Good afternoon, Ladies and Gentlemen,

And thank you for this opportunity to address Vancouvers business community. Of the many presentations I make on behalf of the Vancouver Port Authority each year, speaking to the Vancouver Board of Trade is one of the most important, and Id like to take this opportunity to set out our vision for the Port of Vancouver.

Vancouver is now on the road to be one of the largest and most effective gateways in North America. We have all the ingredients necessary to achieve a dominant position. We have a clear vision, mission and objectives. We have strong committed partners. Most importantly, we have an enshrined value system that sees sustainability as our number one priority.

I hope youll agree when you leave here this afternoon, the vision we are implementing for our Port is making us stronger every day, readying us to be the go-to port on the west coast of North America.

Now is the time to recognize that our economic growth and our vital contribution to Canadas role as an international trader will be increasingly tied to our Port and the Pacific Gateway infrastructure that supports it. And now is the time to show our confidence in the future and to work at all levels to make us that Gateway effective.

A remarkable story is unfolding at the Port of Vancouver and within the Port Community of shipping lines, terminals, and rail and road operators. Two years ago we had just returned from a trade mission to China where we witnessed first-hand the extent to which China is investing in the infrastructure it requires to be the global trading powerhouse.

Our vision for the Port of Vancouver is to be the port of choice in the Pacific West coast. This vision confirms our focus not only on being Canadas premier gateway but also an important US gateway. However, our mission focuses primarily on Canada. We intend to lead the sustainable growth of cargo and passengers through the Pacific Gateway in the best interest of Canadians. For instance, our marketing strategy is to position ourselves to capture one hundred percent of Canadas Asia Pacific cargo and secondly to incrementally grow the US Midwest business NOT by acting as a relief valve for California, but by developing a loyal customer base and providing reliable secure access to US markets. And so far we are proud of our results. In 2006, despite a very hot intermodal market and continued increase in trade between Asia and North America, we captured 95% of Canadas trade through the Vancouver Gateway, while at the same time doubling our US intermodal business.

Also two years ago at this very podium, I forecast that transportation was going to be the next great growth industry in Canada. That vision is now a reality as the BC Government has developed its Pacific Gateway Program, and last month the Federal Government re-iterated their commitment to the Pacific Gateway and Corridors Initiative, Prime Minister Harper, at Centerm, committed close to $600 million in federal funding to more than a dozen Pacific Gateway infrastructure projects. A sum Minister Falcon reminds us was described as a downpayment by a former Minister of Transport. A further $3 billion has been committed by the private sector between 2004 and 2010 to Pacific Gateway projects.

I am greatly encouraged by the current attention of the federal and provincial governments to the urgency of Pacific port expansion. The Government of B.C., in particular, is anything but shy when it comes to spelling out the potential of this provinces Pacific ports. At the Union of B.C. Municipalities conference late last month, Premier Campbell said - and I quote - "The world won't wait for us. We can't wait for Canada. It's time for us to lead."

Our world is changing. Here in B.C., we have the opportunity to be a major service centre for burgeoning Asian trade or we can become irrelevant to the shifting world economy. Given our geographic place in the world, we are about as gifted as any location, any city, any collective of people could hope to be. For us, irrelevance in our changing world is not an option.

How are we, at the Vancouver Port Authority, going to manage all this change and growth in trade through our B.C. ports? I have two words for you: Leadership and Sustainability. Ill come back to both.

10 Days ago, the Vancouver Sun Business Section carried a headline that said, quote, "Premier's Message: We're a vital link", unquote. He talked about the transportation projects that are either planned, under construction or completed, as is the case with our downtown container terminals having completed the first phase of their redevelopment. In total there are 21 projects listed in the Sun. 16 of these are directly related to the movement of freight at a cost that exceeds $10 billion dollars. Transportation has indeed become the great growth industry and will be so for the next 20 years.

To anchor our mission and performance goals, we have developed four key objectives:
- Improve the reliability and performance of the transportation logistics chain.
- Enhance the Port of Vancouvers social license.
- Coordinate the expansion of throughput capacity in the Pacific Gateway, and
- Increase the competitiveness of the Port of Vancouver.

We operate these four key objectives on a foundation of economic, social and environmental sustainability.

But at the VPA, everything starts with our people. To lead the growth of cargo and passengers for Canada, we have built a very strong corporate team. Of course we still have qualified mariners and security professionals, and some very knowledgeable people in rail, trucking and supply chain logistics. However we must recognize that this is a new era for our port and so we also have professional property developers, communications specialists, tax and policy experts, transportation planners, plus market and financial analysts in addition to many other excellent staff. To improve the reliability and performance of the transportation logistics chain, we need to provide expertise and reflect credibility. We have to be the source of knowledge for trade and growth, and, with our team, we believe we are.

We have an incredibly committed staff at the VPA, who know they are taking part in the greatest growth period in our history, and beyond.

To support this highly diverse group of people we are building the most sophisticated electronic-based monitoring and measuring system of any gateway in North America. We continue to test and refine this system to improve its relevance and accuracy. Once completed, this model will provide significant real time data on the performance of every section of our logistics supply chain, including vessel, terminal, truck and rail operations. We will be able to quickly identify blockages in the system and provide support to resolve them. We believe that solid measurable data across the supply chain will help to keep it at peak performance. We also believe that measurement will hold all stakeholders accountable for the impact they have on this shared transportation system while providing better forecasting for future capacity needs across all sectors. We built this system with technologies such as RFID and Internet reporting, but the system works because it's really built on the solid relationships we have with our stakeholders.

Which leads me to the next ingredient for success: strong committed partners. These include railways, terminal operators,labour, governments and shipping lines.

Both CP and CN have invested heavily in the Vancouver Gateway over many years. There is no doubt that the rail network serving our gateway is one of the best in the world, with good access to key markets both in Canada and the US. There is also no doubt that a few years ago this network came under considerable stress as everyone underestimated the speed of growth of the Chinese economy. This has given rise to much speculation in the media by opportunists and naysayers about the inability of the rail network to meet demand. This is a fallacy. Comprehensive modeling of the rail system coupled with long term growth commitments by the railways show that there will be enough capacity to service the forecasted growth in tonnage from its present 76 million to 110 million tons by 2020. And new operational processes, such as co-production at the Port of Vancouver prove that collaborative change can improve operational fluidity for the railways, for the ports they service, and for their customers. These changes underscore the level of collaboration we need from our partners to advance the Pacific Gateway.

At this point I would like to congratulate all our partners in the movement of containers through the Port of Vancouver. Our calculations show that in two days time, on the 30th of November this year we will have handled 2 million TEU this year for the first time in our history. So on behalf of our Board management and staff a great big thank you to everyone involved in the movement of this traffic.

Vancouver terminal operators also continue to show strong long-term commitment to the Vancouver gateway. Bulk and container terminals are investing heavily in their facilities to increase capacity and improve productivity. In the container sector alone, last year each of our three terminals took delivery of super-post-Panamax quay cranes and new rubber-tired mobile gantries. Each container terminal operator either completed or will soon begin multi-million dollar capacity expansion projects. And, because of their strong confidence in Vancouver, more and more terminal operators in all sectors are looking to sign long term leases and contracts to secure their tenure in the gateway for decades to come. Marine terminals, because of these long term leases are very attractive to financial institutions that need a long term, steady income stream. Such is the interest that 3 of the Lower Mainland terminal operators, or their parent companies, are exploring opportunities to capitalize on their leases.

As I said earlier, our government partners also recognize the considerable business and economic potential of the gateway. Through their gateway programs and other transportation initiatives, our federal and provincial governments are investing in infrastructure at a rate not seen since the 1950's. Just as important as the financial investment, these programs provide a policy blueprint for governments to support a competitive and growing transportation sector in our country.

Many shipping lines are also cementing their commitment to the Vancouver gateway. We intend to provide our customers in the shipping industry with reliable service at the lowest possible cost. However, in this changing transportation market where demand constantly outstrips supply, we are looking to solidify long term relationships with shipping lines who see themselves not just as customers but also as partners willing to work with terminal operators, railways, labour and other stakeholders to improve the efficiency and productivity of our gateway and ultimately to meet the needs of end users.

We are exercising our Leadership as we build new relationships within the trucking sector to streamline processes and provide reliable service for our importers and exporters. The trucking industry is a vital and essential component of the national transportation system and its reliability critically impacts port business and our economy. In the Lower Mainland, container trucks alone transport 33 million dollars worth of goods every day to local or provincial markets.

The VPA's "Strategic Trucking Program" comprises several initiatives to smooth the flow of container truck traffic and contribute to environmental and terminal operational efficiencies. Our "Truck Licensing System" implements specific operating, safety, environmental and security requirements. Were moving toward 24/7 container truck operations by operating extended gates in cooperation with our terminal operators and major off-dock facilities. We're reviewing a centralized truck reservation system to speed truck turnaround times. We're equipping trucks with radio frequency identification (RFID) transmitters to collect data and pinpoint operating and environmental enhancements. We're also examining the concept of near-dock facilities to relieve our marine terminals from serving as container warehouses. And we're working to develop an electronic, web-based tool that captures and reports data to help port users make daily operational decisions.

As I've already mentioned, the speed and volume of international trade has increased. We know that container traffic on the west coast of North America will triple in the next 20 years, thanks to demand from Asia. The Port of Vancouver has the opportunity to capture at least 5 million TEUs by 2020, so were increasing terminal efficiencies, expanding existing terminals and building new facilities. This aggressive program will increase our terminal capacity to manage increasing tonnage throughput.

Increasing speed and volume also means we will see rapid improvements in road and rail capacity to allow goods to move to market more efficiently. And at the same time, we will see huge improvements in productivity made possible by new technology, better information systems and 24-hour-a-day operations. All these programs will promote economic prosperity and ultimately increase the wealth of our nation.

But economic generation is not enough. Aggressive building programs and more efficient operations will not be enough. As a community we want to see our economy grow in a sustainable way that recognizes and protects our quality of life and our environment.

We must ensure that our operations continue to be sustainable not only economically, but also from an environmental and a community perspective. More business must not translate into stress on our environment or health issues for our neighbours. Increased trade must not mean decreased livability in our surrounding region. Wealth generation must not result in gridlock on our road networks or impose a threat to the security of our communities through industrial accidents or terrorist threats.

By working with industry partners and the provincial and federal governments in initiatives such as the gateway program and the transportation security program, the Port of Vancouver is helping to develop a transportation network in Canada that is not only a leader in efficiency but also a leader in sustainability.

For instance, possibly the greatest environmental threat to our community from transportation is a reduction in air quality. In response to this threat, the VPA has implemented an integrated air emissions reduction program for the Port of Vancouver. We are committed to a clean air program that will ensure, among other benefits, a reduction in diesel emissions and a greater use of alternative cleaner energy in our gateway. This year, we will implement idle reduction zones around some of our terminals and on our port roadway. Our tenants and shippers have also pursued separate opportunities on their own, including use of automatic shut-off for locomotives to reduce idling in terminals, evaluating the use of hybrid gantry cranes, and testing fuel borne catalysts and supplementation for ship and truck engines.

To achieve our mission of leading the growth of cargo and passengers through the Pacific Gateway in the best interests of Canadians, we envision a transportation pipeline stretching from our trading partners around the world through the Vancouver Gateway to service our markets in Canada. This pipeline will ensure easy access to trade, but at the same time it will be protected from threat. It will be fast and efficient, but at the same time it will protect from harm the communities it touches. Finally, it will grow to meet Canada's trading needs but at the same time it will protect the natural environment through which it passes. Operating on a foundation of economic, social and environmental sustainability will help us realize our vision.

As we have progressed this path of identifying operational weakness and removing them, we have become much more aware of how our actions are linked to everyone else in the supply chain. We are now much more conscious of the need to work as a whole chain before we implement changes which may improve our part of the operation but be a detriment to others. Joint operational planning is becoming the norm. The next step in this progression comes from Fred Green the President and CEO of CPR. We now need to bring this same thinking to our long range strategic planning such that we have an understanding and certainty in each others capacity and actions. We will be able to support each others investment timetables as they will be in the best interests of the whole chain. The same philosophy would apply to policy and regulation.

Deltaport Third Birth expansion has received environmental approval by both the provincial and federal governments, and now all we require the Authorization to proceed.

But there's another piece that has to be in place if we want to acheive our vision: Terminal 2. The second phase of the Roberts Bank Container Expansion Program, Terminal 2 will be independent of Deltaport and is essential to our being the West Coast port of choice for our Asian customers.

Deltaport Third Berth took almost four years from the time we advised governments of our intention to build DP3 until we received our approvals this month. It has taken longer to get approval to build than it will to actually build the expansion. While we're letting this time slip through our fingers, our competitors along the U.S. Pacific seaboard are expanding their facilities to capture as much Asian trade as possible. The 17 month delay has cost VPA some $80 million dollars. $80 Million that could have been put into sustainability programs and other infrastructure.

The transportation industry in Canada, and the port system in particular, needs planning consistency and certainty, for itself and its customers, in order to inject massive investment dollars and resources into infrastructure development. Governments must find a way to speed regulatory and environmental processes while still maintaining rigor and accountability. Industry needs process clarity. In the case of billion dollar investments, like a new port terminal for instance, private investment plays an enormously significant role. And investors do not want to tie up their resources on a "long slow road to maybe."

In China at the beginning of November, I was surprised to hear of a transportation conference, in India, where one of the topics under discussion was "The Problem With Canadas Transportation System." I issue a challenge to all who have a role in providing the financing or assessment or building the infrastructure, that Canada and the Province of British Columbia needs, to reverse this reputation. Prove that working with the VPA we can have Terminal 2 open for business in 2012. This would coincide with the opening of the South Fraser Perimeter road project linking Roberts Bank to our major highways. If we believe it can be done, it will be done. Work with others in the industry, and our colleagues in government to ensure a process that takes into account the commercial needs of this country all the while recognizing the need for sustainability.

Let me speak for a moment about our commitment to leadership in sustainability and how that will transform our relevance to our operating communities and our stakeholders throughout B.C. and Canada.

From the narrowest perspective, the VPA is a landlord and enforcer of safety and security in our waters. Many in fact, most of the growth-related issues that are seen as negative in our operating communities are not of our making. Im talking primarily about increased road and rail activity, which has social and environmental implications for communities like Delta and Langley communities that dont necessarily see themselves as thoroughfares for growth in Canadian trade.

These communities are rural by choice. They are bedroom communities to a big city, by choice. Retirement communities, by choice, and communities where young couples start families choosing to be out of the urban environment.

They didn't ask to be Canada's trade corridor, and they dont much like the collision of their chosen lifestyles with Canada's destiny as a Pacific trading partner.

Is that our concern? I believe it is.

We may not be directly responsible for the increased traffic that will cause these communities problems. We may have little direct authority to tell transportation operators what to do.

But, when we broaden our perspective from the tasks that fall within our purview to the role that the VPA must play in fostering responsible growth, we do have the moral authority - and the responsibility - to lead the Port Community to better answers, to facilitate dialogue with stakeholders, to bring the right parties to the table to solve problems in mutually beneficial ways.

Within the global port community, however, we are an early adopter with enormous potential to lead.

Moving to the social side of sustainability, we are taking the lead with First Nations to ensure that their aspirations are taken into account as local maritime activity responds to unprecedented growth.

Social sustainability also includes our commitment to our own employees, to fairness and equity in the workplace, to opportunity for our people to grow in their own careers as their employer grows in impact, significance, and relevance to Canadas aspirations.

We were very pleased in 2005 to be named as one of Canada's Top 100 Employers by Maclean's magazine even more so to be cited as one of B.C.'s Top 30 employers this year as part of Maclean's annual survey.

The third dimension of sustainability is environmental stewardship. Here again, we are leading in many respects and determined to lead in all. We were the first port in North America to assign a dedicated team to environmental issues. We are ahead of many of our competitors in introducing initiatives to monitor and improve air quality, reduce GHG emissions, and increase fuel efficiency.

We are a leader in the SECA effort to cut sulphur emissions from our Port Community activities by 50%. And we were an early adopter to introduce third party audits to identify and minimize all environmental impacts from our operations.

A moment ago, I referred to our ability to create incentives for better environmental performance. One we're introducing to reduce air emissions is a Harbour Dues structure that rewards better performance in this area. Ships that go above and beyond minimum requirements in managing their air emissions will pay less when they enter our waters than those that are merely meeting regulations. This "going above and beyond" philosophy has been a hallmark of our environmental efforts at VPA for some time. Let me give you some specific examples:

- Through our own environmental project review process, we assess environmental impacts that may arise from our tenant' activities. Though they are required to comply with government regulations, we encourage them to go farther optimizing their environmental plans to exceed minimum standards.

- Our Integrated Air Emissions Reduction Program is designed to reduce air emissions from all sources relating to the Port of Vancouver, including ships, terminal equipment, trucks, and rail. The new Harbour Dues incentive plan I mentioned is part of this program.

- We're investing in a seawater scrubber technology pilot program that the Holland America cruise line will use to reduce particulate and SO2 emissions from cruise ships, as early as next year.

There are many, many more examples I could give you of the VPA's leadership in environmental stewardship within the Port Community, both locally and internationally.

Our commitment to sustainability, like yours, starts with our "social license" to operate. What does that mean? In my view, a "social license" is something the public bestows upon you. And the public bestows it on one basis, and one basis only trust. Trust that you have at heart the best interests of society as we operate, plan and develop Canada's Flagship Port.

It's not something that can be commanded. It doesn't go with the territory. You dont sign it. You earn it. You earn it every day, in everything you do.

I am very proud that - at our port in Vancouver, Canada - our people understand their responsibility to earn that public trust. They go much farther than that. After all, they believe in the great enterprise in which we are currently engaged to be Canada's Gateway to the emerging in the new economy.

Again, for us, the keys to delivering what Canada expects from its West Coast Port are leadership and sustainability.

The VPA has accepted the mantle of Port Community leadership in Vancouver. And we know our leadership must be guided by the principles of sustainability as we seek to find, in collaboration with all our Port Community partners, the best possible solutions for all stakeholders in port development.

I have never felt more confident that we can do it. In fact, we're doing it every day.

At the VPA, we deeply believe that our commitment to growing in a manner that ensures the sustainability of our business, our host communities, and our marine environment gives us a considerable competitive edge.

Thank you.

(end)

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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