STEPE:
1. Regarding the existing ground at the existing panel, soon to be a junction box:
A. The existing service ground must be lifted at this location. If you keep the existing earth ground and make another (proper earth ground at the main servic equipment, you wll have providedmultiple paths to ground for the neutral (grounded) conductor, which is prohibited by the NEC/CEC.
B. Yes, the junction box must be grounded. The 1996 NEC/1998 CEC states:
"250-33. Other Conductor Enclosures and Raceways.
Metal enclosures and raceways for other than service conductors shall be grounded."
C. If there is a rigid galvanized conduit between the exising panel enclosure/junction box and the new service panel enclosure, and IF the ground path is preserved, that is all that is required to ground the panel enclosure/junction box.
2. Regarding the Ground electrode:
A. The ultimate authority is the local building department, or Authority Having Jurisdiction (AHJ). You really must check withthem since local interpretations vary from locale to locale.
B. The main grounding electrode, if available, is a metallc cold water pipe having 10 eet or more contact with the soil. Many jurisdictions require an additional or auxiliary ground electrode, such as Ufer ground.
C. If these are not available, or not feasible, then "made" electrodes MAY be acceptable to the AHJ. In addition to plate elctrodes, other possible solutions include ground grids, ground rod(s), chemically enhanced ground rods (e.g. XIT rod), Bare wire in the service trench, etc, etc, etc.
The local electricians may know something you don't, such as the attitude of the AHJ, extreme soil corrosivity, etc.
Discuss this with your local inspector.
3. Regarding your last comment, the closest NEC/CEC language is:
"250-92. Installation.
Grounding conductors shall be installed as specified in (a), (b), and (c) below.
(a) Grounding Electrode Conductor. A grounding electrode conductor or its enclosure shall be securely fastened to the surface on which it is carried. A No. 4, copper or aluminum, or larger conductor shall be protected if exposed to severe physical damage. A No. 6 grounding conductor that is free from exposure to physical damage shall be permitted to be run along the surface of the building construction without metal covering or protection where it is securely fastened to the construction; otherwise, it shall be in rigid metal conduit, intermediate metal conduit, rigid nonmetallic conduit, electrical metallic tubing, or cable armor. Grounding conductors smaller than No. 6 shall be in rigid metal conduit, intermediate metal conduit, rigid nonmetallic conduit, electrical metallic tubing, or cable armor."
As a professional engineer, you surely recognize superior authority. Stop listening to electricians, especially if you don't like their answers; take your questions to the people who will make the decisions regarding your installation. These same folks (the AHJ/building inspector/electrical inspector) can make your life easier with a little advance discussion, or make your life a living hell-until you meet their interpretations of the applicable codes, including the local additons to the NEC/CEC.
meihm