Canada Maritime Conference: Soaring Freight Rates, Emergence of Developing Nations Jeopardizing Export.(Conference notes)

BYLINE: By Alan Daniels

Customers around the world are lining up to buy Canadian resources, with coal, canola, potash and sulphur flowing from western Canadian ports at near record levels, delegates to the second annual Canada Maritime Conference were told.

"I have never seen more optimism for agriculture in Western Canada than I have seen today," said Lach Coburn, West Coast Canada manager for Cargill Ltd. The sentiment is shared by other resource sectors.

But producers caution that soaring freight rates in Canada coupled with increasing competition from developing nations could jeopardize future export markets.

"The key message I have is that the survival of this business is dependent on the co-operation of service providers," said David Corriveau, director of business and market analysis for Elk Valley Coal Partnership.

"We think we are underpinning a lot of the capital investment on infrastructure they (the railways) are making. But they have to keep in mind that you can''t kill the golden goose. We operate in a cyclical business. The numbers move up and down and we are in a vulnerable position."

He noted that distribution costs have soared 67 per cent over the past three years, a higher level than in other countries that are now competing with Canada.