Fraser River Port unveils $190 million project

The Fraser River Port Authority (FRPA) has announced its strategic alliance with Fraser Surrey Docks Ltd. and a newly created company IDC Distribution Services Ltd., aimed at boosting capacity to 415,000 TEUs (20-foot equivalent units) and improving site efficiency.

The port expects greater efficiencies will result through a $190 million investment, including the phased upgrade of Fraser Surrey Docks and the creation of a new intermodal yard nearby, said the port.

Up to 80 permanent union jobs will be created by the terminal upgrade during the first phase scheduled for completion by June 2005. A second phase, to take capacity to about 600,000 TEUs, could proceed if container growth continues.

The new rail-oriented intermodal yard located within the Surrey Properties logistics distribution hub and an adjacent rail holding yard are being built adjacent to the marine terminal on existing Port Authority land in Surrey. IDC will have between 35-40 employees at its new intermodal yard.

Last year, Fraser Surrey Docks handled a record 250,000 TEUs, but its customers want more capacity to meet continuing world-wide demand, said port officials. The port has attracted increasing interest from shipping lines since deepening its vital shipping channel to accommodate vessels with a draft of 11.5 metres in 2003, which helped boost total cargo throughput to a record of almost 36 million tonnes.

Major aspects of the container terminal upgrade project include:

 Site improvements, equipment acquisition including two ship gantry cranes, and a new streamlined gate for trucks. Expected cost over $125 million.
 A 7.5 hectare intermodal yard immediately adjacent to the docks on a site previously occupied by another tenant. Estimated costs over $18 million.
 Infrastructure improvements and a 2.8 km extension to the rail holding yard on existing port land. Cost $2.4 million.

A Gottwald mobile harbour crane is expected from Germany within 10 weeks for assembly on site and will provide an immediate boost to container handling efficiency and also help smooth the flow of important break bulk cargo traffic that continues to be handled by Fraser Surrey Docks.

The project was subjected to a Canadian Environmental Assessment Act screening process to determine any environmental impacts and site preparation work has already begun on the new intermodal yard site.

As the landlord, the FRPA will be involved in several improvements as well as building the new rail holding yard. It is also entering into a new long-term land lease agreement with Fraser Surrey Docks Ltd. The Port Authority says it will continue to play a vital role in the success of the venture by maintaining and dredging the shipping channel suitable for vessels up to Panamax size (about 60,000 deadweight tonnes).

"Dredging the main channel to keep it open all year round is not an inexpensive business, but the results in sustained trade for British Columbia have been impressive and this latest project will prove an astute investment in the future for all parties," says Allen Domaas CEO of the Port Authority.

Domaas paid tribute to the Provincial Government for legislative and policy changes which encourage investment and increase the competitiveness of British Columbia’s ports.

"Without this encouragement through caps on municipal tax rates on port facilities and on new investment in ports facilities," Domaas adds, "investment projects in the future of our port system would have been that much more difficult to sustain."

The project also has national implications. “The upgrading of the Fraser Surrey Docks represents a significant step forward for both the port and for Canada,” said the Honourable David Anderson, Minister of the Environment and Senior Federal Minister for British Columbia. “The Fraser River Port is a major Canadian gateway to international trade and investment — a magnet for new business. This project increases the kind of pull essential to growing the economies of British Columbia and Canada.”

"The Fraser River Port plays an important role in the Greater Vancouver Gateway future and we needed to make this extensive upgrade of facilities to better serve our current customers and attract new ones," adds Domaas. "This undertaking will solidify the port’s position as a key logistics hub in the Greater Vancouver Gateway."