Vehicle throughput remains steady at Vancouver but is expected to increase when Annacis VPC opens
Tariffs on Chinese electric vehicle imports have affected volumes through the Canadian port of Vancouver but vehicle sales in Canada are up and imports from Mexico have remained consistent.
North American ports review: The best laid plans
The port of Vancouver on Canada’s west coast is the country’s main gateway for finished vehicle imports and last year increased throughput by 3.2% to almost 469,000 passenger vehicles and light trucks (see table). According to Vancouver Fraser Port Authority the increase in numbers coincides with steady growth in Canada’s vehicle sales, which topped out at 1.86m units in 2024, according to DesRosiers Automotive Consultants. “Stability in production levels, lower interest rates, dealership incentives and other macroeconomic factors contributed to this growth,” said a spokesperson for the port authority.
Vehicle imports from Mexico remained consistent, averaging 3% of import volume over the six-year period since 2019, says the port authority. However, volumes delivered from China declined by 23%, accounting for 7% of total volume, down from 10% in 2023. The port authority said the decline is attributed to the Canadian tariffs on China-produced electric vehicles, which came into effect on October 1, 2024.
In the first quarter of this year the port saw a 3% decline in volumes compared to the same quarter in 2024, with 117,365 processed at the vehicle terminal, which is operated by Wallenius Wilhelmsen. However, the volume in March was the fifth highest monthly volume on record, increasing by 5% over the same month in 2024. “This strength may be attributed to short-term impacts resulting from the current North American trade environment,” said a spokesperson for the port authority.
Annacis Auto Terminal upgrade
Work is nearing completion on the Annacis vehicle processing facility at the port of Vancouver and once completed the port authority expects to increase vehicle throughput capacity by 36% from 352,000 to approximately 480,000 vehicles. Working with Wallenius Wilhelmsen, which exclusively provides vehicle terminal management, the port authority is consolidating the two existing vehicle terminals (Annacis and Richmond vehicle terminals) into one at the Annacis Auto Terminal. Terminal improvements include expanding two existing terminal railyards, installing electric charging stations and replacing some terminal buildings with new vehicle processing centre. The Richmond Auto Terminal is being repurposed for other port-related business.
According to the port authority, optimising the supply chains that serve the port of Vancouver to better anticipate and overcome capacity constraints, and become more resilient to disruptions and changing circumstances, is a priority.
“We collaborate and engage with the port community to create and implement optimisation tools to enhance the overall safety, fluidity and resilience of vessel movements to and from port terminals, said VFPA’s spokesperson.”
Looking ahead to 2025, the port anticipates a short-term increase in vehicle volume because of heightened overseas sourcing to meet Canadian market demand.
“In the longer term, new vehicle demand in Canada is expected to be impacted by higher purchase prices and economic uncertainty, which could impact throughput volumes at the port of Vancouver,” said its spokesperson. “We do not anticipate any impacts on auto volumes due to proposed US port fees on China-built or operated vessels as the port handles vehicles destined to the Canadian market.”