Canada declares Vancouver port expansion a national priority

C$5.9 billion project would lift container capacity about 50%, port authority says

Canada declared a proposed expansion at the country’s busiest port, in Vancouver, British Columbia, a national priority on Friday, launching an accelerated regulatory review of the C$5.9 billion project as the government pursues its goal of doubling non-U.S. exports by 2035.

Under the designation, officials will determine how the expansion proceeds and under what conditions, rather than whether it requires approval. Officials said the designation puts the timing for a final investment decision by the Vancouver Fraser Port Authority, which manages the port, at mid-2027.

Transport Minister Steven MacKinnon announced the designation at a press conference in suburban Vancouver. “We cannot afford to let bottlenecks hold back Canadian trade,” MacKinnon said. “The sooner we build the [trade] capacity Canada needs, the sooner Canadian businesses and workers can benefit.”

The port authority said the project would increase container capacity by about 50% through a new land-mass and wharf structure covering 300 acres, and that the added capacity could support annual trade of C$100 billion (US$71.5 billion). Officials peg the project’s cost at C$5.9 billion. The Vancouver terminal currently handles more than C$1 billion in commerce daily and moves more cargo than the next five largest Canadian ports combined, according to the authority.

The designation advances a priority initiative for Prime Minister Mark Carney to expand, upgrade and construct trade corridors across Canada. Carney has argued the buildout is necessary to restore resilience in the economy and reduce the country’s reliance on U.S. trade to drive economic growth, and he has pledged up to C$10 billion in financial support for Pacific coast trade corridors.

According to government documents, a “significant expansion” of Canada’s port capacity is needed to diversify trade, with 80% of trade with non-U.S. markets done by sea. The prime minister has set a goal of doubling the level of non-U.S. exports by 2035.

“Continued inaction on port expansion could eventually force Canadian importers and exporters to utilize U.S. ports—a dependency that is untenable in the current geopolitical circumstances,” officials said, according to documents distributed at a technical briefing. “Port expansion is thus integral to ensuring Canadian sovereignty and control over key economic linkages to the rest of the world,” the officials said.

Officials also warned that without port expansion, Canada could face sharply higher shipping costs of up to C$900 million a year due to traffic congestion and insufficient capacity.

Bank of Canada researchers warned this year that the country lacked the port capacity to execute the government’s trade agenda. The central bank’s analysis indicated Canadian ports cannot accommodate some of the latest ultra-large container ships being deployed. Because of that, some goods originating from China and destined for Canada that are loaded onto those vessels have to dock in Los Angeles — where, according to the analysis, the goods could be subject to U.S. tariffs.