coal used in steelmaking, may face short-term logistical hurdles. Meanwhile, U.S. thermal coal shipments from Montana, which rely on the terminal for export to Asian markets, are also expected to encounter delays.
While the fire has been extinguished, recovery efforts at the terminal are likely to take weeks, if not longer. The conveyor system, which suffered extensive damage, is a vital component for moving coal from storage piles to ships for export. A prolonged shutdown would exacerbate supply chain issues, further straining an already tight global market for metallurgical coal.
Westshore Terminals issued a brief statement expressing gratitude for the swift response from the Delta Fire Department and its own staff. “We are working diligently to assess the extent of the damage and prioritize repairs to resume operations as quickly and safely as possible,” the company said.
Safety experts have urged terminal operators to conduct a thorough investigation into the fire’s cause to prevent future incidents. Fires in industrial facilities like Westshore are often attributed to overheating equipment, mechanical failures, or combustible dust buildup.
Local residents expressed concern about the environmental impact of the fire, particularly the air quality issues caused by the billowing smoke. Harman Bhangu, a Member of Parliament from the area, acknowledged these concerns on social media. “At this time, my thoughts are with everyone in the area or directly involved. I hope everyone remains safe and unharmed,” Bhangu posted, adding that he is actively seeking updates from officials.
Environmental groups have also raised alarms about the potential release of pollutants during the fire. While the extent of the environmental impact remains unclear, incidents of this scale often prompt reviews of safety and environmental protocols at major industrial sites.
The fire has already caused ripples in the coal market, with analysts predicting a short-term spike in prices for metallurgical and thermal coal. Northeast Asia, a key destination for Canadian coal exports, remains heavily reliant on these shipments, making the timing of the fire particularly disruptive.
For companies like Teck Resources and Glencore, the incident underscores the vulnerability of supply chains dependent on centralized export hubs. As recovery efforts progress, the incident may lead to calls for diversification in export infrastructure to mitigate risks associated with single-point failures.
Information for this briefing was found via Global News and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
I thought that Teck sold coal operations to Glencore and not involved in this anymore.