Good morning.

Its a pleasure to be invited by Deputy Minister Doyle to address so many of my colleagues in the transportation sector.

Today, I want to share with you my vision for the Port of Vancouver. Specifically, I want to talk about the need for all of us to work together to create an integrated transportation system that meets the demands of provincial and national economic growth.

I've said it before, and I'll continue to say it, I believe transportation is our countrys next great growth industry. Moreover, I believe it's critical that we stop thinking about transportation industries in Canada as simply facilitators of trade.

We are economic engines in our own right. And today, thanks in part to the rapid expansion of Asia-Pacific trade, transportation is helping to drive our provincial and national economic development.

As part of today's presentation, I will speak at length about the role of your ministry in the Asia-Pacific trade and in the Canadian economic expansion.

But before I do that, I'd like to provide some background on the Port of Vancouver for those who may not be familiar with the scope and impact of our port.

The Port of Vancouver is Canada's largest port. Each year the Port trades more than $29 billion in goods with more than 90 trading economies.

This is something our organization is proud of. But, in fact, all Canadians should be proud of these achievements. We must recognize that the accomplishments of Canada's largest port represent the broader economic opportunities available to Western Canadian workers and businesses.

But despite the pride I feel in our accomplishments to date, I also believe we are on the brink of an even brighter future. I believe that over the next 15 years, we will see the greatest period of expansion in the Port of Vancouver's history.

So where does my confidence in the future come from? As some of you may know, the greatest area of growth in international marine commerce today is container volumes.

Increasingly, Asia and China in particular have become a global manufacturing center with high demand for Canadian resource commodities and high North American demand for Asian-manufactured goods, all of which pass through the Port of Vancouver.

Containers are definitely the fastest growing segment of our business. It is also the most valuable, generating nearly 50 percent of our revenues by sector.

And so the increase in container volumes presents an opportunity for the Port of Vancouver to become an economic force serving as a transportation hub for all of North America.

So how can we make sure we capture this opportunity?

We must prepare for it and meet the projected growth head on. I take pride in knowing that the Port of Vancouver is ready. And that we have a plan in place to build out our capacity over the next 15 years.

I would also like to acknowledge the tremendous effort the Prince Rupert Port Authority is putting into the proposed development of container facilities at Fairview terminal. We all know that Rupert has the space for the development, it also has a great need for some development to revitalize the town and I wish Don Krusel and the port well in their endeavours.

This plan is our multi-faceted initiative to expand container capacity at the Port. It means the enhancement of container handling facilities on the south shore of Burrard Inlet, work that is being done today.

It includes the addition of a third berth to the existing Deltaport container terminal, the development of a new three-berth container terminal at Roberts Bank and the possible conversion of an existing terminal to handle containers.

The following map illustrates the location of terminals undergoing expansion under the Container Development Program with Centerm, Vanterm and Lynnterm in the inner harbour and Deltaport and T2 at Roberts Bank in Delta.

This next slide illustrates some of the economic benefits associated with our expansion program.

Collectively, these projects will require the Vancouver Port Authority and its partners to invest more than $1.4 billion. But by the year 2020, this initiative will generate more than 38,000 new jobs, annual wages in excess of $1.8 billion, and more than $2.5 billion annually in GDP.

On the construction side alone, our developments will generate nearly 15,000 person-years of employment.

Clearly the benefits of expansion are awesome. But you may wonder what is driving this growth? My answer is simple: It's Asia, and China in particular.

This brings me to the next important development I want to address. I'm sure all of you have seen some of the recent media coverage around China.

China's remarkable economic growth and rising demand for international products has attracted the attention of economists, reporters and governments around the world. And while the opportunities associated with China are significant, we have just begun to see their impact on Canada and the Port of Vancouver.

To capture these kinds of opportunities we need to move fast and we need to work together to put in place the kind of infrastructure that will ensure we retain Asian business. If not, they will go elsewhere and all of us will lose out on years of valuable business opportunities.
Capital investment in our port will only carry us so far. Investment in our road and rail infrastructure is required as well.

I am happy to say that we have been working together to ensure these opportunities are realised.

In October 2004, a Memorandum of Cooperation was signed between the Vancouver Port Authority, YVR and the Ministry of Transportation. With the goal of fully developing the Port of Vancouver's role as a gateway to North America, the document represents the BC government's recognition that an efficient transportation infrastructure is required for future economic growth, and that transportation is a growth driver in its own right.

This initiative has brought together key people at the province, the airport, and the port and will provide us with the opportunity to work together on many initiatives to realize our collective goal.

The VPA has also been proactive in seeking solutions and working closely with your ministry, and municipal governments to find road solutions. We are working with railways to find solutions to alleviate traffic congestion, increase production and pave the way for the growth.
Rail solutions require money and we need to create an environment that makes railway investment attractive.

Already, we are thankful to our rail partners who have taken steps to prevent delays or handle some container backlogs you've heard about through co-production agreements and other innovative programs. But there is still more to be done.

We are also facing similar issues with our road network. The growth of Asia-Pacific container trade is putting more and more trucks on our roads and highways at a time when overall road congestion is growing.

In the same way that our railways must be encouraged to make strategic investments in our countrys rail infrastructure, our federal and provincial governments must be encouraged to invest in the countrys road infrastructure.

Listed on my final slide are just some of the regional projects under consideration to expand the movement of goods and passengers through our gateway.

Ultimately, our goal is to find an integrated port/road/rail transportation solution in the Lower Mainland to facilitate the efficient movement of goods and people throughout the region. The consequences of not addressing the growing capacity deficit across Canada's transportation network are dire.

Not only do we risk losing out on the tremendous economic opportunities associated with facilitating trade between North America and Asia, we also run the risk of undermining the competitiveness of the Canadian industries we serve.

So, you ask, how does the work of the Ministry of Transportation link with the major players in the transportation industry to help us meet these challenges?

First, through the Transportation Investment Plan, implementation for the necessary infrastructure developments are being acted upon. We need to get construction on these key projects underway. While I recognize that there is a need to consult with communities and that there are huge pressures to spend public funds on a range of expensive projects, initiatives that support our gateway need to be made a priority. It is worth noting that our container expansion program will generate $2.5 billion in GDP, which will in turn generate in the neigbourhood of half a billion dollars of additional tax revenue every year enough to pay for a whole range of other government priorities.

Second, ministry staff play a large role in ensuring that their federal counterparts understand the importance of transportation as an economic enabler. We now have the ability to work together to ensure that the federal government makes necessary changes to legislation to ensure the port, the airport and the province can compete with others in the transportation market. While in the context of British Columbia, these initiatives command and earn the attention of the provincial government, but your federal counterparts will spend only 10% of their time thinking about British Columbia. We need to get these initiatives at the top of their agenda too. After all, Ottawa and Victoria will get an equal share of the benefits. Thank you for helping us make our transportation network a top priority in Ottawa.

Finally, by getting to know our business and gaining a solid understanding of how the Port operates and does business, you are in a better position to help us meet these challenges. This forum today is an excellent example of how the ministry is working with us and is a valuable learning process for us all. The Memorandum of Cooperation we signed in November is providing the opportunity to speed up results and find more creative solutions to mutual transportation problems. The other exciting initiative that the province has recently been working on is the B.C. Ports Policy that provides initiatives that we can all work toward to make our province more competitive. I believe the Policy will also be a great motivator in bringing us all closer together to work as one cooperative regional entity. Inviting us here today was a great first step in developing a cooperative relationship, now let me extend an invitation to you to come and see the Port in action. I would be pleased to have our staff organize an operations briefing and harbour tour for Ministry staff.

Remember this: If we build it, Asia will come. But if we cannot accommodate their growth, they will be forced to seek other gateways. And provincial and national Canadian economic growth will suffer.

There are huge opportunities. Huge challenges. That is what Asia-Pacific trade represents for our port, our transportation industries, our province and our country. So we must find ways to capture these opportunities to the benefit of Canadian workers and businesses.

As I've said, strategic investments in our regional and national transportation infrastructure, in our roads and rail systems are crucial to realizing the bright future I've laid out today.
Our opportunity spans well beyond Canada's export trade, we have an opportunity to facilitate trade throughout North America.

But for this to occur, our transportation system must be ready to meet the projected growth head on. It requires public leadership and we thank the BC government for their role so far.

But this will only happen with a cohesive strategy and the right kind of investment in road, rail and marine transportation to ensure we capture the opportunities we are being presented with.

The future is bright for the Port of Vancouver. It is bright for British Columbians and for all Canadians. And I believe that the enhancement of the transportation system is crucial if we are going to realize the incredible possibilities before us.

But we have to be ready and we have to do it quickly. Because the sooner we stop talking and start acting, the sooner BC and the entire country will benefit.

Thank you.


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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