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"FUTURE REQUIREMENTS FOR GRAIN HANDLING THROUGH PACIFIC COAST PORTS  A l a n Herbert Case B.Comm., U n i v e r s i t y of B r i t i s h Columbia, 1963  A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF Master of Business A d m i n i s t r a t i o n i n the Department of Commerce and Business A d m i n i s t r a t i o n  We accept t h i s t h e s i s as conforming to the r e q u i r e d standard  THE UNIVERSITY OF BRITISH COLUMBIA A p r i l , 1967  \u000CIn presenting  t h i s thesis i n p a r t i a l f u l f i l m e n t of the requirements  f o r an advanced degree at the U n i v e r s i t y of B r i t i s h Columbia, I agree that die L i b r a r y s h a l l make i t f r e e l y available f o r reference study.  and  1 further agree that permission f o r extensive copying of t h i s  thesis f o r s c h o l a r l y purposes may be granted by the Head of my Department or by his representatives.  I t i s understood that copying  or p u b l i c a t i o n of t h i s thesis f o r f i n a n c i a l gain s h a l l not be allowed \u2022without my written permission.  Department The U n i v e r s i t y of B r i t i s h Columbia Vancouver 8, Canada  \u000CABSTRACT Grain i s the s i n g l e most important export commodity shipped through four important Canadian p o r t s on the Coast.  Pacific  Recent r a p i d growth i n these exports have s t r a i n e d  present f a c i l i t i e s c l o s e to c a p a c i t y .  Therefore the  necessity  has a r i s e n to study the problem of f u t u r e requirements f o r g r a i n handling  f a c i l i t i e s i n B r i t i s h Columbia.  Furthermore  the o v e r - a l l development of B r i t i s h Columbia p o r t s has been w i d e l y discussed  i n recent years and because g r a i n i s such an  important export, the problem of p o r t development r e q u i r e s s p e c i f i c study of g r a i n handling  facilities.  I n v e s t i g a t i o n of f u t u r e g r a i n handling r e l i e d on both l i b r a r y and f i e l d sources.  requirements  F i e l d work, mainly  i n the form of i n t e r v i e w s w i t h people i n p o r t  administration  and g r a i n handling and s e l l i n g were e s p e c i a l l y u s e f u l i n g a i n i n g f i r s t - h a n d knowledge of the a c t u a l problems of g r a i n exporting.  Facts and opinions gained from f i e l d work were  a l s o i n v a l u a b l e to i n t e r p r e t a t i o n of a l a r g e mass of s t a t i s t i c s that were a v a i l a b l e from v a r i o u s l i b r a r y sources. The r e s u l t s of the research have l e d to s e v e r a l conclusions.  The most important i s that the P a c i f i c Coast of  Canada r e q u i r e s new future.  g r a i n handling  f a c i l i t i e s i n the near  I n a d d i t i o n improvements i n handling  are p o s s i b l e  w i t h i n e x i s t i n g f a c i l i t i e s and throughout the extensive  system  of g r a i n gathering which begins on the farms, hundreds of m i l e s  \u000Ciii from the export p o i n t . In a d d i t i o n to the above f i n d i n g s there are s e v e r a l important secondary c o n c l u s i o n s . g r a i n are l i k e l y  First,  the markets f o r  to continue growing i n the foreseeable f u t u r e .  Because the markets of g r e a t e s t growth are near the P a c i f i c Ocean, Canada's West Coast p o r t s are w e l l s i t u a t e d to serve them.  Second, the United States P a c i f i c p o r t s are a l s o w e l l  s i t u a t e d to provide d i r e c t c o m p e t i t i o n w i t h Canada.  I f and  when t h i s c o m p e t i t i o n becomes more d i r e c t , Canada w i l l r e q u i r e the b e s t f a c i l i t i e s to keep i t s customers.  T h i r d , Canadian  p o r t s have d e f i n i t e advantages to ship operators over the U n i t e d S t a t e s p o r t s i n the form of lower charges f o r p o r t use, but maintenance of e f f i c i e n c y i n Canadian p o r t s i s e s s e n t i a l to m a i n t a i n i n g t h i s advantage.  F i n a l l y , the main Canadian  P a c i f i c p o r t s are p h y s i c a l l y s u i t a b l e f o r the expansion of g r a i n handling  facilities.  \u000Civ  TABLE OF CONTENTS Chapter I  Page  INTRODUCTION  .  Background and Statement of Problem . . . . . H i s t o r y of P a c i f i c Coast G r a i n Handling ... Purpose of the Study Other S t u d i e s Method of A n a l y s i s and O r g a n i z a t i o n II  III  IV  V  VI  PRESENT GRAIN HANDLING FACILITIES  .  1 1 4 6 6 9 12 12 17 22 25  Advantages of B r i t i s h Columbia P o r t s Elevator Capacities Shipping F a c i l i t i e s Rail Facilities Comparative E l e v a t o r Operations - B.C. and E a s t e r n Canada  29  TRENDS IN GRAIN EXPORTS THROUGH BRITISH COLUMBIA PORTS  36  Volume of G r a i n Seasonability D e s t i n a t i o n of G r a i n Exports O r i g i n of G r a i n Exports V e s s e l Loadings  36 39 41 44 46  FUTURE OF GRAIN MARKETS  51  World G r a i n Consumption Japanese Grain Market Chinese G r a i n Market United Kingdom G r a i n Market European G r a i n Markets  51 5^ 57 59 59  COSTS OF GRAIN HANDLING  63  Comparison of P o r t F a c i l i t i e s Comparison of P o r t Charges Comparative E l e v a t o r Costs  69 71 80  FUTURE REQUIREMENTS FOR GRAIN HANDLING FACILITIES IN BRITISH COLUMBIA.  88  New E l e v a t o r s Now Planned' ' . Future E l e v a t o r Requirements  88 91  \u000CV  Page  L o c a t i o n of Future Development Vancouver -. New Westminster and V i c t o r i a Other Requirements BIBLIOGRAPHY APPENDICES  93 9496 99  . .  102  \u000Cvi LIST OF TABLES Table I  Page Canadian G r a i n Exports by Seaboard S e c t o r , 7  S e l e c t e d Crop Years II III IV V VI VII VIII  IX.  D i s t a n c e s to Major Overseas P o r t s  .  Operating C a p a c i t i e s of B r i t i s h Columbia Terminal E l e v a t o r s Monthly Shipments of Grain by Ocean Shipping from B r i t i s h Columbia Semi-Public Terminal E l e v a t o r s f o r Crop Years 1963-64 and 1964-65  19 . .  XI  XII  27  Turnovers of Terminal E l e v a t o r Capacity i n B r i t i s h Columbia 1960-61 to 1964-65  31  Turnovers of E a s t e r n and Lakehead Terminal E l e v a t o r Capacity 1960-61 to 1964-65  32  D i s t r i b u t i o n of Primary Shipments of Canadian G r a i n from the Semi-Public and P r i v a t e Terminal Elevators, Fort William - Port Arthur, Crop Year 1 9 6 4 - 6 5  33  Historical  Review of Canadian Wheat Exports 37  Canadian Wheat Exports by Months a t P a c i f i c St. Lawrence P o r t s , 1960-61 to 1964-65  and  R a i l F r e i g h t Rates on Grain f o r Export from S e l e c t e d P o i n t s i n A l b e r t a and Saskatchewan as at J u l y 3 1 , 1965 Grain Cargoes Loaded per V e s s e l i n March 1966 at B r i t i s h Columbia P o r t s  I n d i v i d u a l Cargoes Loaded at B r i t i s h Columbia P o r t s f o r Month of March - S e l e c t e d Years . . . .  XIV  Per C a p i t a Human Consumption of Wheat F l o u r and Other Grains i n S e l e c t e d Countries ( 1 9 0 9 - 1 0 1956-57).  \u2022  \u2022  \u2022  \u2022 \u2022  . . . . . .  .  World P o p u l a t i o n by Regions 1 9 2 0 - 1 9 7 0  4-0 4-5  1955-  XIII  XV  23  D i s t r i b u t i o n of Boxcars to B r i t i s h Columbia P o r t s 1959-60 and 1964-65 .  1 9 4 4 - 4 5 to 1964-65  X  14  48 49  52 55  \u000Cvii Table  Page  XVI Canada's Share of the Imports of Wheat i n t o Selected Countries, 1955-56 - 1964-65 ( % ) . . . . XVII Exports of G r a i n through United States P a c i f i c Ports 1959-1963  56  ,  65  X V I I I U n i t e d S t a t e s P a c i f i c Coast G r a i n Storage Capacity 1964  67  XIX. Exports of G r a i n through B r i t i s h Columbia P o r t s , 1960-1964  68  XX T o t a l Primary Charges f o r Sample V e s s e l C a l l i n g at P a c i f i c P o r t s to Load G r a i n XXI Schedule of Man-Hour Rates at United S t a t e s P a c i f i c Ports XXII Wheat: Percentage of T o t a l P r o d u c t i o n , by C l a s s , S e l e c t e d Countries 1955-1962 X X I I I Inshipments and Outshipments of Wheat: P a c i f i c Northwest 1959-63 Average and Crop Years 1964 and 1965 by Quarters  73 79 82 85  \u000Cviii  ACKNOWLEDGMENT Much o f t h e r e s e a r c h c a r r i e d o u t f o r t h i s t h e s i s was a l m o s t e n t i r e l y dependent on t h e a s s i s t a n c e and c o - o p e r a t i o n of p e o p l e d i r e c t l y c o n n e c t e d w i t h t h e g r a i n and s h i p p i n g industries. F o r t h e m a t e r i a l r e l a t i n g t o A m e r i c a n p o r t s I am g r e a t l y a p p r e c i a t i v e o f t h e h e l p o f p e o p l e i n P o r t l a n d and S e a t t l e . I am p a r t i c u l a r l y i n d e b t e d t o Mr. F r e d S t o k e l d , Manager o f the W o r l d Trade and T r a n s p o r t a t i o n Department, P o r t l a n d Chamber o f Commerce, who made p o s s i b l e much o f my f i e l d work i n that port. The  author  i s indebted  as w e l l t o C a n a d i a n g r a i n company  o f f i c i a l s who p r o v i d e d b o t h g u i d a n c e and d a t a i n t a c k l i n g t h e r e s e a r c h problem. The who  h e l p o f Dr. W i l l i a m Hughes and Dr.  Trevor  advised i n the w r i t i n g of t h i s t h e s i s i s also  Heaver appreciated.  F i n a l l y , t h e a u t h o r w i s h e s t o thank t h e F e d e r a l ment of T r a n s p o r t  Depart-  who p r o v i d e d t h e f i n a n c i a l a s s i s t a n c e t h a t  made much o f t h e f i e l d work p o s s i b l e .  \u000CCHAPTER I INTRODUCTION Background and Statement of Problem F a c i l i t i e s f o r handling Canada's g r a i n exports are an important p a r t of the p o r t i n s t a l l a t i o n s on the B r i t i s h Columbia coast.  G r a i n was the s i n g l e most important commodity exported  through B r i t i s h Columbia Customs P o r t s i n 1964. the  The value of  shipments was 435.2 m i l l i o n d o l l a r s or 25% of the t o t a l  value of e x p o r t s .  1  I n q u a n t i t y , approximately 218.2  million  bushels of g r a i n were exported i n the 1964 calendar year.  This  represented 5 0 % of the tonnage exported through B r i t i s h Columbia 2 ports.  V i r t u a l l y a l l of t h i s g r a i n i s exported through the  four B r i t i s h Columbia p o r t s where g r a i n handling f a c i l i t i e s are i n s t a l l e d : namely Vancouver, V i c t o r i a , New Westminster and P r i n c e Rupert.  Only v e r y minor amounts are exported \"by r a i l to 3  United S t a t e s d e s t i n a t i o n s .  F i g u r e s such as the above  clearly  i l l u s t r a t e the magnitude of g r a i n exports i n o v e r a l l trade and i n d i c a t e t h a t any comprehensive study of p o r t i n s t a l l a t i o n s on B u r e a u of Economics and S t a t i s t i c s , P r e l i m i n a r y S t a t e ment of E x t e r n a l Trade Through B r i t i s h Columbia Customs P o r t s f o r the Calendar Year 1964 ( V i c t o r i a , 1964), p. S3Dominion Bureau of S t a t i s t i c s , Shipping Report (Ottawa; Queen's P r i n t e r , 1965), p. 188. 1  \u20225  ^Dominion Bureau of S t a t i s t i c s , G r a i n Trade of Canada 1964-65 (Ottawa-, Queen's P r i n t e r , 1965), p. 3. .  \u000C2 the B r i t i s h Columbia coast must i n c l u d e some s p e c i f i c study of the g r a i n h a n d l i n g  facilities.  There i s l i t t l e unanimity i n d e f i n i n g the problems of g r a i n handling i n B r i t i s h Columbia.  For example a recent  p e r i o d i c a l a r t i c l e quoted many v a r y i n g opinions i n e x p l a n a t i o n of a recent g r a i n h a n d l i n g t i e - u p i n V a n c o u v e r A s  Mr. W. A.  Sankey, Manager of the Vancouver Merchants Exchange and Honourable Joe Greene, M i n i s t e r of A g r i c u l t u r e f o r Canada, a t t r i b u t e the problem to the r a i l r o a d s f o r not d e l i v e r i n g the boxcars t h a t are needed to keep the e l e v a t o r s f u l l .  On the other  hand  Mr. Ian S i n c l a i r , P r e s i d e n t of the Canadian P a c i f i c Railway, and Honourable M i t c h e l l Sharp, M i n i s t e r i n charge of the Canadian Wheat Board, have blamed poor p o r t f a c i l i t i e s f o r g r a i n h a n d l i n g delays.  F i n a l l y the manager of one of the  l a r g e s t g r a i n h a n d l i n g operations  i n Vancouver, i n an i n t e r v i e w  w i t h t h i s w r i t e r , not only f a u l t e d the r a i l w a y s but a l s o blamed the Canadian Wheat Board f o r o v e r - s e l l i n g p a r t i c u l a r grades of wheat.  Thus when ships come to l o a d the grade may not be  a v a i l a b l e f o r some p e r i o d of time.  I t was a l s o s t a t e d t h a t a t  times the Wheat Board may u n d e r - s e l l c e r t a i n grades, l e a d i n g to congestion  i n the e l e v a t o r because g r a i n i s s t o r e d t h a t does  not move out of the e l e v a t o r , thus reducing the e f f e c t i v e capa c i t y to handle g r a i n .  On the other hand o f f i c i a l s of the  Canadian Wheat Board s a i d t h a t i n 1964  75 m i l l i o n d o l l a r s of  g r a i n s a l e s were l o s t because of the i n a b i l i t y of B r i t i s h Laurencom W r i t e r s , \"Grain Handling Sparks Controversy at Vancouver,\" Canadian M i l l i n g and Feed, XLVII (May 1966), 20-23.  \u000C3  Columbia p o r t s to move more g r a i n . ^  To counter t h i s statement,  g r a i n h a n d l i n g agencies s a i d t h a t expanded c a p a c i t y was not warranted to handle the temporary heavy shipments of 1963-64.  6  Charges and countercharges such as the above are not new.  Ever s i n c e Canada s t a r t e d making s u b s t a n t i a l g r a i n s a l e s  to China i n I960 there have been p e r i o d i c d i s p u t e s and d i s c u s sions over West Coast g r a i n h a n d l i n g f a c i l i t i e s .  I n 1961 a  P a c i f i c Coast G r a i n Conference was arranged by the Canadian Wheat Board.  A s h o r t r e p o r t was made by an Immediate Problems  Committee i n which many of the problems were s t a t e d and some recommendations f o r t h e i r s o l u t i o n were made.  The p o s s i b l e  problem areas l i s t e d a t t h a t time remain r e l a t i v e l y unchanged today.  Some of the problems mentioned were:  1. Shortage of s u f f i c i e n t boxcars f o r unloading caused by: a. Lack of ample s h i p p i n g orders i n the country. b. S l i d e s or washouts on the r a i l w a y . c. T o t a l r e s t r i c t i o n of country l o a d i n g s by r a i l w a y s a f f e c t i n g terminal elevators. d. Shortage of boxcars due to abnormal i n c r e a s e s i n demand g e n e r a l l y . 2. E l e v a t o r c o n g e s t i o n caused by: a. Lack of s h i p p i n g g e n e r a l l y - delayed a r r i v a l due to storms e t c . b. Stocks of non-shippable g r a i n . c. G r a i n t h a t r e q u i r e s d r y i n g or p r o c e s s i n g . d. Unloading o i l seeds when not r e q u i r e d to a v o i d r a i l w a y demurrage charges. 3. S h i p p i n g delays caused by: a. Bad weather - e x c e s s i v e r a i n f o g e t c . b. P e r i o d s of h i g h t i d e s . c. Modern v e s s e l s - s i z e and type of c o n s t r u c t i o n . d. I n t e r m i t t e n t shortage of stevedore gangs f o r 1:00 P.M. or 6:00 P.M. s t a r t s . e. P h y s i c a l l i m i t a t i o n s of s u s t a i n e d overtime work. 3. K. Edmonds, \"Behind the B i g West Coast G r a i n Backup,\" F i n a n c i a l P o s t , March 14, 1966, p. 1 f f . J  Edmonds, p. 1.  \u000Cf . E x c e s s i v e trimming or s a c k i n g s l a c k holds while also loading bulk. g. Shortage of grades to meet requirements. h. D i f f i c u l t i e s i n m a i n t a i n i n g grades on outward shipments as compared to those e s t a b l i s h e d a t unload. i . V e s s e l s not passed f o r l o a d i n g or not completely ready f o r l o a d i n g but occupying b e r t h s and p r e v e n t i n g v e s s e l s from u n l o a d i n g t h a t have passed and are ready. 0. B e r t h i n g g e n e r a l l y , i n c l u d i n g s h i f t i n g from b e r t h to b e r t h . k. Delay i n g r a d i n g some export cargoes u n t i l Winnipeg I n s p e c t o r e s t a b l i s h e s grade. 1. Lack of s u f f i c i e n t d r a f t a t some b e r t h s , m. S i l t i n g a t New Westminster E l e v a t o r and a t entrance t o F r a s e r R i v e r . n. Reluctance and/or r e f u s a l t o work overtime. 7  H i s t o r y of P a c i f i c Coast G r a i n Handling G r a i n h a n d l i n g on the B r i t i s h Columbia coast has a r e l a t i v e l y s h o r t h i s t o r y when compared to the Lakehead or E a s t e r n Ports.  P a c i f i c Coast g r a i n exports were hard won and r e p r e -  sented a v i c t o r y over the e s t a b l i s h e d e a s t e r n s h i p p i n g and grain interests.  O r i g i n a l l y the opening of the Panama Canal  was seen as l e a d i n g the way to heavy g r a i n exports from Vancouver.  I n a n t i c i p a t i o n of the canal r o u t e an e l e v a t o r was  opened i n Vancouver i n 1916.  However, l i t t l e a c t i v i t y r e s u l t e d  and the s m a l l amount o f g r a i n exported i n the next f i v e years went c h i e f l y to the O r i e n t .  Thus the e s t a b l i s h e d i n t e r e s t s i n  the east were slow t o see the o p p o r t u n i t i e s i n h e r e n t i n the P a c i f i c and Panama r o u t e to Europe.  F i r s t they had r e s e r v a t i o n s  about s h i p p i n g g r a i n through the t r o p i c s because of a f e a r of s p o i l a g e en r o u t e to Europe.  Experimental shipments undertaken  by the Dominion Research L a b o r a t o r y i n 1917 proved t h i s t o be ' P a c i f i c Coast G r a i n Conference, \"Report of the Immedi a t e Problems Committee\" (Vancouver, 1961), mimeo., p. 3,  \u000C5  Q  an unfounded f e a r .  Probably of g r e a t e r importance was t h a t  the e a s t e r n route was t r i e d and proven.  Considerable money  was i n v e s t e d i n Lakehead and E a s t e r n p o r t f a c i l i t i e s and cont r o l of these f a c i l i t i e s was remote from B r i t i s h Columbia. Consequently  there was c o n s i d e r a b l e i n e r t i a i n developing a  western route from those r e s p o n s i b l e f o r the export and handling of grain.  One r e s u l t of i n e r t i a was the f a c t t h a t  r a i l f r e i g h t r a t e s to the P a c i f i c Coast were unfavourable. Not u n t i l 1 9 2 5 were f r e i g h t r a t e s t o the P a c i f i c p o r t s equali z e d w i t h the Lakehead.  P r i o r t o the e q u a l i z i n g of r a i l r a t e s  on g r a i n , e x p o r t i n g through Vancouver to Europe was o n l y poss i b l e because of lower ocean r a t e s to Europe as compared w i t h the Lakehead or East Coast.  These lower ocean r a t e s began i n  1 9 2 1 and a f t e r t h i s European g r a i n exports from Vancouver increased r a p i d l y .  By 1 9 2 5 there were s i x e l e v a t o r s i n 9  Vancouver w i t h a storage c a p a c i t y of 6 . 5 m i l l i o n b u s h e l s . G r a i n shipments i n c r e a s e d from about  2 1 to 5 3 m i l l i o n  500,000  1920 1932-33  bushels i n  bushels i n 1 9 2 5 - 2 6 (Table I ) . By  shipments had reached a pre-war peak of 1 0 3 m i l l i o n bushels through a l l B r i t i s h Columbia p o r t s .  E l e v a t o r storage c a p a c i t y  i n Vancouver had a l s o r i s e n i n the p e r i o d to 1 8 . 7 m i l l i o n bushels by 1 9 3 3 . The present e l e v a t o r f a c i l i t i e s a t P r i n c e Rupert  (1928)  (1925),  New Westminster ( 1 9 2 9 ) \u00BB and V i c t o r i a were a l s o D. A. MacGibbon, The Canadian G r a i n Trade (Toronto; M a c M i l l a n Company, p. 268. % e e the unpublished graduating essay ( F a c u l t y of Commerce, U.B.C., 1 9 6 2 ) by G. R. Wheatley, \"Grain.Handling Through the P o r t of Vancouver,\" p. 3 1 . 8  1932),  \u000C6  c o n s t r u c t e d d u r i n g t h i s p e r i o d of r a p i d growth although they d i d comparatively l i t t l e to improve the g r a i n trade on the P a c i f i c Coast a t t h a t time.  A l l of these developments d u r i n g  the decade of the twenties and e a r l y t h i r t i e s c l e a r l y establ i s h e d the P a c i f i c Coast as a major export p o i n t f o r Canadian grain. the  E x i g e n c i e s of war reduced the trade to a t r i c k l e d u r i n g  1940's  but s i n c e t h a t time B r i t i s h Columbia g r a i n exports  have shown steady i n c r e a s e s , and at times have surpassed the volume shipped through S t . Lawrence R i v e r P o r t s (Table I ) . Purpose of Study Continuing growth of g r a i n exports through B r i t i s h Columbia p o r t s , p a r t i c u l a r l y i n the past f i v e y e a r s , has r a i s e d the problem of how much p a r t i c i p a t i o n i s p o s s i b l e i n t h i s growi n g market w i t h present e l e v a t o r f a c i l i t i e s which are i n most cases more than 25 years o l d .  Simply s t a t e d , the problem i s  what should be done to ensure the e f f i c i e n t h a n d l i n g of a growi n g volume of g r a i n through B r i t i s h Columbia p o r t s .  The purpose  of t h i s t h e s i s i s to c o n s i d e r and analyze the many f a c e t s of the problem t h a t have to be considered and furthermore to i n d i cate the course of a c t i o n t h i s a n a l y s i s suggests. Among the most important f a c e t s of the problem examined i n t h i s t h e s i s are the f u t u r e of g r a i n markets, the f u t u r e of s h i p p i n g as i t r e l a t e s to the g r a i n trade and the f u t u r e comp e t i t i v e f o r c e s from the near-by p o r t s i n the U n i t e d S t a t e s . Other S t u d i e s The p o r t s of B r i t i s h Columbia are p r e s e n t l y undergoing thorough examination and study i n p r e p a r a t i o n f o r b u i l d i n g f o r the f u t u r e .  Vancouver p a r t i c u l a r l y , i s r e c e i v i n g c l o s e  \u000C7  TABLE I CANADIAN GRAIN EXPORTS BY SEABOARD SECTOR SELECTED CROP YEARS (Figures i n thousands o f Bushels)  Crop Year  Via Canadian S t . Lawrence Via P o r t s and Pacific Lakehead Coast . direct  1920-21 1925-26 1930-31 1932-33 1935-36 1940-41 1944- 45  475 53,404 75,866 102,605 59,979 4,106 8,644  1945- 46  66,951 68,481 113,583 138,967 169,555 154,107 136,755 159,813 180,907 160,292  1950-51 1 9 5 5 - 56 1 9 5 6 - 57 1 9 5 7 - 58 1 9 5 8 - 59 1959- 6 0 1960- 61 1961- 6 2 1 9 6 2 - 63 1 9 6 3 - 64 1964- 65  220,745 186,141  52,060 93,867 63,495 88,869 71,778 63,237 106,949 121,681 94,958 147,816 117,392 123,508 120,067 110,432 139,659 144,101 142,357 306,102 178,142  Via Canadian Atlantic Coast  Via Churchill  9,816 15,949 11,108 9,235 13,705 50,741 52,409 30,695 16,758 45,210 27,818 30,930 31,110 25,099 33,970 21,808 19,843 54,475 34,295  2,736 2,407  6,767 12,818 16,250 18,451 18,723 21,838 20,203 19,244 21,761 21,680 22,060  Via U.S.A. Atlantic Coast 64,081 175,017 98,699 55,516 75,429 57,740 83,095 72,825 4,624  Source: Board of G r a i n Commissioners f o r Canada, Canadian G r a i n Exports f o r the Crop Year 1 9 6 4 - 6 5 (Ottawa; Queen's P r i n t e r ) , p. 3 1 .  227 676  136  366  \u000C8 scrutiny.  Several s t u d i e s are p r e s e n t l y under way i n t h i s  regard t h a t w i l l , no doubt, provide a wealth of i n f o r m a t i o n on B r i t i s h Columbia's p o r t s .  P h y s i c a l problems of p o r t c o n s t r u c -  t i o n are being s t u d i e d w i t h the use of an elaborate hydrographi c a l model of the Vancouver Harbour a r e a .  1 0  There i s a l s o a  study p r e s e n t l y being done by Joseph B. Ward and A s s o c i a t e s which w i l l give a complete i n v e n t o r y of a l l p o r t f a c i l i t i e s i n Vancouver.  Economic and geographical s t u d i e s are being under-  taken by the B r i t i s h Columbia Research C o u n c i l f o r the N a t i o n a l Harbours Board and a l s o by a graduate student i n the Department of Geography on a $10,000 r e s e a r c h grant from the Department of Transport and the N a t i o n a l Harbours Board.  The l a t t e r study i s  a thorough a n a l y s i s of the o r i g i n s and d e s t i n a t i o n s of goods i n f o r e i g n trade through Vancouver.  In addition p r i v a t e organiz-  a t i o n s , p a r t i c u l a r l y the Canadian P a c i f i c Railway and  the  Canadian N a t i o n a l Railway, are studying Vancouver's p o r t and have developed extensive plans f o r expansion.  On a s m a l l e r  s c a l e the Saskatchewan Wheat P o o l has s t u d i e d c l o s e l y the P a c i f i c Coast as an o u t l e t f o r g r a i n .  And, f i n a l l y , v a r i o u s  m u n i c i p a l governments and the p r o v i n c i a l government are  vitally  i n t e r e s t e d i n p o r t development p l a n s and have undertaken s t u d i e s of t h e i r  own. W i t h i n the extensive study of B r i t i s h Columbia p o r t s  now underway very l i t t l e i s being done to study the most import a n t commodity p r e s e n t l y exported from the p r o v i n c e .  This t h e s i s  i s intended to help f i l l t h i s gap w i t h a comprehensive and \"Ottawa R o l l s Out Giant Docks P l a n , \" Vancouver Sun, February 18, 1966, p. 1.  \u000Cd e t a i l e d a n a l y s i s of g r a i n h a n d l i n g .  Furthermore i t i s an  a n a l y s i s from a d i f f e r e n t viewpoint than t h a t which may be done by p r i v a t e or even p u b l i c g r a i n handling i n t e r e s t s , f i r s t because i t has no p a r t i c u l a r i n t e r e s t i n mind and second because i t i n c l u d e s analyses of c o m p e t i t i v e p o r t s c l o s e to B r i t i s h Columbia.  So f a r as can be determined the competitive  f a c t o r s o f U n i t e d S t a t e s p o r t s have not as y e t been g i v e n study. Method of A n a l y s i s and O r g a n i z a t i o n Most of the a t t e n t i o n being d i r e c t e d to p o r t development and study i n B r i t i s h Columbia i s understandably  focused  on Vancouver simply because i t i s the major p o r t on the P a c i f i c Coast of Canada.  However, other p o r t s such as New Westminster  and P r i n c e Rupert have been a t t r a c t i n g some a t t e n t i o n and devel opment d o l l a r s .  New Westminster i s c u r r e n t l y having i t s s h i p  channels improved ' ' and P r i n c e Rupert i s being spoken of as the 1  1  o u t l e t f o r n o r t h e r n B r i t i s h Columbia's exports.  Vancouver,  t h e r e f o r e , i s not the o n l y p o r t t h a t i s l i k e l y t o see new devel opments.  For t h i s reason i t i s considered l o g i c a l t o study a l l  g r a i n h a n d l i n g f a c i l i t i e s on the B r i t i s h Columbia coast. Any r e s e a r c h i n t o f u t u r e requirements  f o r g r a i n hand-  l i n g f a c i l i t i e s i s a complex problem i n v o l v i n g the workings of the g r a i n t r a d e , the i n t r i c a t e o p e r a t i o n of p o r t s , and the cont i n u a l l y changing s h i p p i n g i n d u s t r y .  Such complexity p o s s i b l y  e x p l a i n s why controversy a r i s e s among the v a r i o u s i n t e r e s t e d groups i n t r y i n g t o p i n p o i n t problem areas i n g r a i n h a n d l i n g . F r a s e r R i v e r Harbour Commission, 1 s t Annual Report (1965), 3. .  \u000C10 I n each of the chapters t h a t f o l l o w the v a r i o u s aspects of t h i s complex problem are analyzed s e p a r a t e l y . Chapter I I i s p r i m a r i l y a d e s c r i p t i v e chapter t h a t d e t a i l s the present g r a i n h a n d l i n g f a c i l i t i e s i n B r i t i s h Columbia.  I n a d d i t i o n some a n a l y s i s of the operations of the g r a i n  e l e v a t o r s i s undertaken i n order t o e s t a b l i s h t h e i r p o s i t i o n i n the Canadian g r a i n trade.  F i n a l l y an e f f o r t i s made t o  analyze t h e i r e f f i c i e n c y i n h a n d l i n g g r a i n . Problems of f o r e c a s t i n g f u t u r e markets f o r Canadian g r a i n are an important p a r t of p l a n n i n g f o r f u t u r e g r a i n handling facilities.  This aspect, however, appears to have  r e c e i v e d r e l a t i v e l y l i t t l e a t t e n t i o n , being ignored i n f a v o u r of the more immediate problems of h a n d l i n g present o r d e r s . Longer term aspects of p o r t development i n B r i t i s h Columbia r e q u i r e s such a n a l y s i s .  For t h i s reason Chapters I I I and IV  analyze the trends and outlook i n the g r a i n markets served by British  Columbia. By i m p l i c a t i o n , a study of g r a i n h a n d l i n g f a c i l i t i e s  and f u t u r e needs i s a study of c o m p e t i t i v e advantages and d i s advantages o f c e r t a i n p o r t s over o t h e r s . t h i s aspect i n c o n s i d e r a b l e d e t a i l .  Chapter V s t u d i e s  As r e s e a r c h d a t a on  P a c i f i c Coast s h i p movements becomes a v a i l a b l e i t w i l l  likely  be shown c o n c l u s i v e l y t h a t a l l p o r t s on the P a c i f i c Coast, both American and Canadian, can be considered as a f u n c t i o n a l l y i n t e g r a t e d system.  Therefore i f Vancouver becomes an i n -  e f f i c i e n t p o r t and P o r t l a n d or S e a t t l e improve, Vancouver i s l i k e l y to lose trade.  This does not mean our g r a i n exports  would be d i v e r t e d to American p o r t s but, even worse, g r a i n  \u000C11  s a l e s could be l o s t a l t o g e t h e r i f Vancouver and other Canadian West Coast p o r t s become i n e f f i c i e n t , h i g h c o s t c e n t r e s .  Con-  v e r s e l y , American g r a i n exports may i n c r e a s e and, i n t u r n , their ports w i l l benefit.  Because of these f a c t o r s i t was  thought b e n e f i c i a l to study c l o s e l y American g r a i n h a n d l i n g methods, plans f o r expansion,  and the c o s t s i n v o l v e d w i t h  s h i p p i n g through American p o r t s on the P a c i f i c . the r e l a t i v e competitiveness  By doing so  of p o r t s i n Canada and the United  S t a t e s can be determined. F i n a l l y , a f t e r study of the v a r i o u s f a c e t s of g r a i n h a n d l i n g i n e a r l i e r chapters of the t h e s i s , a s y n t h e s i s i s attempted i n Chapter \"VT i n order to make c l e a r e r what f u t u r e a c t i o n w i l l be r e q u i r e d w i t h regard t o g r a i n h a n d l i n g i t i e s on the B r i t i s h Columbia coast.  facil-  No p r e t e n t i o n i s made to  recommend s p e c i f i c f a c i l i t i e s , b u t i t i s p o s s i b l e a t l e a s t t o g i v e some i d e a of the d i r e c t i o n f u t u r e p l a n n i n g and expansion should take.  \u000C12  CHAPTER I I PRESENT GRAIN HANDLING FACILITIES Any assessment o f the f u t u r e needs f o r g r a i n  handling  f a c i l i t i e s i n B r i t i s h Columbia r e q u i r e s both a study of the f u t u r e p o t e n t i a l g r a i n trade i n Canada and a complete a n a l y s i s of present Canadian p o r t f a c i l i t i e s f o r g r a i n .  In addition  the p o s s i b l e d i v i s i o n of t r a f f i c between regions must be considered.  The second o f these analyses w i l l be d e a l t w i t h  comprehensively i n t h i s chapter while the other two are the s u b j e c t of Chapter 17. Smooth and e f f i c i e n t handling Columbia p o r t s has a dual r o l e . as a major g r a i n exporter  of g r a i n through B r i t i s h  F i r s t the i n t e r e s t s of Canada  are enhanced because i t allows Canada  to s e l l more wheat overseas when the o p p o r t u n i t i e s a r i s e . I n some measure, i t i s safe to say, t h e p r o s p e r i t y of p r a i r i e a g r i c u l t u r e r e l i e s upon the q u a l i t y of g r a i n handling ures on the P a c i f i c Coast.  Secondly the p o r t s of B r i t i s h  Columbia b e n e f i t because e f f i c i e n t inexpensive  handling  to the a t t r a c t i v e n e s s of the p o r t s f o r s h i p p i n g . f a c t i t appears q u i t e c l e a r that a study of g r a i n cannot stand alone without reference and f a c i l i t i e s .  proced-  to other p o r t  adds  Due to t h i s handling activities  I n f a c t the g r a i n handling aspect i s very  much a p a r t of the l a r g e r i n t e g r a t e d whole of the p o r t . Advantages of B r i t i s h Columbia P o r t s P o r t s o f f e r i n g g r a i n as a cargo have s e v e r a l important advantages i n a t t r a c t i n g s h i p s .  F i r s t , g r a i n i s a c l e a n cargo  \u000C!5  t h a t can be q u i c k l y stowed and d i s c h a r g e d .  1  T h i s , of course,  speeds turn-around time which i s so important to p r o f i t a b l e ship o p e r a t i o n .  This f a c t o r may be even more important  today  because i t appears turn-around times are g e t t i n g l o n g e r as time passes.  A recent book p o i n t s out t h a t days a t sea, which  are considered a s h i p ' s p r o d u c t i v e time, have dropped from 210 days p e r year i n 1 9 2 9 to 130 days per year i n 1950 and p  have continued downward s i n c e 1 9 5 0 '  Some o f t h i s may be  a t t r i b u t e d t o l a r g e r and f a s t e r s h i p s , but at l e a s t p a r t of the fewer days a t sea can be blamed on i n e f f i c i e n t p o r t s t h a t have f a i l e d to keep up w i t h the trends i n s h i p p i n g e f f i c i e n c y . Second, g r a i n i s an e x c e l l e n t d i s t r e s s cargo t o f i l l empty holds when other t r a f f i c  i s not a v a i l a b l e .  quote very low r a t e s on g r a i n when t h i s occurs. g r a i n i s the type of t r a f f i c to marginal c o s t .  Ships w i l l In effect  t h a t w i l l move a t r a t e s v e r y c l o s e  This appears to be a f e a t u r e of the Vancouver-  European t r a d e ^ and no doubt c o n t r i b u t e s t o the r e l a t i v e l y low , average ocean f r e i g h t s from Vancouver as compared w i t h E a s t e r n Canadian p o r t s . ^  For example r a t e s from Vancouver averaged  o n l y 24% higher t o B r i t a i n than from Montreal i n 1964-65, y e t the d i s t a n c e i s p r a c t i c a l l y three times as great (Table I I ) . \u2022HR.'S. McElwee, P o r t Development (New York; McGraw H i l l , 1926), p. 236. C o l . R. B.. Oram, Cargo Handling and the Modern P o r t (London; Pergamon P r e s s , 1965), P\u00AB 4. 2  ^See the unpublished graduating essay ( F a c u l t y of Commerce, U.B.C., 1962) by G. R. Wheatley, \"Grain Handling Through the P o r t of Vancouver,\" p. 31* ^Board of G r a i n Commissioners, Canadian G r a i n Exports f o r the Crop Year 1964-65 (Ottawa; Queen's P r i n t e r , 1965;, p. 21.  \u000C14 TABLE I I DISTANCES TO MAJOB OVERSEAS PORTS  Western Europe Antwerp Copenhagen Hamburg Havre Liverpool London Naples Oslo Rotterdam A s i a ( F a r East) Hong Kong Manila Shanghai Singapore Yokohama Vladivostok  Bombay Africa  Capetown  Aden  South America Callao  Rio de J a n e i r o  D i s t a n c e P o r t Arthur Vancouver Fort William (nautical miles)  f r o m Montreal  9,005 9,210 9,137 8,683 8,614 8,833 9,383 9,1348,874-  4,3544,453 4,408 4-, 156 3,967 4,306 5,372 4,377 4,351  3,142 3,241 3,196 2,944 2,755 3,0944,160 3,165 3,139  5,704 6,019 5,160 7,078 4,262  12,780 12,656 12,94-8 11,326 12,064  11,568 11,444 11,736 10,114 10,852  9,359  8,147  4,312  12,123  10,505  8,330  9,519  11,802 4,783  8,360  7,699  5,732  6,569  10,911  7,118  6,487 4,520  5,357  Source: Canadian P o r t s and Seaway D i r e c t o r y 1 9 6 5 , (Gardenvale, Quebec; N a t i o n a l Business P u b l i c a t i o n s L t d . ) ,  pp.  48-49.  \u000C15  F i n a l l y g r a i n has. a stowage f a c t o r of one.  This means  t h a t one ton of wheat f i l l s f o r t y cubic f e e t : i t s f r e e f l o w i n g nature a l l o w i n g f o r no waste space.^ An important advantage of the P a c i f i c Coast l i e s i n i t s p o s i t i o n i n r e l a t i o n to the s h i p p i n g p a t t e r n s i n the world. G e n e r a l l y speaking ships from Europe unload t h e i r cargoes a l l along the P a c i f i c seaboard of North America, thus a r r i v i n g i n the v i c i n i t y of Vancouver or B r i t i s h Columbia p o r t s l o o k i n g f o r a r e t u r n cargo. trates this point.  A b r i e f study done a few years ago The study was done to show how  ships  illusspread  out around the world once they leave t h e i r home p o r t s i n Europe. Of the 24-5 v e s s e l s that were c h a r t e d , s i x reached Vancouver and a l l s i x l i s t e d Vancouver as t h e i r t e r m i n a l p o r t . ^  I n other  words Vancouver was the l a s t p o r t of c a l l before s t a r t i n g the r e t u r n journey to Europe.  On the other hand the same survey  i n d i c a t e d the v e s s e l s reaching Los Angeles and San F r a n c i s c o had f u r t h e r p o r t s of c a l l before s t a r t i n g the r e t u r n journey t o Europe.  This would i n d i c a t e t h a t , s i n c e g r a i n i s a bottom  cargo, Vancouver and B r i t i s h Columbia p o r t s are very f a v o u r a b l y l o c a t e d f o r the l o a d i n g of such cargoes. The f i n a l and obvious advantage of B r i t i s h Columbia p o r t s f o r g r a i n s h i p p i n g i s t h e i r p r o x i m i t y to the markets of the O r i e n t .  The advantage i n t h i s regard i s so great t h a t  there i s no q u e s t i o n of E a s t e r n Canadian p o r t s being competitive.  Greater s h i p p i n g d i s t a n c e s and higher handling charges % c E l w e e , op. c i t . , p.  237.  ^F. W. Morgan, P o r t s and Harbours (London; Hutchinson's U n i v e r s i t y L i b r a r y , 1 9 5 2 ) , p. 1 0 7 .  \u000C16 i n v o l v e d i n double handling i n the East makes the P a c i f i c Coast the o n l y economical export p o i n t f o r g r a i n to the O r i e n t .  It  should be remembered, of course, that B r i t i s h Columbia shares t h i s advantage w i t h the United S t a t e s p o r t s immediately  to the  south. Distances from the markets f o r exports from B r i t i s h Columbia p o r t s are very great and probably c o n s t i t u t e the most s e r i o u s disadvantage  of the P a c i f i c p o r t s i n world t r a d e . This  i s t r u e p a r t i c u l a r l y of the major European markets which are far  c l o s e r to E a s t e r n Canada than to Western Canada (Table I I ) .  Therefore d e s p i t e the many advantages l i s t e d p r e v i o u s l y there i s a great need f o r e f f i c i e n t p o r t f a c i l i t i e s to overcome some of the c o s t s of long d i s t a n c e .  I n e f f e c t the higher c o s t s of  l o n g d i s t a n c e by ocean s h i p p i n g have to be o f f s e t by  lower  l a n d t r a n s p o r t c o s t s and lower t r a n s f e r c o s t s from r a i l to ship. I n Canada, the l a n d t r a n s p o r t c o s t s f o r g r a i n are s t a b l e and reasonably low.  The w e l l known Crows Nest Pass  g r a i n r a t e s are s e t by s t a t u t e , which means t h a t o n l y i n e x t r a o r d i n a r y circumstances  w i l l g r a i n r a t e s be changed.  It  would appear, i n f a c t , that any r e v i s i o n of these r a t e s , e i t h e r up or down, i s out of the question. stances the advantages and disadvantages  Under these  circum-  of West over East as  an export p o i n t to Europe must be i n terms of p o r t f a c i l i t i e s and ocean f r e i g h t r a t e s .  S i m i l a r l y i n the Far East t r a d e ,  p a r t of Canada's a b i l i t y to s e l l to t h i s market w i l l r e s t on the p o r t ' s a b i l i t y to handle g r a i n , when compared w i t h United States P a c i f i c ports.  Therefore i t i s necessary  to look at  \u000CB r i t i s h Columbia's g r a i n handling Elevator  facilities.  Capacities There are four p o r t s on the B r i t i s h Columbia coast  t h a t have g r a i n e l e v a t o r f a c i l i t i e s .  Vancouver has by f a r the  g r e a t e s t p r o p o r t i o n o f the i n s t a l l a t i o n s , w i t h s i x of the nine e l e v a t o r s on the coast. minster  V i c t o r i a , P r i n c e Rupert and New West-  each have one. The s i x Vancouver e l e v a t o r s make up  88% o f the t o t a l r e g i s t e r e d storage c a p a c i t y on the P a c i f i c Coast, or 21.8 m i l l i o n bushels out of 2 4 . 9 m i l l i o n  bushels.  I t was noted i n Chapter I t h a t most of t h i s c a p a c i t y was i n s t a l l e d many years ago. I n 1 9 3 3 there was 18,716,500 bushels of storage c a p a c i t y i n Vancouver.  Since t h a t time the a d d i -  t i o n s have been r e l a t i v e l y minor.  The l a t e s t a d d i t i o n to  c a p a c i t y was made i n 1 9 5 9 when one m i l l i o n bushels were added to the U n i t e d G r a i n Growers i n s t a l l a t i o n . added a t the other p o r t s that export g r a i n .  Nothing has been This does not  mean t o say t h a t improvements have not been made.  Over the  years new equipment has been developed and i n s t a l l e d and o l d equipment has been r e p l a c e d .  For example, c l e a n i n g and d r y i n g  equipment has been improved c o n s i d e r a b l y s i n c e the o r i g i n a l was  installed.  As o l d machinery wears out or new demands are  p l a c e d on the e l e v a t o r s the l a t e s t and most e f f i c i e n t equipment has been i n s t a l l e d . I n s p i t e of t h i s , the b a s i c p l a n t has changed l i t t l e over the years. concrete  Furthermore the p l a n t , c o n s i s t i n g of l a r g e  s i l o s , i s by nature l o n g - l a s t i n g and permanent.  Even  a f t e r 40 and 50 years of use the g r a i n e l e v a t o r s s t i l l appear to be i n good c o n d i t i o n .  Most o f the people i n t e r v i e w e d f o r  \u000C18 t h i s study f e l t t h a t the o r i g i n a l concept of the t e r m i n a l e l e v a t o r had been so w e l l developed t h a t there was l i t t l e room f o r improvement. p r a c t i c e because the new  actually  This appears to be borne out i n  Saskatchewan Wheat Pool E l e v a t o r ,  now  being b u i l t i n Vancouver, f o l l o w s the same b a s i c design of the elevators b u i l t i n  1920.  Even though i t i s easy to be complimentary about the b a s i c e l e v a t o r p l a n t , there are some o p e r a t i o n a l problems t h a t s t i l l a r i s e t h a t have not been overcome.  A study of the data  r e l a t i n g to the v a r i o u s stages of the e l e v a t o r o p e r a t i o n r e v e a l s where these problems l i e .  G e n e r a l l y speaking a g r a i n  e l e v a t o r can l o a d g r a i n to a ship f a r f a s t e r than any of the other operations such as d r y i n g , unloading  boxcars or c l e a n i n g .  Table I I I shows the v a r i o u s c a p a c i t i e s of the t e r m i n a l e l e v a t o r s i n B r i t i s h Columbia.  I n any eight-hour  s h i f t a l l of  these e l e v a t o r s can l o a d 2,061,000 bushels to s h i p s .  I n the  same p e r i o d of time only 965,000 bushels can be unloaded from r a i l c a r s (Table I I I ) . I t i s i n d r y i n g , however, that the r e a l bottlenecks arise.  A l l of the e l e v a t o r s i n B r i t i s h  Columbia can c l e a n 1,44-9,000 bushels of g r a i n i n twenty-four hours and a mere 196,000 bushels can be d r i e d i n the p e r i o d . The small d r y i n g c a p a c i t y can be explained by the f a c t t h a t d r y i n g i s only an i n t e r m i t t e n t o p e r a t i o n .  Damp g r a i n i s a  r e s u l t of poor harvest c o n d i t i o n s on the p r a i r i e s such as c o l d , wet,  or snowy weather.  Grain harvested under these con-  d i t i o n s cannot meet Canadian Wheat Board standards f o r export without undergoing the d r y i n g process.  As a rough average  t h i s only occurs about once every three years.  Consequently  \u000CCompany  City  TABLE- I I I OPERATING CAPACITIES OP BRITISH COLUMBIA TERMINAL ELEVATORS (bushels i n thousands) Shipping Depth Amount Capacity a t Length Unloaded Cleaning Drying 1 hr. Shipp- Low of RailMethod i n 8 h r . Capacity Capacity ing Water Wharf road 24 h r s . 24 h r s . Rated Working of Shift 8 hrs. Capacity Capacity Unloading Cars (bushels) (bushels) (bushels) Berths ( f t . ) ( f t . ) Serving  7,300 Alberta Wheat Pool Vancouver P a c i f i c E l e v a - 7 , 1 1 2 t o r s #1 &amp; Annex and NHB #1 600 Vancouver P a c i f i c E l e v a t o r s #2 Vancouver Saskatchewan 1,650 Wheat Pool Vancouver U n i t e d G r a i n 3,645 Growers L t d . B u r r a r d Ter1,500 North Vancouver minals L t d . New West- P a c i f i c 750 minster Elevators L t d .  Vancouver  6,400  Car Dumpers  125  325  40  275  48  60 480  60  Nil  10  233  6,000  Power Shovels (manual)  136 253  400  Power shovels  1,400  14 26  Power shovels  b  150  84 60  2,500  Car Dumper  1,000  Power shovels  28\u00B0  Power Shovels  40  500  52  75  d  2  80  a  N.A.  C.P.R. C.N.R.  35 2 , 5 0 0  1  35  N.A.  C.P.R.  2  3 5 2,610  C.N.R.  267 27 213  2  48  12  17 133  1  75  12  20  1  160  32 - 3 5  3  24  300  112  24  40  320  N.A.  C.N.R.  N \u2022 A. N.A.  C.N.R.  28 -40  30  975  C.N.R.  \u2022 C a l c u l a t e d on the b a s i s o f average P a c i f i c Coast unloading o f wheat per boxcar o f 1,862 bushels i n 1964-65' Source: Sanford Evans, Grain Trade Year Book (Winnipeg, 1966). *Based on wheat standard o f 60 l b . per bushel. C o u l d only l o a d a t t h i s r a t e i f a ship a t each b e r t h . Otherwise a t each b e r t h h o u r l y l o a d i n g c a p a c i t y i s 20,000 bushels per hour. One ship cannot be loaded a t 60,000 bushels per hour. *&gt;None when v e s s e l being loaded. CReduced 1/3 - 2/3 when l o a d i n g v e s s e l . ^Reduced t o 24 when l o a d i n g v e s s e l . a  \u000CTABLE I I I (continued) Amount Shipping Depth Unloaded Cleaning Drying Capacity at Length Method i n 8 h r . Capacity Capacity 1 hr. Shipp- Low of R a i l Rated Working of Shift 24 h r s . 24 hrs.. 8 hrs. i n g Water Wharf road Capacity Capacity Unloading Cars (\"bushels) (bushels) (bushels) Berths ( f t . ) ( f t . ) S e r v i n g (bushels)*  City  Company  Victoria  Victoria 1,040 Elevator Ltd. Canadian 1,250 Government Elevator  850  Power shovels  28  96  24  21 168  1  31'-48  800  C.N.R.  850  Power shovels  42 78  120  12  J\u00A3 240  1  43-- 7 0  1013  C. N.R.  B r i t i s h Columbia T o t a l s 24,847  19,900  518 965  1,449  196  258 2,061  14  Prince Rupert  \"\"Calculated on the b a s i s of average P a c i f i c Coast unloading of wheat per boxcar of 1,862 bushels i n 1964-65. Source: Sanford Evans, Grain Trade Year Book (Winnipeg, 1966). *Based on wheat standard of 60 l b . per bushel. Sources: 1. 2. 3. 4. 5.  G r a i n E l e v a t o r Companies i n i n t e r v i e w s and personal correspondence. P a c i f i c Coast Grain Conference, Report o f Immediate Problems Committee, 1961. Unpublished mimeo. Sanford Evans, G r a i n Trade of Canada (Winnipeg, 1966). Dominion Bureau of S t a t i s t i c s , Grain E l e v a t o r s i n Canada (Ottawa; Queen's P r i n t e r , 1965). Canadian P o r t s and Seaway D i r e c t o r y , 1965 (Gardenvale, Quebec; N a t i o n a l Business P u b l i c a t i o n s L t d . ) , pp. 229-300.  ro  o  \u000C21  the e l e v a t o r companies are r e l u c t a n t t o i n s t a l l more c a p a c i t y when u t i l i z a t i o n i s so s p o r a d i c .  I t should he r e a l i z e d however  t h a t g r a i n d r y i n g w i l l be a r e c u r r i n g problem as long as the d r y i n g c a p a c i t i e s are not i n c r e a s e d . From the i n f o r m a t i o n t h a t could be gathered f o r t h i s t h e s i s i t would appear t h a t g r a i n c l e a n i n g i s not a s e r i o u s problem and r a r e l y causes b o t t l e n e c k s .  Loading of g r a i n s h i p s  i s u s u a l l y an i n t e r m i t t e n t o p e r a t i o n , sometimes being done a t f u l l c a p a c i t y w h i l e a t other times s e v e r a l days may go by w i t h out any s h i p s being loaded.  This allows g r a i n t o b u i l d up i n  the storage b i n s i n the e l e v a t o r .  Then when a ship a r r i v e s t o  l o a d i t can be f i l l e d as r a p i d l y as p o s s i b l e without any h o l d up caused by c l e a n i n g o r boxcar unloading  capabilities.  It is  conceivable t h a t i n the event o f prolonged heavy shipments a problem would a r i s e because o f a l a c k of s u f f i c i e n t g r a i n i n the e l e v a t o r .  This becomes a p a r t i c u l a r concern when the  v a r i o u s grades of g r a i n are considered and w i l l be d e a l t w i t h more f u l l y i n a l a t e r  chapter.  A common question asked about B r i t i s h Columbia g r a i n e l e v a t o r f a c i l i t i e s concerns t h e i r true c a p a c i t y .  Table I I I  i n d i c a t e s t h a t over two m i l l i o n bushels of wheat could be loaded each day.  T h i s , however, i s only an estimate made up  of t o t a l r a t e d c a p a c i t i e s of machinery. impossible t o maintain.  Obviously t h i s i s  I f two m i l l i o n bushels could be loaded  each day B r i t i s h Columbia would be capable o f e x p o r t i n g f o r t y m i l l i o n bushels of g r a i n each month, assuming 2 0 working days  \u000C22 The r e c o r d to date i s about 30 m i l l i o n bushels,?  a month.  which i s c o n s i d e r a b l y more than the 21 m i l l i o n bushel c a p a c i t y estimated i n 1961.  The c o n d i t i o n s under which the v e r y h i g h  f i g u r e of 30 m i l l i o n bushels of exports f o r one month was a t t a i n e d c o u l d not be considered i d e a l .  F i r s t there was  constant queue of ships i n the harbour at Vancouver.  a  Secondly  a backlog of s h i p s had b u i l t up because of a l a c k of g r a i n i n the previous month.  Therefore the v e r y h i g h output f o r t h i s  month can be considered as e x t r a o r d i n a r y and u n l i k e l y to be maintained f o r an extended p e r i o d of time.  A  through-put  around the 20 m i l l i o n bushel l e v e l i s a t t a i n a b l e w i t h e x i s t i n g facilities.  I n the 1963-64- crop year the P a c i f i c Coast regu-  l a r l y handled c l o s e to or over 20 m i l l i o n bushels per month (Table I V ) ; having handled t h i s q u a n t i t y i n seven of twelve months.  A c o n c l u s i o n t h a t can be drawn from these f i g u r e s i s  t h a t the 21 m i l l i o n bushel estimate of c a p a c i t y i s probably a good one over the long run.  The present f a c i l i t i e s are cap-  able of much higher outputs f o r s h o r t p e r i o d s but these h i g h e r outputs are o f t e n at the expense of smooth low c o s t o p e r a t i o n because overtime i s r e q u i r e d i n the e l e v a t o r s and s h i p s may r e q u i r e d to w a i t f o r l o a d i n g .  be  N e i t h e r of these c o n d i t i o n s i s  t o l e r a b l e f o r extended p e r i o d s . Shipping F a c i l i t i e s Harbours and p o r t f a c i l i t i e s f o r ships are an important aspect to be considered i n an o v e r - a l l a n a l y s i s of g r a i n handling.  They are very much a p a r t of the t o t a l o p e r a t i o n of  '\"B.C. G r a i n Exports f o r the Month of March,\" Harbour and S h i p p i n g , XLIX ( A p r i l 1966), 270.  \u000CTABLE IV MONTHLY SHIPMENTS OE GRAIN BY OCEAN SHIPPING FROM BRITISH COLUMBIA SEMI-PUBLIC TERMINAL ELEVATORS FOR CROP YEARS 1963-64,AND 1964-65 (thousands of bushels) P r i n c e Rupert 1963-64 1964-65 August 786 September 4 93 October 7 0 2 November 1,206 December 1,576 January 504 February 889 March 1,306 April 1,058 May 901 June 1 , 0 55 July Total f o r year 1 0 , 4 7 5  Victoria 1963-64 1964-65 531 1,358  1,150 991  246 495 867 684 343 1,013 338 866 987 817 783 498  10,124  7,938  8,865  639 922 995  444  969 935  1,128 786 1,166  302  533 620 647 660 858 1,172 534 670 982  Vancouver &amp;. New Westminster 1963-64 1964-65 10,801 14,594 18,433 18,384 14,061 22,824 15,458 17,675 20,240 19,038  15,625  13,114 17,761 12,984  Total 1963-64 1964-65 11,047 15,875 19,793 19,770  19,229  17,238  15,173 10,920 7,159  15,610 25,413 15,846 19,430 22,533 20,913 20,913 18,791  207,974  176,206  226,386  16,751  13,947  16,476 17,787  18,511  16,793 15,393 19,058 13,961 18,339 14,594 18,071 19,773 20,469 16,872 12,740 9,132 195,195  Source: Dominion Bureau of S t a t i s t i c s , Grain Trade of Canada (Ottawa; Queen's P r i n t e r , 1963-64 and 1964-65 i s s u e s ) .  ro  VJ  \u000C24 t r a n s f e r r i n g g r a i n from land to ocean t r a n s p o r t a t i o n .  On the  B r i t i s h Columbia coast the four g r a i n h a n d l i n g p o r t s have f i n e deep water harbours.  Vancouver, f o r example, has o n l y one  l i m i t a t i o n to i t s e x c e l l e n t s h e l t e r e d h a r b o u r , t h a t being the 8  F i r s t Narrows entrance w i t h a minimum water depth of 40 f e e t at low t i d e .  However few of the l o a d i n g wharves have t h i s  water depth.  As Table I I I shows, most of the s h i p p i n g b e r t h s  have about 35 f e e t of water a t minimum low t i d e which c l e a r l y l i m i t s the harbour more than the F i r s t Narrows entrance. W i t h i n the harbour there i s adequate space f o r maneuvering v e s s e l s and water depths are no problem w i t h i n the main harbour area between the F i r s t and Second Narrows.  Unpredictable cur-  r e n t s are a problem around B a l l a n t y n e P i e r .  This i s caused by  a back eddy i n t o Coal Harbour and s h i p s have to use some care when moving about t h i s a r e a . ^  There i s a l s o some problem i n  b e r t h i n g ships a t the A l b e r t a Wheat P o o l , which, being c l o s e to the Second Narrows i s a f f e c t e d by the s w i f t t i d a l r u n through the narrows.  Beyond these minor l i m i t a t i o n s there are  no other major problems at the eleven g r a i n b e r t h s i n Vancouver. New Westminster i s probably the l e a s t d e s i r a b l e g r a i n p o r t on the B r i t i s h Columbia Coast.  F i r s t i t i s up the F r a s e r  R i v e r about 20 m i l e s from the Georgia S t r a i t . the  N a v i g a t i o n up  r i v e r r e q u i r e s a p i l o t and consequently an e x t r a charge to  the v e s s e l .  The second drawback of New Westminster i s t h a t  S e e the unpublished Masters Thesis ( U n i v e r s i t y of B r i t i s h Columbia, 1 9 5 2 ) by I . H. B. Cornwall, \"A Geographical Study of the P o r t of Vancouver i n R e l a t i o n to I t s C o a s t a l H i n t e r l a n d , \" p. 1 1 . 8  9  ^Cornwall, p. 14.  \u000C25  the channel i s only 30 f e e t at low water, thus r e s t r i c t i n g the p o r t t o handling the conventional f r e i g h t e r s s a i l i n g today. Because the e l e v a t o r i n New l a r g e r deep-draft Therefore  Westminster i s s m a l l , however, the  v e s s e l s w i l l not c a l l at the p o r t f o r g r a i n .  the channel i s adequate f o r present g r a i n f a c i l i t i e s .  V i c t o r i a has a very small harbour f o r ocean s h i p p i n g , w i t h j u s t two wharves, one f o r general cargo and another f o r grain loading.  The harbour i s an a r t i f i c i a l one, e n t i r e l y pro-  t e c t e d by a l a r g e breakwater which i s c o n s t r u c t e d to a c o n s i d e r able height to provide wind p r o t e c t i o n as w e l l as a wave p r o t e c tion.  One  ship can be berthed f o r l o a d i n g g r a i n a t one  time.  Water depth i s q u i t e good, v a r y i n g from 32 to 48 f e e t along the 800 f o o t g r a i n l o a d i n g p i e r .  There i s very l i t t l e room w i t h i n  the c o n f i n e s of the Ogden P o i n t breakwater to expand s h i p p i n g f a c i l i t i e s , e i t h e r f o r g r a i n or general  cargo.  P r i n c e Rupert has one of the f i n e s t harbours on the P a c i f i c Coast from the standpoint of water depth and s h e l t e r . There i s a l a r g e harbour area t h a t allows easy maneuvering. r e s t r i c t i o n s are p l a c e d on v e s s e l s due to water depths.  No  The  shallowest p a r t of the approach to the harbour i s 21 fathoms. The one l o a d i n g b e r t h at the Canadian Government E l e v a t o r  has  a minimum depth of 43 f e e t dropping o f f to 70 f e e t at the deepest p o i n t on the 1 , 0 1 3  foot p i e r .  Under these c o n d i t i o n s  P r i n c e Rupert i s capable of l o a d i n g any s i z e g r a i n v e s s e l t h a t i s now  i n use.  Rail Facilities Railway f a c i l i t i e s are another important p a r t of the g r a i n h a n d l i n g o p e r a t i o n through the p o r t s of B r i t i s h Columbia.  \u000CThe p o r t s r e c e i v e g r a i n from the i n t e r i o r of Canada on  three  r a i l w a y s : the Canadian P a c i f i c , the Canadian N a t i o n a l and P a c i f i c Great Eastern.  cars of the  Of the three the P a c i f i c Great Eastern  1964-65 t h i s r a i l r o a d d e l i v e r e d only 99,512 cars d e l i v e r e d to B r i t i s h Columbia  is insignificant.  213  the  P o r t s (Table V).  In  The other two r a i l w a y s d i v i d e the  traffic  almost e q u a l l y , w i t h the Canadian P a c i f i c Railway g e n e r a l l y d e l i v e r i n g a few more than the Canadian N a t i o n a l Railway.  1964-65  the Canadian P a c i f i c d e l i v e r e d  N a t i o n a l d e l i v e r e d 49%  of a l l c a r s .  51%  In  and the Canadian  I n the P o r t of Vancouver  the Canadian P a c i f i c Railway d e l i v e r s the most boxcars, rangi n g from  53%  to  64%  between  1959-60 and 1964-65.  Railway c a p a c i t y to d e l i v e r g r a i n has been s t u d i e d c l o s e l y by the Canadian N a t i o n a l Railway, Canadian P a c i f i c Railway, and Canadian Wheat Board i n the past few years because of recent l a r g e export orders. i s l i t t l e problem.  On the p r a i r i e s there  Large t r a c k mileage e x i s t s f o r p i c k i n g up  the g r a i n , although s c a r c i t y of boxcars o c c a s i o n a l l y a r i s e s . I n periods of heavy movement the wide d i s p e r s a l of g r a i n c a r s , across the p r a i r i e s can l e a d to i n e f f i c i e n c i e s because t u r n arounds cannot be a f f e c t e d as q u i c k l y as would be the case i f more c e n t r a l i z e d pickups were p o s s i b l e . mainline  The c a p a c i t i e s of  t r a c k have a l s o been taxed, although c a p a c i t i e s have  been expanded w i t h the use of c e n t r a l i z e d t r a f f i c c o n t r o l . This has helped speed up the g r e a t l y increased t r a f f i c i n t o B r i t i s h Columbia, not only of g r a i n , but of new i t i e s such as potash and  sulphur.  export commod-  \u000CTABLE V DISTRIBUTION OP BOXCARS TO BRITISH COLUMBIA PORTS 1959-60 AND 1964-65 T 0 t a1 Box .cars Vancouver - New Westminster % of % of % of B.C. B.C. B.C. C.P.R. , Total C.N.R. Total P . G. E \u2022 Total 1959- -60  19601961196219631964-  -61 -62 -63 -64 -65  42,386 48,014 51,822 43,966 59,346 50,930  59 54  52  49 51 51  23,234 32,586 40,375 39,376 47,012 58,096  32 37 40 44 40 38  173  241  215  217 245 213  T o t a l B r i t i s h - C o % of % of B.C. B.C. C.P.R. Total C.N.R. T o t a l P.G.E. 1959-60 42,386 29,603 59 40,880 1960-61 48,014 54 48,150 1961-62 51,822 52 49 43,966 45,168 1962-63 1963-64 59,346 56,768 51 48,369 1964-65 5 0 , 9 3 0 51 * Includes 2 C.P.R. cars. Source: Dominion Bureau of Queen's P r i n t e r ) , pp. 40-41.  41 46 48  173 241  49 49  245 213  51  215 217  '  \u2014  -  D e l i v er e d t o\u2022 Victoria P r i n c e Rupert % of % of B.C. B.C. C.N.R. Total C.N.S. T o t a l 1,914 3,753 3,076 3,432 4,237* 4,687  l u m b i a % of B.C. Total Total  3 4 3 4 4 5  72,162  100 100 100 100  99,512  5,521  5,586  % of B.C. Total  89,135 100,187 89,351  116,359  4,455 4,541 4,699 2,360  100  100  S t a t i s t i c s , Grain Trade of Canada 1964-65 (Ottawa;  6 5 5 3 5 6  \u000C28 S w i t c h i n g f a c i l i t i e s i n each p o r t are important smooth f l o w of g r a i n .  to the  I n Vancouver the waterfront e l e v a t o r s  r e c e i v e t h e i r g r a i n cars a f t e r they have been s o r t e d i n the r a i l w a y yards a t P o r t Coquitlam  (C.P.E.) and P o r t Mann (C.N.E.).  Both of these m a r s h a l l i n g yards are c u r r e n t l y being improved so they can handle more t r a f f i c .  I t i s the s i d i n g s a t the e l e v a -  t o r s t h a t tend t o be a problem.  There i s l i m i t e d trackage a t  many o f the e l e v a t o r s , p a r t i c u l a r l y on the south shore of Burrard I n l e t . sary.  This means t h a t frequent c a r s p o t t i n g i s neces-  I n one instance f o r example, f o u r separate c a r spots are  necessary each day to a l l o w the e l e v a t o r t o unload a t i t s economic c a p a c i t y . On the North Shore the new Saskatchewan Wheat P o o l e l e v a t o r along w i t h the Canadian N a t i o n a l Eailways* l a r g e 2 7 m i l l i o n d o l l a r improvement program should provide adequate s w i t c h i n g f a c i l i t i e s to t h i s  area.  1 1  I n P r i n c e Eupert there i s l i t t l e problem w i t h r a i l w a y trackage, s i n c e the e l e v a t o r i s immediately m a r s h a l l i n g yard of the C.N.E.  adjacent to the  S i m i l a r l y i n New Westminster no  great problem w i t h boxcar s p o t t i n g i s f e l t because the s i z e of the e l e v a t o r does not demand heavy movement.  V i c t o r i a cannot  be considered i d e a l as f a r as r a i l f a c i l i t i e s are concerned because every boxcar unloaded on Vancouver I s l a n d has to be D . Yates, \"Grain and the P o r t of Vancouver,\" Symposium on the P o r t of Vancouver Proceedings, ed. Robert W. C o l l i e r (U.B.C., 1966), p. 9 0 . 10  \" ^ I n f o r m a t i o n i n a l e t t e r to the author from Mr. E. P h i l l i p s , Besearch D i r e c t o r of the Saskatchewan Wheat P o o l , June, 1966.  \u000C29 ferried  across by barge.  Ibis  because i t  involves  and s l o w e r  turnaround f o r  on t h e  a slow and c o s t l y  e x t r a s h u n t i n g and s w i t c h i n g ,  process  barge  b o x c a r s t h a n when t h e y a r e  hauling  unloaded  mainland. The b r i e f  not  is  attempt  to set  the r a i l w a y s volume of  some f i g u r e  can d e l i v e r .  other  traffic  spotting cars at number o f  d e s c r i p t i o n of r a i l of  capacity  does  o n how much  t h e y have t o h a u l .  grain  The c a p a c i t y  depend t o  h a v e t o be s p o t t e d a t  some e x t e n t  for  on t h e  other railway  o r t h e amount o f  s h u n t i n g and s o r t i n g  It  d u r i n g 1963-64 the r a i l w a y s  i s known t h a t  above  T h i s would v a r y depending on t h e  any s i d i n g w i l l  cars that  facilities  necessary  i n the  sidings yards.  d e l i v e r e d up t o 5 0 0  12 b o x c a r s p e r day t o Vancouver capacity for  the  alone.  e l e v a t o r s because w i t h o u t  i n g c a p a c i t y i n Vancouver i s  would appear t h e n ,  serve present but  future  expansions  eastern elevator turnovers  of  Columbia the  Operations  in British likely  overtime. to  Columbia  require  - B.C.  and E a s t e r n  operations by comparing the  similar  Canada  relative In  total  24.9  rated storage capacity  turnover  'Yates,  or  are adequate  c a p a c i t y i n t h e w e s t and e a s t .  the h i g h e s t  unload-  c o m p a r i s o n c a n be made b e t w e e n w e s t e r n and  bushels turned over 9.14 times is  the  maximum  capacity.  Comparative E l e v a t o r A useful  overtime  that railway f a c i l i t i e s  expansions i n e l e v a t o r s w i l l rail  close to  double s h i f t i n g  grain handling f a c i l i t i e s  of  is  4 0 0 c a r s p e r d a y . . To u n l o a d  a n o t h e r 100 c a r s p e r day r e q u i r e s It  This  op.  i n the  p.  88.  British million  1963-64 crop year.  i n the 1960-61 to  cit.,  of  yearly  1964-65 p e r i o d .  This In  \u000C30  the  individual ports  Rupert and  V i c t o r i a the t u r n o v e r  pectively.  9.28,  7.70,  and  I n 1963-64 the Lakehead e l e v a t o r s  over c a p a c i t y 4 . 2 3 5.86,  was  8.16  Table VI shows t h i s u t i l i z a t i o n f a c t o r f o r  past f i v e years.  was  of Vancouver-New Westminster, F r i n c e  times w h i l e the  eastern  The  (Table  the  turned  elevators  b o t h of which are much lower t h a n western  elevator turnover  turnover terminal  VII).  performance of the w e s t e r n e l e v a t o r s i s even more  s i g n i f i c a n t when the  operations  of west and  e a s t are  compared.  Lakehead e l e v a t o r s are p r i m a r i l y used f o r c l e a n i n g and  grading  g r a i n and  f o r w a r d i n g to e a s t e r n  t i c use.  Table V I I I shows the d i s p o s i t i o n of g r a i n from  e l e v a t o r s f o r export or domes-  Lakehead f o r 1964-65 which can be year.  98.3%  of wheat and  79-4%  considered  a  but  of o t h e r  i n t o t a l eastern  Lakehead shipments.  Another 4%  smaller  elevators  d e s t i n a t i o n o f 89%  i s forwarded to U n i t e d  e l e v a t o r s or Canadian m i l l s or m a l t s t e r s . shipments are t r a n s f e r r e d to o t h e r  the  Somewhat  g r a i n s are forwarded to e a s t e r n e l e v a t o r s are the  the  representative  of o a t s forwarded f r o m  Lakehead i s t r a n s f e r r e d to e a s t e r n e l e v a t o r s . proportions  res-  Thus 93%  elevators.  The  of  States  of Lakehead great  sig-  n i f i c a n c e of t h i s f a c t i s t h a t v i r t u a l l y a l l of these shipments are made i n b u l k l o a d i n g l a k e v e s s e l s . therefore, i s r e l a t i v e l y c l e a n i n g and the e a s t e r n  grading,  and  simple,  The  Lakehead  c o n s i s t i n g of dumping b o x c a r s ,  l o a d i n g one  type o f v e s s e l .  e l e v a t o r s have a simple o p e r a t i o n .  s i s t s of u n l o a d i n g  operation,  Similarly  T h e i r job  the l a k e v e s s e l s , e l e v a t i n g the g r a i n  l o a d i n g deep sea v e s s e l s .  No  c l e a n i n g or g r a d i n g  conand  i s involved.  \u000CTABLE VI TURNOVERS OF TERMINAL ELEVATOR CAPACITY IN BRITISH COLUMBIA 1960-61 TO 1964-65 (thousands of bushels) Total Capacity* Vancouver New Westminster Victoria P r i n c e Rupert All British Columbia  1960-61 Shipments** Turnover  22,557  152,210  1,040  7,092  6.75 6.82  1,250  9,889  7.91  24,847  169,191  6.81  1963 -64 Shipments Turnover Vancouver - New Westminster Victoria P r i n c e Rupert A l l B r i t i s h Columbia  209,423 8,006 10,206 227,635  1961-62 Shipments Turnover  157,131  5,042 10,268  7-72 4.85 8.21  189,549  7-63  167,716  W,239  6,276  6.97 6.03  4,309  3.45 6.75  1964 -65 Shipments Turnover  9.28  177,106  7.70  8,995 10,173 196,274  8.16 9.16  1962-63 shipments Turnover  7.85 8.65 8.14 7.90  *Same f o r each year. **Includes r a i l shipments which are i n s i g n i f i c a n t . Sources: Dominion Bureau of S t a t i s t i c s , Grain Trade of Canada 1964-65 (Ottawa; Queen's P r i n t e r ) , various i s s u e s .  \u000CTABLE 711 TURNOVERS OF EASTERN AND LAKEHEAD TERMINAL ELE7ATOR CAPACITY 1960-61 TO 1964-65 (thousands of \"bushels) 1 9 6 0 - 6 1 Capacity Shipments Turnover Lakehead Fort William P o r t Arthur 93,152 Eastern Elevators 110,435 Lakehead + E a s t e r n E l e v a t o r Shipments minus Lakehead Shipments to Eastern Elevators  320,433 444,255*  3.44 4.02  1 9 6 1 - 6 2 Capacity Shipments Turnover 97,582 110,955  251,753 441,580  1 9 6 2 - 6 3 1 9 6 3 - 6 4 ShipTurnShipCapacity ments over Capacity ments Lakehead Fort William P o r t Arthur 101,741 Eastern Elevators 108,575 Lakehead + E a s t e r n E l e v a t o r Shipments minus Lakehead Shipments to E a s t e r n E l e v a t o r s 210,316  2 9 0 , 1 0 7 2.85  Turnover  2.57 3-98  1 9 6 4 - 6 5 Ship- Turn Capacity ments over  449,916 700,815  4.23  441,713 4 . 0 7  106,421 119,585  5-86  106,421 120,335  480,290 2.28  226,006  740,548  3.28  226,756  385,658 3-62 515,286 4.28  *Includes United States g r a i n handled i n Canadian e l e v a t o r s . Source: Dominion Bureau of S t a t i s t i c s , Grain Trade of Canada, 1964-65 (Ottawa; Queen's P r i n t e r ) .  \u000CTABLE V I I I DISTRIBUTION OF PRIMARY SHIPMENTS OF CANADIAN GRAIN FROM THE SEMI-PUBLIC AND PRIVATE TERMINAL ELEVATORS, FORT WILLIAM - PORT ARTHUR, CROP YEAR 1964-65 (thousands of bushels) Wheat Transfers: By v e s s e l t o : Eastern Elevators United S t a t e s p o i n t s By r a i l t o : Eastern E l e v a t o r s Domestic Shipments By v e s s e l t o : Canadian p o i n t s - eastern d i v i s i o n ( m i l l s &amp; maltsters) By r a i l t o : Canadian p o i n t s - eastern d i v i s i o n United S t a t e s p o i n t s M i l l e d &amp; processed l o c a l l y Exported overseas Totals  273,197  -  24  209  %  Oats  %  Barley  %  Rye  %  Flaxseed  98.3 34,680 79.4 26,653 55-5 1,393 29.3 5,598 277 .6 7,161 14.9 2,433 51.1 -  .1  84  .2  4  60  .1 4,409  181  % 57.0  1.8  9.2  241 .1 777 1.8 102 .2 33 -7 150 .3 46 .1 3 39 -1. 4,656 9-7 2 4,108 1.5 7,655 17.-5 4,968 10.4 898 18.9 4,049 41.2 277,782 100.0 45,699100.0 47,999 100.0 4,758 100.0 9,828 100.0  Source: Dominion Bureau of S t a t i s t i c s , Grain Trade of Canada, 1964-65 (Ottawa; Queen's P r i n t e r ) , p. 2 4 .  \u000C34I n B r i t i s h Columbia, on the other hand, a l l of the operations c a r r i e d out i n the Lakehead and eastern e l e v a t o r s are combined a t one p o i n t .  I n other words, boxcars are un-  loaded, g r a i n i s cleaned, d r i e d and graded, s t o r e d f o r a time and f i n a l l y  loaded to the great v a r i e t y of ocean s h i p p i n g t h a t  arrives to load grain.  A l l of t h i s i s c a r r i e d on i n a much  s m a l l e r e l e v a t o r p l a n t , as has a l r e a d y been p o i n t e d out.  The  v a r y i n g c a p a c i t i e s t o handle g r a i n a t the v a r i o u s phases of the e l e v a t o r o p e r a t i o n c l e a r l y r a i s e s the p o s s i b i l i t y of bottlenecks.  This p o s s i b i l i t y only i n c r e a s e s i f there are not  i n t e r v e n i n g cushions  of storage to a l l e v i a t e temporary problems  i n one or more o p e r a t i o n s .  I n t h e east these  insurances  a g a i n s t breakdown are v e r y much g r e a t e r than they are i n B r i t i s h Columbia.  For example between c l e a n i n g , d r y i n g and grading a t  the Lakehead e l e v a t o r s , there are 106 m i l l i o n bushels of Lakehead storage p l u s the 122 m i l l i o n bushels of eastern e l e v a t o r storage p l u s t h a t loaded i n lake v e s s e l s on the way to e a s t e r n elevators.  Therefore  i f boxcars are h e l d up f o r a p e r i o d ,  l o a d i n g of g r a i n ships w i l l not be t i e d up f o r l a c k of g r a i n . Conversely,  i f a temporary shortage of ships occurs i n  Montreal, unloading  and c l e a n i n g w i l l l i k e l y c a r r y on a t the  Lakehead because lake v e s s e l s w i l l continue to l o a d .  The  east, t h e r e f o r e , w i t h i t s huge i n s t a l l a t i o n s of e l e v a t o r capa c i t y , can have breakdowns i n p a r t of the o p e r a t i o n , s e r i o u s consequence.  Such cushions  B r i t i s h Columbia t e r m i n a l s .  without  are not a v a i l a b l e a t  Even a short delay i n boxcar  d e l i v e r i e s due to s l i d e s or d e r a i l m e n t s , w i l l r e s u l t i n t i e u p s of s h i p p i n g because g r a i n s u p p l i e s are r a p i d l y depleted.  \u000CA f a i r c o n c l u s i o n to make here i s t h a t the B r i t i s h Columbia t e r m i n a l e l e v a t o r o p e r a t i o n r e q u i r e s very c a r e f u l and scheduling.  tight  There i s l i t t l e room f o r breakdowns at any phase  without the whole g r a i n handling o p e r a t i o n being slowed, i f not stopped.  \u000C36  CHAPTER I I I TRENDS IN GRAIN EXPORTS THROUGH BRITISH COLUMBIA PORTS A thorough a n a l y s i s of a l l aspects of the volume of g r a i n shipments i n B r i t i s h Columbia i s necessary i n order to provide a b a s i s f o r p r o j e c t i n g f u t u r e g r a i n handling  needs.  Such an examination i n c l u d e s trends i n t o t a l volumes, i n o r i g i n and d e s t i n a t i o n of g r a i n , i n s e a s o n a b i l i t y and  in  volumes loaded to each v e s s e l . Volume of  Grain  The most s t r i k i n g aspect of B r i t i s h Columbia g r a i n shipments i s the upward t r e n d i n t o t a l volume.  Table IX shows  t h i s trend quite c l e a r l y over the post-war p e r i o d .  The  fig-  ures i n Table IX are f o r wheat o n l y , but because wheat makes up 9 0 % or more of Canada's g r a i n exports and 8 0 % or more of B r i t i s h Columbia g r a i n exports the f i g u r e s would change l i t t l e f o r t o t a l g r a i n exports from a l l p o r t s .  The  f i g u r e s are  not  r e p r e s e n t a t i v e f o r each i n d i v i d u a l p o r t , however. Appendices I , I I and I I I show exports of g r a i n from i n d i v i d u a l p o r t s f o r the p a s t ten years. can be seen.  From these t a b l e s the trends i n other g r a i n  Of g r e a t e s t importance i n the trends i s the f a c t  that both P r i n c e Rupert and V i c t o r i a are now wheat shipments, whereas only a few years ago i n other g r a i n s .  specializing i n they s p e c i a l i z e d  V i c t o r i a formerly shipped o i l seeds as w e l l  as wheat, and P r i n c e Rupert formerly handled only b a r l e y . Apparently most of t h i s t r a f f i c has now been switched to  \u000CTABLE IX HISTORICAL REVIEW OF CANADIAN WHEAT EXPORTS 1944-45 TO 1964-65 (thousands of bushels) 1944-45 VancouverNew Westminster 7 , 2 3 9 %* 3.0 Victoria 288 .1 % 224 P r i n c e Rupert .1 % Total B.C. 7,750 % 3.2 T o t a l Canada 238,427 % 100.0  1949-50 61,339 37.0 \u2014  \u2014  61,339 37.0 165,969 100.0  1954-55 1959-60  1960-61  1961-62  1962-63 1963-64 1964-65  78,176 92,246 118,720 37.8 39.7 38.5 1,410 2,822 5,467 1.8 \u20227 1.? \u2014 315 .1 7 9 , 9 0 1 95,068 124,187 38.6 40.0 40.3 206,829 232,629 308,433 100.0 100.0 100.0  145,520 45.3 4,427 1.4  129,748 153,439 136,269 43.4 28.6 37.2 6,222 7,937 8,705 2.1 2.4 1.5 3,533 10,475 10,124 1.2 1.9 2.8 139,503 171,851 155,098 32.0 46.7 42.4 298,925 535,700 366,740 100.0 100.0 100.0  \u2014  149,947 46.7 321,264 100.0  *Per cent of t o t a l Canadian wheat exports. Source: Board of Grain Commissioners, Canadian G r a i n Exports f o r the Crop Years 1963-64 and 1964-65 (Ottawa; Queen's P r i n t e r ) , pp. 33-35 and 17.  \u000C38 Vancouver, which w i l l e x p l a i n the lower p r o p o r t i o n of wheat shipments from t h a t p o r t i n recent years. World War very l i t t l e g r a i n was  During the Second  exported from B r i t i s h Columbia  because of d i f f i c u l t i e s encountered w i t h s h i p p i n g during p e r i o d of war.  the  Since t h a t time however there has been a con-  t i n u i n g and vigourous growth i n the B r i t i s h Columbia g r a i n trade.  I n f a c t p r i o r to 1963-64- B r i t i s h Columbia p o r t s were  e x p o r t i n g 40% to 50%  of Canada's t o t a l  exports.  There are two s i g n i f i c a n t f e a t u r e s of Table IX t h a t should be noted.  The f i r s t i s t h a t i n the 1963-64 crop year  the B r i t i s h Columbia share of Canadian exports of wheat dropped s h a r p l y from 47% i n the previous year to 32%  i n 1963-64.  occurred i n a r e c o r d year f o r g r a i n exports f o r Canada. what was  This Noting  s a i d i n Chapter I I about handling c a p a b i l i t i e s i n  B r i t i s h Columbia, the c o n c l u s i o n can be reached t h a t the P a c i f i c p o r t s are not equipped to handle an i n c r e a s e d share of Canada's expanding g r a i n s a l e s .  I n other words, although  British  Columbia, along w i t h the r e s t of Canada, d i d a r e c o r d g r a i n export business i n 1963-64, P a c i f i c coast f a c i l i t i e s were not adequate to share p r o p o r t i o n a l l y i n shipping the heavy volumes of t h a t year.  The second f e a t u r e to note from Table IX i s the  recent growing s i g n i f i c a n c e of the small p o r t s of V i c t o r i a P r i n c e Eupert.  and  I n d i c a t i o n s are t h a t a f t e r years of r e l a t i v e  i d l e n e s s these f a c i l i t i e s are now being u t i l i z e d at c l o s e to f u l l capacity.  The f a c t t h a t these two small e l e v a t o r s  shipped  5% of Canada's wheat exports and turned over c a p a c i t y between e i g h t and nine times i n 1964-65 i n d i c a t e s t h i s q u i t e c l e a r l y .  \u000C39 Seasonability A. f e a t u r e of g r a i n handling t h a t a f f e c t s the t o t a l s i z e of the g r a i n handling i n s t a l l a t i o n i n Canada i s seasonability.  I n eastern Canada the handling c a p a c i t y on the Great  Lakes and E a s t e r n P o r t s i s l i m i t e d by the l e n g t h of the n a v i g a t i o n season on the S t . Lawrence R i v e r .  Each year g r a i n ex-  p o r t s are h a l t e d from t h i s r e g i o n f o r three or four months. On the P a c i f i c Coast t h i s does not occur because each p o r t an open s h i p p i n g season f o r the e n t i r e year (Table X ) .  has  I t might  be expected t h a t w i t h the St. Lawrence p o r t s c l o s e d three months of the year the P a c i f i c p o r t s would experience export r a t e i n the w i n t e r months and a n o t i c e a b l e during the summer months. Table X r e v e a l s .  a heavier  slackening  This i s not the case as a study of  There i s not a d e f i n i t e r e g u l a r  p a t t e r n i n B r i t i s h Columbia wheat exports.  seasonal  J u l y and August  tend to be the slowest months but the p a t t e r n i s not c l e a r because other s l a c k months appear i n w i n t e r when the S t . Lawrence Seaway i s c l o s e d .  On the other hand busy months  occur when the Seaway i s a l s o very busy.  For example i n the  1954-65 crop year the two slowest months were January and J u l y and the two b u s i e s t were October and A p r i l .  B r i t i s h Columbia,  t h e r e f o r e , has a non-seasonal p a t t e r n of g r a i n exports.  Fur-  thermore, B r i t i s h Columbia p o r t s have a more constant flow of exports than the p o r t s on the St. Lawrence.  Even during the  s h i p p i n g season, f l u c t u a t i o n s at the S t . Laurence p o r t s are greater. The s i t u a t i o n d e s c r i b e d above makes B r i t i s h Columbia an i d e a l l o c a t i o n f o r g r a i n e l e v a t o r s from an o p e r a t i o n a l  \u000CTABLE X CANADIAN WHEAT EXPORTS BY MONTHS AT PACIFIC AND ST. LAWRENCE PORTS, (thousands of bushels)  August September October November December January February March April May June July  1960-61 7,754 8,459 7,615 4,938 10,432 9,410 11,085 11,136 12,684 14,203 15,798 10,675  P a c i f i c Ports  1961-62 1962-63 1963-64 1964-65 14,062 14,623 9 , 2 2 7 9,864 14,380 14,005 6,384 11,527 16,532  17,237  13,014 18,271 16,572 13,884 11,612 15,156 1 3 , 9 3 2 14,651 13,013 16,373 16,921 14,837 1 5 , 8 5 9 13,529 8,876 12,043 12,612  14,111  9,903  9,172  10,668 13,748  11,852  10,758 6,798 13,169 15,921  5,174  15,001  15,839  11,246 9,740  10,957 13,678  18,156 14,117 10,092 7,322  1960-61  TO  1964-65  St.Lawrence R i v e r P o r t s  1960-61* 1961-62 5,280 12,820 7,123 8,855 17,758 9,081 3 0 , 7 0 2 17,227 9,634 7,181 149 6,872 149 9,425 93 12,235 8,762 18,227 17,010 24,105 18,428 12,599 6,130 13,770  1962-63 5,465 8,343 14,296  1963-64 1964-65 10,445 1 9 , 1 7 2 16,894 18,341 33,428 18,799 43,139 1 9 , 6 5 3 25,079 9,513 5,238 2 2 , 1 9 0 231 1,808  11,939  16,853 11,653 12,199  20,111  40,255 49,915 42,505  107 10,792 19,035 19,585  16,301  \u2022Includes A t l a n t i c Seaboard P o r t s . Source: p i n i o n Bureau o f S t a t i s t i c s , Issues (Ottawa; Queen's P r i n t e r ) .  r.  rai  \u201E Trade of Canada,  1960-61  to  1960-64  o  \u000Cstandpoint.  I t means t h a t w i t h a year-round s h i p p i n g season  an e l e v a t o r can be one-quarter to o n e - t h i r d s m a l l e r on the P a c i f i c Coast than an e l e v a t o r on the S t . Lawrence but t u r n over the same amount of g r a i n annually.  still  I n a d d i t i o n the  greater r e g u l a r i t y of shipping on the P a c i f i c f u r t h e r reduces the s i z e of i n s t a l l a t i o n needed.  Going back to Tables VI  and  V I I i n Chapter I I , the data on the turnovers of e l e v a t o r capa c i t y support t h i s c o n c l u s i o n .  I t i s an important f a c t to  keep i n mind when f u t u r e expansions are  considered.  D e s t i n a t i o n s of G r a i n Exports T o t a l export f i g u r e s have i n d i c a t e d t h a t shipments are i n c r e a s i n g from B r i t i s h Columbia p o r t s , but they give no c a t i o n of why  they are i n c r e a s i n g .  To get behind the  indi-  trends  i t i s necessary to analyze the i n d i v i d u a l d e s t i n a t i o n s of g r a i n exports.  Probably the most s t r i k i n g t r e n d i n g r a i n ex-  p o r t s from B r i t i s h Columbia i s the d e c l i n e i n the importance of the European market.  Wheat exports from B r i t i s h Columbia  p o r t s to Western Europe have d e c l i n e d 50% from 1955 (Appendix I V ) .  1964  to  This has been o f f s e t to some extent by growth  of the Eastern European market ( e x c l u d i n g Russia) but  not  enough to prevent an o v e r - a l l d e c l i n e of European exports of 34%.  W i t h i n the European market B r i t a i n remains the major  country of d e s t i n a t i o n f o r B r i t i s h Columbia wheat exports although the d e c l i n e to t h a t country has been j u s t as r a p i d as to other European c o u n t r i e s .  Other major European importers  are showing d e c l i n i n g imports from B r i t i s h Columbia are Belgium, Luxembourg, Germany, Scandinavia  and  Italy.  that  \u000C42 I n the Far E a s t e r n market trends f o r B r i t i s h Columbia and Canada are showing extremely r a p i d growth, having quadr u p l e d i n the p a s t decade to become the major d e s t i n a t i o n of B r i t i s h Columbia wheat.  China i s Canada's newest customer i n  the Far East and i s now the l a r g e s t i n t h i s area.  Japan, long  a r e g u l a r purchaser of Canadian wheat, has i n c r e a s e d i t s imp o r t s 66% over 1955 \"but s i n c e I960 has been a s t a b l e market of around 50 m i l l i o n bushels per year.  Another r e g u l a r customer  f o r Canadian wheat, i s the P h i l l i p i n e s .  Growth of t h i s market  has been r a p i d s i n c e 1958 and i n 1964 t o t a l e d about 8 m i l l i o n bushels.  These three markets t o g e t h e r , accounted f o r 98% of  B r i t i s h Columbia's wheat trade w i t h the O r i e n t . The trends i n other g r a i n s show a mixed p a t t e r n . B a r l e y , f o r example (Appendix V ) , i s d e c l i n i n g to European destinations.  B r i t a i n , the l a r g e s t customer, took 53% l e s s i n  1964 than i n 1955*  As w i t h wheat the major change i n d e s t i n -  a t i o n has been from Europe to A s i a .  I n 1964 Japan and China  accounted f o r 68% of exports from B r i t i s h Columbia whereas i n 1955 Japan took a l l the b a r l e y f o r the Far East or 34% of exports through B r i t i s h Columbia.  I n t h a t year the U n i t e d K i n g -  dom accounted f o r the other 66%. Oats imports from B r i t i s h Columbia i n t o Europe show no clear trend.  This country\" seems to do a sporadic trade w i t h  a l l c o u n t r i e s (Appendix V I ) , except f o r the small amounts to South America.  The Netherlands, f o r example, imported no oats  i n 1961 but took 65% of exports from B r i t i s h Columbia i n 1964. Other European c o u n t r i e s show s i m i l a r v i o l e n t f l u c t u a t i o n s . Since oats are used p r i m a r i l y f o r feeding l i v e s t o c k there i s  \u000C43 l i t t l e or no demand as yet i n the Far East because of the low standard of l i v i n g . Now  i t i s necessary to analyze Canadian g r a i n trade  s t a t i s t i c s to see i f B r i t i s h Columbia's share of exports i n the v a r i o u s markets i s changing. ket,  F i r s t , i n the European mar-  B r i t i s h Columbia has l o s t some of i t s share.  Canadian exports to Europe has only been 20%  The drop i n  (Appendix  VII)  compared to B r i t i s h Columbia's drop of 50% between 1954 1965.  and  I t can be concluded from these two f i g u r e s t h a t a g r e a t e r  percentage Canada.  of European exports are now moving through E a s t e r n  U n f o r t u n a t e l y the f i g u r e s i n Appendix I I I and VII are  compiled on a calendar year and crop year b a s i s r e s p e c t i v e l y , so the c o n c l u s i o n s t h a t can be drawn from the d i f f e r e n c e i n the two percentages  are l i m i t e d to the very general one made here.  I n the Far E a s t e r n market there i s no q u e s t i o n of B r i t i s h Columbia's sharing w i t h other Canadian p o r t s .  Thus any trends  i n g r a i n exports to t h i s area w i l l a f f e c t only the p o r t s of B r i t i s h Columbia. One f i n a l t r e n d i n exports from B r i t i s h Columbia i s the i n c r e a s i n g volume of wheat d e s t i n e d f o r the South American c o u n t r i e s of Venezuela, Ecuador and Peru.  While the volumes  are not n e a r l y as great as the Far E a s t e r n market, i t c o u l d soon surpass Europe as a d e s t i n a t i o n f o r wheat i f present trends continue.  This market has grown p r o p o r t i o n a l l y w i t h the Far  E a s t e r n market from 2.6  m i l l i o n bushels i n 1955  bushels i n 1964 or more than four f o l d .  to 11.8  million  Venezuela i s the c h i e f  r e c i p i e n t of these exports and i s the f a s t e s t growing American market f o r exports from B r i t i s h Columbia.  South  South  \u000CAmerican c o u n t r i e s r e c e i v e mainly wheat, and s m a l l amounts of oats. R u s s i a i s the only other major r e c i p i e n t of wheat from Canada.  However exports from the P a c i f i c Coast f o r t h i s mar-  k e t have been l i m i t e d , amounting to only 9.5 m i l l i o n and 15.9 m i l l i o n bushels i n 1963 and 1964- r e s p e c t i v e l y .  This i s only  about 16% of t o t a l volume shipped to R u s s i a i n the 1963-64crop y e a r .  1  J u s t how much of the new three-year c o n t r a c t w i t h  Russia w i l l be shipped by P a c i f i c coast p o r t s i s unknown but i t has been s a i d t h a t some of i t d e f i n i t e l y w i l l be shipped p  v i a B r i t i s h Columbia. O r i g i n of G r a i n  Exports  Traditionally  the o r i g i n s of g r a i n shipped  from  B r i t i s h Columbia are supposed to be west of the r a t e break or r a t e e q u a l i z a t i o n p o i n t w i t h the Lakehead.  Some of these  p o i n t s are B a t t l e f o r d , K i n d e r s l e y , Kerrobert and Maple Creek, a l l i n western Saskatchewan (Table X I ) .  I t should be noted  t h a t a l l the r a t e s quoted f o r Vancouver are i d e n t i c a l to V i c t o r i a and P r i n c e Rupert even though V i c t o r i a has an e x t r a f e r r y haul and P r i n c e Rupert i s about 200 m i l e s f u r t h e r from the p o i n t s l i s t e d i n Table X I .  A l l o r i g i n p o i n t s are between  4-0 and 100 m i l e s from the A l b e r t a border.  This only leaves a  small p a r t of Saskatchewan as the economic g r a i n h i n t e r l a n d of B r i t i s h Columbia.  There are signs t h a t perhaps t h i s  \"''Dominion Bureau of S t a t i s t i c s , Grain Trade of Canada 1964-65 (Ottawa; Queen's P r i n t e r , 1966;, p. 94-. J o h n Best, \"Canada S e l l s $800 M i l l i o n M e a t , F l o u r to Russians,\" Vancouver Sun, June 20, 1966, p. 1. 2  \u000C45  TABLE XI RAIL FREIGHT RATES ON GRAIN FOR EXPORT FROM SELECTED POINTS IN ALBERTA AND SASKATCHEWAN AS AT JULY 31, 1965 Distance t o Port Arthur  Distance to Vancouver  Origin Battleford,  Sask.  Biggar, Sask.  1,018 964  E l r o s e , Sask.  1,031  K e r r o b e r t , Sask.  1,044  K i n d e r s l e y , Sask.  1,032  Maple Creek, Sask.  1,017  Grain rate i n 0 per 100 l b s . t o Port Arthur Vancouver  1,018  24  24  1,029  23  24  1,153  24  25  24  24  24  24  23  23  979 1,079  881  Moose Jaw, Sask.  822  1,067  20  25  Outlook, Sask.  941  1,081  23  26  Brooks, A l t a .  1,147  751  25  22  Calgary, A l t a .  1,247  :642  26  20  Empress, A l t a .  1,050 .  839  24  23  Hanna, A l t a .  1,168  942  26  23  Source: Dominion Bureau of S t a t i s t i c s , G r a i n Trade of Canada, 1964-65 (Ottawa; Queen's P r i n t e r ) , p. 111.  \u000C4-6 h i n t e r l a n d i s becoming l a r g e r . the Saskatchewan Wheat P o o l .  The main i n d i c a t i o n comes from  By b u i l d i n g a f i v e m i l l i o n bushel  e l e v a t o r i n Vancouver, they are i m p l y i n g t h a t c o n s i d e r a b l y more than a s m a l l p a r t o f western Saskatchewan w i l l be r e l i e d on t o keep t h i s f a c i l i t y  operating.  The f a c t t h a t the Saskatchewan Wheat P o o l w i l l be drawing  g r a i n from a higher f r e i g h t r a t e zone does not mean t h a t  they w i l l i n c u r the cost of higher f r e i g h t .  I f the g r a i n i s  r e q u i r e d t o serve markets s e r v i c e d by the B r i t i s h Columbia p o r t s the Canadian Wheat Board pays the r a t e d i f f e r e n t i a l . doing t h i s the lowest t o t a l s h i p p i n g cost can be  maintained,  although c o s t s of r a i l haulage may be s l i g h t l y h i g h e r . s e r v i c e t o customers i s more important  than s t r i c t  By  Thus  adherence  to f r e i g h t r a t e d i f f e r e n t i a l s and d i v i s i o n a l p o i n t s .  I t i s not  unreasonable to conclude from t h i s t h a t knowledge of the h i n t e r l a n d i s not c r u c i a l to d e c i s i o n s on s h i p p i n g g r a i n through P a c i f i c ports.  Therefore  from the standpoint o f f u t u r e p l a n n i n g ,  the h i n t e r l a n d or o r i g i n of g r a i n i s not of great importance. Vessel Loadings The f i n a l  trend i n g r a i n s h i p p i n g through B r i t i s h  Columbia p o r t s i s the volume loaded per v e s s e l .  Information  i n t h i s area w i l l serve t o i n d i c a t e the type of cargo being loaded and the demands i n d i v i d u a l ships are making on p o r t facilities.  Table X shows t h a t March i s c o n s i s t e n t l y a r e l -  a t i v e l y heavy wheat s h i p p i n g month.  Therefore March can be  considered a r e p r e s e n t a t i v e month f o r g r a i n l o a d i n g i n B r i t i s h Columbia p o r t s and i s used i n t h i s chapter t o i l l u s t r a t e  \u000Cshipping trends. XIII.  Two t h i n g s are obvious from Tables X I I and  F i r s t , s h i p s are l o a d i n g more g r a i n per v e s s e l today  than they d i d t e n years ago. 247,000 bushels i n 1955  The average l o a d has r i s e n from  \"to 540,000 bushels i n 1966.  two reasons behind t h i s r a p i d i n c r e a s e .  There are  F i r s t , vessels using  the p o r t are o b v i o u s l y l a r g e r than they were t e n years ago. This i s c l e a r l y shown i n Table X I I by the f i g u r e s on the l a r g e s t cargoes loaded i n the v a r i o u s y e a r s . unmistakably upward.  The t r e n d i s  Indeed, i n March of 1966 f i v e v e s s e l s  loaded over one m i l l i o n b u s h e l s , three more between 800,000 and 1,000,000 bushels and a l t o g e t h e r eighteen v e s s e l s loaded more than 600,000 b u s h e l s .  5  (Table X I I I )  I n 1955  no s h i p  loaded over 500,000 bushels. The second reason f o r h e a v i e r l o a d i n g s per v e s s e l probably l i e s i n the changing markets being served.  I t has  a l r e a d y been noted t h a t exports to the Far East are r a p i d l y expanding w h i l e those to Europe are tending to d e c l i n e .  The  g r e a t e r g r a i n trade w i t h the Far E a s t , p a r t i c u l a r l y w i t h China, i s c a r r i e d almost e x c l u s i v e l y as f u l l cargoes i n v e s s e l s chart e r e d by the Chinese, whereas the European t r a f f i c has been c a r r i e d as both f u l l cargo and t o p - o f f cargo.  Hence average  h.  l o a d to Europe xvould be l e s s than to China. t h i s change.  Table X I I I shows  Only 9 of 64 s h i p s or 14% loaded l e s s than  B. C. G r a i n Exports f o r the Month of March,\" Harbour and S h i p p i n g , XLIX ( A p r i l 1966), 270. 5,,  ^See the unpublished Graduating Essay ( F a c u l t y of Commerce, U.B.C., 1962) by G. R. Wheatley, \"Grain Handling Through the P o r t of Vancouver,\" p. 31.  \u000CTABLE X I I GRAIN CARGOES LOADED PER VESSEL IN MARCH 1 9 5 5 - 1 9 6 6 AT BRITISH COLUMBIA PORTS (thousands of bushels) 1955  1 9 5 6 1957 1958 1959 I960  1961  1962 1 9 6 3 1964- 1 9 6 5 1 9 6 6  per v e s s e l  24-7  233  289  256  286  315  280  331  378  Largest l o a d  492  561  570  512  570  931  616  899  989 1288  396  354  540  803 1671  Source: \"B. C. G r a i n Exports f o r the Month of March,\" Harbour and Shipping, various i s s u e s .  April,  \u000CTABLE X I I I INDIVIDUAL CARGOES LOADED AT. BRITISH COLUMBIA PORTS POR MONTH OP MARCH SELECTED YEARS 1955  I960  1962  1965  13  18  23  9  1 0 0 - 2 0 0 bu.  3  8  6  8  200 - 3 0 0 bu.  2  5  6  9  3 0 0 - 400 bu.  17  5  8  2  400 - 5 0 0 bu.  5  10  13  9  500 - 600 bu.  0  9  12  9  600 + bu.  0  5  4  18  40  60  72  64  Less than 1 0 0 , 0 0 0 bu.  Source: \"B. C. Grain Shipments f o r Month of March,\" Harbour and S h i p p i n g , A p r i l , Various i s s u e s .  \u000C100,000 bushels i n March of 1966 whereas i n 1955,  15 of 40 or  about o n e - t h i r d of v e s s e l s loaded l e s s than 100,000  bushels.  Thus the t r e n d i s d e f i n i t e l y away from p a r c e l or p a r t i a l c a r goes. I n summary, the important  western f o r e l a n d s f o r g r a i n  from B r i t i s h Columbia have been i n c r e a s i n g r a p i d l y .  To serve  the markets ships are g e t t i n g l a r g e r and e l e v a t o r f a c i l i t i e s are r e q u i r e d to l o a d l a r g e r and l a r g e r cargoes.  Such c l e a r  trends suggest t h a t changes i n p o r t f a c i l i t i e s may be necessary before very l o n g .  The next chapter looks a t the f u t u r e  of the markets i n order to determine i f changes w i l l be warranted or needed i n the long r u n .  \u000C51  CHAPTER IV FUTURE OF GRAIN MARKETS World G r a i n Consumption Using some of the i n f o r m a t i o n from Chapter I I I and some f u r t h e r i n f o r m a t i o n from world g r a i n trade data an attempt i s made i n t h i s chapter to g i v e some i d e a of the f u t u r e outlook i n markets served by B r i t i s h Columbia p o r t s .  F i r s t , some  general observations about the consumption of g r a i n should be made.  A misconception t h a t f r e q u e n t l y appears when ?rheat mar-  k e t s are analyzed i s t h a t the r a p i d l y expanding p o p u l a t i o n of the  world w i l l a u t o m a t i c a l l y provide a l a r g e market f o r wheat  exports.  This i s not n e c e s s a r i l y the case.  G e n e r a l l y , changes  i n income l e v e l s have been the most s i g n i f i c a n t f a c t o r a f f e c t ing  wheat consumption.  1  The c y c l e , s t a t e d g e n e r a l l y , i s one  of r i s i n g consumption per c a p i t a as incomes i n c r e a s e from v e r y low l e v e l s . the  During t h i s stage people change t h e i r d i e t s from  cheaper breads made from rye or maize to bread made from  wheat f l o u r .  Furthermore as incomes continue to r i s e , con-  s t a n t l y more expensive bread and wheat i s consumed.  People  w i l l use bread w i t h higher wheat content or a higher grade of wheat t h a t improves the q u a l i t y of the product.  As incomes  r i s e t o even h i g h e r l e v e l s the p e r c a p i t a consumption of wheat reverses as people s u b s t i t u t e s t i l l more expensive foods f o r bread.  Table XIV can be used to i l l u s t r a t e each stage of the  I n t e r n a t i o n a l Wheat C o u n c i l , Review of the World Wheat S i t u a t i o n , A p r i l I960, p. 16.  \u000CTABLE XIV PER CAPITA HUMAN CONSUMPTION OF WHEAT FLOUR AND OTHER GRAINS IN SELECTED COUNTRIES (1909-10 -  1956-57)  G r a i n Equivalent - Kilograms per head per year Country-  Cereal  Wheat Other U n i t e d Kingdom Wheat Other Argentina Wheat Other Germany (W) Wheat Other Greece Wheat Other Turkey Wheat Other Egypt Wheat Other India Wheat Other Japan Wheat Other Brazil Wheat Other United States  1909-10  1922-23  1913-14  1926-27  1931-32  135  109  NA  99 27  91 25  85 20  79  134  126  125 12  117 15  113 15  NA  151 13  166  141  133 7  73  66  84  to  to  grain  NA  114 NA 140 NA 142 NA 68 NA  grain  NA  78  119  grainsi NA grain  151  NA 146 g r a i n NA  grain grain grain grain grain  73  117  NA  83  NA 22 NA 26 NA. 27  NA  NA  112  NA80 NA 22  NA 25  NA 26 NA  1927-28  to  NA 150  NA 131  NA 128 NA 86 NA 22  NA 28 NA 29  NA  1932-33  to  1936-37  6  NA 141 48 127  80 68 144 22  160  17 169  24 71  1954-55 1947-48  10  58  126  39 122 71 58 150  NA. NA 21 125 25  80  1951-52  13 77  45 148 31  to  1956-57  18  80 42 154 23  148 61 84  177 37  115 21 121  133  32  142  32 86  82  24 147 33  141 NA NA  Source: I n t e r n a t i o n a l Wheat C o u n c i l , World Wheat S i t u a t i o n I960 (London; I960).  \u000C53 c y c l e o u t l i n e d above. I n d i a i s an example of the i n i t i a l phase of the c y c l e . Over the years I n d i a ' s economic development has not been r a p i d w h i l e p o p u l a t i o n has i n c r e a s e d r a p i d l y .  As a r e s u l t the  people have remained r e l a t i v e l y impoverished and wheat consumpt i o n has remained a t a constant low l e v e l f o r n e a r l y h a l f a century.  Japan, on the other hand, i s an example of a country  going through r a p i d economic development and, i n t u r n , r a p i d l y i n c r e a s i n g consumption of wheat. per  Indeed, since the v e r y low  1930's  c a p i t a consumption l e v e l of the  l e v e l had n e a r l y doubled by 1957'  Japan's consumption  No doubt per c a p i t a consump-  t i o n has i n c r e a s e d s i n c e t h a t time.  I t i s i n t e r e s t i n g to note  t h a t f o r Japan the l e v e l s of consumption of other g r a i n s ( p r i m a r i l y r i c e ) are showing a corresponding drop w i t h the r i s e i n wheat consumption.  The f i g u r e s i n d i c a t e the s u b s t i t u t i o n  f a c t o r i s v e r y much i n o p e r a t i o n i n Japan. The U n i t e d S t a t e s and the U n i t e d Kingdom are examples of c o u n t r i e s i n the upper income stage of the c y c l e .  Both of  these c o u n t r i e s have shown a c o n t i n u a l drop i n wheat consumpt i o n per c a p i t a over the 50 years shown i n Table XIV.  The  U n i t e d S t a t e s , the more prosperous country of the two, has d e c l i n e d 49% i n per c a p i t a consumption and B r i t a i n has d e c l i n e d about 25%.  The d i f f e r e n c e i n d e c l i n e r e f l e c t s the r e l a t i v e  p r o s p e r i t y of the two c o u n t r i e s .  This leads to the c o n c l u s i o n  t h a t the f a l l i n g per c a p i t a consumption of wheat i n North America i s an i r r e v e r s i b l e trend as long as p r o s p e r i t y conp tinues. On the other hand i n the l e s s developed c o u n t r i e s Wheat C o u n c i l , p. 62.  \u000C54 there i s huge scope f o r i n c r e a s i n g consumption i f the potent i a l demand represented by the l a r g e numbers of people can be made e f f e c t i v e .  Table XV gives an i d e a of the magnitude of  the p o t e n t i a l i n the very near f u t u r e .  A growing p r o p o r t i o n  of world p o p u l a t i o n i s l i v i n g i n A s i a and by 1970 t i o n i s estimated at approximately 57%. p o t e n t i a l market.  the propor-  This i s indeed a huge  But p o t e n t i a l must be emphasized because  the r a p i d l y i n c r e a s i n g numbers i n the A s i a n c o u n t r i e s c o m p l i cates t h e i r problems of r a i s i n g l i v i n g standards a c t i v a t i n g the market f o r g r a i n .  and thus  I t could w e l l be t h a t u n t i l  t h i s s w e l l i n g p o p u l a t i o n i s c o n t r o l l e d and r e a l economic progr e s s i s made the market f o r Canada's g r a i n w i l l be l i m i t e d . Such a c o n c l u s i o n has r e s t r i c t e d value however and a much b e t t e r p i c t u r e of the f u t u r e i s p o s s i b l e by c o n s i d e r i n g each of the separate markets on an i n d i v i d u a l b a s i s . Japanese G r a i n Market Canada's l o n g e s t standing important O r i e n t a l market f o r g r a i n has been Japan but s i n c e I960 Mainland China has surpassed Japan i n a l l but one year (Appendix I V ) .  Canada's  share of the Japanese market has been s l i p p i n g during t h i s p e r i o d from 55%  of the market to 41% i n 1964-65 and as low as  34% i n the year before (Table XVI).  The reasons f o r the de-  c r e a s i n g share of t h i s important market are not c l e a r although the g r e a t e r competitiveness of the United S t a t e s may be the most important reason. i n Chapter  This aspect i s more c l o s e l y analyzed  V.  ^Barbara Ward, The R i c h Nations and the Poor Nations (New York; W. W. Norton.and Company, 1962).  \u000CTABLE XV WORLD POPULATION BY'REGIONS 1 9 2 0 - 1 9 7 0  %  Region  1920  %  Europe  328  18.1  355  17.6  380  16.9  386  U.S.S.R.  158  8.7  176  8.7  192  8.6  200  North and C e n t r a l America  147  8.1  169  8.4  187  8.3  61  3.4  75  3.7  90  Asia  967  53.4  1073  53-3  1213  Africa  140  7.7  155  7.7  172  9  .5  10  .5  11  1810  100.0  2013  100.0  2245  South America  Oceania Total  1930  %  1940  1950  \u00B0/\u00B0  I960  %  1970  %  424  14.6  457  13.1  8.2  214  7.3  249  7-1  212  8.7  262  9.0  311  8.9  4.0  109  4.5  140  4.8  179  5.1  54.0  1310  15.9  54.0 1620  55.6 1980  56.8  199  8.2  237  8.1  294  8.4  \u20225  13  \u20225  16  .6  19  .6  100.0  2429  7.7  100.0 2913 1 0 0 . 0 3489 100.0  Source: I n t e r n a t i o n a l Wheat C o u n c i l , Review of World \u00A5\u00A3heat S i t u a t i o n (London; i 9 6 0 ) , p. 1 7 .  \u000CTABLE XVI CANADA'S SHARE OF THE IMPORTS OF WHEAT INTO SELECTED COUNTRIES, 1 9 5 5 - 5 6 -  19551956  19561957  36 89 50 63 52 31  32 90  %  Western Europe ( t o t a l ) Belgium - Lux. Netherlands Switzerland U n i t e d Kingdom Germany (W) E a s t e r n Europe ( t o t a l ) Poland Bulgaria Czechoslovakia A s i a (Far East) ( t o t a l ) China (Communist) Japan Phillipines South America ( t o t a l ) Venezuela Ecuador Peru U.S.S.R.  44  %  42 49 50 32  19571958  %  41  100 67 63 52 33  16  63  93 99  19  92  0  29  16  24  37  38  4  5 13 22 27 100  _  40 84 8  100  _  17 \u2014  0 45 \u2022-  6  41  36 25 100  19581959  1959i960  37 53 49 54 52 34  42  35 34 0  14  -  22 0 49 71 6  %  75 29 66' 55 34 15 0  -  20  -  50 69  100 17  7 31 70 23  98  -  48  i9601961 35 70 22 58 50  40 28 5  -  100  24 41 55 16  6 27 100 13 100  19611962  % 30 65 11  54 49 35 99 93 o o 30  48 49 37 4 28 80 2  19621965  %  35 73 25 20 53 35 30 30 100 20 35 49 58 7 54 72 3  1964-65 (%)  19651964 % 41 75 13 61 50 52  20 17 85 54 16 19 34 53  8 62 3 63 54  19641965 % 34 98 14 34 52 41 48 36 76 83 21 32 41 44 10 44 7 49  Source: Food and A g r i c u l t u r e O r g a n i z a t i o n of the U n i t e d Nations, World G r a i n S t a t i s t i c s (Rome; various i s s u e s ) . cr.  \u000C57 Japan can be c l a s s e d as a growth market f o r g r a i n f o r s e v e r a l reasons.  F i r s t , i t i s a country t h a t i s r a p i d l y becom-  ing i n d u s t r i a l i z e d .  I n the process the l i v i n g standards i n  Japan are r i s i n g q u i t e r a p i d l y ; hence the growing demand f o r bread made from wheat r a t h e r than the t r a d i t i o n a l r i c e .  The  o v e r - a l l growth i n demand f o r wheat i s about 5% per year and the demand f o r imports i s growing f a s t e r because of a s h r i n k i n g acreage devoted to growing wheat.  Japan has a s m a l l f u l l y  u t i l i z e d land area and as i n d u s t r i a l i z a t i o n progresses the demand f o r land f o r f a c t o r i e s and housing i n c r e a s e s .  The land  most s u i t a b l e f o r these purposes i s the dry wheat lands r a t h e r than the swampy r i c e l a n d s .  Consequently Japan i s e x p e r i e n c i n g  4 a 10% annual r e d u c t i o n i n wheat growing acreage.  Japan i s not  a major market f o r other g r a i n s , although i n the past two years s u b s t a n t i a l purchases of b a r l e y have been made.^ Chinese G r a i n Market Mainland China, the other major A s i a n market f o r Canadian g r a i n i s a much more d i f f i c u l t market to p r e d i c t . U n l i k e Japan, there i s no assurance t h a t China w i l l continue to demand imports of wheat over the l o n g term. s i d e r a b l e c o n t r o v e r s y on t h i s s u b j e c t i n Canada.  There i s conWhen the  g r a i n s a l e s to China were f i r s t developing four years ago, there was c o n s i d e r a b l e doubt about China as a c o n s i s t e n t mark e t and some even concluded t h a t any outlook f o r long-term ^ I n f o r m a t i o n obtained i n an i n t e r v i e w w i t h Mr. N. Nakadai, Food Agency, M i n i s t r y of A g r i c u l t u r e and F o r e s t r y of Japan, June, 1966. ^Dominion Bureau of S t a t i s t i c s , G r a i n Trade 1964-65 (Ottawa; Queen's P r i n t e r , 1966),- 97.  \u000Cs a l e s was poor because of r a p i d l y improving Chinese ture.  agricul-  On the other side of the argument there are those  6  see China as a d e f i n i t e long-term market.  Mr. C. W.  who  Gibbings,  P r e s i d e n t of the Saskatchewan Wheat P o o l , i s one who b e l i e v e s this.  He does not see China i n c r e a s i n g p r o d u c t i v i t y v e r y  r a p i d l y and the gains t h a t are made are overcome by p o p u l a t i o n 7 growth.  This i s a viewpoint based on personal observations  of Communist China by people i n the Saskatchewan Wheat P o o l . The f a c t t h a t they are b u i l d i n g a l a r g e t e r m i n a l e l e v a t o r i n d i c a t e s t h e i r views are not i d l e s p e c u l a t i o n but something they, as Canada's l a r g e s t g r a i n company, are w i l l i n g to act upon. i n 1965  F u r t h e r evidence to support t h e i r v i e w p o i n t came l a t e when a new agreement was  August 1, 1966. mum  s a l e of 168  signed w i t h China to b e g i n  This was a three-year agreement w i t h a m i n i m i l l i o n bushels (56 m i l l i o n bushels per y e a r ) ,  and a maximum of 280  m i l l i o n bushels (70 m i l l i o n per y e a r ) .  In a d d i t i o n the c o n t r a c t c o u l d be changed to a f i v e - y e a r agreeg ment w i t h a minimum of 280  m i l l i o n bushels purchased.  This  means China i s under agreement to purchase Canadian wheat u n t i l 1970  and p o s s i b l y u n t i l 1972.  By t h i s time China w i l l  have been Canada's second or t h i r d l a r g e s t customer f o r t e n years.  With t h i s i n mind i t seems l i k e l y China w i l l continue P e t e r C. Newman, \"Backstage i n Ottawa,\" MacLean's, J u l y 6, 1963, p. 2. ?C. W. Gibbings, \"A B u l l i s h Future f o r Canadian G r a i n , \" Western Business and I n d u s t r y , XXXVIII (November 1964), 18-19 f f . 6  L . T. E a r l , \"A Record Crop and A l l S o l d , \" Western Business and I n d u s t r y , XXXIX (November 1965), 26a. 8  \u000C59 to be a major purchaser of Canadian wheat. U n i t e d Kingdom G r a i n Market B r i t a i n i s Canada's c h i e f market f o r wheat and i s one of the most r e l i a b l e and p r e d i c t a b l e markets.  Canada's share  of t h i s market has remained constant a t about 50% over the p a s t t e n years (Table XVT).  Therefore the d e c l i n e s i n the  market i n B r i t a i n are due t o consumption trends or r i s i n g B r i t i s h domestic p r o d u c t i o n r a t h e r than Canada l o s i n g any share of the market.  There i s l i t t l e to i n d i c a t e t h a t B r i t a i n w i l l  not continue t o be one of Canada's c h i e f markets.  The only  p o s s i b l e change c o u l d occur i f B r i t a i n entered the European Economic Community.  I n t h a t event i t i s probable t h a t B r i t a i n  would f i n d some of her wheat supply i n Europe.  The reasoning  behind t h i s has p e r t i n e n c e f o r the European as w e l l as the B r i t i s h market and l i e s i n France's apparent  intended objec-  t i v e of becoming a major exporter of wheat.  This w i l l be done  under a h e a v i l y s u b s i d i z e d system of government support. European G r a i n Markets I n other p a r t s of Europe under the European Economic Community Canadian wheat exports c o u l d a l s o be a f f e c t e d i f France's intended p o l i c y i s s u c c e s s f u l . The main reason i s t h a t Europe cannot be considered a growth market f o r g r a i n consumption and t h e r e f o r e i n c r e a s e d French p r o d u c t i o n would r e p l a c e imports from o u t s i d e the Common Market.  The p e r  c a p i t a consumption i n the U n i t e d Kingdom has been f a l l i n g throughout  the 20th century and as p r o s p e r i t y grows w i l l  con-  t i n u e t o do so. The same a p p l i e s to Germany where wheat consumption per c a p i t a has changed l i t t l e i n 60 years.  Identical  \u000C60 analyses could be a p p l i e d to most of Western Europe where economic growth i s making t h i s area one of the most prosperous i n the world. E a s t e r n Europe and R u s s i a are s i m i l a r to China, i n t h a t p r e d i c t i n g t h e i r market f u t u r e i s d i f f i c u l t because of l a c k of information.  Past trends and present i n t e n t i o n s are the o n l y  i n d i c a t o r s t h a t are a v a i l a b l e .  Poland i s Canada's most con-  s i s t e n t customer i n E a s t e r n Europe w i t h purchases of g r a i n i n each of the past ten y e a r s .  Other major customers have been  C z e c h o s l o v a k i a , B u l g a r i a and East Germany but t h e i r demands have been s p o r a d i c .  I n keeping w i t h these sporadic demands  Canada's share of E a s t e r n European imports have a l s o f l u c tuated (Table XVI).  Por example Canada has s u p p l i e d as l i t t l e  as 5% and- much as 99% of Poland's imports i n the past t e n y e a r s . When R u s s i a made i t s l a r g e purchase of Canadian wheat and f l o u r i n 1963 i t was thought t h i s would be a s i n g l e purchase to supplement a crop f a i l u r e .  The next two years tended  to support t h i s but the r e c e n t three year agreement to take 336 m i l l i o n bushels of Canadian wheat and f l o u r ^ p r a c t i c a l l y e s t a b l i s h e s R u s s i a as a steady customer.  The reasons f o r R u s s i a  and other E a s t e r n European c o u n t r i e s having to import wheat apparently l i e i n d i f f i c u l t i e s of o r g a n i z i n g a g r i c u l t u r e under the c o l l e c t i v e system.  Moreover there i s p o s s i b l y the f a c t  t h a t a g r i c u l t u r e has taken a secondary p o s i t i o n to i n d u s t r i a l i z a t i o n and hence resources have not been a v a i l a b l e to keep  ^John Best, \"Canada S e l l s $800 M i l l i o n Wheat, P l o u r to Russians,\" VancouYer Sun, June 20, 1966,'p. 1.  \u000Ca g r i c u l t u r a l p r o d u c t i v i t y i n l i n e w i t h p o p u l a t i o n and economic growth.  I f t h i s i s so, and the w i l l i n g n e s s of R u s s i a to buy  ahead f o r three years c e r t a i n l y i n d i c a t e s t h a t i t i s , then Canada can l o o k to E a s t e r n Europe and R u s s i a f o r continued s u b s t a n t i a l s a l e s of g r a i n . B r i t i s h Columbia p o r t s are l i k e l y to f i n d l i m i t e d benef i t from l a r g e Russian s a l e s . o n l y a s m a l l percentage B r i t i s h Columbia. sels.  As noted i n the p r e v i o u s chapter  of past s a l e s have moved through  Most of the g r a i n i s moved i n Russian ves-  Hence they tend to favour the c l o s e r e a s t e r n and  St. Lawrence p o r t s .  The shipments from B r i t i s h Columbia to  R u s s i a l o g i c a l l y go to the east coast of R u s s i a and eastern S i b e r i a .  supply  There are s t r o n g economic arguments f o r t h i s  from the Russian p o i n t of view s i n c e i t saves very long r a i l hauls from the wheat growing areas of Western R u s s i a . Despite B r i t i s h Columbia's l i m i t e d p a r t i c i p a t i o n i n the R u s s i a n trade there may be secondary or s p i l l o v e r b e n e f i t s f o r the West Coast p o r t s .  This l i e s i n B r i t i s h Columbia's com-  p e t i t i v e n e s s i n s h i p p i n g to Western Europe.  Large handlings  of Russian wheat i n the east could mean a g r e a t e r p r o p o r t i o n of Western European g r a i n being moved through B r i t i s h Columbia ports. The o n l y other market area of importance Columbia i s C e n t r a l and South America.  to B r i t i s h  Venezuela and Ecuador  are the c h i e f r e c i p i e n t s of Canadian wheat and minor amounts of other g r a i n s .  These c o u n t r i e s w i l l be i n c r e a s i n g t h e i r  wheat consumption as they progress from r e l a t i v e l y low l e v e l s of income, but volumes are not l i k e l y to be g r e a t .  Population  \u000C62 and economic growth i n these c o u n t r i e s i s not great enough f o r their relative  importance to advance beyond the present l e v e l  and are t h e r e f o r e o f minor importance to B r i t i s h Columbia. G r a i n shipments from Canada and e s p e c i a l l y from B r i t i s h Columbia appear to be headed f o r long-term growth. Demands of ever i n c r e a s i n g p o p u l a t i o n , and economic growth assure the f u t u r e demand f o r g r a i n , p a r t i c u l a r l y  wheat.  The  p o r t s of B r i t i s h Columbia are w e l l l o c a t e d to serve the main growth markets i n A s i a and p o s s i b l y r e g a i n some of the share of the European market t h a t has been l o s t .  I n b r i e f , the  p o r t s of B r i t i s h Columbia w i l l continue to experience growth i n g r a i n exports, p r o v i d i n g the f a c i l i t i e s are a v a i l a b l e .  \u000C63  CHAPTER V COSTS OP GRAIN HANDLING A comparison of the Canadian and American West Coast g r a i n p o r t s i s an e s s e n t i a l p a r t of a study of f u t u r e g r a i n h a n d l i n g needs i n B r i t i s h Columbia.  There are two aspects to  the comparison of p o r t s i n the two c o u n t r i e s .  One  i s the com-  p e t i t i o n between p o r t s provided by the r e l a t i v e adequacy of the f a c i l i t i e s .  The other aspect i s the r e l a t i v e c o s t s i n -  volved i n u s i n g those f a c i l i t i e s .  Each of these aspects, as  they r e l a t e to g r a i n f a c i l i t i e s , w i l l a f f e c t the d e s i r a b i l i t y of a p o r t as a stop f o r ocean v e s s e l s . The p h y s i c a l aspects of g r a i n handling have a l r e a d y been considered f o r B r i t i s h Columbia p o r t s i n Chapter I I , but the a n a l y s i s i s extended i n t h i s chapter to i n c l u d e a compari s o n w i t h United S t a t e s p o r t s of both p h y s i c a l c a p a c i t i e s and costs.  Another aspect t h a t a f f e c t s the demand f o r g r a i n  f a c i l i t i e s i s the g r a i n supply and market i t s e l f . i n t e r e s t here are f e a t u r e s of g r a i n marketing  Of prime  i n the U n i t e d  S t a t e s P a c i f i c Northwest and how they compare to the B r i t i s h Columbia s i t u a t i o n . The Columbia R i v e r p o r t s of P o r t l a n d , Longview, Vancouver and Kalama are, by f a r , the b u s i e s t g r a i n p o r t s on the P a c i f i c Coast of the U n i t e d S t a t e s .  These four p o r t s  account f o r about 80% of wheat and 87% of the b a r l e y and shipped through P a c i f i c p o r t s i n the United S t a t e s .  rye  Seattle  \u000Cand Tacoma account f o r v i r t u a l l y a l l the remainder w i t h San F r a n c i s c o and the San Joaquin R i v e r i n C a l i f o r n i a insignificant  (Table X V I I ) .  being  I n e f f e c t then, there a r e two  areas of g r a i n shipment on the American P a c i f i c Coast which, f o r purposes of t h i s a n a l y s i s , can be represented by two ports.  One i s P o r t l a n d , r e p r e s e n t i n g the Columbia R i v e r p o r t s  and the other i s S e a t t l e r e p r e s e n t i n g Puget Sound p o r t s . P o r t l a n d i s s t u d i e d because i t s h i p s about twice as much g r a i n as any other Columbia R i v e r p o r t (Table X V I I ) .  Furthermore  any c o s t s t h a t apply i n P o r t l a n d w i l l , i n almost every  case,  a l s o apply to the other g r a i n s h i p p i n g p o r t s of Vancouver, Longview and Kalama, Washington. f o r two reasons.  S e a t t l e i s chosen f o r study  F i r s t i t i s p r e s e n t l y the b u s i e s t Puget Sound  p o r t and second, S e a t t l e promises to become much more important i n the v e r y near f u t u r e . 'The U n i t e d States P a c i f i c P o r t s are w e l l s u p p l i e d w i t h g r a i n h a n d l i n g f a c i l i t i e s w i t h a t o t a l o f 4-2.1 m i l l i o n of storage c a p a c i t y (Table X V I I I ) .  bushels  The C a l i f o r n i a e l e v a t o r s  are l i t t l e used, however, and a c t u a l a c t i v e c a p a c i t y i s c l o s e r to 39.3 m i l l i o n bushels.  Of the t o t a l a c t i v e Northwest e l e v a -  t o r c a p a c i t y , 73% i s s i t u a t e d i n the Columbia p o r t s and 27% i s i n the Puget Sound a t Tacoma and S e a t t l e .  I n summary the  United S t a t e s P a c i f i c Coast has 14-.4- m i l l i o n bushels or 59% more g r a i n e l e v a t o r c a p a c i t y than B r i t i s h Columbia.  At the  same time, however, the U n i t e d S t a t e s p o r t s on a l l of the P a c i f i c Coast have shipped l e s s wheat than B r i t i s h Columbia i n two of the past f i v e years and only v e r y s l i g h t l y more i n two others (Table XIX).  The American p o r t s export c o n s i d e r a b l y  \u000CTABLE X V I I EXPORTS OP GRAIN THROUGH UNITED STATES P A C I F I C PORTS 1 9 5 9 - 1 9 6 3 (Short  P  o  r  Wheat  t  Tons)  I 9 6 0 B a r l e y &amp; Rye  1 9 6 1 Wheat B a r l e y &amp; Rye  San J o a q u i n R i v e r ( S t o c k t o n ) Lone Beach San F r a n c i s c o Harbour Oakland  118,043 7,716 10,689 27,370  78,284 2,750 4,784  174,781  Long^lw^lash. Astoria  615&gt;25 5,787  311,845 -  662'.g?  890^79  W.096 337,014  672,946 1,553,431  f\u00A3\u00A3l  Mf7  gS:ig  Vanc^errfesh. Portland,'Oregon  S, ISA. W  T  o  t  a  l  s  1,694,539  4,626,239  1,123,270  31,050 65,060 41,216  79\u00B0  4,292,656  1 9 6 2 B a r l e y &amp; Rye  Wheat  30,692 15,604 2,800  59,235 3,976 31,330 12,651  280^64 \"  457,243  60 501 240,168  ^  869,624  5  ?  2  442',877 1,308,749  ^:WQ  3,166,657  253,064 13,565 3,758  2^908 Q  ^  6  l ^ W  421,448  i&amp;HS 1,210,145  Vn  \u000CTABLE XVII (continued)  Port  1 9 6 3  Wheat  B a r l e y &amp; Rye  Wheat  San Joaquin R i v e r (Stockton) 61,404 Long Beach 10,735 San F r a n c i s c o Harbour 25,541 Oakland 9,731 2,106 Los Angeles Longview, Wash. 925,579 Astoria Kaloma, Wash. 242,872 Vancouver, Wash. 546,575 P o r t l a n d , Oregon 2,258,581 404,616 Tacoma, Wash. 547,214 S e a t t l e , Wash.  224,298 66,764 244,790 10,950 68,296  520,577 1,055,524 215,736 348,719  4,991,980  615,680  2,716,214  Totals  577 5 \u2014  131,538 3,863 6,759 36,062 \u2014  365,357 32,079  1 9 5 9  B a r l e y &amp; Rye 160,708 7,984 14,193 \u2014  323,291  -  \u2014  189,802 520,153  54,622 256,765 1,527,518  Source: Department of the Army Corps of Engineers, Waterborne Commerce of the U n i t e d S t a t e s , P a r t IV (Washington, D.C.; Superintendent of Documents;, v a r i o u s i s s u e s .  cn cn  \u000C67  TABLE X V I I I UNITED STATES PACIFIC COAST GRAIN STORAGE CAPACITY 1964 No. o f Elevators  Port California Long Beach San F r a n c i s c o  Bushels of Capacity-  No. of Berths  1  830,000  1  1  ,000,000  1  Oregon Portland  12,353,000  Longview  1  7,850,000  2  Kaloma  1  3,326,000  1  Vancouver  1  5,250,000  2  Tacoma  1  4,500,000  1  Seattle  1  6,000,000  2  Total  42,109,000  Sources: 1) Harbour D i r e c t o r y of P o r t l a n d , Oregon, P o r t o f P o r t l a n d Commission, p . - 1 5 \u00AB 2 ) Captain T. S. Campbell, ed., P o r t s . Dues, Charges and Accommodation, 1964 (London; G. P h i l l i p and Son, Ltd.V 1964}.'  \u000CTABLE XIX EXPORTS OP GRAIN THROUGH BRITISH COLUMBIA PORTS, 1960-1964 (short tons) I  9  6 0 1 9 6 1 1 Barley Barley &amp; Rye Oats Wheat &amp; Rye Oats Wheat 450,021 5 6 , 9 9 0 5,732,240 447,011 5,858 3,744,597 129,797 255 71,598 121,152 551,830 192,286 131,304 571,173 3 6 , 9 9 0 4,054,323 798,841 6,113 3,947,299  Port Wheat Vancouver 2,673,264 New Westminster 72,248 P r i n c e Rupert Victoria 110,732 Total 2,856,244 T o t a l U.S. Pacific Ports 4,626,259 1 , 1 2 5 , 2 7 0  Port Wheat Vancouver 4,430,283 New Westminster 82,175 P r i n c e Rupert 202,190 Victoria 172,991 Total 4,887,659 T o t a l U.S. P a c i f i c P o r t s 4,991,980  -  -  Barley &amp; Rye 242,796 2,660 245,456 615,680  -  4,292,656 869,624 -  Oats 188,220 118 188,338  Wheat . 4,339,663 170,129  337,573 246,527  5,095,892  9 6 2 Barley &amp; Rye Oats 239,417 1 7 , 5 5 9 20 126,179 365,616 1 7 , 5 5 9  3,166,657 1,210,145 Barley &amp; TRye Oats 56,278 149,461 45 56,278  2,716,214 1,527,518  149,506 -  Sources: 1) Department of the Army Corps of Engineers, Waterhorne Commerce i n the U n i t e d S t a t e s , P a r t IV (Washington, D.C.; Superintendent of Documents), v a r i o u s i s s u e s . 2) Dominion Bureau of S t a t i s t i c s , Canadian Shipping Report (Ottawa; Queen's P r i n t e r ) , various.issues.  cn Co  \u000Cmore b a r l e y and rye than B r i t i s h . Columbia.  As a r e s u l t they  have tended to ship more g r a i n i n t o t a l , although since I960 the margin has narrowed.  Indeed i n the very busy year of  1964  B r i t i s h Columbia exported over one m i l l i o n short tons more than the P a c i f i c Northwest p o r t s . Comparison of P o r t F a c i l i t i e s F a c i l i t i e s f o r l o a d i n g v e s s e l s at the United p o r t s can be considered Vancouver.  States  equal to or b e t t e r than those i n  While storage f a c i l i t i e s are not as great a t  P o r t l a n d or S e a t t l e as i n Vancouver they are adequate to prov i d e the same s e r v i c e as Vancouver f o r d i s t r e s s or t o p - o f f cargoes.  For b u l k l o a d i n g the United States f a c i l i t i e s  s u p e r i o r to Vancouver at the present time.  are  Both S e a t t l e and  P o r t l a n d have e l e v a t o r s that can l o a d up to 5 0 , 0 0 0 bushels per h o u r  1  w h i l e the best l o a d i n g c a p a c i t y i n Vancouver (and  B r i t i s h Columbia) i s about 40,000 bushels per hour. G r a i n shipping from the United States p o r t s i s cons i d e r a b l y more d e c e n t r a l i z e d than i t i s i n B r i t i s h Columbia. A comparison of the f i g u r e s i n Tables XVII and XIX that the s m a l l p o r t s on the Columbia R i v e r ship  reveals  considerably  l a r g e r tonnages of g r a i n than do the secondary p o r t s of B r i t i s h Columbia.  Whereas Vancouver r e g u l a r l y ships c l o s e to  90% of B r i t i s h Columbia g r a i n exports, P o r t l a n d , the major Columbia R i v e r p o r t , ships only between 51% and 55% of \"the g r a i n shipped from t h a t area.  Larger c a p a c i t i e s i n the  United  \"^F. S. Campbell, ed., P o r t s , Dues, Charges and Accomod a t i o n (London; G. P h i l i p and Son L t d . , 1964), pp. 642 and 646.  \u000C70  S t a t e s small p o r t s r e l a t i v e to Canada i s the reason f o r t h i s s i t u a t i o n and i n d i c a t e s t h a t s e r v i c e i n small p o r t s i s s u p e r i o r to Canada.  The i m p l i c a t i o n f o r s h i p p i n g i s t h a t there i s a  wider choice of p o r t s i n which to l o a d g r a i n cargoes i n the P a c i f i c Northwest. I l l west coast p o r t s , Canadian or American, can accomodate most s h i p s now  i n the g r a i n trade.  Minimum water depth  i n each area i s g e n e r a l l y 35 f e e t or more.  I n the Columbia  l i v e r the channel i s p r e s e n t l y 35 f e e t and being deepened to 4-0 f e e t .  Depths alongside l o a d i n g wharves are between 30  and  p  35 f e e t at low water.  Similar conditions exist i n Seattle  and the other Columbia R i v e r p o r t s .  One disadvantage of the  Columbia p o r t s which w i l l doubtless become more serious i n the f u t u r e , i s t h e i r l o c a t i o n on a r i v e r .  The water depths f l u c -  tuate only s l i g h t l y due to l i m i t e d t i d a l a c t i o n or p e r i o d s of high runoff.  As a r e s u l t i t i s not p o s s i b l e to l o a d a l a r g e  ship and s a i l i t out at h i g h t i d e , as i s done i n Vancouver or Seattle. G r a i n handling at the United S t a t e s t e r m i n a l e l e v a t o r s has at l e a s t one important  d i f f e r e n c e to Canada.  I t was  noted i n the d e s c r i p t i o n of Canadian handling c a p a c i t i e s t h a t g r a i n c l e a n i n g can be a b o t t l e n e c k o p e r a t i o n .  I n the U n i t e d  S t a t e s t h i s does not e x i s t because l i t t l e g r a i n i s cleaned before export. Therefore  Grain i s only cleaned f o r s p e c i a l orders.  g r a i n can be unloaded, weighed and put i n t o storage  s i l o s ready f o r a shipment i n one o p e r a t i o n . Campbel1, p.  642.  This means t h a t  \u000C71 i f a shortage occurs, once s u p p l i e s are d e l i v e r e d t o the e l e v a t o r , no f u r t h e r s h i p p i n g delays are experienced. Another b o t t l e n e c k - p r o d u c i n g  s e r v i c e not performed i n  the U n i t e d S t a t e s t e r m i n a l s i s g r a i n d r y i n g .  Consequently  problems of s h i p p i n g delays t h a t may a r i s e i n B r i t i s h Columbia p o r t s because of the d r y i n g o p e r a t i o n w i l l not be encountered i n the United S t a t e s .  I n a d d i t i o n the American g r a i n grading  requirements are not as demanding as i n Canada.  There are  fewer grades of g r a i n i n the United S t a t e s than i n Canada. Hence fewer separate storage areas are r e q u i r e d w i t h the r e s u l t t h a t more storage b i n s can be f i l l e d t o c a p a c i t y . i m p l i c a t i o n of t h i s circumstance  The important  f o r shipping i s that a ship  w i l l be l e s s l i k e l y t o be f o r c e d to move from one g r a i n b e r t h to another i n order to l o a d a f u l l cargo.  I t i s c l e a r then,  t h a t under these c o n d i t i o n s the U n i t e d S t a t e s p o r t s may be viewed more f a v o u r a b l y by s h i p owners operating i n the g r a i n trade. Comparison of P o r t Charges Problems of g r a i n handling such as those l i s t e d above, are important c o s t c o n s i d e r a t i o n s but they tend to be u n p r e d i c t able.  Delays and b o t t l e n e c k s i n e v i t a b l y occur i n p r a c t i c a l l y  every p o r t and unless they are chronic and r e p e a t e d l y i n v o l v e s h i p s i n h i g h costs they are not l i k e l y to s e r i o u s l y damage a p o r t ' s competitive p o s i t i o n .  On the other hand known and pre-  d i c t a b l e expenses i n each p o r t w i l l , to some extent, determine a port's a b i l i t y to a t t r a c t t r a f f i c . aspects of c o s t s are n o t a b l e .  I n the g r a i n trade  tvio  F i r s t there are p o r t dues and  charges which are l e v i e d a g a i n s t a v e s s e l e n t e r i n g and l e a v i n g  \u000C72 a port. for  Secondly, there are g r a i n handling charges or charges  s e r v i c e s performed i n the t e r m i n a l e l e v a t o r .  This second  group of charges do not a f f e c t v e s s e l owners \"because they are l e v i e d against the owner of the g r a i n .  However e l e v a t o r s e r -  v i c e charges help determine the p r i c e at which g r a i n w i l l  be  o f f e r e d f o r s a l e , although t h i s e f f e c t i s v e r y minor i n l i g h t of government s u b s i d i e s to farmers and the r i g o u r s of the n a t i o n a l markets.  inter-  Nevertheless they are p a r t of the t r a n s f e r  cost of g r a i n from l a n d to ocean t r a n s p o r t a t i o n and must be accounted f o r . Table XX and Appendix V I I I l i s t the primary charges i n v o l v e d i n shipping and e l e v a t i n g g r a i n i n the p o r t s of the P a c i f i c Coast.  Close study of Appendix V I I I immediately r e -  v e a l s the great complexity of p o r t charges. d i f f e r e n t l i s t of charges.  Each p o r t has  a  To give two examples, Vancouver,  alone, has a cargo r a t e on g r a i n loaded and P o r t l a n d makes no charges f o r harbour dues while a l l others do.  Therefore a  s t r i c t comparison of costs i s a v e r y d i f f i c u l t task.  Finally  i t should be p o i n t e d out that the l i s t of charges i s not haustive.  ex-  There are other charges such as p o r t warden f e e s ,  brokerage, and customs i n s p e c t i o n fees t h a t have not been i n v e s t i g a t e d here because they are r e l a t i v e l y minor expenses. Thus Table XX and Appendix V I I I are r e s t r i c t e d to major import a n t expenditures of t e r m i n a l g r a i n  handling.  The best method of attempting a comparison of costs i s to choose a v e s s e l of a p a r t i c u l a r s i z e and apply the charges i t would i n c u r i n each p o r t . dry cargo v e s s e l c l a s s i f i e d as  For purposes of t h i s example a  C3-5-A2 type  by the  United  \u000CTABLE XX TOTAL PRIMARY CHARGES POR SAMPLE VESSEL CALLING AT PACIFIC PORTS TO LOAD GRAIN Charge.  Vancouver  New Westminster V i c t o r i a  P r i n c e Rupert  Seattle  Portland  P i l o t a g e - one way #170.00(est.) $287.00(e s t . ) $87.00(est . ) $93.00 $158.63 $386.80 S i c k Mariners dues 94.80 94.80 94.80 94.80 Nil Nil L i g h t Money and 94.80 94.80 Tonnage Tax Nil Nil Nil Nil or 284.40 or 284.40 142.20 142.20 Harbour Dues 142.20 94.80 5.00 Nil or 237.00 or 237.00 Wharfage 711.00 355.50 1,777.50 2,488.50 2,488.50 1,777.50 Cargo Rate Nil Nil Nil Nil 355-50 Nil Dockage (per 24 hrs. f o r working vessel) 1 2 3 . 0 0 Nil 65.64 65.64 29.52 29.52 Sample Vessel S p e c i f i c a t i o n s (C3--5-A2 type) Gross Tons 7900 Tons Net Tons 4740 \"Tons Length 492 f e e t Beam 69 f e e t 6 inches Draft 28 f e e t 6 inches i h e a t loaded 11,850 Tons or approximately 395,000 bushels Source: Appendix I .  \u000C74 States Federal Maritime Commission i s s e l e c t e d .  5  The  vessel  has an o v e r - a l l l e n g t h of 492 f e e t and a beam of 69 f e e t 6 i n ches.  The d r a f t of the v e s s e l , f u l l y loaded, i s 28 f e e t 6 i n -  ches.  I t s gross tonnage i s 7 , 9 0 0 tons.  On the b a s i s of a  world average the net tonnage i s 60% of gross tonnage or 4. 4,740 tons.  The tonnage f i g u r e s are based on the t o t a l  cubic  c a p a c i t y of the v e s s e l d i v i d e d by 100 or, i n other words, 4,740 tons of 100 cubic f e e t .  I n Chapter I I i t was noted t h a t  one ton of wheat occupied only 40 square f e e t .  Therefore the  v e s s e l i n the example w i l l be able to l o a d 2-1/2  times net  tonnage or 11,850 tons of wheat.  I n summary the s p e c i f i c a t i o n s  of the v e s s e l used f o r the example are: Gross Tons: -  7 , 9 0 0 Tons  Net Tons:  4,740 Tons  Length:  492  Feet  Beam:  69 Feet 6 Inches  Draft:  28 Feet 6 Inches  Wheat Loaded:  1 1 , 8 5 0 Tons or approximately 3 9 5 , 0 0 0 bushels.  I n B r i t i s h Columbia the v e s s e l w i l l i n c u r i d e n t i c a l p i l o t a g e r a t e s to a l l p o r t s .  Any variance i n t o t a l p i l o t a g e  w i l l be i n c u r r e d because of greater d i s t a n c e s . For example a v e s s e l w i l l pay $82.00 more to come to Vancouver than to c a l l at V i c t o r i a because i t i s 82 m i l e s between the two p o r t s . ^Steward R. Bross, Ocean Shipping C o r n e l l Maritime Press, 1 9 5 6 7 , P\u00AB 48.  (Cambridge, Mass.;  Campbell, p. v i i . -R.'S. McElwee, P o r t Development (New H i l l , 1926), p. 237-  York; McGraw  \u000C75 A gross ton charge of $38.00 and d r a f t charge of $29.00 w i l l be i d e n t i c a l r e g a r d l e s s of the p o r t of c a l l .  I n a d d i t i o n to  the r e g u l a r B r i t i s h Columbia p i l o t a g e charge, a c a l l a t  New  Westminster i n c u r s a F r a s e r R i v e r P i l o t Charge, which f o r t h i s v e s s e l would be $137.00.  This i s n e a r l y double the p i l o t a g e  charge of t a k i n g a v e s s e l i n t o Vancouver. pilotage v a r i e s widely.  I n the United S t a t e s  Por a v e s s e l c a l l i n g at S e a t t l e there  i s a s t r a i g h t mileage charge of $2.35 per mile f o r 67-1/2 m i l e s f o r a t o t a l charge of $158.63.  Por a c a l l at P o r t l a n d the  p i l o t a g e charge i s c o n s i d e r a b l y higher than any other p o r t on the P a c i f i c w i t h a t o t a l c o s t of $386.80. I n both Canada and the United S t a t e s c e r t a i n f e d e r a l l e v i e s are made against s h i p s .  I n Canada t h i s charge i s c a l l e d  S i c k Mariners' Dues and i n the United States tonnage t a x and l i g h t money.  I t i s payable no more than three times per  at any Canadian p o r t , States p o r t .  7  6  year  and f i v e times per year i n any U n i t e d  Hence a ship t h a t c a l l s at three B r i t i s h Columbia  p o r t s on one voyage w i l l not i n c u r t h i s c o s t again i f i t c a l l s at other Canadian p o r t s d u r i n g the year.  The charge f o r the  sample ship i n Canada w i l l be $94.80 per c a l l .  I n the United  S t a t e s i t w i l l be $94.80 or $284.40 w i t h the l a t t e r f i g u r e a p p l y i n g to a f o r e i g n tramp v e s s e l i n the g r a i n trade. Harbour dues are charged w i t h c o n s i d e r a b l e v a r i a n c e on the P a c i f i c Coast.  I n P o r t l a n d no harbour dues are  and range up to 50 per net r e g i s t e r e d ton i n the P u b l i c 6  C a m p b e l l , p.  570.  7  C a m p b e l l , p.  609.  assessed  \u000C76 Harbours of V i c t o r i a and P r i n c e Rupert. a nominal $5-00.  S e a t t l e ' s charge i s  As w i t h S i c k Mariners' Dues, harbour dues are  o n l y assessed a c e r t a i n number of times i n Canadian p o r t s .  Por  Vancouver and New Westminster harbour dues are c o l l e c t e d a maximum  of f i v e times per year i n each p o r t .  P r i n c e Rupert and  V i c t o r i a are c l a s s e d as P u b l i c Harbours w i t h the r e s u l t that o  dues are o n l y payable twice per year.  As a g e n e r a l i z a t i o n i t  i s safe to say t h a t harbour dues are charged i n B r i t i s h Columbia but not i n American p o r t s . Terminology used to d e s c r i b e charges f o r the use of wharf and dock f a c i l i t i e s tends to be confusing.  The author  found f o u r d i f f e r e n t c l a s s i f i c a t i o n s f o r these charges.  Pirst  there i s wharfage, which i s g e n e r a l l y a charge based on the tons loaded over the wharf. wharfage.  A l t e r n a t e l y t h i s may be c a l l e d top  To confuse matters even f u r t h e r the American g r a i n  e l e v a t o r s charge what they c a l l wharfage on g r a i n coming i n t o the  elevator.  Their e q u i v a l e n t of Canadian wharfage charges  i s the s e r v i c e and f a c i l i t i e s charge, which more adequately d e f i n e s the charge f o r l o a d i n g g r a i n .  A further confusion i s  added i n Vancouver where a s o - c a l l e d cargo r a t e i s charged. This i s , i n f a c t , only a wharfage charge which, f o r some i n e x p l i c a b l e reason, has been separated i n t o a d i f f e r e n t t a r i f f . F i n a l l y there i s a dockage charge o r , as i t i s sometimes  called,  side wharfage. Besides American terminology being b e t t e r , t h e i r charges f o r l o a d i n g v e s s e l s are more r a t i o n a l .  As Appendix V I I I  Canadian P o r t s and Seaway D i r e c t o r y (Gardenvale, Que.; N a t i o n a l Business P u b l i c a t i o n s , 1966), p. 34.  \u000C77 r e v e a l s , the s e r v i c e and f a c i l i t i e s charges i n P o r t l a n d S e a t t l e recognize the v a r y i n g e f f i c i e n c i e s of l o a d i n g i n d i f f e r e n t types of v e s s e l .  and  inherent  Thus a s e l f trimming bulk loaded  i s given a huge advantage over the t r i - d e c k type v e s s e l that i s t y p i c a l of the sample v e s s e l used i n t h i s chapter.  Por  ex-  ample the 11,850 tons of wheat i n the example would cost $1,185.00 to l o a d on the sample v e s s e l .  This p r a c t i c e of  lower r a t e s f o r b u l k c a r r i e r s i s a f e a t u r e i n favour of the United S t a t e s p o r t s .  Even though the charges are now  than i n Vancouver or New  higher  Westminster they are lower than e i t h e r  V i c t o r i a or P r i n c e Rupert.  On the other hand f o r the r e g u l a r  dry cargo v e s s e l the wharfage i n the United States i s much higher than Canada as Table XX and Appendix V I I I show. Dockage i s a charge made i n a p o r t f o r occupation wharf space.  I n most cases dockage i s charged on two  of  scales;  one f o r the working v e s s e l and another f o r the i d l e v e s s e l . 9 The i d l e v e s s e l i s always charged a higher rate\"^ or a p e n a l t y f e e ^ to discourage the use of wharf space by v e s s e l s engaged 1  i n operations  other than l o a d i n g or unloading.  Por example a  g r a i n ship t h a t i s being cleaned or l i n e d i n p r e p a r a t i o n f o r l o a d i n g would i n c u r the p e n a l t y f e e .  Canadian and American  p o r t s use a d i f f e r e n t b a s i s f o r a s s e s s i n g dockage.  Canadian  p o r t s use a l e n g t h of ship b a s i s and American p o r t s have charges on the gross r e g i s t e r e d tonnage.  I n a d d i t i o n the time  p e r i o d of a p p l i c a t i o n of charges a l s o v a r i e s  considerably.  ^ P o r t of S e a t t l e , S e a t t l e Terminals T a r i f f No.lOO-A, March 18, 1966. lOjtfational Harbours Board, T a r i f f of Dockage Buoyage and Booming Ground Charges, Harbour of Vancouver, Feb.25, 1966.  \u000C78 B r i t i s h Columbia P u b l i c Harbours assess dockage on a twentyf o u r hour b a s i s and Vancouver charges on an e i g h t hour p e r i o d . S e a t t l e and P o r t l a n d , on the other hand, charge on f o u r hour p e r i o d s , although t h i s w i l l soon change to e i g h t hour p e r i o d s . One  f i n a l cost i n c u r r e d by ships i s f o r stevedoring.  This i s a complex a c t i v i t y and c o n s i d e r a b l e d i f f i c u l t y i s experienced i n developing comparative c o s t s .  Stevedoring i s  o f t e n arranged by p r i v a t e contact and t o t a l c o s t s w i l l v a r y depending on time taken to l o a d a v e s s e l .  A f u l l study of the  p r a c t i c e s and c o s t s of ship l o a d i n g , because of t h i s has been i m p o s s i b l e .  complexity,  I t appears, however, t h a t labour r a t e s  i n Canada and the United States are approximately  equal.  Table XXI gives the labour r a t e s charged i n the American p o r t s . The S3 .-38 per hour f i g u r e shown i n Table XXI i s the base r a t e f o r a longshoreman i n B r i t i s h C o l u m b i a .  11  A l l of the c o s t s l i s t e d above are i n c u r r e d by ships c a l l i n g a t the p o r t s and t h e r e f o r e i n f l u e n c e the s h i p p i n g concern i n d e c i d i n g which p o r t s are worthwhile  serving.  It is  c l e a r from t h i s standpoint t h a t B r i t i s h Columbia p o r t s have a c o n s i d e r a b l e advantage over the United States p o r t s , assuming t h a t turnaround  times are s i m i l a r .  I f , on the other hand,  ships l o a d f a s t e r and do not encounter delays i n the  apparently  higher c o s t p o r t s i n the United S t a t e s , then the $1,000.00 to $2,000.00 advantage i n B r i t i s h Columbia p o r t s soon disappears. L i t t l e i s known about delays as t h i s i s w r i t t e n , although s t u d i e s are p r e s e n t l y under way to determine the frequency  and  Department of Labour, Wage Rates, S a l a r i e s and Hours of Work, October 1965 (Ottawa; Queen's P r i n t e r , 1966), Table 76.  \u000C79  TABLE X X I SCHEDULE OF MAN-HOUR RATES AT UNITED STATES P A C I F I C PORTS S.T. - s t r a i g h t time S.T.P. - s t r a i g h t t i m e p e n a l t y When B a s e S.T. S c a l e o f Wage is  S.T. Rate i s  . O.T. - overtime P.O.T. - p e n a l t y o v e r t i m e S.T.P. o r O.T. Rate i s  P.O.T. Rate i s  $3.38  $6.09  $7.89  $10.58  3.48  6.25  8.10  10.82  3.53  6.31  8.18  10.99  3.65  6.51  8.46  11.39  3.68  6.53  8.44  11.30  3.78  6.66  8.67  11.68  3.83  6.77  8.82  11.89  3.97  6.88  8.. 9 8  12.13  4.05  7.04  9-15  12.29  4.59  7.82  10.26  13-92  Source:  Seattle  T e r m i n a l s T a r i f f No. 2 - E .  \u000Cseriousness of such delays i n the P o r t of Vancouver.  Until  t h i s r e s e a r c h i s completed any f i r m c o n c l u s i o n s are impossible However, as a l r e a d y noted, the d i f f e r e n c e s i n t e r m i n a l e l e v a t o r operations such as d r y i n g , c l e a n i n g and grading may  tend  to reduce the number of delays and hence favour the United States ports. Comparative E l e v a t o r Costs So f a r the c o s t s of h a l f the t r a n s f e r o p e r a t i o n of g r a i n from l a n d to sea have been considered. i n v o l v e d are those of e l e v a t o r h a n d l i n g .  The other c o s t s  These are l e s s  important f o r comparison purposes f o r two main reasons. they do not a f f e c t s h i p p i n g d i r e c t l y . tion  are p a i d by the shipper.  Pirst  Costs' of g r a i n e l e v a -  I n other words a l l c o s t s on  the land s i d e of the o p e r a t i o n are p a i d by the farmer or seller.  Secondly the farmer's share of expenses of g e t t i n g  g r a i n to the ship may be o f f s e t by government a c t i o n .  Por  example i n the U n i t e d S t a t e s the guaranteed p r i c e p a i d to c e r t a i n farmers i s adjusted to a l l o w him to ship through P o r t l a n d 12 or S e a t t l e i n s t e a d of the Great Lakes.  With, adjustments  such as t h i s the a c t u a l e l e v a t o r charges become a secondary consideration.  Despite these f a c t o r s the l e v e l of charges has  some importance f o r f u t u r e development.  The t o t a l per  bushel  charge i n a United States e l e v a t o r f o r g r a i n r e c e i v e d from a r a i l c a r and d e l i v e r e d to a ship i s 3-3/40 per bushel (Appendix VIII).  The e q u i v a l e n t o p e r a t i o n i n Canada r e t u r n s 2-7/80,  I n f o r m a t i o n obtained i n an i n t e r v i e w w i t h Mr. R. Crabtree, Manager, P a c i f i c Northwest G r a i n and G r a i n Products A s s o c i a t i o n , June 1966.  \u000C81 assuming no c l e a n i n g i n e i t h e r case.  For c l e a n i n g the U n i t e d  S t a t e s charges are a l s o higher a t 20 per bushel f o r a l l g r a i n cleaned whereas i n Canada the maximum charge i s 10 per bushel. For r e l a t i v e l y c l e a n g r a i n of l e s s than 2-1/2% d o c k a g e i s no charge a t a l l .  15  there  Under these circumstances, i n f u t u r e , i t  may be much more f i n a n c i a l l y a t t r a c t i v e to expand f a c i l i t i e s i n the U n i t e d S t a t e s p o r t s than i t i s i n Canada.  !This i s par-  t i c u l a r l y so i f p r i v a t e i n t e r e s t s are expected to b u i l d or l e a s e t e r m i n a l e l e v a t o r s and operate them on a p r o f i t a b l e b a s i s . Other aspects of P a c i f i c Northwest g r a i n e x p o r t i n g are more l i k e l y to a f f e c t the need f o r e l e v a t o r f a c i l i t i e s i n B r i t i s h Columbia.  T r a d i t i o n a l l y the American P a c i f i c Northwest  and B r i t i s h Columbia g r a i n export businesses have been q u i t e d i s t i n c t and d i f f e r e n t .  I n l a r g e measure t h i s s t i l l  exists  today although some important c o m p e t i t i v e trends are developing. Wheat grown i n the P a c i f i c Northwest area comes from e a s t e r n Washington and Oregon and northern Idaho. p r i m a r i l y a white w i n t e r wheat growing area.  This i s  Between 1958  and  1962 between 90% and 95% of wheat p r o d u c t i o n was a white v a r i e t y (Table X X I I ) .  Nearly a l l of the remainder was made up  of hard r e d s p r i n g and s o f t r e d s p r i n g v a r i e t i e s .  T o t a l pro-  d u c t i o n of white wheat ranged between 78 m i l l i o n and 104- m i l l i o n bushels between 1952  and 1 9 6 3  1 4  S t a t e s white wheat p r o d u c t i o n .  and i s about 60% of t o t a l U n i t e d White wheat has been the c h i e f  Dockage as used here r e f e r s to w i l d o a t s , weed seeds e t c . t h a t are removed from g r a i n i n the c l e a n i n g process. 14 'Western Wheat A s s o c i a t e s , U.S.A. Inc. and U.S. Department of A g r i c u l t u r e , Wheat Supply D i s t r i b u t i o n and Value i n the P a c i f i c Northwest, 1962 ( P o r t l a n d , Oregon; November 1963), S t a t i s t i c a l B u l l e t i n No. 2, p. 40. 15  \u000C82  TABLE X X I I WHEAT.: PERCENTAGE OP TOTAL PRODUCTION, BY C L A S S , SELECTED COUNTRIES 1 9 5 5 - 1 9 6 2 Common White \u00B0/ 7\u00B0  n  White Club \u00B0/n  /\u00B0  Hard Red Winter  Other  10.5  .5  7.4  .9  \u00B0L  70  1955  29.0  60.0  1956  49.6  42.1  1957  33.5  53.3  12.9  .3  1958  25.4  64.2  10.2  .2  1959  27.1  6.5-8  6.4  .7  I960  20.9  73-6  5-2  \u20223  1961  28.2  66.6  4.9  .2  1962  57.6  37.8  4.0  .6  S o u r c e : W e s t e r n Wheat A s s o c i a t e s , U . S . A . I n c . a n d U n i t e d S t a t e s D e p a r t m e n t o f A g r i c u l t u r e , Wheat S u p p l y D i s t r i b u t i o n and Value i n the P a c i f i c Northwest, S t a t i s t i c a l B u l l e t i n #2, 1 9 6 3 , p . 4 2 .  \u000C83 v a r i e t y exported from the P a c i f i c Northwest area although s i n c e 1950 hard r e d w i n t e r wheat has been exported from the area, most of t h i s o r i g i n a t e d i n Montana and some i n Utah and Southern 15 Idaho. '  A l l of these exports are a d i f f e r e n t v a r i e t y than  Canadian exports.  Canada's wheat i s l a r g e l y hard s p r i n g wheat  used p r i m a r i l y f o r m i l l i n g and bread making.  Canada's s u p e r i o r  wheat f o r t h i s purpose has t h e r e f o r e experienced no s e r i o u s comp e t i t i o n from P a c i f i c Northwest v a r i e t i e s .  Three r e c e n t develop-  ments may change t h i s s i t u a t i o n . The f i r s t and most important event i s the l o w e r i n g o f r a i l f r e i g h t r a t e s on export g r a i n from the c e n t r a l p l a i n s t o the P a c i f i c c o a s t .  The r a t e , a t 700 per hundred pounds from  North and South Dakota, i s f a r h i g h e r than Canada's Crows' Nest Pass r a t e s .  However other f a c t o r s such as P u b l i c Law 480,  which p r o v i d e s f o r s u b s i d i z e d g r a i n exports to poor n a t i o n s could combine w i t h lower r a t e s to make i t economically f e a s i b l e to export through P a c i f i c Coast p o r t s .  The second event i s  the establishment of f l o u r m i l l s i n the P h i l l i p i n e s .  The  Americans have d i r e c t l y p a r t i c i p a t e d i n e s t a b l i s h i n g these new mills.  Consequently wheat i s blended and exported i n the  U n i t e d S t a t e s r a t h e r than being m i l l e d i n t o f l o u r and then exported.  This too i s another demand f o r the hard s p r i n g wheat  of the c e n t r a l p l a i n s . The t h i r d f a c t o r t h a t c o u l d a f f e c t Canada's c o m p e t i t i v e p o s i t i o n i s the e f f o r t of the P a c i f i c Northwest g r a i n growers to educate the Japanese i n the use of American wheat. Western Wheat A s s o c i a t e s , p. 54.  This  \u000C84 program has been going on s i n c e the mid-1950's w i t h the d i r e c t aim of g a i n i n g a l a r g e r share of the Japanese cash market f o r w h e a t . U n l i k e exports under P u b l i c Law 4-80, t h i s scheme i s d i r e c t l y competitive w i t h Canada because i t i s i n the cash r a t h e r than s u b s i d i z e d market. The lower r a t e s on wheat to be competitive w i t h Canada are apparently having r e s u l t s . 17  The  1959-63 average i n s h i p -  ments ' were 61,130,000 bushels and i n 1964-65 t h i s was up to 65,430,000 bushels.  However s i n c e the new r a i l r a t e s became  e f f e c t i v e i n June of 1965, inshipments of wheat f o r the f i r s t three-quarters of 1965-66 crop year are 63% greater than the f i r s t t h r e e - q u a r t e r s of 1964-65 (Table X X I I I ) .  S i m i l a r l y ex-  p o r t s of inshipments are up 52% over the same p e r i o d . There i s no way to conclude from the s t a t i s t i c s whether Japan i s r e c e i v i n g g r e a t e r shipments.  However, people  assoc-  i a t e d w i t h the American g r a i n trade have s a i d that t h e i r  objec-  t i v e s of g a i n i n g more o f the Japanese market are meeting w i t h 1P  success.  As t o exports of s p r i n g wheat i t i s a l s o hard to  estimate the volume s i n c e p a r t of the inshipments are hard w i n t e r wheat, but the f a c t t h a t such a l a r g e i n c r e a s e has occurred i n one year i n d i c a t e s a new source i s being tapped. W e s t e r n Wheat A s s o c i a t e s , p. 56. ^ I n s h i p m e n t s i n the P a c i f i c Northwest g r a i n s t a t i s t i c s means g r a i n handled i n the P a c i f i c Northwest g r a i n growing r e g i o n o f Washington, Oregon and Northern Idaho, but grown outside the r e g i o n . For example, wheat exported through P o r t l a n d and grown i n Montana i s an inshipment. 16  1Q  Information obtained i n i n t e r v i e w s and d i s c u s s i o n s w i t h v a r i o u s g r a i n i n t e r e s t s i n P o r t l a n d , Oregon.  \u000C85 TABLE X X I I I INSHIPMENTS AND OUTSHIPMENTS OP WHEAT: PACIFIC NORTHWEST 1 9 5 9 - 6 5 AVERAGE AND CROP YEARS 1964 AND 1965 BY QUARTERS  A l l Wheat 1 9 5 9 - 6 5 Avg.  J u l y - Sept. Oct. - Dec. Jan. - Mar. Apr. - June Crop Year 1964 July Sept. Oct. Dec. Jan. Mar. Apr. June Crop Year 1965  J u l y - Sept. Oct. - Dec. Jan. - Mar. Apr. - June Crop Year White Wheat 1965  Oct. Jan.  - Dec. - Mar.  Inshipments Outshipments ( r a i l &amp; truck) (thousands of b u s h e l s ) 18,739 14,576  28,783  15,595  38,255  14.420  35,506 54,895  61,150  135,237  25,015  19,493  12,567 15,765 16,285  30,257  38,700  65,450  143,705  55,647 22,858 21,567 N.A.  56,881 46,689 51,445 N.A.  Outshipments 51,279 29,776  % o f Outshipments 68 58  Source: U n i t e d S t a t e s Department o f A g r i c u l t u r e S t a t i s t i c a l R e p o r t i n g S e r v i c e , P a c i f i c Northwest Wheat Summary Q u a r t e r l y Report, May 2 , 19667 Mimeo.  \u000C86 I t i s c l e a r t h a t l a r g e q u a n t i t i e s of inshipments are being exported.  Approximately 32% and 42% of outshipments  were non-  white wheat i n the October-December and January-March quarters of the c u r r e n t crop year.  This represented '67% arid 100% of  inshipments i n the two quarters r e s p e c t i v e l y , thus i n d i c a t i n g the c h i e f inward movement i s f o r d i r e c t export which i s a change from the past when most inshipments were f o r m i l l i n g  purposes.  Approximately o n e - t h i r d of exports of wheat through B r i t i s h Columbia are bound f o r Japan and before the l a r g e Chinese wheat s a l e s i t was as h i g h as one-half.  Therefore any  s e r i o u s inroads i n t o t h i s market by the U n i t e d S t a t e s s u p p l i e r s could m a t e r i a l l y reduce Canada's exports to that country. Beyond the Japanese market however, Canada and the United S t a t e s do not compete i n the P a c i f i c .  The United S t a t e s i s a s u p p l i e r  of l a r g e q u a n t i t i e s o f g r a i n to under-developed as I n d i a , P a k i s t a n , South Korea and Pormosa.  c o u n t r i e s such Such s a l e s are  made p o s s i b l e by United S t a t e s P u b l i c Law 480 which allows f o r under-developed  c o u n t r i e s to pay f o r the g r a i n i n t h e i r own  c u r r e n c i e s r a t h e r than d o l l a r s . surplus d i s p o s a l program.  In effect this i s a subsidized  Since Canada i s c h i e f l y a cash d o l -  l a r s e l l e r , the c o u n t r i e s s u p p l i e d under the P u b l i c Law 480 program c o u l d not buy from Canada, even without the U n i t e d States plan.  On the other hand Canada i s e x p l o i t i n g markets  i n which the U n i t e d States cannot p r e s e n t l y s e l l because of p o l i t i c a l considerations.  China i s excluded from United  S t a t e s trade by d e l i b e r a t e choice of the American government and R u s s i a i s e f f e c t i v e l y c u t o f f from United S t a t e s g r a i n s u p p l i e s by s h i p p i n g r e g u l a t i o n s t h a t make purchases  i n the  \u000C87 United S t a t e s too c o s t l y f o r the Russians.  As a r e s u l t Canada  has b e n e f i t e d immensely from l a r g e g r a i n s a l e s to these two countries.  I t should be remembered however t h a t t h i s present  l a r g e market i s based upon p o l i t i c a l c o n s i d e r a t i o n s which can and v e r y p o s s i b l y w i l l change i n the f u t u r e .  When and i f such  changes come the p o s i t i o n of Canadian g r a i n and B r i t i s h Columbia p o r t s i n r e l a t i o n to R u s s i a and China could change d r a s t i c a l l y . Indeed, i t appears t h a t China, p a r t i c u l a r l y , does not need Canada's h i g h q u a l i t y wheat but merely buys wherever i t i s available.  The f a c t t h a t o n l y grades f o u r and f i v e are pur-  chased i n d i c a t e s h i g h q u a l i t y i s not important.  Furthermore,  c o n s i d e r i n g China's d i e t and standard of l i v i n g , s o f t wheat, i f i t were a v a i l a b l e , would l i k e l y be p r e f e r a b l e . ' To summarize b r i e f l y , t h i s chapter\" has shown t h a t the U n i t e d S t a t e s p o r t s are capable of a h i g h standard of g r a i n l o a d i n g e f f i c i e n c y which, f o r ocean v e s s e l s , i s probably super i o r t o B r i t i s h Columbia.  O f f s e t t i n g these s e r v i c e advantages  are c o n s i d e r a b l e c o s t disadvantages pared to B r i t i s h Columbia p o r t s .  of United States p o r t s com-  The above f a c t o r s of s e r v i c e  and cost w i l l o n l y apply when g r a i n s i n the two c o u n t r i e s compete i n t h e same market.  A t present t h i s a p p l i e s almost  e x c l u s i v e l y to the Japanese market.  However f u t u r e p o l i t i c a l  and economic changes can and over the long r u n w i l l expand the sphere of c o m p e t i t i o n between the U n i t e d States and Canada. As t h i s occurs p o r t s and g r a i n handling f a c i l i t i e s w i l l take on much more importance f o r competitive purposes.  \u000C88  CHAPTER VI FUTURE REQUIREMENTS FOR GRAIN HANDLING FACILITIES IN BRITISH COLUMBIA The purpose of t h e f i n a l chapter of t h i s t h e s i s i s to s t a t e the f u t u r e needs f o r g r a i n handling on the P a c i f i c Coast' of Canada.  I t i s , i n e f f e c t , the attainment of the o r i g i n a l  o b j e c t i v e of t h i s t h e s i s s t a t e d i n Chapter I . I t represents the o p i n i o n of the author formed and drawn from the f a c t s and argument o f the previous f i v e  chapters.  The c h i e f c o n c l u s i o n of t h i s t h e s i s i s that the B r i t i s h Columbia coast' w i l l need more g r a i n handling f a c i l i t i e s i n the near f u t u r e .  The c o n d i t i o n s i n the markets served by t h i s  area, the changing p a t t e r n of cargoes, new s h i p s , and competi t i v e f o r c e s from the U n i t e d States a l l support t h i s c o n c l u sion.  Before any conclusions as to new f a c i l i t i e s are reached  however, c u r r e n t developments regarding g r a i n e l e v a t o r s should be mentioned. New E l e v a t o r s Now Planned Reference has been made s e v e r a l times to a new Saskatchewan Wheat P o o l t e r m i n a l e l e v a t o r being c o n s t r u c t e d i n t h e P o r t of Vancouver.  Because i t i s p a r t of the f u t u r e develop-  ment i n B r i t i s h Columbia, a n a l y s i s of i t s place i n g r a i n handl i n g has been l e f t to t h i s f i n a l chapter.  This new e l e v a t o r  w i l l be a major a d d i t i o n t o west coast g r a i n h a n d l i n g I t s c a p a c i t y w i l l be 5.2 m i l l i o n Bushels  facilities.  (Appendix X ) , which  \u000C89 i s a 20% a d d i t i o n to B r i t i s h Columbia storage c a p a c i t y and about a 25% a d d i t i o n to the storage c a p a c i t y i n the P o r t o f Vancouver.  At present r a t e s of annual turnover, i t should add  between 4-0 m i l l i o n and 4-7 m i l l i o n bushels t o the B r i t i s h Columbia export c a p a c i t y .  Other f e a t u r e s of the new e l e v a t o r  i n d i c a t e annual handlings P i r s t , unloading  could e a s i l y be higher than t h i s .  c a p a c i t y w i l l be high r e l a t i v e to the other  l a r g e e l e v a t o r s i n Vancouver. storage  With f i v e m i l l i o n bushels of  c a p a c i t y the e l e v a t o r w i l l unload 128 boxcars i n an  eight-hour  shift.  A l b e r t a Wheat P o o l , w i t h over seven m i l l i o n  bushels of storage c a p a c i t y , unloads about the same number of cars.  Secondly the shipping c a p a c i t y i s the highest of any  elevator.  Two l a r g e shipping b e l t s w i l l be able to l o a d  100,000 bushels per hour when two ships are berthed. means t h a t i n an eight-hour  This  s h i f t 800,000 bushels could be  loaded or 2-1/2 times the c a p a c i t y of the A l b e r t a Wheat P o o l . Furthermore the shipping f a c i l i t i e s w i l l be able to l o a d ships of 4-5,000 tons c a p a c i t y .  This makes the new e l e v a t o r p a r t i c -  u l a r l y important f o r l o a d i n g l a r g e bulk c a r r i e r s .  Besides an  important a d d i t i o n t o the P o r t of Vancouver i n terms of capa c i t y , t h i s new Saskatchewan Wheat Pool e l e v a t o r i s an import a n t a d d i t i o n to e f f i c i e n c y because i t w i l l be able t o serve the newer l a r g e s h i p s .  This presumes, of course, t h a t b o t t l e -  neck problems of c l e a n i n g or d r y i n g do not a r i s e .  With 32 g r a i n  c l e a n e r s o f the l a t e s t and most e f f i c i e n t k i n d the former seems u n l i k e l y although d r y i n g w i l l continue  to be a problem from  time to time since only one dryer i s being  installed.  \u000C90  S a i l f a c i l i t i e s w i l l not be a problem i n the i n s t a l l a t i o n f o r two reasons.  new  F i r s t i t s l o c a t i o n on the North  Shore of Burrard I n l e t means there i s adequate space f o r r a i l sidings.  Secondly the p r o j e c t c o i n c i d e s w i t h the improvements  being made by the Canadian N a t i o n a l Railway i n the same area. This i n d i c a t e s the new rail  e l e v a t o r w i l l be w e l l equipped w i t h  facilities. Another e l e v a t o r i n s t a l l a t i o n i n S e a t t l e , Washington,  has important i m p l i c a t i o n s f o r B r i t i s h Columbia and should noted.  L i k e the new  under way.  be  Vancouver i n s t a l l a t i o n i t i s j u s t g e t t i n g  I n terms of c a p a c i t i e s i t i s v e r y s i m i l a r to the  new Vancouver e l e v a t o r .  Storage c a p a c i t y of the S e a t t l e e l e -  vator w i l l be f i v e m i l l i o n bushels and the l o a d i n g r a t e to v e s s e l s w i l l be 1 0 0 , 0 0 0 bushels per h o u r . ture of the new  1  The s t r i k i n g f e a -  S e a t t l e i n s t a l l a t i o n i s the f a c t t h a t there  w i l l be 65 f e e t of water alongside.  Consequently any ship  i n the g r a i n trade w i l l be able to l o a d to f u l l  now  capacity.  Furthermore the e l e v a t o r should be able to serve p r a c t i c a l l y every ship f o r years to come, i n c l u d i n g the l a r g e s t ones of up to 2 0 0 , 0 0 0 tons now being b u i l t .  This new  elevator i n Seattle  w i l l make t h a t p o r t very competitive w i t h Canadian f a c i l i t i e s and improve the p o s i t i o n of S e a t t l e as a g r a i n e x p o r t i n g p o r t . Although the Columbia R i v e r p o r t s may  s u f f e r more from the  competition of S e a t t l e because of the p e c u l i a r i t i e s of g r a i n marketing i n the United S t a t e s , i t should be remembered that i f changes i n American marketing c o n d i t i o n s occur, S e a t t l e \" 5 , 0 0 0 , 0 0 0 Bushel Grain F a c i l i t y Planned by P o r t , \" P o r t of S e a t t l e Reporter, May 1966, p. 4-.  \u000C91  w i l l have the handling f a c i l i t i e s to compete e f f e c t i v e l y w i t h B r i t i s h Columbia.  I f B r i t i s h Columbia l a c k s e f f i c i e n t f a c i l -  i t i e s the competition of S e a t t l e could be harmful to Canada's g r a i n trade. t h a t new  The c o n c l u s i o n to be drawn from t h i s a n a l y s i s i s  e f f i c i e n t f a c i l i t i e s are needed i n B r i t i s h Columbia  not only to m a i n t a i n a c e r t a i n volume of exports but, j u s t as i m p o r t a n t l y , to ensure present Canadian customers continue  to  buy Canadian g r a i n . Future E l e v a t o r Requirements Present i n d i c a t i o n s are t h a t B r i t i s h Columbia e l e v a t o r c a p a c i t y i s operating at or near i t s c a p a c i t y w i t h  turnovers  between e i g h t and nine times i n the very busy year of 1963-64 (Table 71), and w i l l p o s s i b l y be s l i g h t l y higher than t h i s i n 1965-66.  These turnovers  i n busy years r e s u l t i n delay prob-  lems f o r v e s s e l s and r a i l w a y s as has been s t a t e d e a r l i e r . c o n c l u s i o n t h a t B r i t i s h Columbia's f a c i l i t i e s are  The  being  u t i l i z e d at or near c a p a c i t y i s f u r t h e r supported by a study made f o r the P o r t l a n d Commission of P u b l i c Docks. t h a t P o r t l a n d ' s annual c a p a c i t y to handle g r a i n was  I t stated about ten  p  times i t s storage c a p a c i t y .  I t i s concluded then, t h a t  B r i t i s h Columbia w i l l need more g r a i n handling f a c i l i t i e s i n the near f u t u r e .  The  exact amount of new  elevator capacity  t h a t w i l l be needed i s impossible to p r e d i c t i n t h i s t h e s i s but two s p e c i f i c s t u d i e s would be u s e f u l i n making t h i s p r e d i c t i o n . F i r s t , a thorough study of e l e v a t o r operations 2  to determine the  See the unpublished Ph.D. t h e s i s ( U n i v e r s i t y of C a l i f o r n i a , 1966) by James M. Ashbaugh, \"A Geography of the Columbia R i v e r P o r t s , U n i v e r s i t y M i c r o f i l m s Inc., Ann Arbor, Michigan, p. 122.  \u000C92 most e f f i c i e n t turnover of c a p a c i t y and the most e f f i c i e n t s i z e of e l e v a t o r .  This i s p o s s i b l y known by the e l e v a t o r companies  but does not appear to be a v a i l a b l e otherwise.  Second, a de-  t a i l e d market study should be undertaken to make a v a i l a b l e some e s t i m a t i o n of the a c t u a l volume that may be exported or t e n y e a r s  !  i n five  time.  L o c a t i o n of new f a c i l i t i e s i s another problem to be r e s o l v e d and i n v o l v e s the c o n s i d e r a t i o n of p o r t e f f i c i e n c y . Vancouver w i l l soon have new f a c i l i t i e s capable of e f f i c i e n t handling of a l l types of v e s s e l now  i n the g r a i n t r a d e .  As  p o i n t e d out i n e a r l i e r chapters, Vancouver i s a p o r t c o n t a i n ing  many of the advantages t h a t a t t r a c t ocean s h i p p i n g . Modern  f a c i l i t i e s f o r g r a i n h a n d l i n g add to t h a t a t t r a c t i v e n e s s . However one new  e l e v a t o r w i l l not be s u f f i c i e n t to serve  the  i n c r e a s i n g number of l a r g e bulk c a r r i e r s i n the g r a i n t r a d e . ^ Nor w i l l i t be s u f f i c i e n t to handle the c o n s t a n t l y r i s i n g demand f o r export g r a i n through B r i t i s h Columbia. I n e f f i c i e n c y w i l l increase as the o l d e l e v a t o r s become more obsolete i n the face of new  ships and s h i p p i n g  There i s a need t h e r e f o r e to modernize present This may  techniques.  facilities.  not always be p o s s i b l e due to l i m i t a t i o n s of  e l e v a t o r design or l i m i t a t i o n s of p h y s i c a l space.  present  For example  on the south shore of Burrard I n l e t i t would be d i f f i c u l t to g r e a t l y i n c r e a s e the r a i l f a c i l i t i e s at the e l e v a t o r s . l a r l y some of the present s m a l l e l e v a t o r s may be ^Col. E. B. Oram, Cargo Handling (London: Pergamon P r e s s , 1965), p. 119'  Simi-  restricted  and the Modern P o r t  \u000C93 for  space f o r b u i l d i n g new  l a r g e r e l e v a t o r s may rates.  storage  silos.  have l a t i t u d e f o r expanding  F o r example the 7.3  the  handling  m i l l i o n b u s h e l A l b e r t a Wheat F o o l  e l e v a t o r c o u l d p o s s i b l y i n s t a l l new to t h o s e o f the new  Conversely  loading  galleries similar  Saskatchewan Wheat P o o l  elevator.  L o c a t i o n o f F u t u r e Development - Vancouver Larger w i l l be  s h i p s w i l l mean l a r g e r and  necessary.  Any  the  s h i p s a t t r a c t e d by  C u r r e n t l y the U n i t e d t h i s reason.  lengthening  rapid loading  berths  facilities.  G r a i n Growers b e r t h i s b e i n g  extended f o r  General harbour f a c i l i t i e s must a l s o be  to accommodate l a r g e s h i p s . remove l i m i t s to s h i p p i n g Vancouver Harbour. to 50 f e e t has  berths  e x p a n s i o n of l o a d i n g c a p a c i t i e s a t  e l e v a t o r s would n e c e s s i t a t e deepening and t o serve  deeper s h i p  Therefore  a t the F i r s t  Such a p r o p o s a l  a l r e a d y been made by  Board o f f i c e b u t ,  i t w i l l be n e c e s s a r y to Narrows e n t r a n c e to  f o r deepening the  entrance  the l o c a l N a t i o n a l  as y e t , no d e c i s i o n has  or i f the p r o j e c t w i l l be u n d e r t a k e n .  Harbours  been made as to when  Before l a r g e - s c a l e  i n v e s t m e n t s are u n d e r t a k e n however, f u r t h e r r e s e a r c h v e s s e l s t h a t w i l l be  adequate  port  into  the  i n the g r a i n t r a d e would be h e l p f u l .  It  i s s u g g e s t e d t h a t h a r b o u r s w i l l have to accommodate the l a r g e s t s h i p s i f t h e y hope to compete but The  l a r g e s t tankers,  for  the g r a i n t r a d e  Self-trimming  t h i s i s not  necessarily true.  f o r example, are i n many ways i l l - e q u i p p e d and  i n d e e d may  never be used f o r g r a i n .  b u l k c a r r i e r s are more l i k e l y to dominate  t r a d e , hence the r e q u i r e m e n t s and  f u t u r e development of  a c t u a l l y using  s t u d i e d when p o r t  the p o r t should  be  the vessels  investments  \u000Care  contemplated.  B y d o i n g t h i s , i n v e s t m e n t s c a n he made  r e l a t i v e t o a c t u a l c o n d i t i o n s r a t h e r t h a n some h y p o t h e t i c a l \"maximum s h i p s i z e \" c r i t e r i a t h a t may s e r v e no p u r p o s e . Hew W e s t m i n s t e r and V i c t o r i a New W e s t m i n s t e r and V i c t o r i a , two p o r t s now h a n d l i n g g r a i n i n B r i t i s h C o l u m b i a , do n o t w a r r a n t e x p a n s i o n o f f a c i l ities.  New W e s t m i n s t e r i s l i m i t e d b y t h e E r a s e r R i v e r and  t h e r e i s no a p p a r e n t r e a s o n i n t h e f o r e s e e a b l e f u t u r e f o r t h e r i v e r t o be deepened t o h a n d l e l a r g e b u l k s h i p s , w i t h t h e deep h a r b o u r o f Vancouver  c l o s e by.  particularly  The r a t i o n a l e  f o r not developing V i c t o r i a i s that shipping through t h i s p o r t i n v o l v e s a barge h a u l from the mainland. affect  W h i l e t h i s does n o t  t h e f r e i g h t r a t e o f s h i p p i n g g r a i n , i t does i n v o l v e  g r e a t e r economic c o s t t o t h e C a n a d i a n N a t i o n a l R a i l w a y . can b e s t be a v o i d e d b y r e s t r i c t i n g as much as p o s s i b l e ments t h r o u g h t h i s p o r t .  A n o t h e r drawback i s t h a t  This ship-  Victoria  has a v e r y s m a l l h a r b o u r and e x p a n s i o n would t h e r e f o r e r e q u i r e a costly  e x t e n s i o n of the present a r t i f i c i a l  harbour.  P r i n c e R u p e r t i s t h e o n l y o t h e r h a r b o u r where s i o n of g r a i n h a n d l i n g f a c i l i t i e s present time.  expan-  c a n be j u s t i f i e d a t t h e  The l a r g e n a t u r a l h a r b o u r means t h e r e a r e no  r e s t r i c t i o n s o f space o r d e p t h .  Furthermore the l a r g e  rail  i n s t a l l a t i o n s i n P r i n c e Rupert would p r e c l u d e the expansion of t h a t f a c i l i t y .  F i n a l l y P r i n c e R u p e r t i s about 540 m i l e s 4 c l o s e r t o t h e F a r E a s t e r n market t h a n s o u t h c o a s t p o r t s . See t h e u n p u b l i s h e d M a s t e r ' s t h e s i s ( U n i v e r s i t y o f B r i t i s h C o l u m b i a , 1951) h y A. D. C r e r a r , \" P r i n c e Rupert,B.C. The S t u d y o f a P o r t and i t s H i n t e r l a n d , \" p. 1 5 4 .  \u000COn the other hand there are s e v e r a l disadvantages of P r i n c e Rupert as a g r a i n export p o r t .  Further i n v e s t i g a t i o n  i n t o these could p o s s i b l y r e v e a l t h a t the disadvantages outweigh the advantages of expansion i n P r i n c e Rupert.  Chief  among the disadvantages i s P r i n c e Rupert's d i s t a n c e from the other p o r t s i n B r i t i s h Columbia.  I n general terms the south  coast p o r t s are t o some extent complementary.  P r i n c e Rupert  i s so f a r from t h i s area t h a t ships r e g u l a r l y c a l l i n g i n the south coast area r a r e l y go near P r i n c e Rupert.  Furthermore i f  ships do c a l l a t P r i n c e Rupert they f i n d few cargoes are a v a i l able beyond g r a i n and some lumber. enough to be a t t r a c t i v e t o s h i p p i n g .  Thus the p o r t i s not d i v e r s e This i s o f f s e t to some  extent by the f a c t t h a t g r a i n shipped from P r i n c e Rupert goes as a f u l l cargo.  Hence other cargoes are of no importance t o  these c h a r t e r v e s s e l s .  A f i n a l disadvantage of P r i n c e Rupert  i s i t s g r e a t e r d i s t a n c e from the g r a i n growing i n t e r i o r .  This  a d d i t i o n a l 200 mile haul a t the same f r e i g h t r a t e s a p p l y i n g to Vancouver i s , t h e r e f o r e , an a d d i t i o n a l cost to the r a i l w a y s . Despite the disadvantages,  P r i n c e Rupert i s a d e s i r a b l e l o c a -  t i o n f o r the expansion of g r a i n handling f a c i l i t i e s i n B r i t i s h Columbia. New f a c i l i t i e s i n P r i n c e Rupert should be r e l a t i v e l y l a r g e t o a l l o w e f f i c i e n t l o a d i n g of the l a r g e s t s h i p s . m i l l i o n bushel e l e v a t o r a t t h i s p o r t , w i t h s i m i l a r  A five  unloading  and l o a d i n g c a p a c i t i e s as the new Saskatchewan Wheat P o o l e l e v a t o r i n Vancouver would a l l o w easy l o a d i n g of the l a r g e s t b u l k c a r r i e r s t h a t are being planned a t the present time and  \u000C96  would give B r i t i s h Columbia f a c i l i t i e s equal to S e a t t l e ' s  new  elevator. Other Requirements There are some other changes i n g r a i n h a n d l i n g  that  could expand handling c a p a c i t i e s without a d d i t i o n a l e l e v a t o r installations. ing.  The f i r s t i s concerned w i t h grading and  clean-  I t has been noted t h a t Canada has a rigourous and w e l l  known h i g h standard  of grading and c l e a n i n g g r a i n .  gested t h a t i n some i n s t a n c e s the standard may  I t i s sug-  be too h i g h .  This a p p l i e s p a r t i c u l a r l y to China and other under-developed areas t h a t need wheat but not n e c e s s a r i l y of a c o n s i s t e n t h i g h grade.  I n these cases i t may  be p r a c t i c a l to s e l l an uncleaned  grade at a lower p r i c e than the r e g u l a r Canadian Wheat Board grades.  I t i s p o s s i b l e t h a t p o t e n t i a l markets such as I n d i a  would be more i n t e r e s t e d i n buying t h i s lower q u a l i t y g r a i n at a lower p r i c e .  I t could a l s o help e s t a b l i s h China as a longer  term customer.  China p a r t i c u l a r l y i s not i n t e r e s t e d i n high  q u a l i t y g r a i n because the b u l k of her purchases at the present time are of the lowest grades.  Obviously,  i f such a scheme as  s e l l i n g uncleaned wheat were worked out, the e l e v a t o r s could put g r a i n through more r a p i d l y i f c l e a n i n g and grading were e l i m i n a t e d or reduced. Another change t h a t should be considered s p e c i a l i z e d g r a i n cars on the r a i l w a y s . both e l e v a t o r and r a i l w a y e f f i c i e n c y .  i s the use  of  This could improve These g r a i n cars c a r r y  the e q u i v a l e n t of three l a r g e boxcars of g r a i n , yet can  be  dumped i n the same time as one boxcar on a car dumper.  In  \u000Ce l e v a t o r s without a car dumper the time saving would be even greater.  New handling b e l t s and c l e a n i n g equipment would be  necessary  i n the s m a l l e r e l e v a t o r s but the added e f f i c i e n c y of  the l a r g e r cars could make t h i s worthwhile.  F i n a l l y , using  these l a r g e g r a i n cars would a l l e v i a t e the r a i l w a y trackage problem by a l l o w i n g a much greater volume of d e l i v e r i e s on the same trackage.  I n Vancouver t h i s i s p a r t i c u l a r l y  important.  One f i n a l change t h a t i s recommended deals not w i t h f a c i l i t i e s but w i t h p r i c i n g p r a c t i c e s . U l t i m a t e l y t h i s would a f f e c t the u t i l i z a t i o n and demand f o r g r a i n h a n d l i n g ities.  facil-  Wheat p r i c e quotations are c o n s i s t e n t l y higher at 5  Vancouver than at Lakehead or S t . Lawrence p o r t s .  No amount  of r e s e a r c h r e v e a l s a v a l i d economic reason f o r the higher Vancouver p r i c e and one can only reach the c o n c l u s i o n t h i s s i t u a t i o n e x i s t s to keep wheat moving through E a s t e r n Canada. I n other words i t i s a p r a c t i c e to r e s t r i c t B r i t i s h Columbia's competitive p o s i t i o n .  I f t h i s i s t r u e , and i t appears t h a t i t  i s * then i t should be removed.  I t s removal would favour  B r i t i s h Columbia exports to Europe and would r e s u l t i n an even g r e a t e r n e c e s s i t y f o r expanded g r a i n h a n d l i n g f a c i l i t i e s  on  the P a c i f i c Coast of Canada. Each of the above suggestions f o r change i n the mark e t i n g procedures f o r g r a i n could be a subject f o r r e s e a r c h . I d e a l l y a comprehensive study of the whole system of g r a i n h a n d l i n g , from farm to f i n a l d e l i v e r y aboard s h i p , should be undertaken.  The suggested changes i n t h i s chapter would be  ^Dominion Bureau of S t a t i s t i c s , G r a i n Trade of Canada 1964-65 (Ottawa; Queen's P r i n t e r , 1966), p. 76.  \u000C98 t o p i c s f o r r e s e a r c h w i t h i n a f u l l system study.  Findings  could then be r e l a t e d to the system and u l t i m a t e l y would l e a d to a s e t of recommendations f o r r a t i o n a l i z i n g the whole g r a i n handling  procedure. Throughout t h i s t h e s i s an attempt has been made to  develop a p i c t u r e of g r a i n handling  on the P a c i f i c Coast of  Canada t h a t shows the g r a i n p o r t s of B r i t i s h Columbia i n r e l a t i o n to world markets, other Canadian export p o i n t s l o c a l competitive  p o r t s i n the U n i t e d S t a t e s .  The  and  conclusion  of t h i s a n a l y s i s i s t h a t B r i t i s h Columbia has a p a r t i c u l a r l y advantageous p o s i t i o n i n a l l r e s p e c t s . to the competition  of American p o r t s .  Costs are low  relative  The g r a i n products  o f f e r e d are i n strong and growing demand on the world market and f i n a l l y ,  the p o r t s , p a r t i c u l a r l y Vancouver and  Prince  Rupert, have e x c e l l e n t harbours t h a t have good o p p o r t u n i t i e s f o r expansion of g r a i n handling ments i n g r a i n handling now  facilities.  With the improve-  planned as w e l l as those recommended  i n t h i s t h e s i s the p o r t s of B r i t i s h Columbia w i l l not only maint a i n but would advance t h e i r p o s i t i o n i n world trade.  \u000C99 BIBLIOGRAPHY P r i n t e d Sources Books Bross, Steward R. Ocean Shipping. Maritime Press, 1 9 5 6 '  Cambridge, Mass., C o r n e l l  Campbell, F. S. ed. P o r t s , Dues, Charges and London, G. P h i l i p and Son L t d . , 1 9 6 4 .  Accommodation.  Canadian P o r t s and Seaway D i r e c t o r y . Gardenvale, Quebec, N a t i o n a l Business P u b l i c a t i o n s , 1966. McElwee, R. S.  P o r t Development.  New York, McGraw H i l l , 1 9 2 6 .  MacGibbon, D. A. The Canadian G r a i n Trade. Company, 1 9 3 2 . Morgan, F. W. P o r t s and Harbours. University Library, 1 9 5 2 .  Toronto, M a c M i l l a n  London, Hutchinson's  Oram, C o l . R. B. Cargo Handling and the Modern P o r t . Pergamon P r e s s , 1 9 6 5 .  London,  Ward, Barbara. The R i c h Nations and the Poor Nations. New York, W. W. Norton and Company, 1 9 6 2 . Y a t e s , D. \" G r a i n and the P o r t of Vancouver.\" Symposium on the P o r t of Vancouver Proceedinp;s. ed., Robert W. C o l l i e r (U.B.C. 1 9 6 6 ) , 8 7 - 9 0 . Government P u b l i c a t i o n s Board of G r a i n Commissioners. Canadian G r a i n Exports f o r the Crop Year 1 9 6 4 - 6 5 * Ottawa, Queen's P r i n t e r , 1 9 6 5 Bureau of Economics and S t a t i s t i c s . P r e l i m i n a r y Statement of E x t e r n a l Trade Through B r i t i s h Columbia Customs P o r t s f o r the Calendar Year 1964. V i c t o r i a , 1964. Department of Labour. Wage Rates, S a l a r i e s , and Hours of Work, October 1 9 6 5 \u2022 Ottawa, Queen's P r i n t e r , 1966. Dominion Bureau of S t a t i s t i c s . G r a i n Trade of Canada Ottawa, Queen's P r i n t e r , 1 9 6 5 * Dominion Bureau of S t a t i s t i c s . Queen's P r i n t e r , 1 9 6 5 .  Shipping Report.  1964-6;?.  Ottawa,  \u000C100 F r a s e r R i v e r Harbour Commission.  1st Annual Report.  1965.  N a t i o n a l Harbours Board. T a r i f f of Dockage, Buoyage, and Booming Ground Charges, Harbour of Vancouver. Feb. 23,  1966.  P o r t of S e a t t l e . S e a t t l e Terminals T a r i f f No. 100-A. March 18, 1966T ; Western Wheat A s s o c i a t e s and U.S. Department of A g r i c u l t u r e . Wheat Supply, D i s t r i b u t i o n and Value i n the P a c i f i c Northwest, 1962. P o r t l a n d , Oregon, November 1963 ( S t a t i s t i c a l B u l l e t i n No. 2). P e r i o d i c a l s and Newspapers Best, John. \"Canada S e l l s $800 M i l l i o n Wheat, F l o u r to Russians.\" Vancouver Sun, June 20, 1966, p. 1. \"B. C. G r a i n Exports f o r the Month of March.\" S h i p p i n g , XLIX ( A p r i l 1966), 270.  Harbour and  E a r l , L. T. \"A Record Crop and A l l S o l d . \" Western Business and I n d u s t r y , XXXIX (November 1965), 26a. Edmonds, J . K. \"Behind the B i g West G r a i n Backup.\" P o s t , March 14, 1966, p. 1 f f . \"5,000,000 Bushel G r a i n F a c i l i t y Planned by P o r t . \" S e a t t l e Reporter, May 1966, p. 4.  Financial P o r t of  Gibbings, C. W. \"A B u l l i s h Future f o r Canadian G r a i n . \" Western Business and I n d u s t r y , XXXVIII (November 1964), 18-19 f f . I n t e r n a t i o n a l Wheat C o u n c i l . Review of World Wheat S i t u a t i o n , A p r i l I960, p. 16. Laurencom W r i t e r s . \"Grain Handling Sparks Controversy a t Vancouver.\" Canadian M i l l i n g and Peed, XLVII (May 1966), 20-23. Newman, P e t e r C. \"Backstage at Ottawa.\" Maclean's, J u l y 6, 1 9 6 3 , P . 2. \"Ottawa R o l l s Out Giant Docks P l a n . \" 1966, p. 1. . . . .  Vancouver Sun, Feb. 18,  \u000CManuscript  Sources Theses and other Unpublished  Material  Ashbaugh, James M. \"A Geography of the Columbia R i v e r P o r t s . \" Ph.D. T h e s i s , U n i v e r s i t y of C a l i f o r n i a , 1 9 6 6 , U n i v e r s i t y M i c r o f i l m I n c . , Ann Arbor, Michigan. Cornwall, I . H. B. \"A Geographical Study of the P o r t of Vancouver i n R e l a t i o n to I t s Coastal H i n t e r l a n d . \" Master's Thesis, U n i v e r s i t y of B r i t i s h C o l u m b i a , , 1 9 5 2 . C r e r a r , A. D. \" P r i n c e Rupert, B.D. The Study of a P o r t and I t s H i n t e r l a n d . \" Master's Thesis, U n i v e r s i t y of B r i t i s h Columbia, 1 9 5 1 . . .  P a c i f i c Coast G r a i n Conferences. \"Report of the Immediate Problems Committee,\" Vancouver, 1 9 6 1 . Wheatley, G. R. \" G r a i n Handling Through the P o r t of Vancouver. Graduating Essay, F a c u l t y of Commerce, U n i v e r s i t y of B r i t i s h Columbia, 1962. Personal  Enquiry  Crabtree, R. Manager, P a c i f i c Northwest G r a i n and G r a i n Products A s s o c i a t i o n . I n t e r v i e w w i t h the author, June 1966. Crawford, P. B. A s s i s t a n t General Manager, P o r t of S e a t t l e . L e t t e r to the author, June 2 9 , 1966. Gage, J . E. Manager, P a c i f i c the author, June 1966.  Terminals L t d .  Interview with  McRae, D. Manager f o r B r i t i s h Columbia, U n i t e d G r a i n Growers L i m i t e d . I n t e r v i e w w i t h the author, June 1966. MacDonald, K. G. Superintendent, P r i n c e Rupert E l e v a t o r . L e t t e r to the author, May 31, 1966. N a l c a d a i , N. Food Agency, M i n i s t r y of A g r i c u l t u r e and F o r e s t r y of Japan. I n t e r v i e w w i t h the author, June  1966.  P h i l l i p s , R. Research D i r e c t o r , Saskatchewan Wheat P o o l . L e t t e r to the author, J u l y 1966.  \u000CAPPENDIX I PRIMARY NET SHIPMENTS OP CANADIAN GRAIN FROM SEMI-PUBLIC TERMINAL ELEVATORS, VANCOUVER, NEW-WESTMINSTER,- 1954-55 TO 1965-64 (thousands of bushels) Year  Wheat  1954-55 1955-56  78,952  4,801  96,242  1,915  1956-57 1957-58  103,891 128,210  1,746 3,164  1958-59 1959-60 1960-61 1961-62  106,195 92,866 119,114 145,746 129,856 154,010  5,023 3,421 968  1962-63 1963-64 1964-65  136,269  Oats  1,505  9,600 13,588 3,740  Barley  Rye  9,924  '-  10,155 22,970  360  19,971 28,347  1,359 336 327 1,012  23,255  16,988 13,071 5,071 28,163 19,854  -  1,137 1,666 1,600 1,193  Flaxseed 519  703 2,408 5,224 5,974 6,296 7,075 6,099 4,902 6,282 6,276  Rapeseed  Other  Total  154  ' -  430  -  94,189 109,840  970  -  133,143 163,045  -  151,172  579 618  129,603 152,210  415  174,239  475 692  157,131 209,423 176,206  4,285 4,042 2,859 7,437 6,266 5,561 5,088 8,268  715  Source: Dominion Bureau of S t a t i s t i c s , Grain Trade of Canada (Ottawa; Queen's P r i n t e r ) , Various Issues.  \u000C103  APPENDIX I I PRIMARY NET SHIPMENTS OF CANADIAN GRAIN FROM THE SEMI-PUBLIC TERMINAL ELEVATOR AT VICTORIA CROP YEARS: 1 9 5 4 - 5 5 TO 1963-64 (thousands of bushels) Year  Wheat  Oats  Barley  Flaxseed  Rapeseed  Total  1954-55  1,411  26  1  -  -  1,458  1955-56  2,476  28  :1  -  412  2,918  1956-57  1,201  30  1  704  1,041  2,978  1957-58  2,174  29  3  702  905  3,810  1958-59  1,409  34  8  675  '390  2,516  1959-60  2,860  18  3  444  1  3,326  1960-61  5,482  59  7  248  1,296  7,092  1961-62  4,452  71  10  -  529  5,042  1962-63  6,228  43  5  -  -  6,276  1963-64  7,954  46  7  -  -  8,007  1964-65  8,723  44  10  -  178  8,955  Source: Dominion Bureau of S t a t i s t i c s , G r a i n Trade of Canada (Ottawa; Queen's P r i n t e r ) , Various I s s u e s .  \u000C104  APPENDIX I I I PRIMARY NET SHIPMENTS OP CANADIAN GRAIN PROM THE SEMI-PUBLIC TERMINAL ELEVATOR, PRINCE RUPERT CROP YEARS: 1954-55 TO 1963-64 (thousands of \"bushels) Year  Wheat  Oats  Barley  Total  1954-55  154  -  5,083  5,237  1955-56  238  -  4,542  4,780  1956-57  -  -  8,048  8,048  1957-58  -  -  10,357  10,357  1958-59  -  -  9,046  9,046  1959-60  -  -  8,896  8,896  1960-61  -  -  10,398  10,398  1961-62  -  -  10,531  10,531  1962-63  3,553  -  111  3,664  1963-64  10,475  35  --  10,510  1964-65  10,128  20  2  10,150  Source: Dominion Bureau of S t a t i s t i c s , G r a i n Trade of Canada (Ottawa: Queen's P r i n t e r ) , Various Issues.  \u000CAPPENDIX IV WHEAT EXPORTS THROUGH BRITISH'COLUMBIA PORTS BY COUNTRY OP DESTINATION (thousands of bushels) 1964  Western Europe  1962 I960 1961 1963 1959 15,568 21,924 16,455 20,837 30,767 33,983  United Kingdom 7,855 13,317 6,618 7,231 952 Belgium-Lux. 3,526 2 , 2 7 7 1,976 Germany(W) 1,949 5 , 0 5 0 7,196 1,439 5,052 Netherlands 2,960 1,805 2,815 807 Malta 244 36 Prance 63 57 270 109 Italy 80 139 174 Norway 823 94 Switzerland 16 Denmark Austria 577 E a s t e r n Europe 760 7,207 3,075 78 Bulgaria 3,376 _ E. Germany _ _ Czechoslovakia 1,482 _ _ Poland 2 , 5 4 9 5,075 760 78 T o t a l Europe 22,775 24,999 17,195 20,915 North and C e n t r a l America Dominican Rep. E l Salvador Honduras Nicaragua Guatemala United S t a t e s Panama  15,214 14,998 1,592 3,527 3,978 7,811 5,732 1,876 1,308 131 235 940 709 2,230 1,709 696 2 , 0 3 5 19 43  3,244  _  _  _ _ _ _ 5,244  916  1,505  852  144  509 965 55 205  521 585 5  850  539 212 2  93  78  -  -  9  27  -  \u2014  80  _  467  54,011 54,450  1,610  448 -  1,144 467  48 3  -  185 \u2014  55 5  \u2014  70  19  -  \u2014  \u2014  \u2014  \u2014  1958 1957 46,356 7 0 , 0 7 0  1956 1955 45,466 51,956  28,149 2,762 7,699 12,066 1 6 , 3 0 5 5,266 9 , 9 1 0 747 1,151  16,560 1 6 , 1 5 5 2,978 4,157 1,188 15,877  19,329  93  1,126 1,617  138 -  224 1,206 5,405  \u2014  -  2,705  5,405 75,475  352  200  58 25 _  167 21 \u2014  1,927  1,578 75  127 4,572 572  46,556  -  12 75  \u2014  467 1,415  4,073  4,758 1,501  4,200  -  1,092 1,727 \u2014 \u2014  1,516 6,177  166 2,404 _ 2,404  50,058 54,560  199  847  \u2014  \u2014  \u2014  64  \u2014  _  \u2014  \u2014  15  107  16  \u2014  _  155 32  5 20 _  \u000CAPPENDIX IT (continued) 1964  1965  1962  \u2014  \u2014  \u2014  \u2014  \u2014  -  -  -  Jamaica Costa R i c a Cuba South America  11,834  7,142  Ecuador Peru Venezuela Colombia  1,666 385 9,783 -  1,266 4,861  A s i a - Near East Saudi A r a b i a Iraq Isreal Palestine  \u2014  -  1,015 \u2014  ' 1961  -  I960  \u2014  -  6,496  4,337  4,442  1,146 5,218 132  1,257  1,375 1,353  482 2,194 404  1,522  5  1,592  335  5  \u2014  987 -  -  -  1,592  -  1959 55  7,408  1,714 -  1,324 3,604 1,672 808  977  3,600  29 435 513 -  \u2014  2,033 1,567  -  1958  1957  \u2014  \u2014  -  85  2,500  -  794  1,522  184  -  4,615 646 1,818 2,151 \u2014  1956 1 4,243  33  1955 1 224 599 2,580  1,393  1,841  -  -  2,850 -  956  1,711  568  233  405 1,308  150  .723 -  \u2014  41  377 \u2014  209 531  1,180 86  370  -  724  A s i a - Par East 120,780 1 0 9 , 3 3 5 110,494 102,672 52,74-6 42,630 5 1 , 2 5 0 3 4 , 3 0 9 35,409 5 1 , 5 9 3 Hong Kong 787 721 India Malaysia 723 Pakistan 355 China(Mainland)58,043 Japan 51,998 7,776 Phillipines Taiwan 577 \u2022 Burma Korea - . Total Asia  655 182 \u2014  54,058 47,536 6,203  212 511  597  58,470 44,827 5,890 710  -  -  502  -  45,518 55,019  1,877 1,575  181 -  443 172 332 355 1,008 4,245 4 9 , 5 5 7 4 1 , 3 7 1 39,048 34,137 33,958 30,906 381 1,153 1 , 2 5 2 7 65 1,335 656  -  37 7,539  \u2014  120,780 110,657 110,499 104,264 5 3 , 7 2 5 46,230 52,206 36,020 3 5 , 9 7 7 3 2 , 7 7 3  \u000CAPPENDIX IV (continued) 1964 Africa  4,319  Nigeria 299 Northern Rhodesia 37 Rep.of South A f r i c a 3,983 Congo Mozambique Algeria Portugese E. A f r i c a Oceania 296 \u2014  U.S.Oceania Australia U.S.S.R. 'Total *  296 15,861  1963 7,916 \u2014  \u2014  7,916  1962  1961  I960  1959  1,113  1,250  4,977  9,763  213  \u2014  \u2014  11  90  191  11  683  205  4,705  81 -  9,696 -  -  9 197  -  937  386  562  314  134  386 -  562 -  314 -  134 - \u2022  9,453  _  -  -  18  7,511  -  -  1958 619  \u2014  7,229  1956 5,639  1955  5,506  \u2014  \u2014  \u2014  \u2014  608  240  369  190  71  5,100 -  5,184 -  -  -  11  56  -  1957 397  1,473 \u2014  1,473 4,220  -  -  -  170  -  86 -  -  -  \u2014  \u2014  \u2014  5,913  14,852  132  -  -  177,475 161,469 137,170 141,040 98,608 105,265 109,857 118,467 110,948  * T o t a l s may be s l i g h t l y d i f f e r e n t from o f f i c i a l p u b l i c a t i o n due to rounding. Source: Bureau of Economics and S t a t i s t i c s , P r e l i m i n a r y Statement of E x t e r n a l Trade, ( V i c t o r i a , B.C.) Various Issues.  o -o  \u000CAPPENDIX V BARLEY EXPORTS THROUGH BRITISH COLUMBIA PORTS BY COUNTRY OF DESTINATION \u2022 (thousands-of-bushels) \u2022 . . . . . . CountryUnited Kingdom Germany Italy Spain Czechoslovakia China (Comm.) Japan Korea Peru United S t a t e s Netherlands Costa R i c a Belgium Lux. Denmark Switzerland Poland Kuwait Saudi A r a b i a Union S . A f r i c a Panama Hawaii Venezuela U.S.fi.R. Syria -  1964 4,534 2,476 947 171  620 16,647 3,828 115 93 5  \u2014  \u2014 \u2014  1963 4,817 1,083 1,694 1,318 92  -  170  42 -  \u2014  \u2014  \u2014  \u2014  29,456  1 9,217  1962 3,282 -  1961 3,160 48 9 , 3 0 9 30,340 92 161 407 87 70  33  12,840 3 4 , 1 5 0 \u2014  I960 14,665 2,128 291  92 27  986 158 397  685 4,681 483 10 5  1  24,605  1959  28,540 639 93  \u2014  4,860 890 483 870 2,287 1 127  1958 1957 18,958 9,762 2 7,623 6,824 12,604 92 2 522 72 47 229 20 5,799 \u2014  1956 5,943 3,180 -  9,753  189 243  -  70  1955  9,620 \u2014  4,989 4 -  662 39,544 30,462 30,586 19,378 14,615  Source: Bureau of Economics and S t a t i s t i c s , P r e l i m i n a r y Statement of E x t e r n a l Trade ( V i c t o r i a , B.C.), Various Issues.  \u000CAPPENDIX VI OATS EXPORTS THROUGH BRITISH COLUMBIA PORTS BY COUNTRY OP DESTINATION - (thousands of bushels) CountryU n i t e d Kingdom Belgium-Lux. Prance Germany Italy Netherlands Switzerland Rep. S . A f r i c a Colombia Panama United S t a t e s Peru Venezuela Costa R i c a Ecuador Ireland Hawaii Dorn.Republic Totals  1964 83 230 66 1,747 186 5,691 17  472 198  1963 340 1,537 26 1,686 2,141 4,642 195  -  55  268 54  -  2 166  28  5  \u2014  \u2014  -  -  8,772  1962 25  \u2014  -  39  31 18  227  4 4  -  \u2014  \u2014  1,340  19  \u2014  856  I960  \u2014  132  -  11,064  1961  -  --  332  11 26 2 1  -  120  \"\u2014  492  99  1959  1958  1,736 84  2,144 -  \u2014  \u2014  1,834  -  178 -  -  216  57 290  4 34  1,698  -  454  -  237 55  -  3  -  -  \u2014  \u2014  -  2,733  -  -  -  152  46 404  5  4,768  -  5  \u2014  2,752  \u2014 \u2014 \u2014  189 86  \u2014  -  -  43 457  758  307  -  157 50  -  \u2014  1,655  -  74 56 249  -  -  \u2014  \u2014  \u2014  -  897 688  \u2014 \u2014  -  1955  40  359 481 \u2014  \u2014  4 2  1956  \u2014  492  -  1957  -  3  8 1,009  2 \u2014  2,241  Source: Bureau of Economics and S t a t i s t i c s , P r e l i m i n a r y Statement of E x t e r n a l Trade ( V i c t o r i a , B.C.), Various Issues.  \u000CAPPENDIX V I I IMPORTS OP WHEAT PROM CANADA INTO - SELECTED COUNTRIES (thousands of m e t r i c tons) Country '55-56 \u202256-57 '57-58 \u202258-59 Western Europe ( t o t a l ) 4-64-1.5 4859.8 4754.9 4498.9 Belgium-Lux. 4-07.0 429.1 3 9 0 . 5 2 9 4 . 7 Netherlands 24-3.9 339-6 5 4 4 . 9 406.2 Switzerland 188.4 284.1 251.9 177.1 U n i t e d Kingdom 24-90.0 2231.5 2418.8 2458.5 Germany (W) 797.4- 1045.7 871.5 811.5 Italy 162.3 90.5 42.1 50.5 E a s t e r n Europe ( t o t a l ) 4 5 1 - 5 133.6 397.9 108.3 Poland 398.7 190.9 108.3 133.6 Bulgaria Czechoslovakia 207.0 42.7 Albania -E. Germany A s i a - F a r East ( t o t a l ) 835.3 913.6 1715.0 1 5 8 2 . 5 China (Mainland) Japan 821.6 875.1 1050.6 1162.6 Phillipines 29.7 India 565.1 508.1 79.8 103.3 101.5 170.1 South America ( t o t a l ) 18.0 79.2 1.8 2.0 Venezuela 40.1 52.6 Ecuador 14.5 15.7 87.0 25.2 62.8 50.8 Peru 5.0 Colombia 564.9 110.0 290.0 181.7 U.S.S.R. 174.0 Africa 20.7 198.6 34.7 North &amp; C e n t r a l America 327.2 243.9 532.5 163.5 World T o t a l 6847.7 6725.6 7514.4 7043.5 \u2014  \u2014  \u2014  \u2014  \u2014 '  \u2014  \u2014  \u2014  \u2014  \u2014  \u2014  \u2014  '59-60 \u202260-61 '61-62 \u2022 62-63 '63-64 \u2022 64-65 4099.7 4587-1 4521.5 3836.5 4456.5 3689.6 294.5 330.1 314.4 260.7 423.6 418.1 114.5 221.1 157.4 126.6 96.5 95-3 222.0 178.3 233-0 80.1 122.0 201.7 2178.2 2078.3 2024.7 2087.5 2072.0 1981.3 696.8 875.5 1222.8 7 3 9 . 5 985.6 612.5 59.3 405.1 106.9 127.1 112.2 18.0 754.4 132.6 505.6 758.8 457.9 1927.3 63.4 426.2 586.0 132.6 485.6 323.5 156.7 206.5 350.4 119.6 178.8 714.2 64.1 271.0 275.9 1545.7 2499.7 3538.7 2925.6 2600.1 3690.0 780.8 1967.7 1677-7 1004.8 1758.2 1224.6 1499.7 1301.6 1247.1 1306.0 1432.2 95.2 173.3 201.5 171.8 26.9 39.9 107.7 96.4 19.1 19.6 186.9 179.5 242.4 329.8 216.2 192.5 144.1 242.1 262.1 93.6 191.3 86.3 106.6 195.2 40.0 30.3 32.3 31.2 32.2 26.5 74.1 49.4 14.6 19.9 25.5 22.0 13.7 7.2 10.0 204.4 868.1 5195.1 65.8 244.0 82.0 246.7 96.9 53.7 183-2 233.6 173.0 184.2 325.9 322.7 6585-7 8359.2 9072.7 8242.9 13598.4 10999.9  -  \u2014  -  \u2014  \u2014  Source: Food and A g r i c u l t u r e Organization of the United Nations, World G r a i n Trade S t a t i s t i c s (Rome), Various Issues.  \u000CAPPENDIX V I I I PRIMARY CHARGES FOR GRAIN HANDLING - AND SHIPPING AT PACIFIC COAST PORTS Charge  Vancouver  New Westminster  Pilotage one wayonly  1/2 0 per gross l / 2 0\"per gross ton ton 11.00 per f o o t $1.00 per foot of draught of draught $1.00 per mile $1.00 per mile In Fraser R i v e r 1.50 per nj?.t. $2.60 per f o o t of draught 20 per n . r . t . S i c k Mariners 20 per n . r . t , max. Dues max. 60 per n . r . t . 60 per n . r . t , per y r . i n per y r . i n a l l Canada a l l Canada Nil Tonnage Tax Nil and L i g h t Money  Victoria 1/2 0 per gross t o n $1.00 per f o o t of draught $1.00 per' mile  P r i n c e Rupert  Seattle  Portland  1/2 0 per gross $2.55 p e r $6.80 p e r f o o t of ton mile $1.00 per f o o t (67-1/2 draught of draught miles) 4-0 per $ 1 . 0 0 per mile n.r.t.  20 per n.r.t - max. 60 per n.r.t, per y r . i n a l l Canada Nil  20 per n . r . t . Nil - max. 60 per n . r . t . per y r . i n a l l Canada 20 or 60 Nil per n . r . t . max:. 5 times per y r . i n a l l U..S. 50 or 5 0 n.r.t.-max. $5.00 twice p e r yr. at any P u b l i c Har. b  Harbour Dues  30 per n . r . t . max.5 e n t r i e s or 150 per n.r.t.per y r .  2 0 per n.r.t.max.5 e n t r i e s or 100 p e r n.r.t.per y r .  Wharfage  30 per short ton loaded  60 per short ton loaded  Cargo Rate  30 per short ton loaded  Nil  50 or 50 per n . r . t i max.twice per y r . a t any P u b l i c Harbour 150 per short t o n loaded Nil  Nil  20 or 60 per n . r . t . max. 5 times per y r * i n a l l U.S. 13  a  150 p e r short t o n loaded Nil  Nil  Nil  Nil  Nil  Nil  \u000CAPPENDIX V I I I (continued) Charges Dockage  New Westminster Vancouver 100 per f t . Nil of length per 8 h r s . 50 p e r 8 h r s . i n non work period  P r i n c e Rupert Victoria 60 per f t . 60 p e r f t . o f of l e n g t h l e n g t h per per 24 hrs. 24 h r s .  0  Wharfage  Weighing &amp; .0450/bu. Inspecting E l e v a t i o n of Grain From r a i l c a r s 2-7/80 per bu.or 94.90 per short  .0450/bu.  ,0450/bu.  .0450/bu.  Seattle Portland Varies with Varies with G.R.T.-eee G.R.T.-see Supplemen- Supplementary tary Table XIIA Table XIIA. 10 per bu. 10 per bu. or 33-1/30 or 33-1/30 per short per short ton ton N-.A. N.A.  e  From barges From t r u c k s Loading to s h i p  N.A. N.A. Nil  S e r v i c e and F a c i l i t i e s Charge N i l Selftrimming bulk c a r r i e r Non-trimming bulk c a r r i e r  2-7/80 p e r bu, 2-7/80 per 2-7/80 p e r bu.or bu. or or 94.90 per 9 4 . 9 0 per short t o n 94.90 per short t o n short t o n N.A. N.A. N.A. N.A. N.A. N.A. Nil  Nil  Nil  Nil  Nil  Nil  1-3/40 p e r bu. 1-3/40 p e r or 57.80 per bu. or 57.80 per short short t o n ton As above As above 2.50 per bu. 2.50 per bu. or 82.50 p e r or 82.50 per short t o n short t o n 10 per bu.or 10 per bu.or 33-1/30 p e r 33-1/30 p e r short t o n short t o n  100 p e r short t o n  100 per short t o n  140 p e r short t o n  140 per short t o n  H  ro  \u000CAPPENDIX V I I I (continued) T\"\u2014*\"*\"\" \"  Charges  \" \"  Vancouver  New Westminster  Tankers Two-deck v e s s e l s Three-deck \" Unclassified.\" CleaningWheat &gt; 2 - l / 2 % dockage N i l 3 - l / 2 % - 5 - l / 2 % 1/20 per bu. or 16.50/ST 10/bu.or 5-1/2-10% 33-1/30/ST Oats &amp; B a r l e y Nil &gt;1% dockage .50/bu.or 1-5-1/2% 16.50/ST #/bu. or 5-1/2-10% 33-0/ST  Victoria  P r i n c e Rupert  Seattle 150 150 210 170  Nil 1/20 p e r bu. or 16.50/ST 10/bu.or 33-1/30/ST  Nil 1/20 per bu. or 16.50/ST 10/bu.or 53-1/30/ST  Nil 1/20 p e r bu. or 16.50/ST 10/bu.or  Nil .50/bu.or 16.50/ST 10/bu.or 330/ST  Nil \u202250/bu.or 16.50/S 10/bu.or 330/ST  Nil .5^/hu.or 16.50/ST 10/bu.or 330/ST \u2022  1  p e r ST per ST per ST per ST  20 p e r bu. or 660 p e r ST f o r a l l grain  Portland 150 150 210 170  per per per per  ST ST ST ST  20 per bu. or 660 p e r ST f o r a l l grain  35-1/30/ST  50 per n . r . t . i f v e s s e l from any point i n North America or B r i t i s h p o s s e s s i o n b o r d e r i n g on North A t l a n t i c or C a r r i b e a n and 50 per n . r . t . from other o r i g i n . a  ^Charge i s 60 per n . r . t . i f v e s s e l o r i g i n a t e s o u t s i d e of North or C e n t r a l America, West I n d i e s o r South America b o r d e r i n g on Carribean. c  Non-work p e r i o d defined as p e r i o d from 12:01 A.M. to 8:00 A.M.  ^Wharfage i s a charge f o r the use of g r a i n - f a c i l i t i e s and i s charged a g a i n s t the owner of the g r a i n . I t does not r e f e r to term as i t i s a p p l i e d to maritime operations i n Canada. This wharfage charge i s made against incoming g r a i n whether o r not i t i s loaded to a v e s s e l . Charges are i d e n t i c a l f o r a l l g r a i n a t P o r t l a n d and S e a t t l e . I n B r i t i s h Columbia wheat, oats and b a r l e y are i d e n t i c a l but r y e , f l a x s e e d and rapeseed have a h i g h e r charge. e  \u000CAPPENDIX V I I I (continued) Sources: 1. Grain T a r i f f No, 19\u00AB Applying at S e a t t l e and P o r t l a n d ( C a r g i l l , Incorporated, A p r i l 1, 1966). 2 . E l e v a t o r t a r i f f s f o r Canada provided by United G r a i n Growers. 3 . Canadian Ports and Seaway D i r e c t o r y (Gardenvale, Que.; N a t i o n a l Business P u b l i c a t i o n s , 1966). 4. P. S. Campbell, ed., P o r t s . Dues, Charges and Accommodation (London; G. P h i l i p and Son L t d . , 1964). 5. N a t i o n a l Harbours Board, T a r i f f of Wharf Charges, Harbour of Vancouver, Aug. 25, 1965\u2022 6. N a t i o n a l Harbours Board, T a r i f f of Harbour Dues, Harbour of Vancouver, Nov. 25, 1964. 7. N a t i o n a l Harbours Board, T a r i f f of Dockage, Buoyage and Booming Ground Charges, Harbour of Vancouver, Feb. 2 3 , 1966. 8. N a t i o n a l Harbours Board, T a r i f f of Cargo Rates, Harbour of Vancouver, Sept. 1, I960. 9 . P o r t of S e a t t l e , personal correspondence.  H  \u000C115  APPENDIX IX DOCKAGE RATES IN SEATTLE AND PORTLAND Vessels of Gross Registered Tonnage 251 501 1,001 1,501 2,001 2,501 5,001 4,001 5,001 6,001 7,001 8,001 9,001 10,001 11,001 12,001 15,001 14,001 15,001 16,001 17,001 18,001 19,001 20,001  -  500 i n c . 1,000 1,500 2,000 2,500 5,000 4,000 5,000 6,000 7,000 8,000 . 9,000 10,000 - 11,000 - 12,000 - 15,000 - 14,000 - 15,000 - 16,000 - 17,000 - 18,000 - 19,000 - 20,000 and o v e r  A  , Seattle  $2.67 5.50  4.58  5.25 7.00 8.75 10.50 12.25 14.00 15.75 17.50 19.25 21.00  _ B  U  8.75 9.85 10.94  12.04 15.15  4- &amp; O O  U O CD O  rH  rH  O  p&lt;o  UN  4.58  4.58 5.48 6.56 7.66  0 co Pi 0 4\" &amp;  O CQ  O- U  . &lt;D  &amp;  O  'or t land  $5.50 . 3.50  $1.65 2.19 2.75 5.29  CO PH  CO  rH CD  A  fn  . CD rH rH ft \u2022  5.25 7.00 8.75 10.50 12.25 14.00 15.75 17.50 19.25 21.00 22.75 24.50 26.25 28.00 29.75 51.50 55.25 55-00 56.75 58.50  $1. 75 per 4 hours per 1 , 0 0 0 Tons  B  $2.19 2.19 2.75 5.29  4.58 5.48 6.56 7.66 8.75 9.85  10.94 12.04 15.15 14.25 15.55  16.45  17.55  18.65 19.75  20.85 21.95  25.05 24.15 $1.10 per  4 hours per 1 , 0 0 0 Tons  Column A i s the charge f o r an i d l e v e s s e l . Column B i s the charge f o r a working v e s s e l . N.B.- A l l charges are f o r a four (4) hour p e r i o d or f r a c t i o n thereof. 2  Sources: 1. P o r t of S e a t t l e , S e a t t l e Terminals T a r i f f No. 100-A, March 18, 1966. 2 . Commission of P u b l i c Docks of the C i t y of P o r t l a n d , Oregon, Terminal T a r i f f No. 5-A, A p r i l 1 5 , 1966.  \u000CAPPENDIX X MAJOR STATISTICS OF SASKATCHEWAN WHEAT POOL TERMINAL AT NORTH VANCOUVER, B.C. Capacity  Handling  Work house Storage Annex 1 Storage Annex 2 Total  5.70,000 bushels 2,300,000 \" 2,500,000 \" 5,170,000 \"  Rates: 1. Two c a r dumpers handling a t o t a l of 128 boxcars per 8 hour s h i f t . 2. Two 54 i n c h b e l t s i n the s h i p p i n g g a l l e r y w i t h combined l o a d i n g c a p a c i t y of 100,000 bu./hr.  Berths:  Two ship berths adequate t o l o a d v e s s e l s up to 4-5,000 tons c a p a c i t y .  Cleaning: 52 c l e a n e r s .  a  SL  Drying:  1 dryer. a  C a p a c i t i e s not given.  Source: Personal correspondence, June 1966.  "@en
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