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CITY OF ABBOTSFORD Submission to the House of Commons Standing Committee on Transport, Infrastructure and Communities on the Transportation Logistics Strategy

Questions concerning the content of this report should be directed to:

Parm Sidhu General Manager Abbotsford International Airport Email: [email protected] Telephone: 604-864-5678

CITY OF ABBOTSFORD 32315 South Fraser Way Abbotsford BC V2T 1W7 www.abbotsford.ca Page 1 of 5

Introduction

CANADIAN GLOBAL TRADE – CONTEXT 's national transportation system supports our country’s global trade, which was evaluated at $1.1 trillion in 20171. Of this total, contributes 37 percent of Canada's exports, a disproportionately large amount compared to its share of the national population2.

Strategically located on Canada’s west coast, British Columbia (B.C.) lies at the commercial crossroads of the Asia-Pacific region and . In 2017, the west was the fastest-growing region of Canada, led by B.C. and . B.C. had the second-fastest growing provincial economy in 2017 (+3.7%), sustained by strong real estate, finance, and media sectors in Vancouver. Growth is expected to slow to 2.1 percent in 2018 and 2019, but B.C. will still be leading most other provinces3.

B.C. has diverse strengths in natural resources, manufacturing, and service industries, making resilient to economic downturns. According to the B.C. Business Council, the provincial economy is currently operating above its capacity. B.C. has the highest job vacancy rate in Canada, and growth in average hourly wages is nearly three times the rate of inflation, which means labour scarcity is holding back job growth4. The overall strength of the B.C. economy alongside continued significant population growth, are placing a noteworthy strain on the provincial transportation system5. There are many urban areas of that have significant congestion that result in lost productivity, increased costs, and harmful effects on the environment. The C.D. Howe Institute has estimated that traffic congestion costs metro Vancouver up to $1.2 billion per year, and without action, business, communities and the provincial economy will suffer even more in years to come6.

FRASER VALLEY REGION, SOUTHWESTERN B.C. Southwestern B.C. has a complex transportation network, integrating air and marine ports with rail lines and major roads as well as international border crossings. As the Asia-Pacific Gateway, it is of regional and national economic importance that Southwestern B.C. has a safe, reliable and efficient transportation network7.

The issue of funding for transportation has reached a critical point in Southwestern B.C. Specifically funding for transportation improvements in the South Fraser region – which includes the cities of Surrey, Langley and Abbotsford – where a significant portion of the future provincial growth and development is predicted to occur, has reached a critical turning point. The entire South Fraser region is projected to absorb 70 per cent of the entire region’s population growth over the next 25 years8. Further, with an approximate 10,000 new

1 https://www144.statcan.gc.ca/tdih-cdit/index-eng.htm, The Government of Canada, Transportation Data and Information Hub. 2 https://www.wd-deo.gc.ca/eng/243.asp The Government of Canada, Western Economic Diversification, Economic Overview. 3 https://www.wd-deo.gc.ca/eng/243.asp The Government of Canada, Western Economic Diversification, Economic Overview. 4 http://www.bcbc.com/content/3917/BCERO_2018_02.pdf, The Business Council of British Columbia, BC Economic Review and Outlook, Q2 2018. 5http://www.bcchamber.org/policies/need-innovative-approach-transportation-increasingly-urban-province The BC Chamber of Commerce, The Need for an Innovative Approach to Transportation for an Increasingly Urban Province. 6 https://www.cdhowe.org/media-release/hidden-costs-congestion-total-12-billion-year-metro-vancouver, Hidden Costs of Congestion total up to $1.2 Billion a Year for Metro Vancouver, CD Howe Institute 7 https://www.boardoftrade.com/advocacy/2018-mobility-pricing, Board of Trade, Mobility Pricing analysis. 8 https://www.wcpg.ca/kelowna-surrey-among-2018s-best-real-estate-investment-destinations/, The Western Canadian Properties Group, , Surrey Among 2018’s Best Real Estate Investment Destinations. Page 2 of 5

residents moving to the City of Surrey each year, it is projected that the Surrey will overtake Vancouver as B.C.’s largest city within the next decade9.

The impact of this growth on the transportation networks in this region has reached a crucial point and cannot be overlooked. The Insurance Corporation of British Columbia reports that the number of crashes on the Trans-Canada between the cities of Langley and Abbotsford has doubled in the past two years, and the number crashes on the Trans-Canada Highway in the South Fraser region rose from 510 in 2015 to 1,100 in 201710.

As urbanization increases across the South Fraser region, bottlenecks in urban centres will only continue to grow. As the gateway to Asia and the Pacific, as well as the rest of Canada, the congestion crunch in Southwestern B.C. directly impacts businesses and investment across the province as well as Canada.

Discussion

THE CITY OF ABBOTSFORD As a community that boasts the only additional International Airport in Southwestern B.C. next to the City of Vancouver, as well as an international border crossing, easy access to the Trans-Canada Highway and major rail carriers, the City of Abbotsford welcomes this opportunity to provide recommendations to the House of Commons Standing Committee on Transport, Infrastructure and Communities.

The City of Abbotsford straddles the Trans-Canada Highway, functioning as a gateway community between the rest of the and Metro Vancouver, with its southern border being Washington State. This means that Abbotsford’s businesses benefit from a constant flow of traffic from the United States as well as from metro Vancouver. The city’s location provides a great spot to situate and grow businesses designed to service the whole province11.

The City of Abbotsford is the largest municipality in B.C. with a total area of 389 km2, and is the province’s fifth largest city by population. Abbotsford is one of the most intensively and diversely farmed areas in Canada, supporting a wide range of crop and livestock operations. Approximately 75 percent of the city's land base is located within the Agricultural Land Reserve, with agriculture supporting 1 of every 4 private sector jobs and 1 in 5 overall jobs in the community12 . Abbotsford’s gross farm receipts are $20,441 per hectare, which is three times greater than the next most productive agricultural region in Canada13.

9 http://www.westerninvestor.com/news/british-columbia/kelowna-surrey-among-2018-s-best-real-estate-investment-destinations- 1.23071985, The Western Investor, Western Investor’s annual take on the top five towns to place your real estate investments in Western Canada over the next year. 10 https://vancouversun.com/news/local-news/highway-1-crash-numbers-double-in-two-years-in-fraser-valley , Newspaper, Highway 1 crash double in two years, Fraser Valley. 11 http://cdn3.reincanada.com/Research/Abbotsford_REIN_Score_Complete_2016.pdf?_hsenc=p2ANqtz-9bCFLukOR5d- NzsU_7qaKVOWrfP39b0__3Fe4672NipGFTWBJz0vO3WPwx9kJwwUFMxxGj83s5ABRHkGxouq3rD9qthQ&_hsmi=28767919, 12 https://www2.gov.bc.ca/assets/gov/farming-natural-resources-and-industry/agriculture-and-seafood/agricultural-land-and- environment/strengthening-farming/860600-2_economic_impact_of_agric_in_abbotsford.pdf, Government of BC, the Economic Impact of Agriculture in Abbotsford. 13 https://www150.statcan.gc.ca/n1/daily-quotidien/170510/dq170510a-eng.htm, , 2016 Census of Agriculture. Page 3 of 5

The ability for Abbotsford businesses to transport goods to market is a key factor in the continued success of the community and of the region. The significant congestion impacts currently being felt along our main transportation corridor of the Trans-Canada Highway directly affect the competitiveness of the City’s overall economy. These impacts will only continue to compound should the federal and provincial government’s commitment to the continuing improvements to this transportation gateway waver.

The Province of B.C. has indicated they are in the process of examining future Trans-Canada Highway corridor improvements as part of a broader assessment of the transportation network in order to make strategic decisions on the best ways to reduce congestion and increase safety14. The City of Abbotsford would like to emphasize the importance of ensuring that, as a part of this process the Province include the design for future construction of six-laning along the Trans-Canada Highway through the South Fraser region, including through the City of Abbotsford. Improving transportation on this portion of the Trans-Canada Highway will not only expand markets for our community’s key local sectors such as manufactured goods, agri-food and aerospace, it will support thousands of residents in accessing employment across the region and the continued success of our Abbotsford International Airport. It will also aid in the reduction of greenhouse gas emissions and support increased public safety through the reduction of traffic congestion.

Effective and efficient transportation systems generate employment and economic development, as well as job creation for B.C. communities. The growth of our economy relies on a safe, reliable and efficient multi- modal transportation network. The City of Abbotsford respectfully requests the ongoing support of the Standing Committee and the Government of Canada in ensuring that this critical infrastructure improvement project is achieved.

THE ABBOTSFORD INTERNATIONAL AIRPORT The Abbotsford International Airport (YXX) has been owned and operated by the City of Abbotsford since 1997. The City has established YXX as a self-sustaining business operation such that the annual operating and capital budgets are funded by airport revenue. More than $75 million has been re-invested back into YXX infrastructure since the City assumed operation of the airport lands.

As a key asset and part of the regional trade-corridor, YXX is 3 kms from the Trans-Canada Highway, and 12.3 kms from the Huntington International Border crossing (see Appendix “A”). Canadian Border Service Agency staff at the airport are provided by the Port of Abbotsford/Huntington for all commercial flights; staff from the border agency provide clearance at the airport for scheduled flights.

YXX is currently supporting the expansion of their main corridor access route, Mt. Lehman Road, which directly connects the airport lands with the Trans-Canada Highway. As the airport continues to expand and provide more domestic/international flights for the region, it’s important that access to and from the airport remains unrestricted due to capacity concerns on the Trans-Canada Highway.

YXX’s business model is based around the fundamentals of being an economic enabler for the region, the province and the nation. In 2015, the business model was transformed to align with Ultra Low-Cost Carriers, with the following national carriers currently operating out of the airport: • WestJet (since 1997) • rouge (2015 seasonal service)

14 https://www2.gov.bc.ca/gov/content/transportation/transportation-infrastructure/projects, Province of BC, Highway Infrastructure Projects. Page 4 of 5

• (2016) • Swoop (2018)

Current Direct routes offered from YXX: • , , , , Hamilton, Las Vegas, PVR, Mazatlán

Since the inception of Flair Airlines and more recently, Swoop, passenger numbers have continued to grow at record rates. Ultra Low-Cost Carriers such as Swoop and Flair Airlines are stimulating demand for air travel and are making air travel accessible and affordable for all . Passenger volumes at YXX have steadily increased with volumes at 487,833 in 2015 to a forecasted 860,000 in 2018. Additional Ultra Low-Cost Carriers could enter the market place in 2019 which would continue to drive passenger volumes higher at YXX.

The airport lands are home to world-class aerospace companies such as Conair Aviation, Cascade Aerospace, among others. Canada is currently experiencing a national shortage of pilots. The Canadian Council for Aviation and Aerospace has said that by 2036, Canada might be 6,000 pilots short, unable to meet growing demands in the industry15. As the shortage of pilots continues to build, a key opportunity and economic driver at YXX will continue to be flight training. YXX has 3 fixed-wing schools, and 1 rotary-wing school which will continue to provide training to fill some of the gaps left by the shortage in Canada.

The ongoing development of YXX and the surrounding airport lands will further increase the need for the key transportation routes, and especially the Trans-Canada Highway, to remain accessible for YXX passengers, businesses as well as goods and services providers. The current increased congestion on the Trans-Canada Highway is of major concern for YXX and the businesses located on the airport lands in being able to maintain effective operations.

Summary

Our economic success in B.C. and Canada depends on being competitive on the world stage. B.C. will be challenged to attract shippers to the port terminals in Vancouver if goods will then be stuck on trucks in congestion on B.C. route to markets. B.C.’s natural resources will lose their place in world markets if congestion delays absorb all profits or negatively impact the quality of agriculture products.

Federal policies, programs, funding and legislation have a significant influence on the transportation sector. It is critical that the Federal government continue to transportation bottlenecks and congestion along Canada's trade corridors; and increase the fluidity of Canadian trade around the world through our ports, airports, roads, railways, intermodal facilities, bridges and border crossings.

Through the Transportation 2030 Strategic Plan, the Government of Canada is working to strengthen the transportation sector to create a safe, innovative, sustainable, and unified transportation system across Canada that will continue to support economic growth, public safety, and the natural environment16.

15 https://www.westerngazette.ca/news/canadian-pilot-shortage-bringing-job-opportunities-to-students/article_65878d74-0536- 11e8-8367-0fdbbd570550.html, Western Gazette, Canadian pilot shortage bringing job opportunities to students. 16 https://www.tc.gc.ca/eng/future-transportation-canada.html, Government of Canada, Transportation 2030, A Strategic Plan for the Future of . Page 5 of 5

For Canada’s economy to succeed, Southwestern B.C. must be able to get Canadian products, services and people to key markets. We must have modern airports and airlines with competitive and quality services, we must have access to advanced gateways with logistics and integrated infrastructure, and we must have transportation networks that facilitate the movement of goods to markets.

If we imagine the year 2030, we also know that trade will be critical for the Canadian economy, and that trade will have shifted significantly to Asia and other developing regions. The City of Abbotsford encourages the Committee to ensure that Federal regulations and policies related to transportation and trade continue to support the economic health and livability of our region, our Province and Canada’s international competiveness over the next 20 to 30 years.

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17 https://vancouversun.com/news/local-news/highway-1-crash-numbers-double-in-two-years-in-fraser-valley, Vancouver Sun Newspaper, Highway 1 crash numbers double in two years, Fraser Valley Appendix A Why Invest at YXX? Contact Us

• Approximately 87 hectares (215 acres) of land • Established aerospace community with Cascade, Parm Sidhu immediately available for airside and groundside Conair, University of the Fraser Valley Aerospace Airport General Manager development Centre and others Tel: 604-864-5678 • Low construction costs – Most available land is • Daily commercial flights with approximately Email: [email protected] fully serviced with excellent granular soil 500,000 passengers annually Abbotsford International Airport • Competitive lease rates, flexible lease terms, and • High public visibility with Airshow, Aerospace YXXCity tax incentives EXPO, Tradex, and commercial jet traffic 30440 Liberator Avenue Abbotsford, BC V2T 6H5 • Abbotsford Shell Aerocentre FBO and world class • Close proximity to Highway 1, Vancouver, US 604-855-1001 flying schools including Coastal Pacific Aviation border, and rail and Chinook Helicopters • The Abbotsford/ region has a • Excellent Airport infrastructure, including CAT vibrant economy, growing population, and an 1 Instrument Landing System, on-site aircraft established, highly-trained workforce rescue and firefighting, and a full service Air Terminal Building with Customs and passenger • Progressive Airport and City management team screening facilities that is eager to make development happen at the Airport!

DISTRICT OF

COQUITLAM

DOWNTOWN VANCOUVER

BURNABY

DISTRICT OF MAPLE RIDGE VANCOUVER BRAID STREET SKYTRAIN STATION

YVR SCOTT ROAD SKYTRAIN STATION DISTRICT OF MISSION RICHMOND SURREY Building for the Future DELTA CITY OF CITY OF ABBOTSFORD YXX. The future of aerospace is here. LANGLEY

TOWNSHIP OF WHITE LANGLEY ROCK

YXX

WHATCOM COUNTY UNITED STATES BLI & SEA Ô Approximately 500,000 guests processed annually via daily jet serviced flights with domestic/trans-border and international connections available, along with several daily Intra-BC flights.