(The Canadian Press circulated the following article by James Stevenson on May 5.)
CALGARY — Efforts to expand Canada’s West Coast shipping capacity should focus on turning Vancouver into a “mega-port” rather than enlarging the port of Prince Rupert, the president of Canadian Pacific Railway Ltd. said Thursday.
Rob Ritchie told the railway’s annual meeting that Vancouver provides the shortest and fastest routes between Canada and expanding Asian markets. “We should not be distracted by imitators,” said Ritchie. “The port of Vancouver is the real deal – it is the Pacific gateway for the present and the future.”
After the meeting, Ritchie said CP Rail believes a new container port in Prince Rupert should go ahead, but not at Vancouver’s expense.
“Vancouver is a huge engine for the Canadian economy and it needs to be recognized as such,” he said.
“And that’s what’s going to be the best for the Canadian industry and for jobs in British Columbia.”
Plans for a $170-million overhaul of the port of Prince Rupert were unveiled last week, in a move designed to lure some container ship traffic from Vancouver and congested ports on the U.S. coast.
Montreal-based Canadian National, Canada’s largest railway and main competitor to CPR, pledged $30 million for the Prince Rupert project along with $60 million from the federal and B.C. governments.
CN has exclusive rail links to Prince Rupert, while both of Canada’s main railways have access to the Vancouver port.
The Vancouver Port Authority reported last week it moved $43 billion worth of goods in 2004, up by 48 per cent from five years ago.
The port authority and its partners also said $1.4 billion is needed for expansion projects to more than double capacity in the next 15 years.
Last month, Canadian Pacific announced $160 million in track improvements between the Prairies and Vancouver to relieve bottlenecks. The work is expected to increase the railroad’s capacity through Western Canada by 12 per cent or 400 freight cars daily.
CPR and the Vancouver port also signed an agreement to work together on capacity development.
Ritchie said Thursday that CPR plans to soon increase its rolling stock of railcars and locomotives to match the increased line capacity and Vancouver port expansions.
“We’re not going to be a field of dreams – build it and they will come – but we can match the demands being put on for containers and bulk,” he said.
Last week, Canadian Pacific said first-quarter profits more than tripled to $81 million, up from $24 million in the same quarter of 2004.
Growth was strong across the bulk commodity sector, led by a 44 per cent increase in coal shipments and 23 per cent growth in grain movement.
CPR shares (TSX:CP) were down 46 cents to $44.68 late in the afternoon in Toronto, while CN stock (TSX:CNR) rose 41 cents to $74.40.