Port of Vancouver Records Moderate Increase for 2005

Vancouver, B.C. - Trade through the Port of Vancouver grew four per cent to 76.3 million tonnes in 2005 with exports of petroleum products and canola showing marked increases of 27 per cent and 17 per cent respectively; and, container traffic attaining a new record of 1.77 million TEUs (twenty foot equivalent units). Increases in trade activity and demand from China, Asian economies and the U.S. indicate the critical need to expand capacity and implement supply chain efficiencies to accommodate future growth.

"We will continue to lead the expansion of the Pacific Gateway through terminal expansion projects and by driving action across the nation's transportation sector to improve efficiencies," said Captain Gordon Houston, President and CEO, Vancouver Port Authority. "Growing demand provides significant opportunities to strengthen the Canadian economy and employment, yet competing ports in the U.S. are expanding at a fast pace." Major U.S. west coast ports recorded double-digit increases at the end of November 2005: Seattle 18 per cent, Long Beach 18 per cent, Tacoma 16 per cent, and Oakland 13 per cent. "We must maintain our competitive position through improvements and capitalize on these opportunities, otherwise economic benefits will be lost," said Houston.

Notable 2005 year-end statistics include:

• Breakbulk shipments increased by two per cent with steel imports offsetting reductions in the export of forest products.


• Forest product exports decreased five per cent to 7.8 million tonnes. Forest products represent 10 per cent of the port's exports.


• Lumber shipments decreased 12 per cent to 2.0 million tonnes. The Mountain Pine Beetle infestation, rising production costs, U.S. softwood lumber duties, and lower-cost lumber supplied by competitors in South America, Eastern Europe and Russia have affected demand for B.C. lumber.


• Wood pulp exports decreased four per cent to 4.2 million tonnes due to high production costs and lower cost wood pulp supplied by competing economies Brazil, Russia, China and Eastern Europe.


• Total bulk shipments increased by four per cent to 58.6 million tonnes. Bulk products represent 77 per cent of the port's traffic.


• Total liquid bulk shipments increased nine per cent to 7.6 million tonnes including a substantial increase of 27 per cent to 4.9 million tonnes in petroleum product exports. This reflects increased exports to the U.S. with Canada taking over from Saudi Arabia and Mexico as the U.S.'s number one supplier of crude oil.


• Coal exports increased by two per cent to 25.2 million tonnes. Coal continues to be the port's largest export commodity in terms of volume.


• Grain exports, overall, decreased two per cent to 8.5 million tonnes largely due to a six per cent decrease in wheat to 4.9 million tonnes, a result of wet harvests; and, due to a 37 per cent decrease in barley, the result of a fall in the availability of malting quality exports.


• Canola exports increased 17 per cent to 2.9 million tonnes as a result of growing demand and good crops that increased supply.


• Sulphur exports decreased by two per cent to 6.1 million tonnes due to a drop in demand from Brazil and Australia and the impacts of hurricanes in the U.S.


• Potash exports decreased slightly by 0.4 per cent to 5.9 million tonnes as some Saskatchewan producers diverted potash to Portland due to capacity and rail issues at the Port of Vancouver. The Port of Vancouver's Neptune Bulk Terminals (Canada) Ltd. received approval January 11, 2006 to expand its existing potash storage facilities. The $93 million project will help meet the growing demand from Asia.


• Container shipments increased six per cent to 1.77 million TEUs sets a new record for container shipments through the port. Consumer demand for Asian-made goods continues to rise as is indicated with the record 857,500 import laden figure, an increase of 10 per cent over the 2004. Throughput efficiencies and equipment upgrades served to accommodate this growth.


• Cruise experienced a two per cent decline recording 910,000 revenue passengers and approximately fourteen fewer sailings. The 2005 season included new programs introduced to strengthen Vancouver's competitive position for the future and the port received high marks from passengers for programs and service.

"Forecasts indicate a 25 per cent increase in bulk cargo shipments and a 300 per cent increase in container volumes over the next 15 years," said George Adams, Chairman, Vancouver Port Authority. "To satisfy demand and handle ever-increasing growth through the port, we must work together with our partners in trade and transportation to quickly and effectively improve capacity and supply chain efficiencies."

The following is a statistical summary by sector and major commodity:

Cargo Totals	Dec. 2005 YTD	Dec. 2004 YTD	Change (%)
Total Tonnage (metric tonnes)	76,309,706	73,576,748	3.7%
Total Bulk (metric tonnes)	58,641,781	56,212,000	4.3%
Dry Bulk	51,075,777	49,265,872	3.7%
Coal	25,234,048	24,700,578	2.2%
Major Grains	8,460,747	8,609,380	-1.7%
Wheat	4,903,168	5,225,222	-6.2%
Canola	2,907,015	2,492,857	16.6%
Potash	5,878,253	5,900,836	-0.4%
Sulphur	6,074,033	6,227,180	-2.5%
Liquid Bulk (metric tonnes)	7,566,004	6,945,661	8.9%
Chemical	2,658,423	2,750,922	-3.4%
Petroleum Products	4,940,055	3,894,764	26.8%
Total Breakbulk (metric tonnes)	3,377,872	3,302,000	2.3%
Forest Products (metric tonnes)	7,821,352	8,249,992	-5.2%
Lumber	1,967,376	2,252,524	-12.7%
Wood pulp	4,219,639	4,406,315	-4.2%
Containers
Total TEUs (twenty-foot equivalent units)	1,767,379	1,664,906	6%
Import Laden TEU	857,459	782,675	10%
Export Laden TEU	668,665	694,787	-4%
Cruise Revenue Passengers	910,172	929,976	-2%

The Port of Vancouver is Canada's largest and most diversified port, trading more than $43 billion in goods with more than 90 trading economies annually. Port activities generate 69,200 jobs in total with $4 billion in Gross Domestic Product and $8.9 billion in economic output.
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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)
(778) 231-6978 (cellular)
anne.mcmullin@portvancouver.com

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