Major Projects in Atlantic Canada

Transcription

1 Major Projects in Atlantic Canada Elizabeth Beale President and CEO Atlantic Provinces Economic Council Mississauga, Ontario October 3, 2013

2 Atlantic Canada s Major Project Investment Presentation Outline Major Projects Inventory 2013 Project Details and Trends Project Impact on Halifax Gateway Looking Ahead

3 APEC s 2013 Major Projects Inventory APEC s Major Projects Inventory (MPI) is an annual survey of large project activity in Atlantic Canada (release date - June 2013) A major project is any capital project valued at $25 million or more Four stages of development 12 industry classes This year projects totalling $115 billion

4 Major Projects in Atlantic Canada

5 APEC s 2013 Major Projects Inventory Total Value of APEC s Major Projects Inventory, $ billion NB NS PE NL $115 billion is up 15% over last year NL dominates at 47% of the total All four provinces had growth over last year Source: APEC Major Projects Inventory

6 APEC s Major Projects Inventory by Category Major Projects Inventory (MPI) value by sector, Atlantic Canada ($115 billion total) TRA 5% Other Sectors 12% HOU 12% MAN 22% O&G 21% Energy-related projects account for 60% of the total Manufacturing up from 20% to 22% MIN 13% ELE 18% Oil & gas up from 18% to 21% Source: APEC Major Projects Inventory

7 APEC MP Current Year Spending by Province Major Projects Inventory (MPI) Value $115 billion 2013 Spending by Province $0.3 billion $1.6 billion PE Spending after 2013 $14.3 billion 2013 $3.0 billion NB NS NL $9.4 billion 2013 Source: APEC Major Projects Inventory

8 APEC s MP Investment Trend Current Year Spending ($ billions) Newfoundland & Labrador Maritimes Maritime provinces are leveling off Modest growth in Nova Scotia is offset by declines in New Brunswick Source: APEC Major Projects Inventory

9 Major Projects Inventory NL: Energy Projects Estimated value of major project investment on energy-related projects, Newfoundland & Labrador ($ billions) Projects Underway/Near Approval Hebron Project ($14 bn) Muskrat Falls ($7.7 bn) Hibernia Southern ($1.7 bn) White Rose Expansion Offshore Exploration Projects to Watch Wellhead and Drilling Platform Hebron Expansion (Pool 3) Statoil Flemish Pass Gull Island Hydro Source: APEC Major Projects Inventory

10 Major Projects Inventory NL: Mining Projects Estimated value of mining and related major project investment, Newfoundland & Labrador ($ billions) In Development Underway/Near Approval Projects to Underway/Near Approval Long Harbour Processing Plant Direct Shipping Iron Ore Projects IOC Expansion Voisey s Bay Underground Mine Mineral Exploration Projects to Watch LabMag and Kami Iron Ore Ironsands Project Uranium Source: APEC Major Projects Inventory

11 Estimated Value of Major Project Investment in Labrador ($ billions) In Development Underway/Near Approval Source: APEC Major Projects Inventory

12 Major Projects Inventory Nova Scotia Estimated value of major project investment, Nova Scotia ($ billions) In Development Underway/Near Approval 156 projects totaling $40 billion Overall total led by shipbuilding and proposed LNG export projects 2 Investment is up 10% this year Stable over the next few years but with potential for growth. Source: APEC Major Projects Inventory

13 Major Projects Inventory New Brunswick Estimated value of major project investment, New Brunswick ($billions) Projects Underway Sussex Potash Mine Expansion Highway Projects Long-Term Care and Hospitals Projects to Watch Energy East Pipeline Second Potash Mine Other Mining Developments Shale Gas Source: APEC Major Projects Inventory

14 National Shipbuilding Procurement Strategy $25 billion contract: Key suppliers GE Canada (propulsion), Lockheed Martin (command and surveillance). Focus on Canadian content but many global suppliers as well Industrial Regional Benefits (IRBs) will play a big role Activity peaks in early part of next decade

15 Vale Projects and Transshipment Long Harbour nickel plant - $4.25 billion complete in Voisey s Bay underground mine - $2 billion ( ) Halifax is the transshipment and resupply port for the project Nickel and copper will go overseas by ship from Halifax and potentially to US by rail 2,600 TEUs per year

16 Nova Scotia Offshore Exploration $2 billion of exploration commitments by Shell and BP Shell and BP are expected to setup local supply bases Supplies for the project will come from Europe, US, South America and other parts of Canada by ship, rail or truck.

17 Muskrat Falls Hydro Project $3.4 billion hydro facility and $2.8 billion for transmission lines Halifax will compete with Montreal and charter vessels direct to Goose Bay Suppliers expected from Europe, China, India, Middle East, US and Canada. Over 3,000 working on the project until 2017.

18 Maritime Link Transmission Project $1.5 billion project: Selected components are expected be shipped to Halifax in containers and trucked to sites in Cape Breton and southern Newfoundland

19 Hebron Oil Project $14 billion project: ,500 people working on the project Smaller components could be shipped through Halifax Maintenance and support work out of Halifax Rising incomes in NL will boost consumer goods shipped through Halifax

20 Summary: Estimated Impact of Major Projects on the Halifax Gateway Components 1 = Little or No Impact, 5 = Strong Impact Project Port Airport Rail Logistics Park Stage of Develop.* Halifax Shipbuilding Contract Vale Projects NS Offshore Exploration Muskrat Falls Hydro Development Maritime Link Transmission Line Hebron Oil Project Other NL Offshore Projects LNG Export Facilities Shale Gas Development Energy East Oil Pipeline Gull Island Hydro Development Labrador IronOre Projects *Stage of development 4 = underway or approved, 3 = nearing approval, 2 = under development, 1 = pro

21 Major Projects and the Halifax Airport Direct benefit to airport due to increased mobile workforce and business travel Indirect benefit from increased incomes and employment - more personal travel Increased activity expected to have a positive impact on air cargo traffic

22 Major Projects and the Port of Halifax Direct benefit expected from several projects: shipbuilding, NS offshore, Vale transshipment, Muskrat Falls & Maritime Link Indirect impact should also be very positive, especially for shipbuilding due to its long duration

23 Major Projects and CN Rail Shipbuilding supply requirements likely to boost rail activity Vale nickel and LNG work have potential to lead to increased cargo shipments

24 Major Projects and the Halifax Logistics Park Vale transshipment facility will boost activity Shipbuilding is expected to lead to new clients Directly supporting the project Indirectly servicing growth in the economy

25 Current Projections for Major Project Investment in Atlantic Canada $ billions In Development Underway/Near Approval High level of investment is expected to continue for several years Successful mining and offshore exploration could add to these levels New project opportunities in northern Canada and Greenland Source: APEC Major Projects Inventory

26 Conclusions Atlantic Major Projects offer tremendous potential for the Halifax Gateway Capturing that potential requires: Improving efficiency and competitiveness: infrastructure and logistics Planning for anticipated skills shortages Positioning for growth opportunities re international trade agreements