Statement by Global Container Terminals in response to the Federal Review Panel Report for the Vancouver Fraser Port Authority's Roberts Bank Terminal 2 Project
Global Container Terminals (GCT) has reviewed the findings of the Federal Review Panel Report for the Roberts Bank Terminal 2 (RBT2) Project issued on March 27, 2020 (Report). Overall, the Panel's conclusions that the RBT2 Project would result in numerous significant adverse residual and cumulative effects, including on Dungeness crab, ocean-type juvenile Chinook salmon, and on the Southern Resident Killer Whale are understandable. As a major container terminal operator in the Port of Vancouver, GCT finds concern with many of the findings made in the Report and would like to comment on the following:
1) Capacity must be right-sized for marketplace and community
The majority of stakeholders understand and agree that British Columbia will need container port capacity in the future that appropriately responds to the needs of exporters, consumers, and the ocean shipping industry. It is important that this capacity is incremental and right-sized for the community and the market. The VFPA's RBT2 project – a $3.5 Billion taxpayer-funded, 165-hectare man-made island in the ecologically sensitive South Salish Sea – is not the right answer. Going forward with the RBT2 megaproject would, in fact, create excess capacity at a high cost that could negatively impact the competitiveness of the Pacific Gateway. Recent events, such as global trade wars and the COVID-19 crisis, have demonstrated the need for a smart, nimble approach that is considerate of the market, local community, and the Canadian public.
2) Financial risk to the public cannot be ignored
In addition to the significant environmental impacts of RBT2, there is also the extremely high cost of construction and the issue of immediate excess capacity. Any of these factors could make RBT2 financially uncompetitive in the market, increasing the risk to taxpayers even further. The VFPA has failed, twice, to find an operator for RBT2, further demonstrating the lack of market confidence in the proposed project.
3) Canada is not facing a container capacity crisis
Although there will, in the future, be a need for more container handling capacity in Canada, there is no urgent crisis for capacity in British Columbia. Current and planned capacity expansions underway will provide sufficient capacity well into the 2030’s based on projections before the COVID-19 outbreak. There is time to consider better alternatives. GCT’s proposed expansion project, Deltaport Berth 4, is incremental, privately funded, and environmentally conscious. It can deliver the right capacity at the right time.
4) Success shouldn't be penalized, the VFPA bias is clear
Historically, GCT worked collaboratively with the VFPA to develop the Vancouver gateway into the success story it is today; now, VFPA is penalizing that success. VPFA has chosen not to work with GCT to advance another successful project. Instead, in addition to being GCT’s landlord and regulator, the VFPA has now decided to become its competitor. These roles are incompatible. By refusing to consider expansion east of the causeway, despite being aware of the lack of any prohibition and by refusing to consider GCT’s application for Deltaport Berth 4 in 2019, the VFPA forced GCT to launch a court challenge. The court process is ongoing. Clearly, the Government of Canada is also taking a second look at the governance of the port authorities as it launched the Port Modernization Review in March of 2018.
5) GCT Deltaport Berth 4 Project is advancing
GCT proposes the better project: Deltaport Berth 4. GCT has engaged the Impact Assessment Agency of Canada (IAAC) and the BC Environmental Assessment Office (BCEAO) and is meaningfully advancing the environmental and stakeholder dialogue needed to ensure a successful project. The DP4 project will expand the existing container terminal footprint incrementally creating additional capacity as it is needed, with potentially less impact on Indigenous fishing grounds, on the workforce and on the environment.
GCT has been a proud and successful terminal operator for over 100 years. We understand the business, the economics, and the landscape. It is indefensible that a better, more fiscally and environmentally responsible project, will not be seriously considered by the VFPA.
DP4 is the right approach to more container port capacity for British Columbia and for Canada.
