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container trade, which currently stands at about 185,000 units
(two-way) annually. At present, Vancouver is attractive to certain
container Tines, because of the two-way container traffic factor; the
lines discharge containers for the Canadian market and load containers
of specialty grains destined principally for the Asia Pacific region,
thereby achieving the economies of the back haul. Should these grains
be eligible for the W.G.T.A. Subsidy through U.S. ports, a
Substantial, or even complete, diversion of the port's container trade
can be expected, potentially entailing the loss of about 1,200 jobs

directly, and possibly many thousands more in the regional economy,
via the multiplier effect,

Z. Moreover, the diversion of grain traffic to U.S. Ports would act to
Support the Port of Vancouver's major competitors, notably Seattie,
which already possess a number of advantages over the Port of
Vancouver (e.g. municipal taxation contributions from King County;
substantial container infrastructure endowed by the U.S. Government,
initially for defence purposes; construction and operating subsidies
for U.S. shipping lines; a much larger market hinterland; and a
Substantial ‘captive' fleet of lines and naval trade).

3. Finally, as a fundamental potnt of principle, ft {fs unreasonable to
expect the Canadian taxpayer to pay freight subsidies which in effect,
export revenues and jobs to competing U.S. ports, particularly when it
has been demonstrated that Canadian ports:

a) can compete effectively on the basis of cost;
b) have excellent infrastructure and abundant Capacity, arid;
¢) serve all the world's leading ports and destinations.

As noted above, many port and port-related agencies and urganizations have
already submitted well-researched briefs asserting opposition to the proposed
amendment of the Grain Transportation Act, as it pertains to a definition of
“export”, In light of potential implications for Vancouver, and given also
the City's established interest in the development of the Port of Vancouver,
it fis entirely appropriate fer the City to add its Support to those opposing
the proposed Grain Transportation Act Amendment.

RECOMMENDATION

The Manager of Economic Development recommends that:

A. Council convey its opposition to the proposed amendment to the Grain
Transportation Act to the Minister of Transport, the Honourable John
Crosbie.

B. The Manager of Economic Development monitor this Situation and work
with the Vancouver Port community to sustain opposition to the proposed
amendment until such time as the issue has been resolved.

C. This report be forwarded to the GVRD, and the Mayor request the support
of other municipalities. "

The City Manager RECOMMENDS that the foregoing recommendations of the Manager
of Economic Development be approved.

a

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