Port Traffic Metrics: Vancouver, Virginia
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Vancouver Sees Slight Declines in First Half 2016, Optimistic About Long-Term Growth
A softened global economy, the weakened Canadian dollar, and some containerized cargo shifting back to United States ports following an extended labor disruption on the U.S. west coast last year are primary factors contributing to lighter than usual traffic through the Port of Vancouver, according to the port authority’s 2016 mid-year statistics report released last week. Despite the short-term slow down, forecasts show that long-term growth in trade will continue to bolster the Canadian economy.
Total cargo for the half-year ending June 30, 2016 was 66.0 million metric tons, an overall decrease of 5.9 per cent over the same period in 2015. These results represent a softening of volumes in all major commodities except grain, where increases in barley (up 41.8 per cent) and canola (up 40.1 per cent) contributed to overall growth in that sector.
"The slight decrease in cargo volumes in the first half of 2016 is expected, given the record year we experienced in 2015 and the softening global economy," said Robin Silvester, President and CEO of the Vancouver Fraser Port Authority. "The long-term outlook for Canadian trade is one of growth, and the port will be ready to handle increased volumes through Canada’s west coast."
The Vancouver Fraser Port Authority and terminals within the Port of Vancouver continue to invest in infrastructure and technology to increase capacity in anticipation of growth. In addition to improvements to maximize the use of existing container terminals, the port authority is proposing to build a new terminal at Roberts Bank, a project now being reviewed by an independent review panel appointed by the Federal Minister of Environment and Climate Change.
"Shippers continue to express confidence in the Port of Vancouver, and we continue to see significant investment projects moving forward in the gateway" added Silvester. "We wish to thank all our many customers and terminals for working with us to provide an efficient and reliable supply chain and to plan for the future."
Virginia Volumes Up Over Last Year
The Port of Virginia through July handled 1.5 million TEUs (20-foot equivalent units), which is an increase of 1.1 percent when compared with the same period last year; the port closed July having handled 217,910 TEUs.
"On a calendar-year basis, our rail volume is up 10 percent, VIP volume is up 14 percent and the number of TEUs handled at Richmond Marine Terminal grew 26 percent, so we are growing in key areas," said John F. Reinhart, CEO and executive director of the Virginia Port Authority. "We knew our July volumes would be modest, but we are preparing for our peak season and we are expecting a positive trend in the coming months."
July’s TEU volume was down 3.6 percent (8,000 TEUs) compared with last July. The reduction can be attributed to a realignment of some vessel services calling The Port of Virginia. The result, Reinhart said, was nine fewer vessel calls in July.
"Fewer vessels in July and the stress put on export volumes by the strong dollar are among the primary drivers behind our July performance," Reinhart said. "Still, we are in positive territory on a calendar-year basis, our financial picture is positive, peak season is coming and we just had two port-users announce regional projects that will add to our cargo volumes; there is a lot to be optimistic about."
Further, Reinhart pointed out that July was a significant month for the port as it hosted its first ship – the MOL Benefactor — to transit the widened Panama Canal and the port handled its biggest vessel to date: the 10,300-TEU Hyundai Saturn.
A softened global economy, the weakened Canadian dollar, and some containerized cargo shifting back to United States ports following an extended labor disruption on the U.S. west coast last year are primary factors contributing to lighter than usual traffic through the Port of Vancouver, according to the port authority’s 2016 mid-year statistics report released last week. Despite the short-term slow down, forecasts show that long-term growth in trade will continue to bolster the Canadian economy.
Total cargo for the half-year ending June 30, 2016 was 66.0 million metric tons, an overall decrease of 5.9 per cent over the same period in 2015. These results represent a softening of volumes in all major commodities except grain, where increases in barley (up 41.8 per cent) and canola (up 40.1 per cent) contributed to overall growth in that sector.
"The slight decrease in cargo volumes in the first half of 2016 is expected, given the record year we experienced in 2015 and the softening global economy," said Robin Silvester, President and CEO of the Vancouver Fraser Port Authority. "The long-term outlook for Canadian trade is one of growth, and the port will be ready to handle increased volumes through Canada’s west coast."
The Vancouver Fraser Port Authority and terminals within the Port of Vancouver continue to invest in infrastructure and technology to increase capacity in anticipation of growth. In addition to improvements to maximize the use of existing container terminals, the port authority is proposing to build a new terminal at Roberts Bank, a project now being reviewed by an independent review panel appointed by the Federal Minister of Environment and Climate Change.
"Shippers continue to express confidence in the Port of Vancouver, and we continue to see significant investment projects moving forward in the gateway" added Silvester. "We wish to thank all our many customers and terminals for working with us to provide an efficient and reliable supply chain and to plan for the future."
Virginia Volumes Up Over Last Year
The Port of Virginia through July handled 1.5 million TEUs (20-foot equivalent units), which is an increase of 1.1 percent when compared with the same period last year; the port closed July having handled 217,910 TEUs.
"On a calendar-year basis, our rail volume is up 10 percent, VIP volume is up 14 percent and the number of TEUs handled at Richmond Marine Terminal grew 26 percent, so we are growing in key areas," said John F. Reinhart, CEO and executive director of the Virginia Port Authority. "We knew our July volumes would be modest, but we are preparing for our peak season and we are expecting a positive trend in the coming months."
July’s TEU volume was down 3.6 percent (8,000 TEUs) compared with last July. The reduction can be attributed to a realignment of some vessel services calling The Port of Virginia. The result, Reinhart said, was nine fewer vessel calls in July.
"Fewer vessels in July and the stress put on export volumes by the strong dollar are among the primary drivers behind our July performance," Reinhart said. "Still, we are in positive territory on a calendar-year basis, our financial picture is positive, peak season is coming and we just had two port-users announce regional projects that will add to our cargo volumes; there is a lot to be optimistic about."
Further, Reinhart pointed out that July was a significant month for the port as it hosted its first ship – the MOL Benefactor — to transit the widened Panama Canal and the port handled its biggest vessel to date: the 10,300-TEU Hyundai Saturn.
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