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Major investments for West Coast shipping
Lisa Wichmann
Vancouver—The federal government announced the new Asia-Pacific Gateway and Corridor Initiative in Vancouver last month, which will see $591 million invested in ports, transportation and border clearance on the West Coast.
The money will be used for major expansions at commercial ports, and to build and upgrade bridges, rail lines and roads linking West Coast ports to highway systems. There will also be further twinning of the Trans-Canada Highway in Banff National Park.
A new container screening facility will be installed at the Port of Prince Rupert, and a high-tech traffic management system will be deployed in the lower mainland of BC to move containers in and out of ports faster.
The private sector will spend more than $3 billion on the projects by 2010. The combined efforts should see total container traffic at Pacific ports rise from $2 million per year to $7 million by 2020.
In a speech announcing the project, Prime Minister Stephen Harper said Canadian ports have a major geographical advantage over US competitors. For instance, Vancouver is about two days closer to Shanghai than Los Angeles. Prince Rupert is roughly three days closer by the fastest ships.
"Yet in spite of this advantage, and the huge cost savings it represents for shippers, Canada today only handles nine per cent of west coast container traffic…That is just not good enough. Canada should be the crossroads between the massive economy of the United States and the burgeoning economies of Asia," Harper said.
East Coast options
The investments were applauded by industry groups, such as the Western Transportation Advisory Council (WESTAC), a non-profit association representing transportation firms.
"Supply chain excellence is at the core of the Asia-Pacific Gateway and Corridor Initiative," said WESTAC president Ruth Sol. "This initiative represents significant opportunities for Canadian shippers, importers, and exporters..."
Over the past several years, labour disputes such as the trucking strike at the Port of Vancouver; along with container bottlenecks, have made some importers hesitant to buy from China. The new investments may alleviate those concerns. Other shippers are opting to bring goods in through the 'back door'—Atlantic ports.
"If you look at the globe, you may not initially think the East Coast of North America is a logical shipping connection to India, China, Asia," said Michele Peveril, manager of corporate communications and public affairs with the Halifax Port Authority.
"But...issues on the West Coast in recent years...have caused many companies, including retailers, to diversify their risk and look at alternatives for some of their products to enter North America."
The Port of Halifax has built a strategy around the Suez Canal. Unlike the Panama Canal, there are no size restrictions or congestion, Peveril says. The Suez Canal is a viable link between markets such as India, China, and major consumer markets in North America, including the US mid-west.
"We've heard from shipping lines that utilizing the Suez Canal and entering North America via Halifax or the East Coast is competitive when you look at the whole supply chain," Peveril said.
The water portion of the route might be a couple of days longer than a direct route to the West Coast, but once the goods arrive in Halifax, ground transportation by rail is typically faster and more reliable, she explained.
"We have a Class 1 rail system that connects us to most of the major consumer markets in North America."
The Port Authority recently created a new executive position to manage issues around the Atlantic Gateway, such as government funding.
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