Vancouver, B.C. - Trade through the Port of Vancouver grew four per cent to 79.3 million tonnes in 2006, with exports of canola showing a marked increase of 48 per cent over 2005 and container traffic reaching 2.2 million TEUs (twenty foot equivalent units).

In 2006, the port community worked very closely with transportation providers and labour to meet Canadian consumer demand and handle the ever-increasing growth through the Port of Vancouver, said Captain Gordon Houston, President and CEO, Vancouver Port Authority.

The Port of Vancouver was the only Pacific Northwest port to post overall tonnage growth in 2006. Strong Canadian market volumes and fewer cargo diversions through U.S. ports contributed to overall volume increases. However, according to Houston, maintaining Canadas competitive trade position requires that we continue to work with our industry and community stakeholders to develop sustainable growth solutions, including infrastructure, labour supply, reducing the ports environmental footprint, and gaining community support.

"Canada enjoyed strong growth in most commodities in 2006, with continued high Asian demand for Canadian exports," said George Adams, Chairman, Vancouver Port Authority. "This trend is expected to continue in 2007, and it will be important for the VPA to concentrate on building its cooperative relationships with stakeholders to meet demand for growth and efficiency."

Most sectors experienced growth in 2006, with the exception of dry bulk. Notable 2006 year-end statistics include:

Coal exports dropped 5.3 per cent.

With a 59 per cent market share, China continues to be the leading recipient of sulphur exports through the Port of Vancouver, but tonnage has fallen 11 per cent due to low volumes at the start of the year.

Potash volumes, particularly exports to China, remain below 2005 levels in spite of a 58 per cent recovery in the second half of 2006. Prospects for future growth remain good.

Overall forest products traffic was strong as a result of strong demand from Asia. Exports of forest products to China increased by 25 per cent to 2.2 million tonnes in 2006. Volumes of forest products exported to Japan and South Korea also increased by three per cent and nine per cent respectively.

Volumes of lumber exports to Japan, the port's largest lumber trading partner, increased by three per cent in 2006 after falling 18 per cent from 2004 to 2005. Japan's economic situation and the growth of its construction and housing markets drove lumber demand in 2006. Overall non-Japanese lumber markets are also strong and increased by 25 per cent in 2006 compared to 2005.

Breakbulk woodpulp exports from VPA terminals have declined since 2005. Excess global capacity and strong international competition have impacted the domestic industry. However, exports overall in 2006 were strong to the port's main woodpulp trading partners - Japan, South Korea, and China.

The sharp rise in canola exports, due to strong harvests and high global oilseed demand for producing biofuels, continues to drive total grain and agri-product volumes well above budgeted projections and 2005 volumes.

Tighter global markets and higher production have driven wheat well over 2005 volumes.

Petrochemicals are performing well as demand from Asia has been higher than expected. Outbound volumes increased by 61 per cent to China, which is the port's largest trading partner for organic chemicals. Volumes are expected to continue their upward trend over the coming months, as Asian economies continue to demand inputs into the manufacture of coolants and solvents as well as polyester resins, films, and fibers.

Crude petroleum volumes are back to their budgeted volumes after being 13 per cent below forecast for the first three quarters of 2006. Outbound volumes of crude to the U.S. increased by 142 per cent in November. Continued high demand from U.S. refineries towards the end of 2006 is keeping inventory levels high, which takes advantage of the current market - characterized by high prices and strong financial returns.

Breakbulk iron, steel and alloys at VPA terminals increased significantly again in 2006 compared to the same period in 2005. Major construction and building projects in BC and Alberta have continued to increase demand for import steel.

2006 season-end cruise results were down from 2005 as a result of cancelled sailings that were unanticipated at the time of the original cruise passenger forecast. It was also expected that there would be more sailings added to the schedule between the time the budget was set and the start of the cruise season. Seattle continues to be the main competitive threat to Vancouver's cruise business, but Vancouver still holds the cruise homeport market leadership position.

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

Cargo Totals	Dec. 2006 YTD Est.	Dec. 2005 YTD	Change ( %)
Total Tonnage (metric tonnes)	79,309,199	76,480,803	3.7 %
Dry Bulk (metric tonnes)	50,142,303	51,020,758	-1.7 %
Coal	23,902,144	25,234,048	-5.3 %
Sulphur	5,769,622	6,134,107	-5.9 %
Potash	4,683,837	5,878,160	-20.3 %
Forest Products (metric tonnes)	8,695,865	8,011,423	8.5 %
Lumber	2,222,582	1,994,964	11.4 %
Woodpulp	4,464,651	4,339,198	2.9 %
Grain (metric tonnes)	10,520,194	8,448,132	24.5 %
Canola	4,308,730	2,906,989	48.2 %
Wheat	5,605,720	4,898,830	14.4 %
Liquid Bulk (metric tonnes)	8,390,934	7,674,496	9.3 %
Chemical	2,900,019	2,661,335	9.0 %
Petroleum Products	5,389,026	4,904,863	9.9 %
Breakbulk (metric tonnes)	3,164,838	3,385,633	-6.5 %
Containers
Total TEUs (twenty-foot equivalent units)	2,207,730	1,767,379	24.9 %
Import Laden TEU	1,120,762	857,225	30.7 %
Export Laden TEU	762,388	668,665	14.0 %
Cruise Revenue Passengers	837,823	910,172	-7.9 %

The Port of Vancouver, Canadas Flagship Port, 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.


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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