Canada’s West Coast ports with their proximity to Asia handle more than 350 million tons, with the Port of Vancouver leading the way.
On Canada’s port network, the 17 members of the Association of Canadian Port Authorities (ACPA) handle more than 350 million metric tons of maritime cargo, with the great bulk sparked by trade with Asia and the Port of Vancouver alone accounting for over 40% of total throughput.
At Canada’s largest port, total freight traffic increased by 6% in 2023, as terminal operators and supply chain partners moved a record 150.4 million tons of cargo. This was a big jump from 2022’s volume of 141.4 million tons.
The latest economic study released by the Vancouver Fraser Port Authority found that the port and its supply chains sustain more than 132,000 jobs and contribute C$32.7 billion in economic output. “Our latest Economic Impact Study confirms the growing strength of the Vancouver gateway,” affirms Victor Pang, chief financial officer.
To reinforce its competitiveness and meet future demand, several key port capacity and optimization projects have progressed, highlighted by the completion in 2023 of the $350 million Centerm container terminal expansion in partnership with DP World. The newly expanded terminal can handle 1.5 million TEUs a year, compared to 900,000 TEUs previously, while adding 15% to the terminal’s overall footprint. The Centerm facility reduces the terminal’s environmental impact by adding capacity for container ships to connect to electrical shore power and converting its diesel yard cranes to electric. It further reduces greenhouse gas emissions by eliminating wait times for vehicles at train crossings and building to LEED and Envision certification sustainability standards.
All told, Vancouver has four common-user container terminals with total capacity of nearly 3 million TEUs. They provide leading world carriers who connect Vancouver with ports in Asia, Europe, Latin America and Oceania.
Another important development has come from federal and B.C. provincial environmental approvals (with many conditions) of the Roberts Bank Terminal 2 (RBT2) project. If all goes according to plan for the long-delayed RBT2 project, terminal operations are slated to start in the early 2030s. The new container terminal – now expected to cost close to C$2 billion - would add an additional 2.4 million TEUs of capacity and boost Canada’s west coast container capacity by approximately 30%.
The Vancouver Fraser Port Authority qualified 2023 as a mixed year, with growth in some sectors and softening in others. Bulk and containerized exports, auto imports and cruise all grew—including near-record grain exports—while container imports softened in line with trends seen across the West Coast. The port’s container traffic declined by 12% in 2023 to 3.1 million TEUs.
“While there was a softening of container volumes moving through the Port of Vancouver in 2023, Canada’s container sector remains on a long-term growth trajectory and we saw encouraging signs of recovery in Q4 as year-over-year volumes started to grow,” Peter Xotta, president and CEO, commented when the annual results were released.
As 2024 has advanced, statistics released by the port show container volume up slightly in the period to end July at 2 million TEUs. Whether a firming trend persists in the coming months could hinge on potential work stoppage resulting from deadlocked negotiations between unionized longshoremen and British Columbia maritime employers.
Trade for the Port of Vancouver last year was affected by a number of global and domestic challenges, including a cooling global economy, geo-political issues such as disruptions to the Panama Canal and Red Sea trade routes, and a strike in July that disrupted container, bulk, breakbulk and auto terminals.
Bulk exports spiked 13% in 2023, compared to 2022, to reach a record 91.5 million tons—including increases in grain, sulphur, coal and petroleum product volumes. Nine bulk grain terminals at the port helped to export 14.7 million tons of wheat to 38 different countries, a 52% year-over-year increase, while canola exports increased 36% to 7 million tons and specialty crops grew 30% to 4 million tons.
Port of Prince Rupert
The closest North American West Coast port to Asia in 2023 handled 23.5 million tons of cargo, five percent less than in 2022. Hardest hit was container traffic, which plunged by 32% to 7 million tons. Thus, container cargo translated into TEUs fell from just over one million units in 2022 to 704,248 TEUs in 2023.
This marked the third consecutive year of volume decline and reflected challenges of shifting global shipping routes, soft demand for imports, and competition with other North American trade gateways for discretionary cargo, Prince Rupert port officials have noted. The July 2023 docker strike in British Columbia ports which had a major impact on Canadian supply chains was another important factor, industry observers indicated.
Nevertheless, there was solid growth in exports of energy and dry bulk products and strong shipments of wood pellets to Europe and Asia.
At least on the container front a recovery trend appeared to be gaining traction in the first seven months of 2024, with DP World Fairview Container Terminal volume to July at 4.7 million tons versus the year-earlier 14.3 million tons.
“The Port of Prince Rupert is at a critical juncture, and we are focused on actively expanding the services, capacity, and capabilities required to strengthen our competitive advantage that trade partners and industry have come to rely on and grow our gateway,” said Shaun Stevenson, President and CEO, Prince Rupert Port Authority, in commenting on the 2023 performance.
Construction was started in 2023 on the C$750-million Ridley Island Export Logistics Project – subsequently re-named CANXPORT. It is an innovative large-scale facility that will provide rail-to-container transloading of multiple export products. RayMont Logistics will develop and operate the site’s transload facilities that will provide a total capacity of 400,000 TEUs annually and is to commence operations in Q3 2026.
This past May, it was announced that the Canada Infrastructure Bank (CIB) reached financial close on a $150 million loan to the Prince Rupert Port Authority for the first phase of the CANXPORT project. This is the CIB’s first investment in a Canadian port.
Also in May, Vopak and AltaGas confirmed a big investment decision on the Ridley Energy Export Facility (REEF). This represented the largest investment in the Port’s history, with a capital cost of $1.35 billion. REEF will provide unprecedented market access for Canada’s energy sector by facilitating the export of liquefied petroleum gases, methanol, and other bulk liquids.
Port of Nanaimo
At the Port of Nanaimo on Vancouver Island, total cargo amounted to 3.9 million tons in 2023 versus 4.1 million tons in 2022 and 4.3 million tons in 2021. Forest products and logs have continued to be the leading cargo categories, respectively totalling 1.3 million tons and 1.5 million tons in 2023. Container traffic added up to 240,000 tons, representing 20,236 TEUs.
In its spring 2024 newsletter, the Nanaimo Port Authority (NPA) evoked the “remarkable growth” of the BC Vehicle Processing Centre (BCVPC). “In the past year, the BCVPC has seen a substantial increase in the volume of vehicles processed, illustrating the centre’s growing importance in the global automotive distribution network.”
Meanwhile, the NPA reports that the Port of Nanaimo and partners DP World, Province of BC, and the National Trade Corridor Fund Duke Point terminal investment of over $100m is slated to break ground this September. This long- anticipated terminal upgrade and construction project will increase the terminal’s capability to handle small containerships and provide additional property for import/export goods handling. Another advantage will be its ability to service a general cargo ship and a more frequently scheduled container barges simultaneously. Additionally, a legacy diesel container quay crane will be retired, and two newer and larger and more productive electric container cranes are to take its place.
