West Coast port authorities told the recent Fields on Wheels conference that they support proposals for transportation reform.
The vice-president of business development for the Vancouver Port Authority came out in favor of recommendations made by Arthur Kroeger.
Kevin Little said the port supports a commercial, contract-based system with the Canadian Wheat Board buying grain at port.
The reform proposals would streamline operations and alleviate congestion at the port, said Little.
“We believe it’s strategically important to keep Canadian grain moving through Canadian ports.”
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The port has plenty of capacity, he added, but the grain industry doesn’t make good use of it.
“We believe that grain should be treated like any other commodity.”
Slow loading
Grain ships spend more time in port and load less per day than ships carrying other commodities, said Little.
Grain shippers load only 1.7 million tonnes per berth in a year, compared to 3.4 million tonnes for potash shippers, 2.6 million tonnes for sulfur shippers and 9.4 million tonnes for coal shippers.
More than 95 percent of grain ships have to wait at port, said Little, compared to 20 percent of potash ships, fewer than 10 percent of sulfur ships and fewer than 20 percent of coal ships.
The vice-president of marketing and development for the Prince Rupert Port Authority said a truly commercial system would make the port more competitive.
Eugene Ludwick said the distance-based rail freight differential of $4.50 per tonne charged for grain moving through Prince Rupert hinders use of the port.
In a commercial rate system, that differential should disappear, said Ludwick.
Manmade problems
He acknowledged the port faces other “man-made” obstacles, most notably the unwieldy ownership structure of the Prince Rupert Grain terminal, and the terminal’s considerable debt.
But the Fairview Agport, a direct-hit terminal bought by the port authority from Continental Grain in 1997, has been hindered only by the freight rate differential, said Ludwick.
The terminal handled up to 300,000 tonnes per year under its previous owner, said Ludwick, but he believes its capacity is untested.
The terminal would present opportunities for shippers who don’t own terminals if the freight rate differential eases under a commercial system, he said.
