APEC Sees Major Project Growth in Atlantic Cities and in Foreign Investment
Date: June 3, 2013
For Immediate Release
Moncton - The Atlantic Provinces Economic Council's 2013 Major Projects Inventory identifies a record $115 billion worth of major investment projects in various stages of development across Atlantic Canada, up 15% over last year's Inventory. The 30th edition of APEC's Inventory, which catalogues 388 major investment projects across Atlantic Canada, was released today in Moncton in conjunction with the latest issue of APEC's Atlantic Report.
The rise in major project investment potential is largely due to the increase in the estimated costs of several projects in Newfoundland and Labrador along with a new LNG export plant proposed for Nova Scotia. An increasing focus in Nova Scotia offshore oil and gas exploration, new mining projects including an underground nickel mine in Labrador and the potential for an east-west oil pipeline into New Brunswick are also adding to the region’s pool of investment.
Investment has strengthened in Atlantic Canada with current-year spending on major projects up about 5% to $14.3 billion, which is also a record. Newfoundland and Labrador continues to dominate activity with $9.4 billion of major projects investment this year, up 10% over last year. Current year spending is also higher this year in Prince Edward Island, up 10% to $287 million, and in Nova Scotia, up 10% to $3 billion. However, in New Brunswick 2013 spending is down 22% to $1.6 billion. Major project investment in Atlantic Canada is expected to remain near record levels in 2014, with a diverse range of activity supporting spending, including oil and gas, mining, electricity, shipbuilding and housing projects.
A focus of this year's Major Projects research is how Atlantic cities are benefitting from major project growth.
"Atlantic Canada’s cities are experiencing strong growth in investment due to the spin-offs from large projects underway or from increases in the population due to urbanization," said Patrick Brannon, APEC's Major Projects Director. "St. John’s is benefiting the most from oil and mining investment while Halifax is capitalizing on anticipated growth from shipbuilding and the offshore."
Between 2006 and 2011 Atlantic cities have seen robust population growth, particularly in St. John’s (+9%), Halifax (+5%), Moncton (+10%) and Charlottetown (+9%) where strongly growing populations are creating demand for infrastructure, housing, retail and other services that require new construction.
Brannon also noted that Atlantic Canada's growing potential is underscored by the rising project investment in the region from the US, Europe and the BRICS countries. (Brazil, Russia, India, China and South Africa). The investment from the BRICS totalled $1.7 billion in 2013 led by Vale’s spending at Long Harbour on the island of Newfoundland.
"Foreign investment will continue to play an important role in major project investment especially in Newfoundland and Labrador," said Brannon.
APEC is holding events in Moncton on June 3rd, Halifax on June 4th and St. John's on June 6th to discuss the trends in the Inventory.
Major Projects Inventory at a Glance
Key points from the Atlantic Provinces Economic Council's 30th annual Major Projects Inventory:
Newfoundland and Labrador Key Points:
• APEC has identified 113 projects totalling $54 billion a 12% increase over last year’s Inventory.
• This growth is due to an increase in the estimated value of key energy and mining projects.
•The value of current-year spending in 2013 is up 10% to $9.4 billion.
• The rise in current-year spending is largely due to an increase in spending on Hebron and Muskrat Falls.
Nova Scotia Key Points:
• APEC has identified 156 projects totalling $40 billion, up 23% over last year.
•The increase is largely due to a proposed $5 billion LNG export facility by Pieridae Energy at Goldboro.
• The value of current-year spending on projects is up 10% in 2013 to $3 billion.
• Growth was boosted by increased electricity project spending, Halifax Shipyard upgrades and Shell's offshore work.
New Brunswick Key Points:
• APEC has identified 75 projects totalling $18.9 billion, up 6% this year.
• The increase is due to a proposed oil pipeline, a rise in a potash project's value and new potential energy projects.
• The value of current-year spending in 2013 is down 22% to $1.6 billion
• The fall in current-year spending is due to lower spending on the Sussex potash project and highway construction.
Prince Edward Island Key Points:
• APEC has identified 44 projects totalling $1.9 billion, up 8% over last year.
• The increase is largely due to several new housing projects.
• The value of current-year major project spending in 2013 is up 10% to $287 million.
• The rise in current-year spending is due to a $60 million wind farm project planned by PEI Energy Corp.
For a copy of the Atlantic Report or to arrange an interview, please contact:
Donal Power, APEC Communications Coordinator
The Atlantic Provinces Economic Council is an independent think-tank dedicated to economic progress in Atlantic Canada. APEC is a trusted source of analysis and advice on current and emerging trends in the region's economy. Please visit our website for more information: www.apec-econ.ca