Not all is upbeat down at the Asia Pacific Gateway.
For example, losses continue to mount in the global container-shipping sector as economies stall and revenue shrinks. That’s not good news for the ports of Vancouver and Prince Rupert, both of which have enjoyed significant growth in container traffic over the past few years. Accurate trade and labour market data is critical to continuing that growth. So word that continued funding for the Asia Pacific Gateway Skills Table (APGST) (“Labour data deficit looms for B.C. companies – BIV issue 1398; August 16-22) has yet to be confirmed is a concern. The APGST generates local industry labour supply and management data and provides a barometer to help head off labour shortages.
Trade projections are also key to port and terminal expansion projects, especially when usable industrial land is at a premium.
The Vancouver Fraser Port Authority’s ambitious Roberts Bank Terminal 2 project, now undergoing federal environmental assessment, would add significant port container-handling capacity. But it would also have significant impact on an important bird habitat that is already under stress from Roberts Bank port activities and BC Ferries traffic.
While the port remains confident that its annual container traffic will continue to grow, the global container outlook is mediocre at best.
U.K.-based shipping consultancy Drewry recently reported that the sector, with its first half 2016 revenue down 18% compared with 2015’s first six months, is “enduring a severe revenue contraction that is placing carriers under enormous pressure to squeeze more savings wherever they can.”
Prevailing economic conditions for container carriers will continue to force companies to forge bigger shipping
alliances and consolidate traffic in bigger ships that call less frequently at fewer ports.
The $2 billion Terminal 2 project needs more than environmental
assessment; its economic game plan and design need renewed stress testing, especially in light of a sputtering global economy and the project’s potential impact on B.C.’s marine environment.
