Procurement updates

Since fall 2019, the Vancouver Fraser Port Authority has been engaging with contractors, developers and terminal operators to help shape the procurement schedule, contract details, and delivery approach to ensure we are choosing the best approach for building the project.

A two-staged procurement approach

After considering the feedback received, and assessing procurement objectives, the port authority has decided to move forward with a two-phased procurement approach.

First, a contractor will be selected through a design-build (DB) procurement approach to build the new landmass and marine structures needed for the project. Then, approximately three years prior to the anticipated start of terminal operations, the terminal operator will be selected to build, equip and operate the new terminal through a terminal concession (TC) procurement. This contract will include construction of the terminal infrastructure such as buildings, civil utilities, roadworks/pavement, as well as financing and operations.

We have a federal mandate to protect the environment and consider local communities, and we will work with the successful proponent to ensure this project is built in a way that upholds that mandate and aligns with our vision for the Port of Vancouver to be the world’s most sustainable port.

Design-build contractor procurement

Over the coming months, we plan to engage with design-build contractors to gather additional feedback. We anticipate releasing an RFQ for the design-build contractor in the first half of 2021. However, this will be dependent on a variety of factors such as the timing of a government decision and other environmental and regulatory permitting.

We are continuing to advance our environmental permits and procurement so that we can proceed with project delivery if the Government of Canada approves the project. With Canada’s west coast projected to run out of container capacity by the late-2020’s, Roberts Bank Terminal 2 is required to deliver needed capacity.

For updates on RBT2 procurement, please sign-up for our procurement newsletter.

The Vancouver Fraser Port Authority conducted an initial round of market research as part of preparing for the procurement process for the Roberts Bank Terminal 2 Project this spring. By conducting market research, the port authority is able to hear from a cross-section of concessionaire leads, financiers, operators and infrastructure developers about their thoughts on possible procurement options for construction and operation of the proposed project. Information received during market research will help inform selection of a procurement delivery model.

The first round of market research is now complete and we thank participants for their contributions. Results of the research will be shared in future updates. We may follow up with participants to explore ideas and questions that were raised in the first round. The discussion guide for the first round of research is available in the procurement documents section.

Currently, we are seeking input on questions related to rail operations related to the project. These questions can be found in our rail strategy market sounding document.

After we have selected a procurement delivery model, we anticipate conducting a market sounding process. More information about future market sounding efforts will be made available on this website and through our procurement newsletter. For updates on RBT2 procurement please sign-up for our procurement newsletter.

Disclaimer

Although the information contained in the market research document has been prepared in good faith, it is not intended to be exhaustive and has not been independently verified. Neither the Vancouver Fraser Port Authority nor any of its advisors bear any responsibility for the accuracy or detail of the information provided, nor do they make any express or implied representation or guarantee, with respect to the information contained therein. The information contained therein should be considered preliminary.

Nothing contained in the market research document can be construed as a promise or statement by the Vancouver Fraser Port Authority that the RBT2 Project will be implemented in any form whatsoever. Neither any information provided by participants in the market research nor the participation in any market research activities will, in any way, be used for evaluation purposes in subsequent procurement processes for the RBT2 Project. Therefore, participation in the market research is not an undertaking of any kind to grant the participant qualification to participate in any request for qualifications or request for proposals in relation to the RBT2 Project.

The Roberts Bank Terminal 2 Project is a significant infrastructure project that will require a large team to build the land and the terminal, as well as an organization to operate the terminal once it is built.

The port authority is intent on choosing the best possible delivery and procurement model for construction and operation of the terminal. On behalf of Canada and in fulfilling our federal mandate, we will ensure the project is built and operated in the most responsible way, including meeting all environmental commitments.

The port authority initiated a procurement process for a terminal operator in 2013 with the expectation that the construction of the terminal site would be proceeding to a certain schedule. However, it is taking longer than we expected to complete the required federal environmental assessment.

Procurement decisions are informed by market conditions. Since much time has elapsed, we think it is prudent to re-assess these conditions and re-evaluate procurement options for both construction of the land mass and terminal operations, to be sure we are pursuing the right model for Canada.

This fall, we will go out to the infrastructure and terminal operator market to learn more about choosing the best possible delivery model for construction and operation of the terminal. This market sounding will inform our development of a request for qualifications (RFQ), which we hope to issue by late 2020-early 2021, and which will start a new project delivery procurement process.

Over the past number of years, the port authority has been in negotiations with a potential terminal operator for Roberts Bank Terminal 2. In view of the delays and resulting decision to initiate a procurement process, we have mutually agreed with the terminal operator to end those negotiations. Our decision is in no way a reflection of the capability of the proponent with whom we have been negotiating or the project’s feasibility.

Roberts Bank Terminal 2 is urgently needed because Canada’s west coast marine container terminals will be full by the mid-2020s. Our goal is now to have RBT2 operational by 2029.

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