Thank you, Sarah.
Good afternoon, and thank you for joining us today as we present the 2009 activities of the Vancouver Fraser Port Authority, doing business as Port Metro Vancouver.
Port Metro Vancouver operates North America’s most diversified port, and the fourth largest tonnage port on the continent.
We manage 1000 hectares (2500 acres) of land, 16,000 hectares (40,000 acres) of water, and assets along more than 600 kilometers of shoreline.
We operate in three distinct geographical areas – Burrard Inlet, the Fraser River and, Roberts Bank – bordering on 16 separate municipalities.
The Port is broadly focused on:
• providing and improving service to our customers, stakeholders, tenants and port users;
• developing an integrated approach to land use and acquisition;
• identifying and contributing to strategic infrastructure investments and transportation planning initiatives; and
• championing port and community sustainability initiatives across our jurisdiction.
The Port itself also serves as a major economic generator for our region, province and nation, trading $75 billion in goods annually with more than 160 trading economies, and generating across Canada an estimated 129,000 jobs, $6 billion in wages, and $10 billion in GDP.
Following a challenging 2009, I’m pleased to report that Port Metro Vancouver demonstrated continued resiliency. In spite of the year’s worldwide economic constraints, we met significant milestones as we delivered on planned infrastructure investments, strengthened community partnerships, and finalized plans to successfully welcome the world for the 2010 Winter Games.
In 2009, overall tonnage reached nearly 102 million metric tonnes, down 11% from 2008. The Port’s high degree of diversification and solid overseas demand for high quality Canadian commodities reinforced Port Metro Vancouver’s value as Canada’s most important gateway to international trade.
Reviewing by business sector, automobiles shipped through Port Metro Vancouver decreased by 15% in 2009 to 387,000 units and reflected the declining trend for vehicle sales in North America.
Breakbulk experienced the year’s most significant sector decline, down 28%, to 15 million metric tonnes. A variety of factors connected to the economic downturn accounted for the decline.
Bulk cargo results were mixed, depending on the various dry or liquid bulk commodities, but total volume declined 8% to 68 million metric tonnes.
Overall container volume through the Port decreased nearly 14% and settled at 2.2 million twenty-foot equivalent units for the year. The economic downturn and erosion of consumer confidence in 2009 initially led to a decline in laden container imports, while we experienced stable demand for containerized exports of forest products and specialty crops. Overall, the container sector finished the year with a marked gain in the second half.
Vancouver welcomed 37 cruise ships in 2009, for a total of 257 calls. Passenger volumes increased 5% to 898,000 revenue passengers, contrary to the downturn experienced in other areas of the tourism industry. Port Metro Vancouver was also pleased to be named the first Canadian port for Disney Cruise Line, as the Disney Wonder will homeport in Vancouver for Alaska cruises in 2011.
Moving to organizational efficiencies, in 2009 I announced a new organizational structure and a more streamlined Executive Team, to deliver Port Metro Vancouver’s strategic priorities and continue to develop the port as a key component of one of North America's leading gateways.
Following a review of service delivery to stakeholders and tenants, we closed our New Westminster corporate office after we determined that Port Metro Vancouver could provide the same or better service to its Fraser River customers from the Vancouver office. This helped to realize business efficiencies, reduced the need for employees to travel between sites, and facilitated the sub-lease of the office. We remain committed to providing superior customer service to our tenants and to supporting our communities along the Fraser River.
In recent years within the Metro Vancouver Gateway, we have experienced unprecedented public and private investment. Industry stakeholders and government have committed to spend nearly $9 billion in coming years to develop the Gateway. Our collaborative, strategic and financial partnership demonstrates our collective commitment to investing in long term infrastructure that commercial users need, while securing jobs and providing economic value for communities.
In 2009, we continued to develop and plan for capacity expansion and completed work on the Deltaport Third Berth that opened in January 2010. Deltaport’s three new quad cranes — a first for North and South America — will help the terminal achieve an estimated 40% increase in handling capacity.
Also last year, the federal government contributed $21 million toward 14 Port Metro Vancouver infrastructure projects under the Government of Canada's Infrastructure Stimulus Fund. The Port’s matching contribution leverages the total investment in these projects to $42 million. One of the projects – an Integrated Port Operations Center —will act as a round-the-clock center for providing integrated service to key port stakeholders, terminal operators, regulatory agencies and marine/road/and rail traffic, within one location.
In October, Prime Minister Stephen Harper attended our Port to announce funding to enhance Vancouver's South Shore Trade Area. The Federal Government, along with Port Metro Vancouver, the City of Vancouver, Canadian Pacific and CN have committed $125 million to fund infrastructure projects that will support increased cargo volumes and economic development throughout the region. Prime Minister Harper underscored the value of the Port’s contribution to Canada when he said, “the lifeblood of our economy flows through the heart of Port Metro Vancouver, and the Gateway Initiative is making that heart beat stronger than ever.”
We continue to recognize the Government of Canada for their vision, insight and exceptional commitment to serve the nation's international trade requirements through this leading Gateway.
With security measures that meet or exceed North American standards, Port Metro Vancouver has a well-earned reputation for port security leadership and offers a secure, safe and dependable place to do business.
In February 2010, the Metro Vancouver port community drew upon this excellent reputation and extensive expertise to play an integral role in hosting the world at the Vancouver 2010 Olympic and Paralympic Winter Games. While the Games took place this year, our operations work dates back many years to our involvement with the team that prepared the Vancouver 2010 Bid. I’d like to offer my most sincere congratulations and thanks to everyone involved in the planning and execution of this monumental undertaking. We are very proud that port operations continued secure and materially uninterrupted during Games-time.
While we need to leverage our investments in infrastructure upgrades as we look to expand our nation’s international competitiveness, we must also continue our ongoing engagement with host communities and develop sustainable and environmentally conscious growth strategies.
As we build and invest, we need to recognize the inevitable impacts of growth and construction on the quality of life of local residents. Shorter term negatives -- like noise, pollution and traffic congestion – can encourage community resistance to infrastructure enhancements that will, ultimately, deliver long-term benefits such as reduced emissions, decreased bottlenecks, and better public transportation. To be sustainable, we must mitigate these impacts and offer appropriate community involvement and investment wherever possible.
For instance, through the work of the Deltaport Third Berth Project Community Liaison Committee