Transportation & Warehousing

 

British Columbia is separated from the rest of Canada by mountain ranges that have made travel and transportation particularly challenging throughout its history. Aboriginals and the explorers who first came to the province travelled by foot or canoe, and later, by packhorse, following waterways and other paths through the province's many mountains, valleys, and canyons. The fjords and islands of the coast were explored and charted by mariners such as George Vancouver and James Cook, but the Interior was not easily accessible to the settlers who came to the province in the early 1800s.

Transportation services have been pivotal to the province's economic development over the years. The fact that most large cities are located near a major port or on an important trade route is no accident. Airports, port facilities, rail lines, and highways have all contributed to the growth of BC's cities. They have also led to the development of related industries that provide goods and services used by these facilities, or which depend on easy access to shipping routes.

Ships…

Most of the early settlers arrived in BC by sea. Victoria, which had a sheltered, deep harbour, was the first stopping point for travellers during the gold rush, and in later years, sealing ships headed north from the US also visited the port. The naval base in Esquimalt, with its dry-docking facilities, was first used by the British, and later, by the Canadian navy.

On the mainland, the Fraser River and lakes in the Interior provided waterways that could be navigated, and paddle wheel boats were used to transport people and goods before the road system was put into place. However, most river boats on the Fraser did not travel beyond Yale.

The Hudson's Bay Company began regular passenger and freight service between Vancouver Island and the Lower Mainland in the mid-1800s. Ferry service was taken over by the CPR in 1901, with a trip from downtown Vancouver to downtown Victoria taking five hours.

BC Ferries, created in the 1960s, is now one of the largest ferry transportation systems in the world, with a fleet of 36 vessels that travel on 25 routes and visit up to 47 ports of call. Residents of Vancouver Island, the Gulf Islands, and some remote coastal communities still rely on these ferries as their main link with the rest of the province.

Vancouver is a common stop for cruise ship traffic headed to or from Alaska, with 854,493 cruise ship passengers embarking or disembarking in the city in 2008. Although cruise traffic through Vancouver has dropped off in recent years, Victoria (398,711 passengers in 2008) and Prince Rupert (103,635), together with Nanaimo (17,135) and Campbell River (2,500) are welcoming growing numbers of passengers cruising between Alaska and the rest of the US.

Roads…

The Cariboo road, which linked Yale, Lytton, Soda Creek, Quesnel, and Barkerville, was laid down by the Royal Engineers during the gold rush of the 1860s. It provided an overland route that could be used to bring supplies, equipment, miners, and other travellers to Barkerville, which at that time was a booming community, and the largest town north of San Francisco and west of Chicago. After the railroad was built, people and freight travelled by train to Ashcroft, and continued north along the Cariboo road.

The extensive network of roads that connect BC communities today wasn't built until much later. During the depression of the 1930s, the government sponsored road construction projects as a means of providing jobs to the unemployed, but the modern highway system we have today wasn't built until after the Second World War. More recently, the completion of the Coquihalla highway and connector system in the late 1980s has significantly reduced the amount of time required by freight trucks and passenger vehicles travelling between Vancouver and the Interior of the province, or east of the Rockies.

Trains…

Canada's history-and BC's place in it-is closely linked to the development of the Canadian Pacific Railroad (CPR). The Canadian government's promise to build a transcontinental railroad was one of the main reasons why the province joined Confederation in 1871. Building the CPR was the biggest project the young nation had yet undertaken, and laying track through the mountains of BC was an enormous challenge.

Construction of the railroad began in 1880, and was completed in 1885, with the help of more than 15,000 workers brought over from China to lay the rails. Chinese railroad workers played a pivotal role in the nation-building effort, since there was not nearly enough labour available locally to complete the task. Many of them stayed on to work in BC, and helped establish the province's rich multicultural heritage.

The completion of the transcontinental railroad provided the province with access to markets in the east. It also opened up the Interior of the province, and led to the development of Vancouver, the western terminus of the railroad, as an important commercial centre.

Vancouver became the main point of exit for goods exported from Canada to Asia and the only port of entry for tea and silks imported from Asia. It was soon the province's largest city. Its fortunes were further boosted when the Panama Canal, which provided a shorter, less risky route for marine traffic between the Pacific and the Atlantic, was opened in 1914, making European markets more accessible to exporters on the west coast. Vancouver is still a busy rail terminus, handling freight arriving at the port city for transport to or from overseas as well as domestic destinations.

Planes…

The province's air transportation industry had its beginnings in the early 1900s. The first flight from Vancouver to Victoria was in 1919, and a little later, the first plane flew over the Rockies and airmail service between Seattle and Vancouver began. Vancouver International Airport is now a major point of entry for flights from the Pacific Rim. It is the second-busiest airport in the country, and one of the 38 airports operating in the province.

…and Ports

Vancouver's port has been in operation for nearly 150 years. With its naturally deep harbour, year-round ice-free access and links to rail, road, and other transportation systems, the Vancouver Fraser Port Authority (or Port Metro Vancouver) handles more foreign exports than any other port in Canada. It has the highest cargo volume on the west coast of North America and is the fourth largest port in North America in terms of tonnage handled.

A total of 114.6 million tonnes of cargo, including automobiles, logs, paper, pulp, or other cargo was handled by the port in 2008. Coal, fertilizers, sulphur, canola and wheat are the main bulk commodities shipped from the port. The top five destinations for cargo loaded for export in Vancouver are Japan, China, South Korea, the US, and Brazil.

In terms of inbound cargo, China, the US, South Korea, and Japan are the main sources of imported goods (primarily household goods, parts & components, gasoline and construction materials) arriving in Canada at the Port.

The Port of Prince Rupert, Canada's deepest natural harbour, handled 10.6 million tonnes of cargo in 2008, much of it destined for Asia. Coal and grain are the main commodities shipped from Prince Rupert, which also handles logs, wood pellets, chemicals and liquefied petroleum gas.

What's included in transportation & warehousing?

This industry includes air, rail, water, and truck transportation services, as well as public passenger transit, taxicabs and limousines, and related services such as maintenance, cargo handling, pipeline transport, storage, and warehousing. Establishments providing services used by travellers or shippers (operators of airports, railroad terminals, ports, docks, piloting services, motor vehicle towing, and shipping agencies) are also included in this industry.

What's happened since 1990?

Transportation & warehousing accounted for a less than 6% of total employment in 2008, a share that was slightly lower than in 1990. Although the industry has shown some volatility, the share has remained in the 6% range throughout this period. The industry's contribution to GDP was just over 6% in 2008, virtually the same level as in 1990.

Employment in transportation & warehousing hasn't grown quite as fast as the number of jobs in other industries

Between 1990 and 2008, the number of people working in transportation & warehousing expanded 39%. However, job growth has been concentrated in just a few areas.

Employment has more than doubled in the warehousing & storage (+185%) and scenic & sightseeing transportation (+127%) industries. Courier & messenger services (+94%); transit & ground passenger transportation (+70%); and trucking (+64%) have also seen strong job growth since 1990.

The postal service industry has faced competition from couriers and alternative forms of communication such as the Internet, and the industry's employment declined during much of this period, but has picked up in recent years. Over the longer run, employment in postal services has increased by 30%. On the other hand, there are significantly fewer people employed in air (-24%) and rail (-50%) transportation than there were in 1990.

The passenger transportation industry has had a bit of a bumpy ride since the turn of the century. The events of 9/11 effectively stopped air traffic throughout North America for more than a week, and since then, enhanced security measures, concerns about safety, the SARS scare in 2003, the recent H1N1 flu outbreak in Mexico, and the current economic slowdown have reduced the demand for some types of transportation services.

The airline industry has been particularly hard hit. Passenger transportation is often a discretionary expenditure, and the demand for these services could remain somewhat depressed until the global economic situation improves.

Trucking and shipping have also been affected, since stricter security requirements have made crossing the border with the US less convenient and more time consuming than it used to be.

It is likely that there will be further restrictions on the free flow of goods across the border in the future, as governments continue to work on reducing potential security vulnerabilities. And, with the Canadian, US, and other economies in a recession, producers of manufactured and other goods have reduced their output, and consumer demand for finished goods has slowed.

This means that the volume of goods arriving at BC ports for export to other countries or for use in Canada is likely to continue to decline, and with it the need to truck or otherwise ship goods to their ultimate destination will be reduced.

What are the most common occupations?

More than half of the people working in this industry are trades, transportation & equipment operators

Not surprisingly, trades & transportation equipment operators account for the lion's share of the workforce in this industry, with 57% employed in this occupational group. Many are truck drivers (they make up 18% of total employment in transportation & warehousing), but other common occupations include delivery, bus & taxi drivers, material handlers, taxi drivers, longshore workers, aircraft ramp attendants, and aircraft & vehicle mechanics.

Nearly one-quarter of the people working in this industry are in business, financial & administrative occupations. These are mainly letter carriers, postal clerks, couriers & messengers, shippers & receivers, and dispatchers.

Eight percent of the jobs are in natural & applied science occupations, which include air pilots, deck officers on vessels, and air traffic controllers, as well as information systems workers.

Sales & service occupations make up 7% of the workers. These occupations include flight attendants, pursers, and airline sales & service agents. Four percent of the workers are in managerial occupations.

How many people work in transportation & warehousing, and how much do they earn?

In 2008, there were 128,000 people working in this industry. Most were involved in transporting either freight or passengers.

Trucking is the biggest employer, with 28% of the industry's workers. Scenic & sightseeing transportation, including support activities (operating airports, harbours and so on) employs 18% of the workers, while 15% of the jobs are in transit and ground passenger transportation (buses, taxis and so on). Nine percent of the people working in this industry are employed in air transportation (both passenger and freight).

Three out of 10 workers are employed in trucking establishments

Postal services (9%), couriers & messengers (8%), water (5%) and rail (4%) transportation are smaller employers, as is warehousing & storage (4%). Pipeline transportation accounts for less than a tenth of a percent of the jobs in this industry.

Hourly earnings in this industry tend to be a little higher than the all-industry average

Hourly earnings in transportation & warehousing averaged $23.52 in 2008, a little higher than the average for all industries in BC. Within the industry, wages are highest in water ($31.43), rail ($27.49), air ($24.10), and transit & ground passenger ($22.96) transportation. Wages are lowest in the couriers & messengers ($17.92) and warehousing ($17.26) industries. A typical work week was just over 40 hours long-four hours more than the average for all industries.

What are the characteristics of the workforce?

Nine out of 10 workers in the transportation & warehousing industry are employed full time. In the economy as a whole, eight out of 10 people work full-time (at least 30 hours a week).

Seasonal variations are important in some parts of this industry (such as passenger transportation), but overall, employment doesn't show a lot of seasonality. Only 8% of the people working transportation & warehousing were hired on a temporary basis.

Three out of four (77%) workers in transportation & warehousing are male. It is the only industry in the service sector with such a high percentage of male workers. This may reflect the nature of the work. Some of the jobs in this industry are physically demanding, or require long stretches of time on the road, and this might make them less appealing to some women.

Half of the workers in this industry have union coverage

The industry is highly unionized. Fifty percent of workers have union coverage, well above the 31% average for all industries in the province. Among other industries, only public administration, utilities, education, and health care & social assistance have higher rates of union coverage.

The unemployment rate in transportation & warehousing is lower than average

The industry's unemployment rate averaged 4.6% during the period from 1990 to 2008. This was marginally lower than the rate for the service sector as a whole (4.8%), but well below the provincial average of 7.8% during the same period.

The incidence of self-employment is rising

Twenty percent of the industry's workers were self-employed in 2008, up from 13% in 1990. The increase in the incidence of self-employment is partly related to growth in the couriers & messengers industry, where two out of five workers are self-employed. Self-employment is also common in trucking (40%), which employs more than a quarter of the industry's workforce, and transit & ground passenger transportation (21%), which includes taxi drivers. It is not a common work arrangement in other types of transportation & warehousing services.

Many of the establishments in this industry are large, reflecting the size of operation required to provide some types of services

Many of the establishments in this industry group are large. That is because a great deal of money has to be invested in the infrastructure and equipment-vehicles, airports, ports, and terminals-used by air, rail, water, and public passenger transportation systems. Once those are put in place, it takes many workers (and customers) to operate a viable service.

Thirteen percent of the people in transportation & warehousing work in establishments where there are at least 500 employees, one-and-a-half times the average for all industries in BC. Another 26% are employed at locations where there are from 100-500 workers, and 32% work in establishments with 20-99 employees. Only 29% work in establishments with fewer than 20 employees, well below the average for all industries in the province (39%).

Where are the jobs located?

Vancouver is the hub of the province's transportation infrastructure system. It is also the location of Canada's busiest port, the western terminus for shipments of resource and other commodities produced in BC and the rest of Canada, and the first available stopping point for flights to Canada from the Pacific Rim. All of these reasons, plus the fact that the population of Mainland/Southwest exceeds two million people, help explain why two-thirds of the jobs in transportation & warehousing are located in the Vancouver area.

Two out of three jobs in BC's transportation, storage and communications industry are in Mainland/Southwest

North Coast & Nechako, where the Port of Prince Rupert is located, also has a higher share of employment in this industry than its share of the total workforce. Prince Rupert is emerging as an important deep sea port where commodities shipped via the northern rail line are loaded for transport to Asia and other destinations.

What's the outlook to 2017?

The industry's share of GDP is forecast to drop slightly, while employment is expected to grow a little faster than the rest of the economy.

GDP and employment in the industry are forecast to keep pace with the rest of the economy during the next few years