The Editorial page of the Friday Daily News broached a subject few in the area seem willing to think about, let alone accept these days, the possibility of a delay in the expansion of the Port of Prince Rupert container Port.
Thursday’s paper provided an economic analysis of the northern BC economy, which doesn’t particularly paint a rosy picture for the short term as the world economic order undergoes a bit of reorganization.
In the article, Paul Bowles an economics professor at UNBC suggested that world trading patterns aren’t likely to deviate much in the grip of a global recession and that luring new customers to Rupert’s gateway may become problematic over the course of the coming recession.
When you think about that expansion project for phase two, you have to wonder if there will be the financial commitment required in an economic downturn to make that expansion happen.
With banks tightening up on the credit front and Governments planning for a recession era economy one wonders if there will be anywhere near the level of financial resources available to expand a port. Especially one which may not see any increase in traffic until the economic skies clear and the smoke settles from whatever shakes out from the oncoming recession.
In his editorial on Friday, Earle Gale seems to set the table for a delay, while at the same time calling for the pressure to be kept on all levels of government to be ready to “hit the ground running”.
As in all things global, events with the market destination of America or from the exporting nations half way around the world will dictate more of our port expansion agenda than any level of government may.
Thursday’s paper provided an economic analysis of the northern BC economy, which doesn’t particularly paint a rosy picture for the short term as the world economic order undergoes a bit of reorganization.
In the article, Paul Bowles an economics professor at UNBC suggested that world trading patterns aren’t likely to deviate much in the grip of a global recession and that luring new customers to Rupert’s gateway may become problematic over the course of the coming recession.
When you think about that expansion project for phase two, you have to wonder if there will be the financial commitment required in an economic downturn to make that expansion happen.
With banks tightening up on the credit front and Governments planning for a recession era economy one wonders if there will be anywhere near the level of financial resources available to expand a port. Especially one which may not see any increase in traffic until the economic skies clear and the smoke settles from whatever shakes out from the oncoming recession.
In his editorial on Friday, Earle Gale seems to set the table for a delay, while at the same time calling for the pressure to be kept on all levels of government to be ready to “hit the ground running”.
As in all things global, events with the market destination of America or from the exporting nations half way around the world will dictate more of our port expansion agenda than any level of government may.
The Friday editorial offers up a tentative warning that the current economic troubles may have a larger impact on our economy than we may think at the moment.
Editorial
Prince Rupert Daily News
Friday, October 31, 2008
Page four
Any delay need not be wasted time
Earle Gale
Blowing Off Steam
Yesterday’s front page Daily News story about the impact that the world economic crisis is likely to have on the North Coast made for some grim reading.
Those of us who were hoping that we might be able to ride this one out with minimal disruption were in for a nasty surprise.
In the story, an economics expert from the University of Northern British Columbia said that he believes the global economic crisis unfolding at the moment is probably going to hit northerners harder than it will impact B. C.’s south.
In George T. Baker’s story, economics professor Paul Bowles said the North will be in for some tough times, thanks to our heavy reliance on raw commodities.
I must admit, I had been hoping that Prince Rupert, being something of an anomaly, might continue to grow courtesy of its recent pursuit of new markets, especially through the port.
Bowles, who is, after all, an expert and not a rose-tinted spectacle wearing optimist such as myself, crunched the numbers and hinted we should be heading for the bunkers.
He said we should not hold our breath if we are hoping to increase trade with Asia, predicting the general slowing of world trade and looming recession ion the U. S. will stifle hoped for growth.
As a non-expert, I would have thought that even less product being shipped between Asia to North America, there is still room for Prince Rupert to attract some of that business away from more expensive, slow moving and less-efficient ports elsewhere on the continent.
Why should we not manage to help ourselves to a larger slice of pie, even if the pie from which it is cut is smaller? It just means someone else, somewhere else, may go hungry.
But Bowles thinks shippers will be reluctant to change their plans and throw their lot in with a new port when there is so much uncertainty out there.
He may be right.
All in all, it does look possible that phase two of the port expansion could take a little longer to become a reality because of these troubling times.
That said, we must not let it slip off the radar of our senior politicians.
What better time to put 100 per cent of our energy into ensuring all the preparatory work is completed so the next phase can roll, just as soon as the world is ready for it.
Now is the perfect time for the federal government to be working flat out on consultations with First Nations.
And this is also the time to have the environmental assessment undertaken and completed.
The looming recession will likely be short-lived and we need to be ready to hit the ground running when it is over.
Ottawa must have all its ducks in a row now. After all, we should plan for the future and start building this thing in advance of when it will be needed so that the very second exporters, importers and shippers are looking to ramp up their volumes, we are ready to take advantage of the new business..
Editorial
Prince Rupert Daily News
Friday, October 31, 2008
Page four
Any delay need not be wasted time
Earle Gale
Blowing Off Steam
Yesterday’s front page Daily News story about the impact that the world economic crisis is likely to have on the North Coast made for some grim reading.
Those of us who were hoping that we might be able to ride this one out with minimal disruption were in for a nasty surprise.
In the story, an economics expert from the University of Northern British Columbia said that he believes the global economic crisis unfolding at the moment is probably going to hit northerners harder than it will impact B. C.’s south.
In George T. Baker’s story, economics professor Paul Bowles said the North will be in for some tough times, thanks to our heavy reliance on raw commodities.
I must admit, I had been hoping that Prince Rupert, being something of an anomaly, might continue to grow courtesy of its recent pursuit of new markets, especially through the port.
Bowles, who is, after all, an expert and not a rose-tinted spectacle wearing optimist such as myself, crunched the numbers and hinted we should be heading for the bunkers.
He said we should not hold our breath if we are hoping to increase trade with Asia, predicting the general slowing of world trade and looming recession ion the U. S. will stifle hoped for growth.
As a non-expert, I would have thought that even less product being shipped between Asia to North America, there is still room for Prince Rupert to attract some of that business away from more expensive, slow moving and less-efficient ports elsewhere on the continent.
Why should we not manage to help ourselves to a larger slice of pie, even if the pie from which it is cut is smaller? It just means someone else, somewhere else, may go hungry.
But Bowles thinks shippers will be reluctant to change their plans and throw their lot in with a new port when there is so much uncertainty out there.
He may be right.
All in all, it does look possible that phase two of the port expansion could take a little longer to become a reality because of these troubling times.
That said, we must not let it slip off the radar of our senior politicians.
What better time to put 100 per cent of our energy into ensuring all the preparatory work is completed so the next phase can roll, just as soon as the world is ready for it.
Now is the perfect time for the federal government to be working flat out on consultations with First Nations.
And this is also the time to have the environmental assessment undertaken and completed.
The looming recession will likely be short-lived and we need to be ready to hit the ground running when it is over.
Ottawa must have all its ducks in a row now. After all, we should plan for the future and start building this thing in advance of when it will be needed so that the very second exporters, importers and shippers are looking to ramp up their volumes, we are ready to take advantage of the new business..
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