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Western Economic Diversification Canada Invests in Prince Rupert Cruise Industry

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Backgrounder

Prince Rupert Cruise Ship Dock and Facilities

Continued growth of the industry, congestion issues in Alaska, and an increased focus on the repeat cruise customer have contributed to an excellent opportunity for Prince Rupert, the north west region, and the entire Province of British Columbia to develop cruise ship tourism. It is estimated Prince Rupert could realistically attract 140 vessel visits and over 200,000 passengers per annum within 10 years if appropriate infrastructure were developed to accommodate the industry, and with minimal market penetration. Further potential exists in the development of British Columbia focused cruise products.

It is projected that the opportunity would create over 1,155 seasonal jobs (485 full-year equivalent), generate over $31 million in annual tourist spending, and add nearly $3.8 million annually to the federal and provincial treasuries. The economic impacts created through the development of the industry will benefit the entire northwest region of the province and create new opportunities across the entire Province of British Columbia.

The barrier to fostering the development and growth of the cruise industry on the north coast is the lack of appropriate infrastructure for accommodating large cruise vessels.

A cruise ship facilities development plan outlining a direction for cruise ship marine facilities and related upland infrastructure was prepared by BEA International in the Spring of 2001. The development includes a dock with associated facilities for cruise ships and their passengers. This terminal is designed to accommodate a range of vessels and have as adjunct bus and other marshalling facilities for tours and transport to a variety of attractions and events. As the cruise ships would remain in port for the day, capacity would be one vessel at a time, or seven vessels per week.

Phase One of the Prince Rupert cruise dock project focuses on the development of marine infrastructure required to accommodate the docking of cruise ships and the transfer of their passengers to and from shore, with the necessary passenger boarding and Canada Customs and Immigration facilities. The estimated budget for Phase One is $9 million.

The project is planned as a joint investment of the City of Prince Rupert, the Prince Rupert Port Authority, the Government of Canada and the Province of British Columbia.

Development of a Container Terminal Prospectus for Prince Rupert, British Columbia

The Port of Prince Rupert has a significant opportunity to develop container cargo traffic on the north coast and to realize the considerable economic development benefits to be gained from such traffic across the entire Northwest Transportation Corridor. The dramatic shift towards the use of containers in international trade to satisfy the needs of Western Canadian producers and shippers continues to grow apace. The inherent strength of containerization is its simplicity, standardization, and cost effectiveness providing a strategic advantage to shippers. Furthermore, Prince Rupert’s location on the shortest land-sea route between Asia and the US Industrial Heartland makes the port a strategically significant trade route in the movement of containers.

The objective of this project is to formalize the program necessary to proceed with the development of a new container port at the Port of Prince Rupert. Building on past work on the container project, this initiative will formulate and assemble the necessary information to prepare a prospectus for use in attracting a container terminal operator to partner in the development of a container terminal at Prince Rupert.

Specific project deliverables include the development of a situation analysis featuring background information on the Asia Pacific container market, overview of the competitive environment including existing facilities and infrastructure, review of project partner roles and responsibilities, market opportunity analysis, economic impact assessment, infrastructure plan, and preliminary financial analysis.

Cruise Industry Opportunities Assessment and Gap Analysis

The purpose of the Opportunities Assessment and Gap Analysis is to provide a valuable insight into the economic activity generated through the activities of the cruise industry in other communities, compare to those services available in Prince Rupert, and formulate a “Gap Analysis” that will reveal opportunities for business expansions and new business start-ups. The findings will further reveal local labour force needs, infrastructure gaps, and other activities necessary to foster the development of a thriving and sustainable cruise industry.

This exercise is integral to the successful development of the cruise industry in Prince Rupert as it will provide the necessary insight for local businesses, education and training institutions, economic development agencies, First Nations communities, and citizens into the economic activity generated through the industry in other jurisdictions. The report will ensure Prince Rupert can adequately service the cruise industry while maximizing the economic activity generated through the development of the new sector of the economy.

The project will be coordinated by a stakeholder committee comprised of the Prince Rupert Port Authority, Prince Rupert Economic Development Commission, Tsimshian Stewardship Committee (Tsimshian Tourism Corp), Tourism Prince Rupert, Northwest Community College, First Nations Training and Development Center, Hecate Strait Employment Services, City of Prince Rupert, Human Resources Development Canada, Western Economic Diversification Canada, Community Futures, and other industry partners.

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