Business Council of British Columbia

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Fueling the Economy with Trans Mountain

British Columbia is renowned for its mountains, coastlines, and trails. When these landscapes are captured in photographs, they’re often accompanied by the red freighters that dot the oceans- subtle reminders of another hallmark of B.C.: its thriving export sector.

B.C. is a small, open economy which relies heavily on exports to help local companies expand their reach into international markets. With over 45 per cent of these exports coming from the natural resource sector, it’s safe to say that the companies in this bracket play a key role in building prosperity!

One such company, a leader in energy transport (and long-standing member of BCBC!), is Trans Mountain Corporation. We were invited to visit them recently for a tour of their Burnaby terminals to learn more about their work and get a glimpse into what a day in the life looks like for their team.

The Trans Mountain Pipeline was first built in 1953 to transport oil from Alberta to British Columbia. Used to supply markets in Canada and abroad, it was an impressive engineering feat for its time, crossing the Rocky Mountains with machinery far less advanced than what we have today.

A lot more than machinery has changed since the 1950s—our cars and homes are bigger, and so is the demand for energy to fuel them. To meet this growing need, Trans Mountain expanded the pipeline over the years, including adding a crossing into Washington State, but still needed to find ways to scale up further.

Innovating doesn’t always mean reinventing the wheel —sometimes, we just need to find ways to make it go further. With the original pipeline route in place, they came up with the idea of twinning it by building a second line alongside the existing one, resulting in the Trans Mountain Expansion Project (TMX). This extension would nearly triple transport capacity, helping to keep up with the rising energy demand.

Construction on the original pipeline in 1954. (Trans Mountain Corporation) 

Numbers and data are at the heart of our work at BCBC, and the figures from this expansion make even our economists’ eyes widen. A March 2023 independent economic impact study by Ernst & Young LLP (EY) estimates that TMX construction from 2018 to 2023 generated $52.8 billion in total economic activity, added $26.3 billion to GDP, paid $11 billion in wages, created 67,423 full-time equivalent jobs (FTEs), and contributed $2.9 billion in tax revenue. Numbers like these highlight just how much economic value building major projects has on the province.

Looking beyond construction, EY projects that the newly expanded pipeline will generate $17.3 billion in total economic activity over the next 20 years, add $9.2 billion to GDP, pay $3.7 billion in wages, create 36,066 FTEs, and contribute $2.8 billion in tax revenue. These tax revenues can then be reinvested in infrastructure projects and essential services like healthcare and education across communities in British Columbia.

Beyond the economics of Trans Mountain, visiting their sites and seeing their work firsthand impressed us almost as much as the numbers did. While we always enjoy meeting our members, it’s even more exciting to visit them on-site and see their operations up close.

One thing that stood out during our trip was the team’s commitment to safety at their terminals. From the moment we arrived, we were outfitted in steel-toed boots and hard hats—a rare look for office workers! Throughout the visit, the team emphasized that pipeline safety is their top priority, with robust systems in place to prevent incidents and emergency response plans to protect local communities, the environment, and their employees.

We visited both of Trans Mountain’s Lower Mainland facilities during the tour. At Burnaby Terminals, a distribution hub in their system, we saw storage tanks capable of holding an impressive 5.5 million barrels. They also walked us through their stormwater treatment system, which manages and treats rainwater to protect nearby ecosystems and waterways.

At the busy Westridge Marine Terminal, we met some of the operators and saw the vessels used to transport oil exports. Of course, we had to take photos in front of the Pacific Jade, given our newfound appreciation for shipbuilding since our Seaspan visit! The team also showed us a rock reef they built to create habitats for marine life, like salmon, starfish, crabs, and algae. We noticed their high safety standards again in the high-tech control room, where the pipeline is monitored 24/7- it felt a bit like being in the Starship Enterprise.

The BCBC Team at the Westridge Marine Terminal (Left to right: Alison Grant, Laura Jones and Braden McMillan)

When we came up with the idea for our Building Prosperity campaign, we wanted it to highlight the hard work companies do to help B.C.’s economy thrive. But this also extends to how companies help those around them thrive, beyond revenue and wages. When businesses succeed, they are better positioned to support the communities around them—and this is true of Trans Mountain. In 2023 alone, they supported 125 organizations along the pipeline corridor, sponsoring education programs, hospitals, and conservation groups.

Their work with First Nations along the route has also created meaningful opportunities for their communities. By December 2023, more than 3,600 Indigenous workers had contributed to the Expansion Project. Since 2016, they have awarded over $6 billion in Indigenous contracts, with many benefiting communities long-term through Indigenous-owned or joint business ventures. Ownership opportunities like these provide more than just economic benefits—they give families the resources to build housing and invest in their communities.

Getting a major project like the Trans Mountain Expansion across the finish line is rarely without meeting some roadblocks—a fact we know all too well in B.C. The project faced numerous challenges, from legal battles to environmental and permitting hurdles, pushing its completion well beyond the original 2017 target. But in May 2024, they announced that the newly expanded system was ready for operation. As Dawn Farrell, retired Trans Mountain President & CEO and now Chair of the Board, put it, they finally “landed the plane.”

We’re excited about this new chapter for Trans Mountain. Major projects like this provide a significant boost to our province’s prosperity. They create revenue and offer well-paying jobs that support our communities. Beyond that, we felt the genuine care and passion for the project from everyone we met on-site. Thank you to the team for a fantastic visit!