$74 million in federal funding to expand cargo facilities at YVR

$74 million in federal funding to expand Vancouver International Airport's cargo facilities

Vancouver Airport Authority

Cargo-handling facilities at Vancouver International Airport (YVR) will be expanded through an infusion of over $74 million in new funding from the federal government.

“We’re improving our supply chains through this project by increasing capacity to handle higher air cargo volumes and improve efficiency at the Vancouver International Airport, while reducing pollution,” said Pablo Rodriguez, the federal minister of transport, in a statement today.

This will directly go towards expanding the capacity for the movement of larger aircraft between cargo facilities and the runways, including increasing aircraft parking space capacity to accommodate additional widebody freighter aircraft, upgrading an access road, and preparing the site for the construction of a new air cargo warehouse.

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The expansion of the cargo-handling facilities further supports YVR’s growth in moving advanced manufacturing and pharmaceutical products, as well as traditional sectors such as agriculture and fisheries, which need reliable air cargo shipments for such perishable items.

The improvements will increase YVR’s cargo capacity by 160,000 tonnes per year (an increase of over half of its typical average annual volumes), representing a $22 billion increase to Canada’s trade potential annually.

YVR typically processes approximately 300,000 tonnes of cargo per year, based on annual statistics for 2019 and 2022. Over the first 11 months of 2023, based on the latest available statistics, YVR already processed more than 289,000 tonnes of cargo, including 30,100 tonnes in November.

The project could reduce freight truck travel by up to 229 million kilometres over 30 years, as local exporters will not need to transport their products to an airport further away. It will also support the business growth of Air Canada, WestJet, Cargojet, and other carriers.

Also, through the newly added room for widebody freighter aircraft, the project will reduce air pollution generated by the movement of air cargo by up to 25%.

“Cargo and our focus on growth and optimization is in direct service of our community and the economy that supports it,” said Tamara Vrooman, the president and CEO of Vancouver Airport Authority.

“The substantial funding from the National Trade Corridors Fund for cargo development at YVR will enhance our role as [a] gateway for global and domestic cargo operators. With improved capacity and infrastructure, we will handle more essential cargo and contribute to building stronger and more resilient supply chains between Canada and global markets, benefitting local businesses and consumers.”

Since the pandemic, YVR has been developing new strategies to greatly intensify its operations for industrial uses and a cargo multi-modal transportation hub, which includes the development of hundreds of acres of undeveloped lands next to the runways for additional airside uses, such as air cargo and aircraft maintenance facilities.

The latest available statistics also show YVR will see one of its strongest years for passenger volumes in 2023, with 22.84 million passengers recorded over the first 11 months of the year, including 1.89 million passengers in November. YVR previously stated it was anticipating about two million passengers for December 2023. The final annual passenger tally for 2023 is expected to be ready by next month.

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