City of Delta F.14 COUNCIL REPORT Regular Meeting To: Mayor and Council From: Corporate Services Date: November 27, 2019 Vancouver Fraser Port Authority Update This report has been reviewed and endorsed by the City Manager. ■ RECOMMENDATION: THAT this report be received for information. ■ PURPOSE: The purpose of this report is to provide an update on Vancouver Fraser Port Authority (VFPA) projects and initiatives in Delta. ■ BACKGROUND: Staff meets regularly with the Vancouver Fraser Port Authority to discuss a variety of port­ related issues that impact Delta. Regularly scheduled meetings include the Port Community Liaison Committee and the DeltaNFPA Staff Liaison Committee. ■ DISCUSSION: Roberts Bank Terminal 2 Project (RBT2): The public hearing for the RBT2 project was held over 22 days in May and June 2019. Delta presented at the hearing and provided written closing remarks on the project. On August 27, 2019, the RBT2 Review Panel closed the public record for the environmental assessment. The Review Panel is now in the process of preparing its report to the Minister of Environment & Climate Change - this is expected to be submitted in early 2020. The Minister determines the significance of environmental effects; Cabinet decides if the significant effects, if any, are justified; and then the Minister issues a Decision Statement. Timelines for the final decision are difficult to predict but could range from a few weeks to several months. In 2015, VFPA initiated a formal procurement process for a terminal operator for RBT2, with an expectation that the terminal would be operational by the early-2020s. However, with the environmental assessment process still ongoing, VFPA has decided to revisit market Page 2 of 4 VFPA Update November 27, 2019 conditions and re-evaluate procurements options for both the construction and operation of the terminal. A request for qualifications will be issued by late 2020 or early 2021. Deltaport Shore Power: Construction of shore power facilities at Deltaport was completed in late 2018 and, on November 14, 2019, the first container ship was hooked-up at Deltaport. Delta Council has long advocated for shore power at the terminal as it reduces air pollutants and reduces ship noise (one of the most frequent community complaints is noise from ships engines while in dock). Shore power capability qualifies a ship calling at Deltaport for the EcoAction program, providing discounted harbor dues charged by VFPA and opportunities to be recognized with a Blue Circle Award. Each shore power connection reduces greenhouse gases, equivalent to taking 20 cars off the road for one year. As more ships are equipped to connect to shore power, the emission reduction benefits will grow. Proposed/New Terminals at Fraser Surrey Docks: • Direct Transfer Coal Facility: On January 30, 2019, VFPA cancelled the project permit which was issued to Fraser Surrey Docks in 2014 to develop a direct transfer coal facility. The project was required to meet 83 conditions, but failed to meet a key condition that it achieve substantial progress on construction by November 30, 2018. With the cancellation of the permit, this project cannot proceed unless a new application is submitted to VFPA and it undergoes a full review and public consultation process. • BHP Potash Export Facility Project: For the proposed potash export facility, VFPA has accepted a completed permit application from BHP Billiton Canada Inc. (BHP), and the project is now under review as a Category D (complex) project. The facility would have an annual capacity of 8 million tonnes and would use an existing berth and portion of the existing container yard at Fraser Surrey Docks to load potash to deep sea vessels on the Fraser River. A public consultation process was completed in 2018 and Delta provided detailed comments on the project, particularly relating to emergency access issues. Staff will report back once VFPA has made a decision on the permit application to ensure Delta's concerns have been addressed through the terms and conditions of the permit. • Fraser Grain Terminal Project: A VFPA project permit for the Fraser Grain Terminal Export Project w?s issued on November 9, 2018. Construction started in late 2018 with scheduled completion by December 2020. This is a 4 million tonne/year grain terminal that will be located at the site of an existing grain terminal that handles 500,000 tonne/year. Grain will be delivered by rail with approximately 309 trains annually using the CN mainline through Surrey. Page 3 of 4 VFPA Update November 27, 2019 Delta has been working with VFPA, the BC Ministry of Transportation & Infrastructure (MOTi) and other stakeholders to address concerns about emergency access to Fraser Surrey Docks and adjacent industrial areas. This situation was created with the construction of the South Fraser Perimeter Road which necessitated the closure of the primary access route to the port lands and longer response times to the area for Delta emergency services. MOTi has retained Binnie & Associates to examine this issue and identify potential solutions. Staff will keep Council apprised as this study progresses. Container ship emergency response workshops: On November 13, 2019, VFPA held the first of several workshops aimed at improving port­ wide response to emergency situations involving container ships. The workshop was a collaboration with partner agencies and terminal operators, including Canadian Coast Guard, Public Safety Canada, Transport Canada, Vancouver Fire and Rescue Services, Delta Fire, West Vancouver Fire Department, District of North Vancouver Fire Department, City of North Vancouver Fire Department, Fraser Surrey Docks, GCT Canada, DP World Canada, and Seaspan Ship Management. The event included response planning and marine firefighting tabletops scenarios, and marked the beginning of a multi-year discussion aimed at strengthening emergency response procedures throughout the Port of Vancouver. Staff will report back to Council as mote workshops are held. Secondary channel dredging: In August 2018, VFPA awarded a contract for $1.25 million to Fraser River Pile and Dredge (FRPD) to dredge the secondary (local) channels around Ladner. There have been significant delays in obtaining permits from the Provincial government and DFO under the new Fisheries Act. The process to obtain a sediment disposal permit from Environment & Climate Change Canada has also been lengthy and is ongoing. These delays have been caused, in part, by new restrictions that have been put in place by the Provincial government to protect the at­ risk sturgeon population in the area. Letters have been sent to Premier Horgan and the new Minister of Fisheries & Oceans Canada (see Attachment 'A') from the Lower Fraser River Secondary Channel Dredging Collaborative urging the Provincial and Federal governments to commit to funding a dredging program for all the secondary channels of the Lower Fraser River. Staff will report back when responses have been received. National Trade Corridor Fund: In July 2019, VFPA received federal funding of $102 million for various projects aimed at increasing supply chain efficiencies throughout Metro Vancouver, including: Page 4 of 4 VFPA Update November 27, 2019 • Fraser Surrey Port Lands Transportation Improvements - $12.2 million to improve road and rail traffic operations to accommodate new rail-serviced bulk export marine terminals. This project will improve on-site transportation but does not specifically address the emergency access issue mentioned previously in this report. • Annacis Auto Terminal Optimization - $42.7 million to consolidate this operation with the Richmond Terminal and improve rail operations in the area. • Short-Sea Shipping - $1.6 million to evaluate the viability of short-sea shipping in Greater Vancouver. • Supply Chain Visibility Program - $6 million to develop a real-time dashboard for the Ports of Vancouver and Prince Rupert to measure end-to-end performance of the supply chain for all cargo moving through both ports. More details on each of these projects is provided in Attachment 'B'. Implications: Financial Implications - there are no financial implications. ■ CONCLUSION: An update on various Vancouver Fraser Port Authority projects and initiatives is provided for Council's information. Staff will keep Council apprised as to the status of these issues moving forward. ~------ Mel Cheesman Director of Corporate Services Department submission prepared by: Bernita Iversen, Manager of Corporate Policy F:\Bernita\Port of Vancouver\2019\CRJanUpdate.docx ■ ATTACHMENTS: A. Letter to Minister of Fisheries & Oceans Canada, dated November 25, 2019 B. VFPA Project Backgrounders ATTACHMENT 'A' Page 1 of s November 25, 2019 The Honourable Bernadette Jordan Minister of Fisheries & Oceans Canada House of Commons Ottawa, ON K1A 0A6 Dear Minister, Re: Lower Fraser River Secondary Channel Dredging Collaborative Firstly, I would like to congratulate you on your recent promotion to the position of Minister of Fisheries & Oceans Canada and wish you all the best as you navigate your way through this challenging portfolio. The Lower Fraser River Secondary Channel Dredging Collaborative represents a wide range of industrial, commercial, local government, transportation and community interests along the lower Fraser River, and its members share common concerns regarding the precarious state of many of the secondary channels which provide access to businesses, marinas and float home communities in this region. In 2013, the