Former Sydney container terminal firm paid $200K, with no record of what they did

Consultants were paid nearly $200,000 to promote a proposed container terminal for Sydney, but the Cape Breton Regional Municipality — which paid the bill — has no record of what they did for the money.

"That was part of my dissatisfaction," said Cecil Clarke, mayor of the Cape Breton Regional Municipality.

"We didn't have concrete file information. We didn't have market data that was available in the files. It was all broad-based information. More like a PowerPoint." 

New Jersey consultants Paul F. Richardson and Associates were paid $188,000 in 2012 and 2013 to promote a future Sydney container terminal. The consultants did not secure a shipping line.

'There are no such records'

According to documents released to CBC under freedom of information laws, the municipality has no reports or records in its custody for work done under the contract.

"We weren't satisfied so we moved in a different direction," said Clarke.

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Richardson and Associates did not respond to inquiries from CBC News.

Their contract with CBRM expired and was not renewed.

New promoters at work

They were replaced by other consultants, Albert Barbusci and Barry Sheehy, who are operating under Harbor Port Development Partners. They were granted exclusive rights to promote the port for two years, an agreement that expires in June 2017.

Unlike their predecessors, Harbor Port said it is doing it on its own dime and will get paid only if it lands a shipper.

"Over the last two years we have funded all our own efforts," Sheehy said. "We have funded these trips. We have funded these studies. So we have a significant stake in seeing this be successful."

Sheehy said he and his partner have met with all the major shippers and port operators and made progress, citing inroads in China and with the operators of the Suez Canal. Like its predecessors, Harbor Port has not secured a shipping line. The industry is in the midst of a consolidation.

"We haven't delivered the shipper yet. It's not an easy environment to deliver a shipper," Sheehy said. "But we're confident it will happen ... it has to happen. It's so important for Cape Breton that this container port is successful."

Previous consultants still active

As Harbor Port plugs away, Richardson and Associates remain in the background.

Nova Scotia Transportation Minister Geoff MacLellan tells CBC News that while Richardson and Associates have no formal relationship with CBRM, they are still actively working with the International Longshoremen's Association.

"I do know all of those entities who have been here who are from New York, Philadelphia, New Jersey ports. They believe Sydney is viable and they are in the hunt to make that happen," he said.

MacLellan said he knows nothing about previous billings.

In the meantime, Clarke said he is happy with the efforts of Sheehy and Barbusci.

"I am satisfied with them. I am very satisfied with former prime minister Jean Chrétien being our international adviser. So I'm very content in the direction and development proceeding the way that it is."

Clarke and Sheehy both said they welcome any help Richardson and Associates can deliver.

The case (in brief) for a Sydney terminal

Sydney's chances require a Prince Rupert-like success. The B.C. port became a western North American gateway for container trade from Asia.

Sydney is promoting itself as a greenfield location with room for the next generation of large container ships.

Congestion in New York and land constraints in Halifax bolster its chances.

The key remains finding a shipping line willing to commit to call at Sydney.

Uncertainty remains over the future of the rail line in Cape Breton. Its U.S. owner has applied to abandon the line, but has not acted pending the outcome of efforts to secure a shipper.