The expansion of the Duke Point Shipping Terminal south of Nanaimo represents a significant step forward not only for shipping lines and port operators, but also for the tugboat industry that ensures safe and efficient vessel movements along the coast.
The project includes extending the berth from 182 to 325 metres and expanding container-handling capacity to 280,000 twenty-foot equivalent units (TEUs) annually which will allow Duke Point to serve larger international vessels and accommodate higher traffic volumes. This will enable the terminal to provide improved services for importers and exporters and facilitate smoother regional and international trade.
This growth will also bring more opportunities for tug operators, who provide the essential escort, docking, and berthing services required as ships increase in size and complexity.
Funded through combined public and private investment—including $46.2 million from the federal government’s National Trade Corridors Fund (NTCF) and $15 million from the Province of British Columbia under the Regional Port Enhancement Program—the expansion highlights the importance of marine services across the supply chain. With support from the Snuneymuxw First Nation, the Port of Nanaimo, and terminal operator DP World, construction of phase two (of three) launched in April.
“Through projects like the Duke Point Phase 2/3 Terminal Expansion, the Port of Nanaimo and our partners are creating cooperative solutions to current operating constraints in the supply chain,” said Ian Marr, President and CEO, Port of Nanaimo. “This is a catalyst for reconciliation, diversification, job creation in our local community, and co-operative economic development opportunities for B.C. and Canada.”
The expansion puts sustainability and efficiency front and center, adding more storage space and a 26,000-square-foot covered facility dedicated to pulp products. DP World is also modernizing its equipment, replacing a diesel quay crane in favour of two fully electric replacements. The project’s modernization features signal a broader shift toward greener marine operations.
Tug companies could be well positioned to align with this momentum by investing in hybrid or low-emission vessels, ensuring that harbour services keep pace with the environmental commitments of the terminal.
Because the expansion is backed by collaboration at federal, provincial, local, and Indigenous levels, the benefits are designed to ripple through the entire marine sector. For tug operators, this could mean stronger long-term contracts, new partnerships, and an enhanced role in keeping the supply chain resilient.
While the project aims to strengthen international trade, it also delivers important benefits at home. “Increased warehousing and distribution capacity on Vancouver Island improves local access to food, medical supplies, construction materials, and consumer goods,” said Donna Hais, Chair, Port of Nanaimo. “This enhances our local and national resilience to supply chain disruptions caused by climate change events, labour disputes, marine traffic congestion, and geopolitical challenges.”
More than just bigger berths and cranes, the Duke Point Terminal expansion has the potential to strengthen the tugboat industry’s capacity to innovate, adapt, and thrive in an increasingly busy and complex coastal trade environment.
