21 April 2005
Vancouver Port
Authority and Canadian Pacific Railway Sign Agreement to Enhance
Asia-Pacific Trade
Vancouver - The
Vancouver Port Authority (VPA) and Canadian Pacific Railway (CPR) announced today they have signed a
cooperation agreement to work together on joint capacity development. The agreement is a significant
step forward to more fully capture expanding Asia-Pacific trade opportunities for the
benefit of all Canadians and British Columbia's economic growth.
Initiatives will include marketing and domestic public policy advocacy programs to enhance
competitiveness, operational efficiencies and customer service at the Port of Vancouver. CPR and the
VPA have also committed to ensuring that the Port of Vancouver is the most secure port system on the
West Coast of the Americas.
"We are committed to leading the development of an integrated transportation system in western
Canada that can drive trade and economic development throughout British Columbia and across the
country," said Capt. Gordon Houston, VPA President and CEO. "It is only by working together
with our transportation partners that the Port of Vancouver will capture the significant growth
opportunities projected over the next 15 years for the benefit of the province, its workers and
Canada's import and export-dependent industries."
Rob Ritchie, CPR President and CEO, said: "We have the opportunity to harness the
tremendous growth of North America's trade with Asia. It is going to require a commitment on behalf of
all of our partners, including the three levels of government, to make that happen, as well as a
coordinated approach that adds the right infrastructure at the right time and with the right
investment climate. CPR has already made a $160-million commitment this year to expand
our network between the Prairies and the Vancouver Gateway and will have new infrastructure in place
by this fall. This agreement further provides a framework to plan future infrastructure based on new
sources of growth in Asia-North America trade."
CPR's $160-million expansion program will increase the company's capacity in western
Canada by 12 percent, or more than 400 freight cars per day.
The expansion work involves 25 projects, including:
- 10 projects between Moose Jaw, Sask., and Calgary to extend sidings and lay sections of double
track;
- 3 projects between Edmonton and Calgary to extend sidings and build a new siding;
- 12 projects between Calgary and the Port of Vancouver to extend sidings and lay sections of
double track.
Capt. Houston and Mr. Ritchie said container volumes at British Columbia seaports are expected to grow
from 2 million 20-ft. equivalent units (TEU) to between 5 million and seven million TEUs by 2015.
This container traffic increase, along with the rapid growth of resource exports, including coal,
grain, potash and sulphur, have pushed projected growth in the province's port and rail sector to:
- $10.5 billion in annual economic output for B.C., from $3.9 billion - a 170-percent increase;
- 50,000 direct jobs in B.C., from 18,000 - a 178 percent increase;
- $2.7 billion in wages paid to B.C. workers each year, from $1 billion - a 170 percent
increase.
Both the VPA and CPR acknowledge that there is a great deal more to do if British Columbia, the
Prairie provinces and the rest of Canada are to fully embrace the economic opportunities presented by
Asia-Pacific trade. The two organizations will advocate a policy framework in Canada that
fosters private sector investment in an integrated transportation system - including marine, rail,
road and air. They will also work to encourage and coordinate federal and provincial investment in
Canada's aging transportation network in local communities.
Capt. Houston and Mr. Ritchie acknowledged the significant efforts already made by the B.C.
government - including its contribution to property tax relief for port terminal operators and its
investments in infrastructure and port development.
"Transportation will be the next great growth industry in this province," Capt. Houston
said. "But to achieve our potential, we need every segment of our transportation system - public
and private - to work together. We are optimistic that today's announcement will be a catalyst for
further collaboration, partnership and joint initiatives within our sector."
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