18 November 2005
Port's Game Plan on Track
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Fraser River Port president Capt. Allen Domaas (left) and CPR CEO
Rob Ritchie signal a change in thinking.
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Vancouver - Two of Canada's major players in the international transportation game sent a
strong message to China and the rest of Asia's rising economies yesterday that Greater Vancouver is in the "game" to become
North America's Pacific Gateway for their products.
Canadian Pacific Railway and the Fraser River Port Authority, Canada's second largest port after Vancouver, have signed an agreement to
co-operate and co-ordinate investments in infrastructure and other future projects.
While that might not mean joint project development, it does mean much closer co-operation with the goal of making the
entire transportation network and supply chain operate more efficiently.
It also signals a major change in thinking from within the industry, the many elements of which have often operated alone developing
infrastructure.
"We are sending a powerful signal that co-operation is the cornerstone of prosperity and success in international
trade," said Rob Ritchie, CEO of CPR.
"We are out to create a new culture of integration. Once, we could get away with doing our own thing, but no longer," he
said.
Capt. Allen Domaas, president and CEO of Fraser River Port Authority, said it is imperative that all sectors of the industry and
governments co-operate in developing an efficient supply line to capitalize on the opportunities Asia Pacific trade is
throwing up.
While praising both levels of government for their contribution, Domaas said the B.C. government has to put more money into improving
the highway network.
"With NAFTA, we got a little sidelined. China's growth has served as a wake-up call," he said.
Both stressed the need for more public involvement in the vital sector. They said too few Canadians realize the strategic importance
of transportation to the national economy.
They pointed out that 40 percent of Canadian GDP flows from exports.
"There is a need for more public education on the importance of this sector," said Domaas.
Under the agreement, the two will consult on market and trade outlooks and business development opportunities, co-ordinate
investments and engage in multi-modal planning to build or expand port and rail infrastructure such as terminals and track.
The potential prize for Canada is enormous if all the transportation problems can be resolved. Container volumes at B.C. ports are
anticipated at mushrooming to between five and seven million TEU's a year by 2020 from the current two million.
Economic output for B.C. will grow from $2.7 billion to $7.4 billion annually, directs jobs will jump to 50,000 from the current 18,000
and wages will reach $2.7 billion from $1 billion.
Ottawa recently announced $590 million in funding for port and transportation infrastructure and programs to support the development
of the Pacific Gateway as the prime access point for all of North America.
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