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A Conversation with Chris Badger
Vice-President, Customer Development & Operations, Vancouver Port Authority
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LQ: What advantage(s) does Vancouver have over other competitive ports - for the vessel operator, for the importer and for the exporter. This could relate to transit time, storage, transloading for imports and exports, labour costs, contracts, stability, the value of the Canadian dollar, etc.
Chris Badger: The Port of Vancouver (POV) offers excellent infrastructure and facilities with services and productivity levels to serve shippers in the bulk, container and breakbulk cargo sectors.
The world's leading international shipping lines choose the POV. With 25 major marine cargo terminals, 67 berths and some of the most extensive on-dock rail facilities of any port on the west coast, we handle more than 70 million tonnes of cargo annually.
The POV is connected to every key market in North America. Canadian National (CN), Canadian Pacific Railway (CPR) and Burlington Northern Santa Fe (BNSF) link with all major U.S. railways, offering transcontinental and double-stack capability to serve markets throughout Canada, the U.S. and into Mexico.
The port has 17 bulk terminals that offer superior material handling of coal, grain, sulphur, potash, liquid bulk chemicals and specialty grain products. It has three breakbulk cargo terminals that specialize in handling high value forest products such as lumber, wood pulp and other value-added cargoes.
This port is the closest major North American port to Asia and serves as a strategic alternative for container cargo destined for U.S. markets. The port offers three container terminal facilities with super-post-Panamax capacity, with plans to increase container-handling capacity to 4.0 million TEUs by 2012.
It's also the first North American port to implement a reservation system for trucking companies to minimize wait times at container terminals.
The POV is ISPS compliant and offers well-defined security plans including a 24-hour security force, round-the-clock port road surveillance and a card access program for cargo and container terminals. Vancouver was the first port in Canada and one of the first ports in North America to purchase gamma ray scanning technology for use by customs officials to inspect containers.
The POV is well connected to the international business community with offices in Beijing and Chicago and an extensive international network of agents throughout Canada and Asia.
LQ: What local infrastructure changes/ improvements need to be made to improve the port's position for cargo moving to and from the piers?
Chris Badger: The POV has the opportunity to capture nearly 5 million TEUs by 2020. Along with our partners, the VPA is delivering on expansion promises by increasing terminal efficiencies and expanding our three existing container terminals, and by building new facilities. In the past two years, the VPA and its container terminal operators have invested around $400 million to increase the POV's container handling capacity to more than 2.3 million TEUs, to meet the growing opportunity that Asia-Pacific trade represents to our region and our country.
Our Deltaport Berth Three expansion will add another 400,000 TEUs by the end of 2009. We are planning a new three-berth container facility called Terminal 2, and we expect Phase I will be operational by 2012. Terminal 2 will add nearly 2 million TEUs, for a total container handling capacity at the POV of around 5 million TEUs by 2020. The timely completion of Terminal 2 is essential to this country's ability to facilitate Asia-Pacific trade.
The VPA is working with our private and public sector partners to develop and expand Canada's Pacific Gateway to ensure that our region reaps the benefits of international trade opportunities.
In January 2006, British Columbia (B.C.) established its 3-billion-dollar Gateway Program. The program outlines improvements to roads and bridges to create a comprehensive and effective transportation network that improves the movement of people and goods. Port-specific goals within the Gateway Program include improving the region's road network, improving traffic links between ports, industrial areas, railways and the airport and border crossings and reducing commercial travel times during peak traffic periods.
The Canadian federal government has invested more than one billion dollars in their Asia-Pacific Gateway and Corridor Initiative to move B.C.'s ports closer to benefits from the expanding Asia-Pacific trade. The government's immediate allocation of CA$321 million will be used to improve road and rail capacity as well as to enhance goods movement and livability in the gateway. Port-specific funding to promote more efficient and seamless transportation connections includes up to CA$50 million for overpasses and underpasses along key railway corridors and up to CA$100 million for the construction of a new road system to handle port and other commercial traffic.
The federal Gateway Initiative also provides new security tools and processes to strengthen the confidence of our trading partners that we can provide a secure point of entry for North American-destined cargo.
LQ: Has the change of ownership of container terminals and, I believe, some bulk terminals had an impact on the activity at the port?
Chris Badger: In the past two years, the VPA and its container terminal operators have spent millions of dollars to increase the POV's cargo handling capacity. We are confident that our terminal operators will continue to enhance port facilities.
LQ: How will consolidation of the local ports benefit the shipper?
Chris Badger: The goals of the proposed amalgamation of the lower mainland ports include building a world-class gateway, becoming a driving force in Canada's logistics chain, maximizing regional benefits, encouraging fair market access, mitigating impacts of growth and leading economic, social and environmental sustainability. The potential benefits of amalgamation include improved land use planning, operational efficiencies and a consolidation of marketing, financial resources, influence and leadership. During the amalgamation process, it's business as usual at the ports.
LQ: Can you name some trade lanes where the port sees its strengths in the future.
Chris Badger: The POV's top five trading economies include Japan, China, South Korea, the U.S. and Taiwan. The port trades and will continue to facilitate trade mainly in the Asia-Pacific region.
LQ: Throughput capacity seems to be an issue. How do you see this improving?
Chris Badger: The POV has one of the highest container handling growth rates on the west coast of North America. In 2006, our container volumes increased by around 25 percent over 2005 and we handled 2.2 million TEUs for the year. We will continue to set those records and increase productivity with the cooperation of our partners.
LQ: Are other cargoes, other than containers, important to the port? If so what are they, and what future cargoes in this area do you foresee?
Chris Badger: The POV is Canada's largest and busiest deep-sea port and ranks number one in North America for total foreign export tonnage. The POV handles 25 percent of Canada's total foreign waterborne trade. In 2006 we handled approximately 79.4 million tonnes of cargo with around 80 percent of that total either bulk or breakbulk cargoes such as coal, grain, sulphur, potash, lumber and wood pulp. We forecast modest growth in these cargos over the long term.
LQ: Larger container vessels are here to stay. Can Vancouver, in the context of the total distribution chain, take advantage of this development?
Chris Badger: The POV offers super-post-Panamax capacity and is able to handle the largest container ships afloat. The port's three container terminals have each installed additional 22-wide dock gantry cranes and new on-dock equipment within the past two years, for a total of 19 dockside post-Panamax or super-post-Panamax cranes. Water depth at the port's six container berths ranges between 51 ft. and 53 ft. Each of the port's three container terminals features on-dock rail.
LQ: The environment is a hot topic today. What steps is the port taking to encourage a "green" operation, both for vessels and on the land side?
Chris Badger: The POV is recognized globally as a naturally beautiful and clean port complemented by sound, innovative environmental leadership. The VPA has operated a dedicated environmental services department since 1990. On April 1, 2007, the VPA implemented a new schedule of harbor dues that recognizes and acknowledges vessels that are working to reduce the air emissions they discharge into the local air shed.
LQ: Security is also an increasingly important issue. What steps has the port taken so far and what future steps will it be taking to improve and maintain security?
Chris Badger: VPA is committed to the safe and efficient movement of goods and passengers. With security measures that meet or exceed North American standards, the POV has a well-earned reputation as a secure, safe and dependable place to do business. The POV continues to undertake a number of initiatives and programs to implement innovative security solutions that safeguard and enhance the movement of cargo and passengers through Canada's largest port: