Port-logistics in Prince Rupert and Northern BC: lessons and questions for development in remote urban regions

Transcription

1 Port-logistics in Prince Rupert and Northern BC: lessons and questions for development in remote urban regions Peter Hall, Simon Fraser University

2 Vancouver ports 20 year container growth (ends?) 3,500, % 3,000, % 2,500, % 2,000, % 1,500,000 1,000, % 500, % - 0.0% Vancouver Total TEU Vancouver share Linear (Vancouver share)

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4 60000 Employment in PLS for All cities; Montreal Toronto Vancouver LowerMainLand Calgary Edmonton Halifax PrinceRupert PrinceGeorge Victoria Windsor Winnipeg s Adj2006s

5 Vancouver and Prince Rupert ports container growth 3,500, % 3,000, % 2,500, % 2,000, % 1,500,000 1,000, % 500, % - 0.0% Vancouver Total TEU Prince Rupert TEU Vancouver share Prince Rupert Share Linear (Vancouver share)

6 BC Port Cargo Statistics, Overall growth, especially in unloaded/imports Short tons Growth Vancouver Loaded 62,073,100 86,348,900 39% Unloaded 8,411,500 18,394, % Total 70,484, ,743,200 49% Prince Rupert Loaded 12,097,800 13,433,100 11% Unloaded 387,200 1,561, % Total 12,485,000 14,994,200 20% BC Loaded 96,864, ,163,184 18% Unloaded 25,175,112 29,257,084 16% Total 122,039, ,420,268 18% Source: Shipping in Canada (Statistics Canada)

7 Port-logistics in Prince Rupert and Northern BC: lessons and questions for development in remote urban regions What economic and other benefits do port-logistics developments bring to remote urban regions? Since opening in 2007, the Fairview terminal has grown to handle over three-quarters of million TEU per year, alongside diversification in cargos, carriers and routes, and expansion in direct port employment. Yet between 2006 and 2016, the population of the Prince Rupert census agglomeration declined by about 5%, not reversing a decades-long trend. The discrepancies between these qualitative and quantitative outcomes raise questions about how we should think about the economic benefits and other impacts of port-logistic developments in remote urban regions.

8 Port-logistics in Prince Rupert and Northern BC: lessons and questions for development in remote urban regions Context Cargo profile Governance and key actors Regional connections Employment change and population decline

9 Competitive Advantage of BC Ports vs Other West Coast Ports Source: BC Ministry of Transportation

10 Figure 3.Locations of terminal sites around Prince Rupert. (Google Maps, 2014) Source: Byrne 2015

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15 Prince Rupert 2016 container profile: 59% inbound (Vancouver: 53%) Import Export Total Total TEU 437, , ,663.0 Loaded TEU 437, , , ' 48, , , ' 188, , , ' 4, ,038.0 Empty TEU , , ' , , ' , , ' - 3, ,870.0 Percent empty 0.0% 44.4% 18.1%

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18 Prince Rupert Port Authority Cargo Profile (tonnes) Year Fairview (containers) Grain (PRG) Coal (Ridley) Other (logs) Westview (wood pellet) Total ,731 2,290,860 1,816, ,156 4,474, ,712 1,228,982 2,697, ,380 4,295, ,850 3,128, , ,239 4,414, ,861 3,113,950 1,015, ,596 4,474, ,712 4,739,447 2,815, ,085 7,738, ,796 5,098,402 5,085, ,279 10,581, ,826,011 3,759,517 4,847, ,289 10,587, ,661,896 5,080,834 4,159, ,263 12,173, ,441,018 4,294,104 8,299, ,522 16,424, ,113,433 5,042,165 9,638, ,118 19,339, ,657,448 4,731,470 11,530, ,285 22,289, ,374,767 5,136,603 12,072, ,718 1,107 23,063, ,190,248 6,456,309 7,111, , ,742 20,622, ,764,103 6,255,094 4,432, , ,598 19,632, ,366,630 6,141,723 3,992, , ,257 18,862,593

19 Prince Rupert Port Authority: Well, I guess it s all about not putting all of your eggs in one basket and diversifying the cargos that move through our port. So instead of-- cause when LNG was- - everyone was talking about LNG and all the projects were going, there was lots of interest in port lands. But they were not all given out to LNG for that very reason. That we didn t want all of this, you know, all of our available land to be developed for the same purpose. So having little pieces-- because knowing the markets fluctuate, coal, lumber, containers, doing as much market feasibility and planning as you can. But knowing that at the end of the day if you have little pieces of the pie in different classes, cargo classes, then you re going to be successful. So it s all about diversifying the port. And that s the message we try to get out there.

20 Prince Rupert Port Governance plus Governance Events Comments s Government (CN Rail) owns most foreshore, some by City Lost coal export terminal to Vancouver Private and city lobbying for NHB inclusion 1970s National Harbours Board (1972), continued CNR Ridley Island planning; lost control petrochemical facility Hinterland interests (Alberta, northern BC) s Port Corporation (1983) CN corporatized Ridley Island opens 1984 Stagnation 2000s Port Authority (1999) Fairview Container Terminal (2007) PA, CN, governmentinitiated development; attract Maher, Cosco 2010s Port Authority Westview open 2013 DPW acquire Fairview 2015 Phase 2 North (2017), 750,000 to 1.35m TEU Ridley Island Expansion (Propane but no LNG; Raymont & CT transload)

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23 Kristoff trucking, Kuehne & Nagel K&N, they had logistics and freight forwarding contract for Rio Tinto Alcan in probably And they contacted us and-- met them and we basically gave them rates and, you know, took a while, took a year or two, to get off the ground. But they liked what we did, liked what we could do and, you know, we hit it off well, you know, early on. And did a little bit of work for them and just as the project grew there and got-- coming online they just sent everything-- everything they could have or-- everything they had they sent it our way. we re not partnered or anything like that. This is one of the few places where they ve got their sign in the world on someone else s property, to tell you the truth. Yeah, it was a big deal. It was quite a big deal to put that sign up there.

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25 Prince Rupert Port Authority: First Nations Tidal Terminals and Coast Tsimshian Enterprises has partnered to make C.T. Terminals which is a lumber stuffing facility out on Ridley Island. So that s a joint venture project where they re partners in that operation and operating that terminal. Yeah, in the construction of the road rail utility corridor, that was a joint venture to CIC Construction, a local First Nations company as well as-- I believe they re involved in the maintenance building that s out on the way to the B.C. Ferries terminal. Have you seen it? So certainly above and beyond consulting and keeping them aware-- keeping all of the First Nations communities aware. We try to partner with them for projects whenever possible. They have an agreement that they would be given, for major projects, first-- a job benefits agreement there. As long as their quotes come in competitively and that they re actually able to-- not actually able, but that they have the resources.

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27 Source: Ministry of Transportation and Infrastructure (BC), Source: Googlemaps (2014)

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33 Tidal Terminals A: So this is our lumber side of the yard. We ve got a variety of mills and clients shipping through us here. The furthest mills we routinely see deliveries from would probably be Houston area. However, that being said, we ve seen deliveries as far from Mackenzie or Prince George. Q: And that s all coming in by truck? A: All truck, yeah. So I mean, you d probably think those loads would go south if they were going to export on rail. But some of the clients just need to fill the order, so we ll occasionally see a top-up load arriving here from those far destinations. Q: And then the core business is from Smithers? A: Smithers area, so West Fraser operates in Smithers. Canfor has got mills all along the way, all the way back to, like I say, Mackenzie. Skeena Sawmills in Terrace is a big long-term client of ours. And then there s a few smaller mills. So-- oh, you know, I forgot to mention Hampton, Hampton Affiliates, American.

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35 Better picture of log transload

36 Pinnacle Renewable Energy - Pellet Facility Strathnaver

37 Pinnacle Renewable Energy Westview Terminal Prince Rupert

38 Prince Rupert customs broker: wood pellets for instance, when the Westview Terminal, this is on the shipping side still, Peter. But when Westview Terminal, the pellet ship-- the wood pellet ship that started-- actually starting to build the terminal. We established a relationship with the shipper, with the fellow that manufactured the wood pellets. And so that we could have our name in for whoever or however they re going to make up their shipping arrangements. Then that may be with the owner or the charter of the vessel that we would ask that we would be their general agent when they came in. So our relationship with the terminals locally is also very important.

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40 Prince Rupert customs broker: containers the present agent who handles all the container ships was put in place primarily through a relationship formed, like, a long time ago. And that whole kind of mentality if it s not broke, don t try and fix it, has kind of worked for them. So nobody s really-- has to go outside of choosing a different agent. And there s only certain lines that do call into Prince Rupert at this time. And because if they re in an alliance and those alliances they decide to just use one agent out of just continuity and simplicity. So, you know, when other lines do decide to come into Prince George we do expect to be looking after those customers. Like, Evergreen or anything like that. But the way the present situation is, it s set up, is in the alliance that they re quite happy with just using the same agent.

41 RANK CITY TOTAL EST The location of maritime advanced producer services Note: Vancouver is 6 th in total count, 8 th in relative connectivity, and is higher in routine than command activities 1 New York Houston 97 3 New Orleans 61 4 Washington D.C Miami 56 6 Vancouver 42 7 Mexico City 40 8 Seattle 39 9 Los Angeles San Francisco Montreal Toronto Hamilton Fort Lauderdale Jacksonville 24

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43 Transportation & Warehousing employment relative to All Industries BC Regions ( ) All industries, thousands employed Transportation & Warehousing, thousands employed Growth Growth Growth of Transportation & Warehousing relative to All Industries in region and relative to BC British Columbia 1,785,600 2,274, % 97, , % 0.00% Vancouver Island and Coast 306, , % 11,800 14, % 6.05% Lower Mainland- Southwest 1,054,800 1,419, % 62,500 82, % -3.43% Thompson- Okanagan 194, , % 8,900 10, % % Kootenay 69,600 72, % 2,700 3, % 18.22% Cariboo 79,400 81, % 5,700 6, % 11.35% North Coast and Nechako 49,000 43, % 3,700 3, % 11.22% Northeast 32,500 37, % 1,800 3, % 57.35%

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45 Average earnings ratios (PLS/All industries); CMAs; s Adj2006s Rest of Canada AbbotsfordChilliwack Calgary Edmonton Halifax Montreal PrinceRupert PrinceGeorge StCatharinesNiagara Toronto Vancouver Victoria Windsor Winnipeg Total

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48 The bottom line Prince Rupert (Skeena-QC Regional District, ): % in transport & warehousing % overall employment Lots of port activity growth Lots of employment growth Lots of change in employment mix and locations Regional trajectories of economic development : long-established patterns (resource extraction cycles) mediated by existing and emergent institutions (PRPA, FN) lacking advantages of scale and independent global connections secure the local benefits through less formal and historically contingent arrangements