Bigger is better and maybe more competitive

While we continue to head towards the fall 2007 opening of our Fairview Container Port, Vancouver is getting ready to make a move of its own.

The three major ports of the Lower Mainland, Vancouver, North Fraser and Fraser River have agreed that unity is good and hopefully financially rewarding.

Plans are in the works to merge the three into a super port of BC, turning the three destinations into one giant clearing house of goods from the Pacific Gateway.

The move stems from a report back in 2004 that called for greater unification of all West coast ports both on Vancouver Island, the Lower Mainland and Northern BC.

While it’s probably a good move for the three Vancouver terminals to get more in synch, the idea of merging the Rupert Port into a more streamlined unit with the southern ones will probably be a hard sell locally. Always suspicious northerners, looking back at the Grain shipment controversies of the past, will be wondering why the southern ports are suddenly so interested in our well being.

Competition can certainly garner a bit of attention and with all the buzz about the Fairview Container port and it’s potential for the future, the idea of letting the Vancouver Ports have a say isn’t going to be the easiest proposition ever put forward.

Don’t expect to see too much movement on a North South alignment any times soon; they’ll have more on their plate just getting their local players on the same page in the short term.

The Daily News provided details on the proposed plans for the changes to the Vancouver waterfront.

B. C. DOCKS GETTING BEHIND NEW PUSH FOR ‘SUPER PORT’
Lower Mainland facilities looking to band together for economies of scale.
By Leanne Ritchie
The Daily News
Tuesday, November 28, 2006
Pages one and two

The Lower Mainland’s three gateway port authorities are one step closer to becoming a single integrated port.

The ports of Vancouver, North Fraser and Fraser River ratified a recommendation to become a single Canada Port Authority yesterday.

“The report confirms that integration of port activities in the Lower Mainland can enhance Canada’s competitiveness in the global trade environment, and is the most effective means of optimizing port planning, development and marketing,” said Vancouver Port Authority Chair George Adams.

The report was prepared by InterVISTAS Consulting Ltd. and commissioned by the three port authorities after they were invited by the Hon. Lawrence Cannon, Minister of Transport, Infrastructure and Communities to discuss the issue with department officials on July 6.

The group was tasked with finding ways for the Lower Mainland ports to explore opportunities that will allow them to become even more globally competitive and capture a larger share of growing Pacific trade volumes.

“An integrated authority was recognized as the best structure to capitalize on the strengths of the three ports,” said North Fraser Port Authority Chair Doug Butterworth. “Once the minister has reviewed the report, we will be sharing its findings with our stakeholders.”

The boards of directors of the three port authorities approved the report, which was subsequently forwarded to the Federal Minister of Transport, Infrastructure and Communities for his review and action.

“One of the most important aspects in looking at the case for integration has been to ensure we had the support of our stakeholders,” said Fraser River Port Authority chair Peter Podovinikoff.


“The consultants interviewed many of our key stakeholders and it is apparent that the majority support integration.”

The idea of a ‘super port’ has been floated since a B.C. Progress Board report released in 2004.

At the time the Progress Board recommended Lower Mainland ports integrate with those on Vancouver Island and Prince Rupert to create a single Canada Port entity.

UBC professor Dr. Michael Goldberg wrote in the report that the existence of five separate port authorities means that potential economies of scale and scope are lost.

“Functioning as a part of the Pacific Port complex of ports for ship and train scheduling would help links with Coast Guard, security logistics, and inter-modal hardware and software,” he wrote. “While this idea needs further consideration, the idea of creating a Pacific Super Port could help Canada become a more significant gateway between North America and Asia.”

The idea was supported by the Vancouver Port Authority on the grounds that it would ‘lower the cost of future infrastructure and allow the super port to plan for the best use of existing infrastructure.’

“Co-operation and co-ordination is all very well until you are at the point at which port the business will happen,” the Vancouver Port Authority's Capt. Gordon Houston said at the time.

“If they were all the same ports, it wouldn't matter which port you put the business through ... it would all benefit the province and country.”

Locally, the idea of greater cooperation was encouraged, however it was noted by Prince Rupert Port Authority CEO Don Krusel that there were quite different challenges faced by Lower Mainland ports than those in the North and any amalgamation could leave Prince Rupert feeling neglected.

Selected stories from The Daily News are available on line from their website.