The Port of Vancouver is laying the groundwork for the next search for an operator for the proposed Terminal 2 container expansion project at Roberts Bank, a search that won’t include the current operator of Deltaport.
In a news release this week, the port authority noted it conducted an initial round of market research as part of preparing for the procurement process.
By conducting market research, the port authority says it is able to hear from a cross-section of concessionaire leads, financiers, operators and infrastructure developers about their thoughts on possible procurement options for construction and operation of the proposed project.
Information received during market research will help inform selection of a procurement delivery model.
With the first round of market research now complete, the port says it may follow up with participants to explore ideas and questions that were raised.
The port also says it is currently seeking input on questions related to rail operations for the project.
Last fall the port authority announced it had decided to restart the procurement process.
“We began our search for a terminal operator in 2013 when we expected the federal environmental assessment to be completed by 2016. Procurement decisions are informed by market conditions. Since so much time has elapsed, we think it is prudent to re-assess these conditions and re-evaluate procurement options for both construction of the land mass and terminal operations, to be sure we are pursuing the right model for Canada. This fall, we will go out to the infrastructure and terminal operator market to learn more about choosing the best possible delivery model for construction and operation of the terminal,” the port explained in a statement.
The port authority says after it selects a procurement delivery model, it anticipates conducting a market sounding process
“Over the past number of years, the port authority has been in negotiations with a potential terminal operator for the project. In view of the delays and resulting decision to initiate a procurement process, we have mutually agreed with the terminal operator to end those negotiations. Our decision is in no way a reflection of the capability of the proponent with whom we have been negotiating or the project’s feasibility,” the port added.
T2 is a proposed three‐berth container terminal that would provide 2.4 million TEUs (20-foot equivalent units) of additional container capacity annually.
Global Container Terminals, the current operator at Deltaport, was not in the running to also be the operator of port expansion at Roberts Bank, but the port authority noted it did not block the GCT from submitting a bid.
“Our role as a port authority is to ensure that we are providing capacity at a reasonable cost to users. This is echoed in the Canada Marine Act, which states that we are required to, among other things ‘…ensure that marine transportation services are organized to satisfy the needs of users and are available at a reasonable cost to the users’,” the port explained in a statement to the Optimist last fall.
“To be clear, no one was excluded from the bidding process. However, to maintain a healthy and competitive market for users of the Port of Vancouver over the long-term, the port authority established a target that a single operator does not hold more than two-thirds of total capacity in the port. GCT was eligible to bid, provided they demonstrated how they would ensure their market share did not exceed 60 per cent. They chose not to bid.”
In response, a GCT spokesperson countered what was unclear is what VFPA defined as “a reasonable cost to the users.”
GCT has been pitching an alternative to T2 with a fourth berth expansion of the existing facility, a proposal that was shot down by the port authority.
Saying T2 would be the most expensive terminal development ever built in North America, GCT noted it is not alone in calling for the port to reconsider and look at other viable, quick-to-market options to provide capacity.
The DP4 solution would incrementally deliver up to two million TEUs of new capacity to the west coast by the 2030s, GCT noted, adding that, until then, expansions by private-sector terminal operators that are already underway will meet all projected demands.
“Unfortunately, the current VFPA governance model and review process is not an impartial mechanism, and thus is obstructing proposals like DP4,” GCT stated.
A federal independent review panel on the T2 application recently submitted its final report to the federal environment minister.
