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Construction activity remained strong in 2000. Total construction investment is estimated at $2.1 billion, the fourth highest level on record. The oil industry accounted for just over one-half of this total. Construction employment averaged 10,900 in 2000, down 6.2% from 1999. However, employment remains above the 1995-1999 average of 10,300.
Residential Construction
There were 1,459 housing starts in 2000, up 6.4% from 1999 and the strongest growth since 1996. Housing starts in St. John’s increased by 15.9% to 935, however, starts in the remainder of the Province declined by 7.1% to 524. Single detached units accounted for 90% of total starts in the past two years compared with the long term average of about 70%. This shift is generally positive as construction of single detached units generates more economic activity per unit than multiple unit projects.
Non-Residential Construction
Private sector investment was high in 2000, aided by Terra Nova construction and a wide range of commercial and retail projects.
Public sector investment included the Mile One Stadium and the St. John’s Convention
Centre; hospital,
school and municipal works programs; road construction (e.g., Trans Labrador Highway); and renovations at the St. John’s International Airport.
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| Outlook for 2001 |
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Total private and public sector construction investment will be about $2.3 billion. |
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The Province will tender capital projects (hospitals, schools, roads, municipal works) of about $200 million. |
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Development work for Terra Nova will be completed. |
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Preliminary design work on White Rose will continue. |
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Phase II of the Trans Labrador Highway will be completed north to Charlottetown (see
map in 2001 Expectations). |
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The Mile One Stadium and convention centre at St. John’s will open. |
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Construction will continue on a $40 million facility to house the provincial museum, art gallery and archives— “The Rooms”. |
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Trans Labrador Highway at Gilbert River (near Charlottetown)
Photo: Department of Works, Services and Transportation |
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St. John’s Harbour Reconstruction
The Port of St. John’s services ships engaged in commercial cargo transport, fisheries, cruiseship activity and offshore oil activity. The St. John’s Port Authority estimates that the Port generates $180 million in economic activity per year and creates 2,500 direct and spinoff jobs. One of the Port’s largest commercial carriers, Oceanex, expects its volume of business to rise in 2001, building on a record year in 2000.
Major infrastructure improvements have been made at the St. John’s waterfront in recent years. For example, in support of offshore oil activity, $7.5 million was invested to upgrade the A. Harvey and Co. Offshore Supply Base and $3.1 million was spent on upgrading the Marine Institute’s safety training facilities. As well, over $2.0 million was invested to upgrade the Oceanex terminal buildings and over $500,000 was spent to upgrade infrastructure at Pier 11 in support of the cruiseship industry.
The Port Authority also intends to develop two other areas over the near term. Pier 17 (near the harbour entrance) will be rebuilt, at a cost of $10 million, for general service and offshore oil support; and private sector proposals are being sought to develop Pier 7 (near the Murray Premises) as a tourism and hospitality centre. |
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