I must say that I was pleased to see the AGM's theme of "the economy and the environment".

As the Port of Vancouver continues to build and expand its operation, we are also becoming increasingly mindful of the environment and what environmental responsibility means to our stakeholders and social license.

In keeping with the AGM's theme, I will share insights about our economy, business sectors and our environmental initiatives.

Economy, Business Sectors & Some Port Statistics

First, with respect to the economy, the Port of Vancouver and its 25 marine terminals are vital to both local and national economies.

Let me put this into perspective:

-The Port of Vancouver trades $29 billion dollars in goods with more than 90 trading economies annually$29 billion dollars, that's nearly one-third of the $100 billion dollars generated annually through Canada's entire marine trade

-We generate

o62,000 jobs across the country
o$1.3 billion dollars in direct wages
o$3.5 billion dollars in economic output
oand $620 million dollars in taxes

-We rank number 1 in total foreign exports
-And we're number 1 on the West Coast in total cargo

And, we continue to show signs of greater growth and greater prosperity.

In 2003, the Port of Vancouver increased shipments by 6% to 66.7 million tonnes.

Each of the Port's four business sectors remains strong.

Bulk shipments increased 7% rising to 51 million tonnes.

Shipments of Coal, our largest export commodity, rose to 24.2 million tonnes and we've seen an increase in demand for crude petroleum, grain and potash.

Break-bulk shipments remained relatively steady at 3.16 million tonnes. Within this sector we are witnessing the ever-increasing trend of containerization for lumber and wood-pulp products.

In 2003, the container sector set a new record of 1.54 million TEUs, up 6% over the previous year.

Trade with Asia is exploding. Currently, 62% of the Port of Vancouver's exports are destined for Asia, while more than 66% of our containerized consumer goods are imported from Asia.

We expect container shipments through Port of Vancouver to reach 5 million TEUs by 2020 that's about 3 times current volumes, if you can imagine.

How will we handle this extraordinary growth in capacity?

First, we can manage growth by working with our valued business partners partners like you to plan, finance and build capacity.

Plans are in process to increase capacity at Vanterm, Deltaport as well as Centerm and Lynnterm. We are committed to helping our terminals for the projected demand.

Our Port's fourth business sector, cruise, makes the Port of Vancouver unique. As the homeport to the Vancouver-Alaska cruise market, the Port last year welcomed

-Just under one million revenue passengers
-and 307 sailings

Each year, our cruise sector contributes $508 million dollars to the regional economies.

Clearly, thousands of Canadians benefit from the strength of these four business sectors and the exceptional international trade relationships that the Port and terminals have developed.

The Port's ability to provide our trade partners with a fast, efficient, reliable gateway and infrastructure system to quickly transport their goods to various North American destinations is our mutual goal.

Government Support & Relations

I know our provincial government's leaders Minister Falcon and Premier Campbell are aware of the Port's vital contributions to British Columbia's economy, and I wish to thank them publicly for their inspirational leadership.

The provincial government has shown its support by passing legislation that caps the municipal tax rates on existing terminals.

This legislation provides acceptable rates on new investment in port facilities. We have 400 million dollars in new commitments.

In March 1999, Canada Marine Act legislation came into effect and transformed the Vancouver Port Corporation into the Vancouver Port Authority. The Act appointed a board of directors that has the authority to operate the port as a stand-alone business.

The Board works with the Port's executive team to:

In particular, the Board of Directors has the authority to:

-develop the Vancouver Port Authority's strategic plan and direction
-approve the Vancouver Port Authority's annual operating budget
-determine the Vancouver Port Authority's short and long-term capital commitments
-fast-tracking is now an option

For example, the Board approved the 89 million dollar expansion of cruise facilities after only 3 meetings; the expansion was completed under budget and a year in advance of the cruise season. Before the legislation, this would have taken at least a year to approve.

Another example was the decision to double the capacity of Deltaport.

The Board approved its expansion after 2 meetings the project was completed on time, within 6 months, and under budget.

The Canada Marine Act and the establishment of a business-oriented Board with local decision-making authority has been instrumental in the Port's ability to complement our terminals' strategies.

The Act aided the Port of Vancouver to remain competitive and to enhance its international reputation as an efficient, reliable port.

Security

Is now on all Ports' radar screens.

Recently, on May 9th, the federal government lent its support to Canada's ports and terminal operators by committing $115 million dollars in security funding over three years.

Today, with International Ship and Port Security requirements, the reality is that all ports must invest in security in order to remain in business.

Ports around the world are working diligently with stakeholders to meet the July 1st ISPS code deadline.

I am pleased to say that because of our proactive approach to security, the Port of Vancouver's security initiatives are on schedule and I am confident we will meet the July 1st deadline.

Environment

We are committed to operating in an environmentally responsible manner that is balanced with the interests of our stakeholders.

We work with our partners in environmental stewardship to reduce and mitigate environmental risks and impacts made by port users and our operations.

We were the first North American port to establish an environmental department and in 1997 we were the first port in North America to introduce a mandatory mid-ocean ballast exchange program for ocean-going vessels.

To support marine life, the Port installed innovative concrete habitat panels under the cruise ship terminal. These panels provide an important feeding habitat for juvenile salmon and other fish species.

Over the past year, we have established and moved forward on many environmental initiatives.

-We conducted a study that assesses how the Kyoto Protocol affects Port activities and identifies opportunities to reduce greenhouse gases

-We debuted a pilot program that aims to reduce air emissions from diesel engines and the testing of a fuel additive that improves combustion efficiency and reduces nitrogen oxide, carbon monoxide and volatile organic and particulate matter.

-We researched cruise ship regulatory processes and the environmental impacts of cruise ships on Burrard Inlet and local communities.

-And we worked with the Department of Fisheries and Oceans, Environmental Canada and the Ministry of Water, Land and Air Protection to develop an outfalls guide for surrounding communities.

In conclusion, federal, provincial and municipal governments support investments in security, environmental responsibility and most of all our working relationships with partners like you, stakeholders and customers are what establish the Port of Vancouver as an efficient, reliable, safe and secure world-class Port.

On behalf of the Board and our dedicated staff, I wish you an enjoyable, successful conference.




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

For more information:
For more information on any of these stories, call 1-888 PORTVAN.
Or, send an email to:
public_affairs@portvancouver.com