International Trade Committee on April 30th, 2026

[Alexa Young]

Absolutely. This is a game-changing project. Again, just to situate it, this is building new industrial land when we're running out of that in Canada, and in particular on the west coast, for trade-enabling purposes. This project went through an environmental assessment review process for over 10 years as well as extensive consultations with first nations, which has resulted in achieving the consent of 27, with mutual benefit agreements in place. This is absolutely game-changing.

We're at a point where we want to move to a final investment decision. We want to move to early construction works. With the right support from the Major Projects Office, we can get it across the finish line. That's where we want to go.

[David McKenzie, Conservative, Calgary Signal Hill, AB]

Ms. Young, I represent an Alberta riding. One of the things we do a lot of in Alberta is produce energy, and in particular crude oil. Our Prime Minister has stated that the MOU between the Government of Canada and the Government of Alberta will build the pipeline. No location has been identified, but it would strike me that if the indigenous communities affected by that port development were approached and properly consulted, and respectful partnerships were entered into, we could expect the same thing for a pipeline project.

[Alexa Young]

At this time, Roberts Bank terminal 2 is moving ahead as permitted, as a three-berth container terminal, given that we will be looking at running out of container capacity here in the next few years.

Certainly, there's a broader conversation about how we look at optimizing our energy exports. What we're really focused on right now, as I mentioned briefly earlier, is the dredging work under the Second Narrows bridge. It's really interesting. The slight narrowing will allow the tankers to leave TMX's Westridge terminal fully laden instead of at 70% capacity. This isn't about more ships. It's actually about optimizing capacity. It's a really great project, and the right project for the right time.

[David McKenzie, Conservative, Calgary Signal Hill, AB]

Thank you for making that point. I did want to ask about that specifically, the Westridge capacity limitation due to the draft limits for crude oil carriers leaving there.

Where does the Port of Vancouver stand in terms of additional capacity, particularly for crude oil carriers?

[Alexa Young]

We're an independent agency of government. We know that the federal government is looking at all kinds of options. We will be a partner in exploring what that looks like as the conversation continues.

[David McKenzie, Conservative, Calgary Signal Hill, AB]

Do you have an ability, though, to say that there is physical room in the schedule in those narrow waters for additional tanker capacity coming from Westridge?

[Alexa Young]

As a first step, let's get the Second Narrows dredged to make sure we're maximizing that capacity. Then let's keep looking at options.

[David McKenzie, Conservative, Calgary Signal Hill, AB]

Is it your understanding that there's a timeline in place for that dredging? Is it fully permitted and scheduled, or is it still in process?

[Alexa Young]

It's currently undergoing a Fisheries Act authorization. Consultation is taking place on that. We know that it's all hands on deck in terms of making sure it proceeds on time. We're looking forward to getting that across the finish line.

[David McKenzie, Conservative, Calgary Signal Hill, AB]

Just coming back to—

[The Chair, Liberal, Judy Sgro]

Thank you very much, Mr. McKenzie. I'm sorry. You were 17 seconds over.

[David McKenzie, Conservative, Calgary Signal Hill, AB]

Okay. Thank you, Madam Chair.

[The Chair, Liberal, Judy Sgro]

Madame Lapointe, you have five minutes, please.

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Thank you very much, Madam Chair.

Welcome to the witnesses.

Good morning again, Mr. Fulton. I have a question for you.

Earlier, you said that the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, or CPTPP, was the gold standard. It was established in 2018. Earlier, you said that you've been exporting to Japan for 30 years.

Has the CPTPP given you any additional momentum? If so, how and why?

[Tyler Fulton]

Unequivocally, yes, it has made us more competitive in that market. Without the tariff rate reductions that CPTPP brought, we wouldn't have been able to compete with, arguably, the Americans and the Australians on that level playing field. For a brief time, we had preferred access.

What we want is a level playing field in order to let our high-quality beef product shine.

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Thank you.

I have a question for you, Ms. Young.

Earlier, you said that, in order to double exports, you need to optimize operations at the port. You mentioned technology.

Do you already know how you will be able to increase your capacity?

[Alexa Young]

That's a great question.

One of the key initiatives that the Port of Vancouver and our supply chain partners—terminals, railways, etc.—have undertaken over the last couple of years is an active vessel traffic management system. This is using new digital tools and text to give you the ability to have visibility into all of the above data, and to share that data. There is real-time visibility in terms of traffic flows, weather patterns, currents, so you can better schedule when a train arrives to pick up a product, put it on the ship. That's been, in itself, resulting in huge dividends in terms of the amount of volume that's able to move, including, for example, over the Second Narrows bridge, over the train track there, where CN has actually been able to increase its volumes by 10% in one year.

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

My colleague asked you a question about your capacity. Obviously, more exports will leave the country via the west. In addition, you said that the north-south axis is more structured than the east-west axis.

What do you think could be done to allow Quebec businesses to also export products to the countries included in the CPTPP and to Japan? How do you see improvements in that respect?

[Alexa Young]

It's going to take a team Canada approach, so looking at the opportunities from not just a port perspective, but a full supply chain perspective. What does that look like especially from a rail-capacity perspective? Again, it is very competitive to ship out of Vancouver to Japan. It's the shortest route. It takes nine to 13 days, port to port. From a “Japan opportunity” perspective, certainly the Port of Vancouver is going to play an outsized role.

[Linda Lapointe, Liberal, Rivière-des-Mille-Îles, QC]

Thank you.

Mr. Fulton, I have one more question for you, so don't worry.

You mentioned that beef has been exported for 30 years, primarily to Japan. Do you think there's still room for growth in that market?

[Tyler Fulton]

Yes, absolutely. There is an opportunity right now, in particular because of the strong market signals that all beef farmers are getting across Canada, for our industry to lead agriculture in growth and investment.

There is obviously a lot of global uncertainty that has made all of industry a little bit more hesitant to make those investments. Quite simply, the opportunity that we have today is unlike anything we've seen in 40 years. We're already seeing a responding growth in the beef herd. In fact, replacement heifers are up 5% compared to last year, so that's a very good leading indicator that we are responding to the market signals to grow.

[The Chair, Liberal, Judy Sgro]

Thank you very much, Mr. Fulton.

We'll go on to Monsieur Savard-Tremblay for two and a half minutes, please.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot—Acton, QC]

I'd like to address you, Ms. Young.

There's been a marked increase in exports out of the Port of Vancouver. We're talking about 12% more in 2025 than 2024. That's a fairly significant increase. Japan is also the number two export destination, with 18.9 million tonnes of goods exported.

Given all the benefits of the CPTPP virtues that have been touted to us today, if such expansion continues, would the port's current infrastructure be able to support it?

[Alexa Young]

That's another good question.

We have to think about it from where the “track record” investments have gone as to where we've gone today. Again, you just said it—record cargo volumes again last year, 170 million metric tonnes. Again, there's been a 12% increase in exports across grain, potash, oil and other commodities.

Looking ahead, of course, if we're looking to double exports, we're going to need to build more, to invest more, to optimize more, and we're going to have to address some of those broader systemic challenges that are sometimes telling customers that we might not be as open for business as we'd like to be, including things like addressing labour disruptions by responding to the recommendations of the Industrial Inquiry Commission on west coast ports, which have tabled their recommendations to government.

There's a whole bucket of things. Absolutely, we've come a long way, but if we're going to have this big bold target, there's much more to do.

[Simon-Pierre Savard-Tremblay, Bloc, Saint-Hyacinthe—Bagot—Acton, QC]

Trade with Japan also depends on the rail and port networks, among other things. Of course, all of this must therefore be integrated.

Today, aside from the port, what is the main challenge? Is everything going well in terms of railways, customs, labour and coordination with the terminals, or are there still major challenges?