  ) 7 estshore Terminals Income Fund is an open-ended trust which was created under the laws of British Columbia pursuant to a Declaration of Trust dated December 2, 1996. The Fund owns all of the common shares and $470 million aggregate principal amount of subordinated notes of Westshore Terminals Ltd. Westshore Terminals Ltd. operates a bulk coal transportation terminal located in British Columbia. Income derived by the Fund from those secutities, net of expenses, is distributed to Unitholders on a quarterly basis. Effective February 28, 2003, the Fund made a $150 million investment in the Fording Canadian Coal Trust, representing approximately 9.1% of the outstanding units of that Trust, and receives its pro rata share of distributions as and when they are paid. These distributions will also, in turn, be distributed to the Fund’s unitholders. The Fund does not conduct any active business. Table of Contents Financial Highlights Trustees’ Letter and Report to Unitholders Management’s Discussion and Analysis aA WY NO Operational Review Financial Statements Westshore Terminals Income Fund 8 Westshore Terminals Ltd. 17 Corporate Information 26