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Archived - The Government of Canada invests over $20 million in British Columbia's transportation system

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No. H 215/08
For release - September 5, 2008

VANCOUVER - The federal government, under the Asia-Pacific Gateway and Corridor Initiative Transportation Infrastructure Fund, will invest a total of up to $20.9 million in five shortsea shipping projects and two road projects in the British Columbia Lower Mainland. This represents a potential $43.5-million joint investment with private sector transportation service providers and municipalities in the region.

"Prime Minister Stephen Harper and the government are committed to concrete measures that contribute to a more productive and competitive economy. The Asia-Pacific Gateway and Corridor Initiative reflects this commitment," said the Honourable James Moore, Secretary of State (Asia-Pacific Gateway) (2010 Olympics) (Official Languages). "These projects will enhance transportation infrastructure safety and efficiency related to the movement of international trade through Canada's Asia-Pacific Gateway, and improve traffic flow in the Lower Mainland."

These projects will establish a network of complementary shortsea shipping services in the Lower Mainland that will contribute to the integrated and efficient movement of international trade. These services will help reduce road congestion between river terminals and deep-sea terminals, increase throughput capacity at marine terminals, develop new transportation options, and increase overall system capacity for trade between Asia and North America.

"By investing in shortsea shipping infrastructure projects for the first time, the federal government is demonstrating its support for shortsea shipping as a way of optimizing the use of the transportation system for the movement of goods," said the Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities. "Better use of our waterways through shortsea shipping can help alleviate congestion, facilitate trade, reduce greenhouse gas emissions, and increase overall transportation efficiency."

Shortsea shipping is a multimodal activity that incorporates the marine movement of cargo between points that are relatively close to one another without crossing an ocean, such as along rivers and coastlines, and within lakes.

The following shortsea shipping projects and service providers were selected following a call for proposals:

  • Fraser River Shuttle (up to $5 million contribution to Coast 2000 Terminals);
  • Deltaport Shortsea Berth (up to $2.35 million contribution to TSI Terminal Systems);
  • Vanterm Shortsea Berth (up to $1.95 million contribution to TSI Terminal Systems);
  • Mountain View Apex Container Terminal (up to $7 million contribution to Seaspan International); and
  • Southern Railway of B.C. Rail Barge Ramp (up to $4.6 million contribution to Southern Railway of B.C.).

These projects call for the development of specialized facilities such as docks, ramps, and fixed-crane infrastructure that would facilitate shortsea shipping of a variety of cargos (including containers, railcars, and break-bulk cargos) that ultimately either originate from or are destined for Asia. The private sector service provider will match the federal funding.

In addition to the shortsea shipping projects, the following road projects will also be undertaken:

  • The City of Richmond will receive up to $750,000 in funding for the construction of a new four-lane section between Wireless Way and Highway 91, to improve traffic flows and facilitate access to Highway 91 and Knight Street.
  • The Corporation of Delta will receive up to $1.1 million in funding for left turn lanes along Nordel Way at Brooke Road and Shepherd Way.

Federal funding for these projects is conditional upon the negotiation of contribution agreements, and completion of any applicable federal environmental assessments required under the Canadian Environmental Assessment Act.

In addition to the seven projects announced today, Transport Canada is currently working with public and private stakeholders to identify infrastructure projects that could accommodate and enhance the growth of the marine terminals around the north and south shores of Burrard Inlet, while addressing community and environmental concerns. These investments could include rail improvements, road/rail grade separations, and road projects. Specific infrastructure projects will be announced when discussions between the federal government and the various stakeholders are completed.

On October 11, 2006, Prime Minister Stephen Harper announced the Asia-Pacific Gateway and Corridor Initiative, with an initial investment of $591 million. A further commitment of $410 million was made in Budget 2007, bringing total federal funding for the APGCI to more than $1 billion. In two years, the Government of Canada has partnered with British Columbia and other western provinces, municipalities and the private sector to announce strategic infrastructure projects worth more than $2.4 billion, including federal contributions of almost $900 million.

Through its unprecedented $33-billion Building Canada plan, the Government of Canada will provide long-term, stable and predictable funding to help meet infrastructure needs across Canada.

A backgrounder with further information about the shortsea shipping and road projects is attached.

- 30 -

Catherine Loubier
Director of Communications
Office of the Minister of Transport, Infrastructure and Communities, Ottawa
613-991-0700

Media Relations
Transport Canada, Ottawa
613-993-0055

Transport Canada is online at www.tc.gc.ca. Subscribe to news releases and speeches at www.tc.gc.ca/e-news and keep up-to-date on the latest from Transport Canada.

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BACKGROUNDER

SHORTSEA SHIPPING PROJECTS IN B.C.

Shortsea shipping is a multimodal activity that incorporates the marine movement of cargo between points that are relatively close to one another without crossing an ocean, such as along rivers and coastlines and within lakes.

Five shortsea shipping projects in the British Columbia (B.C.) Lower Mainland have been selected for federal contribution funding under the Asia-Pacific Gateway and Corridor Initiative Transportation Infrastructure Fund. Federal funding for these projects is conditional upon the negotiation of contribution agreements, and completion of any applicable federal environmental assessments required under the Canadian Environmental Assessment Act.

The following shortsea shipping projects were selected following a call for proposals:

Fraser River Shuttle ($10 million total cost of project)

Coast 2000 will receive up to $5 million in funding for the Fraser River Shuttle. The Shuttle is designed to provide an environmentally-friendly method of moving containers to/from Deltaport, Vanterm Centerm and Fraser Surrey Docks. The project involves construction of a barge ramp/dock for loading and unloading containers onto/from barges. Coast 2000 is located in Richmond along the north shore of the Fraser River's south arm. The property is equidistant to all deep-sea container terminals.

Deltaport Shortsea Berth ($4.7 million total cost of project)

TSI Terminals will receive up to $2.35 million for a new shortsea barge berth at Deltaport, as part of the Berth 3 expansion to accommodate barges.

Vanterm Shortsea Berth ($3.9 million total cost of project)

TSI Terminals will receive up to $1.95 million for a new Vanterm Shortsea Berth which would convert the existing Berth #7 located at the west end of the dock to accommodate shortsea shipping by barge. The modifications will include the construction of a new roll on/roll off ramp at the southern end of Berth #7 to accommodate shortsea movements of trucks.

Mountain View Apex Container Terminal ($14 million total cost of project)

Seaspan International will receive up to $7 million in funding for a shortsea shipping access point at Mountain View Apex Container Terminal. This access point consists of a dock/ramp and a fixed crane to allow movement of containers by water and will provide a new connection to the Mountain View Reload intermodal facility. It will allow roll on/roll off tractor trailer operations as well as the transfer of containers to/from Vancouver Island for export.

Southern Railway of B.C. Rail Barge Ramp ($10 million total cost of project)

The Southern Railway will receive funding of up to $4.6 million for a rail barge ramp at the marine rail terminal on Annacis Island in Delta. This project will include a barge ramp and berth capable of handling railcars and truck trailers. Southern Railway connects Canadian National, Canadian Pacific, Burlington Northern Santa Fe and Union Pacific using existing Southern Railway interchanges.

The projects call for the development of specialized facilities (e.g., dock, ramp, fixed-crane infrastructure) that would facilitate the shortsea shipping of a variety of cargos (e.g., containers, railcars, break-bulk) that ultimately either originate from Asia or are destined for Asia.

These complementary projects will form an integrated shortsea shipping network that could potentially carry up to approximately 120,000 Forty Foot Equivalent units per year.

Collectively, these shortsea shipping projects could potentially reduce the number of trucks on the road by 650 per day.


ROAD PROJECTS IN B.C.

The City of Richmond will receive up to $750,000 in funding for the construction of a new four-lane section between Wireless Way and Highway 91, to improve traffic flows and facilitate access to Highway 91 and Knight Street. A number of business parks that are engaged in international trade are located along No. 6 Road. These businesses use No. 6 Road to access Highway 91, which connects to the provincial highway network and Knight Street, and is a major truck route that is part of the regional highway network.

The Corporation of Delta will receive up to $1.1 million in funding for left turn lanes along Nordel Way at Brooke Road and Shepherd Way. Nordel Way is a municipal arterial road and truck route. It currently does not provide dedicated left turn lanes at the intersections. There is very heavy congestion and travel delays for trucks moving international goods to and from the intermodal facilities in the area.

Federal funding for these projects is conditional upon the negotiation of contribution agreements, and completion of any applicable federal environmental assessments required under the Canadian Environmental Assessment Act.

September 2008


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