Kim Stegeman of Squamish Terminals said the blaze broke out just after 6 pm yesterday at the facility at the north end of Howe Sound and about an hour's drive from Vancouver.
"There was a ship at the dock but it did not catch fire," she said. "It is safe and away from danger. She said everyone who was working at the site was accounted for and evacuated.
Stegeman said she doesn't know how the blaze started.
A spokeswoman for BC Emergency Health Services said four ambulance crews, a helicopter and a critical-care team were on standby but nobody was transported.
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Mayor Patricia Heintzman said a significant amount of dark, strong, pungent and toxic smelling smoke could be seen in the sky.
The District of Squamish said it was waiting for Vancouver Coast Health to confirm toxicity levels of the smoke, but as a precaution, it asked residents to stay indoors because of poor air quality in areas of the valley.