Flood disaster shakes BC economy, awakens infrastructure


Highways and railroad closures due to flooding and limited access to Vancouver’s port facilities have alerted government and industry to quickly fix infrastructure and keep supply chains running

Content of the article

VICTORIA – British Columbia’s economic growth will face erosion from recent floods and landslides that crippled transport links, but the resilience of government and industry to maintain supply chains openings limit the damage, according to an economist.

Advertising

Content of the article

Vital road, rail and port links were cut for weeks when a record-breaking series of rains last month flooded southern British Columbia, inundating highways and farms and forcing an estimated 15,000 people to evacuate their homes .

Ken Peacock, senior vice president and chief economist of the Business Council of BC, said he estimated the climate catastrophe would result in lost economic output for the province ranging from $ 250 million to $ 400 million.

“We kind of think of the direct impact of the highway closures, the railroad closures, the Trans Mountain pipeline failure, and then the impacts on retail, we kind of think of three tenths of a percentage point, ”he said. noted.

“It would slow growth for 2021.”

He said the economic impact estimate did not forecast repair and reconstruction costs, which the government said will be huge.

Advertising

Content of the article

Finance Minister Selina Robinson recently said she would provide a clear picture of the province’s finances in her February budget. Last month, she said British Columbia was heading for a strong economic recovery after a 3.4% drop in 2020, but uncertainties over the COVID-19 pandemic and the costs of flood damage remain.

Earlier this month, Robinson said the province’s Economic Forecast Council forecasts economic growth in British Columbia of 5.3% in 2021 and 4.2% in 2022.

Peacock said the economic impact of the floods would have been felt more if the province was not in a period of economic rebound.

“So three tenths of a percentage point doesn’t sound like much when you talk about 4% growth. But if we’re in our normal world of growing two to two and a half percent, then three-tenths of a percent is much more significant, ”he said.

Advertising

Content of the article

The closure of highways and rail lines due to flooding and limited access to Vancouver’s port facilities has alerted government and industry to quickly fix infrastructure and keep supply chains running, even whether it involved moving goods on different highways or rail lines, Peacock said. .

“One thing that has become very clear to government and policy makers is that this is not a warning but a very clear indicator of our dependence on certain infrastructure and links. transport, ”he said.

The four-lane Coquihalla Freeway, the main road transport route to and from Vancouver, reopened to commercial traffic on December 20 after flooding and landslides damaged 20 sections of the freeway, including seven bridges.

Advertising

Content of the article

Officials at the Port of Vancouver, Canada’s largest, said rail service is running smoothly again following major disruptions from damaged rail tracks.

“While the reopening of the Coquihalla Highway will provide renewed access for the movement of goods by truck throughout the interior of British Columbia and Alberta, the majority of volumes from all sectors moving to and from the port travel by rail, ”said Vancouver Fraser Port. Authority in a statement. “Currently, the two railways serving the port currently operate consistently between Vancouver and Kamloops.”

James Thompson, vice president of western operations for Canadian National, said access to the port of Vancouver was cut from Nov. 14 to Dec. 4 due to 58 damaged sites in the Fraser Canyon region, from Ashcroft to Yale.

Advertising

Content of the article

It took 400 employees and 110 pieces of equipment working 24 hours a day, seven days a week to repair the trails, the biggest job being a major facelift in the Fraser Canyon at Jackass Mountain, he said.

“We put in 282,000 meters of rock to backfill what was swept away by the landslide and storm, and to put it in rough, easy-to-understand terms, that’s about 25,000 loads of 18-wheel ballast, rip-rap and other materials there. location, ”said Thompson.

CN was effectively shut down from Kamloops to Vancouver, forcing the company to move some of its traffic to Prince Rupert, he said.

Thompson said the storm was a one-of-a-kind event. But coming just months after wildfires in the same area that shut down rail service, it only served as a reminder of the power of weather in an era of climate change.

“We try to plan and integrate contingencies and resilience into our network. But in the end, I can’t say it better than that: Railroading is an outdoor sport and Mother Nature sets the rules, ”he said.

Advertising

comments

Postmedia is committed to maintaining a vibrant but civil discussion forum and encourages all readers to share their views on our articles. Comments may take up to an hour of moderation before appearing on the site. We ask that you keep your comments relevant and respectful. We have enabled email notifications. You will now receive an email if you receive a reply to your comment, if there is an update to a comment thread that you follow, or if a user that you follow comments. Check out our community guidelines for more information and details on how to adjust your email settings.

About Mike Stevenson

Check Also

Canadian Pacific Announces Multi-Year Agreement with CMA CGM

CALGARY, Alta., May 31, 2022 /PRNewswire/ – Canadian Pacific (TSX: CP) (NYSE: CP) today announced …