The Fraser River As a Commercial Highway Issues, Implications and Opportunities
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Centre of Excellence Sustainability, Infrastructure & Transportation Economics The Fraser River As A Commercial Highway Issues, Implications and Opportunities An examination of some of the key issues, implications and opportunities associated with utilizing the Fraser River as a Short Sea Shipping (SSS) corridor, employing river vessels to carry containers upriver from deep‐sea terminals to smaller upstream node ports for dispatch to their end user destinations. http://centre.bcitbusiness.ca Centre of Excellence Sustainability, Infrastructure & Transportation Economics Terminology Used In This Report Berth A ship’s allotted place at a wharf, dock or quay, where loading/unloading activity takes place. Deep Sea Port Ports which can accommodate Panamax and post-Panamax size container ships. Intermodal Two or more different modes of transportation involved in the movement of goods to and from their destination. These modes include ships, railways and trucks. Node Ports Smaller versions of container terminals, usually located inland along a river. Node ports receive containers from and dispatch containers to deep sea ports. Short Sea Shipping The movement of bulk goods and containers from main ports, such as the Port of Vancouver, North Fraser and Fraser Port, to node ports which are located upstream along the Fraser River. Potential SSS routes would span up to 130 kilometers inland from tidewater. TEU Twenty-foot equivalent unit container which has the following dimensions: 20 feet long; eight feet wide, 8.5 feet high. Most containers used for transporting goods are 40 feet long (two TEUs). mTEU is one million TEUs. Abbreviations Used in This Report AQMP Air Quality Management Plan GVGC Greater Vancouver Gateway Council BC British Columbia GVRD Greater Vancouver Regional District BNSF Burlington Northern Santa Fe Railway LFV Lower Fraser Valley CAC Common air contaminants IWT Inland Water Transport CMA Canada Marine Act NFPA North Fraser River Port Authority CNR Canadian National Railway NPV Net Present Value CPR Canadian Pacific Railway RFID Radio frequency identification FRPA Fraser River Port Authority SSS Short Sea Shipping GDP Gross Domestic Product TEU Twenty-foot equivalent units GHG Greenhouse Gas VPA Vancouver Port Authority Fraser River as a Commercial Highway: Issues, Implications & Opportunities Page 2 of 83 Centre of Excellence Sustainability, Infrastructure & Transportation Economics Contents 1.0 INTRODUCTION ...................................................................................................................................... 4 2.0 THE DYNAMICS OF GLOBAL FREIGHT TRANSPORT ......................................................................... 8 2.1 Growth in Containerization .................................................................................................................... 8 2.2 Trends in Container Ship Size ............................................................................................................... 9 2.3 Impact on Ports ................................................................................................................................... 12 3.0 THE LOWER MAINLAND PORTS ......................................................................................................... 14 3.1 Port of Vancouver ................................................................................................................................ 15 3.2 Fraser River Port ................................................................................................................................ 17 3.3 North Fraser Port ................................................................................................................................ 19 4.0 MOVEMENT OF GOODS AROUND THE LOWER MAINLAND ........................................................... 19 5.0 IMPACT OF FREIGHT TRAFFIC GROWTH ON THE LOWER MAINLAND ......................................... 21 5.1 Demand for Industrial Land ................................................................................................................. 21 5.2 Roadway Congestion ......................................................................................................................... 23 5.3 Air Quality Impacts .............................................................................................................................. 25 6.0 LOWER MAINLAND PORT COMPETITION ......................................................................................... 27 6.1 Port of Prince Rupert ........................................................................................................................... 27 6.2 U.S. Ports ........................................................................................................................................... 28 7.0 THE FRASER RIVER ............................................................................................................................. 31 7.1 The Geography ................................................................................................................................... 31 7.2 River Transportation: A Historical Perspective ................................................................................... 32 7.3 Challenges Facing the Fraser River Basin ......................................................................................... 35 7.5 Fraser River Stakeholders .................................................................................................................. 35 8.0 INLAND WATERWAY TRANSPORT COMPARISONS ........................................................................ 39 8.1 Yangtze River Transportation Corridor ................................................................................................ 39 8.2 The Rhine River Transportation Corridor ............................................................................................. 45 9.0 FRASER RIVER SHORT SEA SHIPPING ............................................................................................ 49 9.1 The Concept ........................................................................................................................................ 49 9.2 Potential Node Port Locations ............................................................................................................. 51 9.3 Short Sea Shipping and Land Demand ............................................................................................... 53 9.4 Infrastructure Needs Associated With Short Sea Shipping .................................................................. 53 9.5 Business Implications .......................................................................................................................... 55 9.6 Environmental Implications .................................................................................................................. 55 9.7 Operational Costs ................................................................................................................................ 59 10.0 ASSESSMENT OF FEASIBILITY ....................................................................................................... 61 10.1 Modal Choice .................................................................................................................................... 62 10.2 Inland Water Transport Affinity .......................................................................................................... 62 10.3 Research Focus ............................................................................................................................... 65 APPENDICES ............................................................................................................................................... 67 Appendix A - Template Table of Contents ................................................................................................. 68 Appendix B – Potential for Node Ports ...................................................................................................... 69 Appendix C - Fraser River Stakeholder Concerns .................................................................................... 71 Appendix D - Sample Process: From Deltaport to Chilliwack by Truck ..................................................... 73 Appendix E - Modified Process using Node Ports: Delta Port to Chilliwack .............................................. 75 Appendix F - Operational Cost Categories ................................................................................................ 78 Appendix G - Operational Cost Categories by Transport Phase ............................................................... 79 Appendix H - Common Air Contaminants .................................................................................................. 80 Appendix I - Common Greenhouse Gases ................................................................................................ 80 SOURCES .................................................................................................................................................... 81 Fraser River as a Commercial Highway: Issues, Implications & Opportunities Page 3 of 83 Centre of Excellence Sustainability, Infrastructure & Transportation Economics 1.0 INTRODUCTION Background The container shipping industry is undergoing enormous change. Doubling and tripling of container ship size within the next