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Final report - Integrated Land Management Bureau

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3.6 Major Ports<br />

PRINCE RUPERT<br />

Strengths<br />

• Closest North American port to Asia; 3-4 days<br />

closer than LA and 1.5-2 days closer than<br />

Vancouver/Seattle, with fuel cost savings and<br />

GHG emissions environmental benefits<br />

• Efficient rail connection to American mid-west<br />

and south to Mexico<br />

• <strong>Land</strong>s for growth<br />

• Efficient inter-modal container terminal, avg.<br />

dwell time of one day vs 4 days for Vancouver<br />

and 3 days for Seattle and Long Beach<br />

• Deepest natural harbour in North America<br />

• Safe, sheltered harbour and access/egress<br />

• New security system and general ability to<br />

sustain high standards in less complex Prince<br />

Rupert security environment<br />

• Strong, clear leadership by port management<br />

team<br />

• Strong support from CN Rail<br />

• Flexible and less expensive labour in<br />

comparison to American west coast ports<br />

• Less costly property taxes compared to Port of<br />

Vancouver<br />

• BC Government has established Northern<br />

Gateway office in Prince Rupert to facilitate<br />

economic growth based on transportation<br />

opportunities<br />

Transportation Assessment of the Central & North Coast of BC<br />

Weaknesses<br />

• Canada Marine Act, Ottawa-based federal<br />

government control of certain important port<br />

business parameters, such as maximum<br />

borrowing authority and installing<br />

infrastructure to service land<br />

• Canadian port authorities, including Prince<br />

Rupert port, have much less ability/authority to<br />

lead and conduct their business; American<br />

west coast ports are municipal entities so<br />

have local direction (no federal government<br />

control), access to tax exempt municipal bond<br />

financing, and flexibility to expand into related<br />

businesses, such as warehousing, airports<br />

and marinas<br />

• <strong>Management</strong> of American west coast ports is<br />

often guided by economic development<br />

considerations (jobs and local spending)<br />

whereas Canadian port authorities are<br />

structured to be profit making entities<br />

• Canadian port authorities, including Prince<br />

Rupert port, must pay annual charge to<br />

federal government on gross revenues<br />

• American west coast ports do not pay property<br />

taxes and municipal property taxes on<br />

terminals and other facilities on leased port<br />

lands are lower than in Prince Rupert<br />

• Municipal control and financial flexibility of<br />

American west coast ports lead to lower cost<br />

of capital and potential for lower terminal lease<br />

rates<br />

• Weak access to capital for large-scale infrastructure<br />

& service improvement investments<br />

• Certain new port services would assist in<br />

attracting new business and investment but<br />

additional port business needed to sustain<br />

new services<br />

• High infrastructure investment cost required to<br />

get a new port enterprise underway<br />

• Limited amount of serviced land and high<br />

building cost on Port of Prince Rupert lands<br />

Chisholm Consulting 71

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