Vancouver: The Vancouver Port Authority (VPA) is looking for support from transportation and trade-dependent industries across Western Canada as it intensifies efforts to achieve legislative changes it sees as vital to the future of Canada's ports. A federal review panel will begin its formal consultations with western stakeholders on this issue tomorrow in Winnipeg.

The VPA is seeking a variety of changes to the Canada Marine Act, to better position the Port of Vancouver and other national ports to compete effectively with their U.S. counterparts and to continue to serve vital national trade development interests.

"We're at a pivotal point in terms of the health of Canada's ports and their abilities to serve as vital links in Canada's trading relationships," said Captain Gordon Houston, President and Chief Executive Officer, Vancouver Port Authority. "We have identified legislative changes that will enable Vancouver to be the port of choice on the west coast of North America. Without them, we foresee more erosion in our competitive position, and that has major implications for industries and individuals across Western Canada."

The Port of Vancouver is a significant economic force across Western Canada. The number of jobs directly dependent on trade activity at the Port of Vancouver is estimated at 3,550 in Alberta, more than 900 in Saskatchewan, and approximately 1,100 in Manitoba. Most of this employment is with rail carriers and in services related to transportation and agriculture. Wages associated with it total $286 million.

Even more significantly, the Port of Vancouver is the key gateway to the Pacific Rim and global markets for the agriculture, mining, forestry, manufacturing and other export-dependent industries that are the foundation of the Western Canadian economy. Bulk cargo accounts for 81 per cent of the throughput of the Port, totalling 61 million tonnes. The provinces of Alberta, Saskatchewan and Manitoba export significant volumes of bulk coal, agricultural products, fertilizers, and petro-chemicals through the Port of Vancouver.

The biggest threat to the Port's long-term future, Houston said, is insufficient access to capital for infrastructure investments. Such investments are essential to maintain competitiveness and capture business growth opportunities.

With sufficient capital investment, Houston said the VPA has the opportunity to dramatically increase its already significant economic contributions, and to create a large number of new jobs across Canada. Market and economic assessments indicate that the Port's total contribution to GDP (including indirect and induced impacts) has the potential to grow from $3.4 billion in 2001 to $6.4 billion in 2020. Houston added, however, that the existing legislation will not support the required level of investment.

"Currently, we're mandated to operate on a cost-recovery basis and deliver revenue to various levels of government," said Houston. "We're compelled to act on the basis of often narrow and short-term revenue-maximizing considerations, and we have only a fraction of the investment capacity of competing ports in the U.S.

"This approach doesn't account for the strategic importance of ports as a component of public transportation infrastructure. And it won't serve either our user groups or our national economy well in the long-term. It's clear from current trends that many Canadian ports are facing growing competitiveness challenges and some may even be headed towards failure."

Among the specific legislative changes the VPA seeks are amendments that will:

• allow full reinvestment of operating profits (end stipend payments to federal government);



• remove a cap on commercial borrowing;



• resolve the issue of payments-in-lieu-of-taxes;



• provide ports with access to preferred borrowing vehicles;



• ensure assets from port land sales are held in trust for future re-investment;



• and remove the current prohibition on public investment in port infrastructure.

The growth opportunities identified by the Port of Vancouver range from a significant 17 per cent increase in bulk cargoes, to a massive 249 per cent increase in container traffic (between 2001 and 2020). However, none of this growth will be fully realized, Houston said, without the legislative changes now being sought.

"Growth potential on this scale provides compelling support for the legislative changes we seek," Houston said. "We look forward to making this case to the federal government, and anticipate strong support from port users and other stakeholders throughout the Western Canadian markets we serve."

The federal Canada Marine Act Review Panel has already held hearings in a variety of locations in Eastern and Central Canada. It will hold hearings in Winnipeg on October 11, followed by a series of west coast hearings later in the month, and a final set of hearings in Ottawa in November. It will report to the federal transportation minister early in 2003.

The Port of Vancouver is Canada's largest and most diversified port, trading more than $29 billion in goods with more than 90 nations. Port activities generate 62,000 jobs in total with $1.6 billion in Gross Domestic Product and $3.5 billion in economic output. Last year, 72.9 million tonnes were shipped through the Port of Vancouver.

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For more information, please contact:

Anne McMullin,
Director, Corporate Communications and Public Affairs
Vancouver Port Authority
(604) 665-9069 (office)
(604) 665-9073 (fax)
(604) 218-1403 (cellular)
anne.mcmullin@portvancouver.com

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