A tale of two ports

While Prince Rupert prepares to receive the first container ship at the new Fairview Container port in late October, across the continent they're bemoaning the decline of shipping at one of Eastern Canada's longtime ports.

In an Editorial page piece, the Halifax Chronicle Herald traces the decline of shipments from their container port, which is losing traffic to Montreal and the US Eastern seaboard, a fact that they suggest has not been lost on CN Rail, given their support and investment in Prince Rupert.

It's an interesting look at how trade patterns can change quickly in these modern times, where one day a port can be rendered to a back up role, seeking out a new markets and a new purpose all due to the whims of a change in the trade winds.

So much for new strategy

Halifax Chronicle Herald

Editorial Page

September 30, 2007

WHAT’S MOST galling about the Port of Halifax’s stagnation is the fact it comes when other ports are booming.

Halifax continues to lose business to ports in Montreal and along the U.S. Eastern Seaboard. The most recent figures show container cargo through the port was down nearly three per cent in the first six months of this year. (Halifax’s two existing container terminals are sitting idle almost half the time.)

Many promoters hoped Halifax could be the North American launch point for cargo coming from China and India through the Suez Canal, to avoid the backlogs building on the West Coast.

Since there’s plenty of overcapacity at the Halifax terminal, there is little wonder the Crown agency has been focused on China as the solution to the dwindling containers being unloaded in Halifax.

Unfortunately, this hasn’t happened. Even annual container cargo growth of three to four per cent, considered to be industry norm, isn’t happening in Halifax. So what is the Halifax Port Authority doing?

The Halifax Port Authority was born under disgraceful circumstances back in 1999, a creation of former prime minister Jean Chretien, who stacked the board with well-connected Liberals.

Sure, there’s lots of travel to be had. In its most recent semi-annual report, it noted officials travelled to 12 countries trying to sell the Port of Halifax.

It’s tempting to blame the patronage-ridden board for the lack of business being attracted to the port. But the fact is, Halifax is experiencing a tectonic shift in global trade – a shift to the other side of the world.

Earlier this month, a new container terminal on the West Coast opened; it basically circumvents any cargo coming to Halifax from Asia. The Prince Rupert terminal has become the Gateway for Pacific trade, reducing shipping times between Asia and Chicago by two days.

Last week, at the annual Halifax Port Days conference, a senior representative with CN Worldwide, Paul Tonsager, said Halifax needs to change its marketing strategy and not focus on China. Halifax faces several hurdles in attracting cargo business from Asia, including the long distance and lots of competition for China’s business. Plus, it’s getting more expensive to do business there, he said.

Mr. Tonsager described containers coming to Halifax from China as "a stretch."
CN knows this. The proof is it invested $25 million in the Prince Rupert terminal, not in Halifax.