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

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Submission to the House of Commons Standing Committee on Transport, Infrastructure and Communities on the Canadian Transportation Logistics Strategy CITY OF ABBOTSFORD Submission to the House of Commons Standing Committee on Transport, Infrastructure and Communities on the Canadian 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 – BRITISH COLUMBIA CONTEXT Canada's national transportation system supports our country’s global trade, which was evaluated at $1.1 trillion in 20171. Of this total, Western Canada 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 North America. In 2017, the west was the fastest-growing region of Canada, led by B.C. and Alberta. 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 it 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 the province 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, Greater Vancouver 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, Kelowna, 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 Highway 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 Fraser Valley 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 , Vancouver Sun Newspaper, Highway 1 crash numbers 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, Statistics Canada, 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
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