Vancouver USA is a Port with a plan. Not a plan to build another box port but a strategy to maximize the port’s break-bulk opportunities. Is this a model for other US ports? By Stas Margaronis, AJOT The Port of Vancouver, located in the State of Washington in the Pacific Northwest, (not to be confused with Vancouver, British Columbia) is a Port with a unique strategic vision. The port authority’s strategy is to maximize the Port’s break bulk opportunities through investment in facilities, infrastructure and by building relationships through the entire business spectrum that supports these activities. Under the new strategic plan 2012-2021, the Port of Vancouver expects to triple its handling from around five million tons annually to fifteen million, but to achieve that goal there are “blanks to be filled in” over next two decades. Alastair Smith, senior director of marketing for the Port, emphatically believes “success starts with relationships.” Smith a Scotsman by birth and Pacific Northwestern by choice, has been hook and sling man since his apprenticeship with Star Shipping more than a few decades ago.
It might be obvious but “understanding break bulk,” as Smith says begins with being aware of ones “niches” and then learning how to build it out. In the case, of Vancouver it was pretty obvious that it wasn’t going to be the next Long Beach, but over the years it was clear that there was an unmet need in the Pacific Northwest for a port to handle “break bulk” cargos. Vancouver’s strategic planSmith said Vancouver USA made a decision to focus on bulk, break-bulk and project cargoes rather than containers so that it would maintain a diversified portfolio of products and projects. One of the key elements was that the Port entered into long-term (five-years) contracts with break bulk carriers to assure that cargoes would continue to arrive at the port. These carriers include Grieg Star, Sagga, Swire, Hyundai and BBC from Germany. Smith says that having the long-term agreements in his pocket allowed the Port access to shippers in a way that otherwise would be difficult. “We [Port Authority] can fill in the blanks for them. We can open a detailed spreadsheet with the break bulk carriers under contract, other carriers, heavy haul trucking, trucking, warehouses, rail… even times when city routes are open for moves.” With the Port Authority acting as a nautical matchmaker products the like wood pulp exports, wood pulp imports, steel imports, truck exports bound for Australia, Subaru car imports, scrap metal exports along with project cargo freight have steadily moved across the piers, even during the recession. Improved Rail Connections Boost Ag-exportsA critical part of the plan was to expand rail connections to the port. By 2015, Smith says, Vancouver expects its rail improvement plans will be complete and that it will be poised for a major agricultural export expansion shipping grains and potash to Asia. Vancouver’s expanded rail capacity is expected to result in an increase from 55,000 rail cars per year to 160,000 rail cars per year. A significant number of rail tracks will be added to the port’s internal system, with two tracks dedicated to 170-car potash trains and two tracks dedicated to 110-car grain trains. A fifth dedicated track will be shared between the two. Agriculture has been the “bright spot” for the port with a growing appetite for protein coming from countries such as China and India and a need for more fertilizer to grow crops. As a result, the port expects to see grain exports increase from 3.5 million tons to 5.5 million tons thanks to a $90 million investment in a new grain elevator by the Japanese trading company Mitsui. At the same time, new potash exports, be shipped from the port by BHP Billiton. BHP Billiton is investing US$240 million to support the development of the first stages of the Jansen Potash Project in Saskatchewan, Canada.