September 28–October 2, 2026
Two major industrial developments dominated British Columbia’s supply-chain news this week. LNG Canada announced a major expansion at Kitimat, while an agreement involving Domtar and the provincial government offered a possible lifeline to the Howe Sound pulp mill.
Elsewhere, business groups pressed for additional container capacity at Roberts Bank, a Port Alberni transshipment proposal attracted investment attention, and freight operators faced further Highway 1 construction in Abbotsford.
Manufacturing & Industry
Howe Sound Pulp Mill Could Reopen Following New Agreement
Domtar’s Howe Sound pulp mill in Port Mellon could reopen later in October following an agreement involving the company and the B.C. government. The restart remains conditional on members of Unifor Local 1119 ratifying a new collective agreement.
Approximately 400 jobs are involved. The mill’s future has implications throughout the coastal forest-products supply chain, where pulp mills provide an essential market for residual fibre from sawmills. Losing that outlet creates additional pressure on lumber producers, wood-chip transportation and the broader fibre economy.
Source: Truck Loggers Association: Planned Reopening of Howe Sound Mill
Canadian Manufacturing Growth Slows in September
Canada’s manufacturing sector remained in expansion territory during September, although growth slowed. The S&P Global Canada Manufacturing PMI fell to 51.5 from 53.0 in August, its lowest reading in six months.
Trade friction and elevated energy prices continued to complicate production planning. Confidence about future output also weakened, reaching its lowest level in nine months.
The national figures provide a useful backdrop to the major investment announcements coming out of B.C. Manufacturers are weighing equipment purchases, productivity improvements and new export opportunities against an uncertain operating environment.
Source: Reuters: Canadian Factory PMI Hits Six-Month Low
Major Projects & Industrial Logistics
LNG Canada Approves Major Kitimat Expansion
LNG Canada and its partners announced a final investment decision on Phase 2 of the Kitimat LNG export terminal. The expansion is expected to double annual production capacity from approximately 14 million to 28 million tonnes.
The project will involve additional processing trains, storage and marine infrastructure. The associated Coastal GasLink expansion will increase pipeline capacity through new compression and upgrades along the existing route.
Another substantial construction cycle will create demand for industrial equipment, fabrication, trucking, marine services and contractors throughout northern British Columbia.
Source: LNG Canada
Ports & Trade
Business Groups Press for Roberts Bank Terminal 2
Business organizations representing several provinces have called for Roberts Bank Terminal 2 to receive national priority as a major trade infrastructure project.
The proposed container terminal would add capacity at Canada’s largest port, supporting the movement of imported goods and Canadian exports. The business coalition’s involvement reflects growing interest in West Coast gateway capacity beyond British Columbia.
Source: BC Chamber of Commerce
Port Alberni Transshipment Proposal Attracts Investment Attention
The proposed Port Alberni Transshipment Hub (PATH) has been included in the 2026 Canada Investment Summit Dealbook, providing another opportunity to attract investors.
The concept involves handling large container vessels at Port Alberni and using short-sea shipping to move cargo onward to regional ports and transportation networks.
The project remains in the early design and pre-feasibility stage. Further engineering, environmental assessment, Indigenous engagement and commercial work will be required before it can proceed.
Source: Port Alberni Port Authority: PATH Project Selected for 2026 Canada Investment Summit Dealbook
Freight & Transportation
Highway 1 Construction Brings New Abbotsford Disruptions
Another phase of Highway 1 widening will affect traffic at the Highway 11 interchange in Abbotsford beginning October 2.
Crews are preparing to demolish the existing overpass, requiring temporary lane restrictions and detours. The construction forms part of the continuing Fraser Valley highway improvement program, a significant undertaking along one of the province’s busiest freight corridors.
Commercial drivers travelling through Abbotsford should check current restrictions and detour information before departure.
Traffic updates: DriveBC
The Week in Perspective
The contrast between the week’s two leading stories is striking. LNG Canada is preparing for an enormous expansion, while Howe Sound Pulp and Paper is working toward preserving existing manufacturing capacity.
Both developments depend on extensive transportation and supplier networks. Meanwhile, the Roberts Bank and Port Alberni initiatives reflect continuing efforts to expand Canada’s Pacific trade capacity.
The challenge extends beyond building new infrastructure. Keeping existing industrial operations viable and maintaining reliable freight connections are equally important parts of British Columbia’s supply-chain economy.
More coverage: BC Logistics News
