Owner says Muskrat waterfall equipment should be sold to NL auction house | Catch My Job

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Shawn Roche of Roche Auctions pictured in the image file. said it was disappointing that the auction did not issue a bid for equipment used in Muskrat Falls. (Eddie Kennedy/CBC)

St. John’s bidders want to know why Newfoundland and Labrador Hydro were commissioned to sell the equipment used in the construction of the Muskrat Falls to a British Columbia auction house without bidding with a local company.

The Oct. 3 auction is handled by Ritchie Bros. Auctions, a publicly traded auction house in Burnaby.

The auction was packed with high-priced items, including a Mack pump truck priced at $675,000, a shipping container for $282,500, and several trucks selling between $13,000 and $18,000.

Shawn Roche of Roche’s Auctioneering said the auction would put millions in the pockets of local auction houses. But no tenders or offers for the auction have ever been issued. Roche said he has tried to talk to representatives from NL Hydro and from Nalcor Energy, which operates the Crown utility.

“I’ve never seen it happen. I don’t understand. When I called, no one called me back… No contract, no RFP, nothing,” Roche said on Tuesday.

Roche said NL Hydro could save a lot of money — he estimates around $100,000 — by going with a local company.

Photo of a large pump truck in the auction yard.
The most expensive item of the lot was the Mack pump truck, which sold for $675,000. (Richie Bros. Auction)

Auction houses in Newfoundland and Labrador are not allowed to charge buyers a premium. Roche claims that Ritchie Bros. earns between 9 and 15 percent commissions and charges buyer extras and buyer fees.

A representative for Ritchie Bros. Auctions told CBC News they generally do not publicly disclose their commissions and fees. And note that commissions vary by auction house.

In addition, photos on the auction house’s website show several trucks bearing the Nalcor brand on them. Roche said cars are often not auctioned with the company’s brand on them. This is because it gives people the opportunity to impersonate a member of the company or damage the image of the company.

But in a CBC statement, NL Hydro said the decals would be removed before the car was sold.

The truck sold at auction for $18,500, although the pictures on the auction shop’s website still bear the Nalcor branding, NL Hydro said the decals would be removed before the car was sold. (Richie Bros. Auction)

NL Hydro also confirmed that no tenders have been issued, saying Ritchie Bros. is “the world’s largest industrial auctioneer. and is one of the leading sellers of used equipment for construction, transportation, energy and other industries. the largest in the world”

According to the statement, the device was grouped with other ongoing auctions. This resulted in more than 4,000 auctions from more than 40 countries.

“With the large volume and characteristics of some equipment It is important that these assets are marketed to the largest possible market. to ensure the highest possible resale value,” reads the statement.

“With the limited size of the local market for this device, It’s important to market your disposal to a broader base of buyers.”

Roche said he hopes auctions will continue to be issued in the future, as he knows auction houses in Newfoundland and Labrador are more than capable of handling large auctions such as those at Muskrat Falls.

Read more from CBC Newfoundland and Labrador.

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