The Vancouver Fraser Port Authority’s (VFPA) multibillion-dollar bet on its choice for expanded container cargo handling capacity for the Port of Vancouver cleared another hurdle last Monday with the release of the report from the federally appointed Review Panel for the Roberts Bank Terminal 2 Project.
But the finish line remains many miles away.
As Business in Vancouver reported, the panel found that, while the $2.8 billion project would have significant environmental, cultural and health impacts in the Roberts Bank area, it did not present any major technical challenges and “is consistent with Canada’s role as a trading nation.”
As the VFPA has consistently pointed out in its rationale for investing in Terminal 2, increased container cargo handling capacity is critical to maintaining the competitiveness of the country’s Asia Pacific Gateway.
The review panel rightly agreed with that argument.
But its hearings took place well before the COVID-19 pandemic’s sudden and massive disruption of industry, trade and business.
Its short-term impacts are well known; however, its long-term effect on transpacific and other major trade loops is a significant unknown.
The flow of trade between Asia and North America could be radically redrawn as companies diversify manufacturing away from China and regionalized options provided by 3D printing and other technologies reduce the need for long-distance shipping.
Finding a willing operator for Terminal 2 in the event that the project wins final government approval will also be a major challenge, given the state of global trade and the prospects for the world’s economic growth.
The VFPA deserves credit for its patient and dogged pursuit of its Terminal 2 initiative.
Prudent long-term planning is critical to the continued success of B.C.’s ports and their fundamental role in Canada’s transpacific trade.
However, the final decision on Terminal 2’s approval is far from a foregone conclusion, especially given the unprecedented economic upheaval loosed by a global pandemic.
