Is short-sea shipping a solution to Canada's Pacific Gateway growing pains?
Growth in international trade volume comes with significant challenges. The future of shipping is facing environmental and economic concerns including strains on ports, land, and infrastructure.
Congestion and industrial real-estate scarcity top the growing list of supply chain concerns.
Available industrial real-estate for warehousing is at an all-time low
Transportation networks are experiencing congestion at levels never seen before
Compounding Challenges with Current Western Shipping Routes
The shipping industry is all too aware of its present crisis in the Pacific Gateway. In addition to persistent delays and congestion, importers and exporters rely on transloading and distribution facilities in the Lower Mainland, where experts anticipate new space will run out between 2035 and 2045.
Industrial Real Estate
Scarcity
Space for storing shipped goods is almost non-existent, putting further strain on an already congested ecosystem. According to a Bloomberg article published in the Spring of 2022, the availability rate in Vancouver, is around 1%. The article continues, to say that “in some municipalities near the Port of Vancouver, there is not a single square foot of vacant industrial space”. In a situation where companies are already paying more to ship goods, skyrocketing warehouse pricing is adding fuel to the fire.
Logistics experts suggest that new ways of thinking about distribution and storage management are critical. A recent piece in the New York Times states that congestion and scarcity are causing logistic firms to take steps “like signing deals for new space long before ground is broken and expanding searches for sites farther from coastal ports”. ~NYTimes Steps like these are already occurring in Canada with shipments moving to inland provinces for storage before being distributed.
That extra, 974-kilometre transport cost still makes Calgary about 30 per cent less expensive for large companies to run Western Canadian distribution operations, according to an extensive 2018 supply chain comparison, by Triskele Logistics for the City of Calgary.
~ The Globe & Mail
It is critically important that any measures taken to address supply chains consider the important role transportation plays and are developed in consultation with industry.
~Canada Supply Chain Taskforce
Metro Vancouver's road and highway networks feel the strain of increased trade and population growth. Containerized truck traffic competes with personal vehicles and delivery traffic to residences, businesses, and retail destinations. Compounding the issue, many companies transport goods in a single direction, sending empty trucks and containers back across already congested routes.
According to Canada's Ecofiscal Commission, the costs related to congestion across Metro Vancouver total as much as $1.4 billion annually. As a result, the region is in critical need of creative solutions and shipping alternatives.
Short sea shipping routes through the Port of Nanaimo
Experts with the Port of Nanaimo believe that the use of short sea shipping could help alleviate Canada's Lower Mainland shipping concerns. Utilization of short sea shipping through the Port of Nanaimo will build greater resilience into regional goods movement, bypassing points of congestion and generating cost-competitive alternatives to the existing Lower Mainland transportation network.
Capacity
Shipping capacity in a time of unprecedented scarcity with 30-40 ferries and barges departing each day
Proximity
Available land for warehousing development within close proximity to the port
Position
Strategically positioned just 30 nautical miles from Vancouver with access to the Lower Mainland and Vancouver Island
Infrastructure
Access to supply chain infrastructure
Experience
Logistics partners with a high quality of experience and shipping expertise
Export Scenario via Container Barge
Vancouver Island
Manufacturer
Manufacturer
Vancouver Island
Transload Facility
Container
Barge
Barge
Vancouver Ocean
Terminal
Terminal
Barge Alongside Transfer
Duke Point
Ocean Terminal
Ocean Terminal
Vessel to
Barge Alongside
Barge Alongside
Mainland Transload
Facility
Facility
Export Scenario via Ferry
Vancouver Island
Manufacturer
Manufacturer
Commercial Ferry: Duke Point to Tilbury/Twawassen
Lower Mainland &
Transload Facility
Vancouver Ocean
Terminal
Terminal
Nanaimo Short Sea Routes
The Port of Nanaimo is located just 30 nautical miles west of Vancouver within the Vancouver Island foreign trade zone.
Use Cases
Automotives
Roro berth, upland acreage, and vehicle processing centre onsite
Metals & Minerals
Deep sea facilities with up to 13.5m depth, mobile harbour crane, and yard handling equipment & storage
Break Bulk
Deep sea facilities with 13.5 meter depth, mobile harbour crane, and yard handling equipment and storage
Containerized Goods
Container handling equipment, 13.5 meter depth, short-sea-shipping barge services, existing frequent and diverse ferry routes
Reach out to learn more about
Port of Nanaimo services.
Enter your details below and we will get back to you within 24 hours.