OTTAWA, ONTARIO - Thank you Sean, for your introduction. And thank you for the opportunity to join you for your Seventh Annual Ports Government Interface, and to help celebrate the 50th Anniversary of the Association of Canadian Port Authorities.
Minister Cannon sends his regrets that he is unable to attend today, but I am honoured to fill in on his behalf.
Much has happened since the people involved in ports, harbours and related marine interests across Canada came together in one organization.
Your initial objective was to encourage and stimulate the development of Canada’s port sector.
Today, the Canadian Port Authorities handle more than 200 million tonnes of goods – about $100 billion – each year. It represents a quarter of all Canadian trade.
Your origins go back to a time that many regard as a golden era in Canadian transportation.
It was a time of tremendous accomplishment in building an infrastructure that has sustained Canada as one of the world’s great trading nations:
- The National Airport System was being established.
- Canada was building a national highway system. Work on the Trans-Canada Highway began in 1950 and would be officially opened in 1962.
- When your association had its first meeting, the St. Lawrence Seaway was nearing completion and would be opened the following year.
So arguably, it was a golden age for transportation. But now we stand at the threshold of a similar era. As part of this government’s long-term economic plan, Advantage Canada, we are creating an Infrastructure Advantage with $33 billion in investments.
Advantage Canada also includes a Tax Advantage. We are bringing federal taxes to their lowest level in nearly half a century. We have cut taxes by nearly $200 billion over this and the next five years.
Let me put this in perspective. Between 2006 and this year, we are providing $21 billion in incremental tax relief to Canadians and Canadian business.
That’s the equivalent of about 1.4 percent of Canada’s GDP.
Ladies and gentleman, our initiatives will help the transportation sector – and every sector – compete globally. We help the marine mode – and every mode – compete.
That’s the way to provide a solid foundation for a new golden age in Canadian transportation. That’s the way to create a Canadian advantage.
In his Budget yesterday, the Finance Minister outlined further initiatives to support Advantage Canada. This economic plan sets the foundation for a new era of growth and prosperity for Canada, and a new golden age for your industry.
Canadian ports are more active than at any time in the history of the port system, and you only need to look at a globe to see why.
Canada finds itself uniquely positioned at the geographic crossroads between new, rising economies and the economic heartland of North America.
We are going to seize those geographic advantages. That’s the goal of the National Policy Framework for Strategic Gateways and Trade Corridors.
As you know, the Framework helps governments at different levels, along with the public and the private sector, plan together to attract a greater share of global traffic.
We have seen tremendous progress in a very short time with the Asia-Pacific Gateway and Corridor Initiative.
Perhaps the most dramatic development was the opening of Fairview Container Terminal in Prince Rupert. When containers were unloaded onto flatcars last November, they reached Chicago 92 hours later – 32 hours sooner than had they been unloaded in Los Angeles!
We’ve made significant progress in other areas of the Asia-Pacific Gateway and Corridor:
- project selection and construction;
- policy development and technology application;
- international cooperation and marketing.
We are getting very significant leverage from the province and private sector for that investment. Truly a remarkable build-up of momentum in such a short time.
But some of you are probably thinking: “Well, Brian, the timeline really isn’t all that short: not when you consider it took more than a decade to promote the Gateway and Corridor idea, and get it off the ground.”
And I’d have to agree.
And that is why it is very important that we learn the lessons from the Asia-Pacific experience, and apply them to other gateways and corridors. That’s the purpose behind the National Policy Framework.
We are indeed moving quickly on other gateways and corridors. Take the Atlantic Gateway, for example.
Look at that globe again. The closest point in North America to ships coming through the Suez Canal is the east coast of Canada.
We will create an Atlantic Gateway that will be a system of modern and efficient transportation infrastructure to facilitate trade to and from North America through our Atlantic ports.
The Atlantic Gateway has the capacity to handle significantly more traffic right now.
Halifax can accommodate the larger post-Panama vessels right now.
We’re moving ahead on an Atlantic Gateway Strategy right now.
Last October, Peter MacKay, as Minister responsible for the Atlantic Canada Opportunities Agency, signed an agreement with his provincial colleagues to work together on an Atlantic Gateway as a strategic, secure, sustainable transportation system.
And just last week, Minister McKay led a successful mission to India in partnership with the four Atlantic Provinces, Transport Canada and the Atlantic Canada Opportunities Agency that put Atlantic shippers, ports and airports together with their India counter parts.
The immediate capacity available in Atlantic Canada to access markets throughout North America was of great interest in India.
The National Policy Framework guides an initiative to build the competitiveness of an Ontario-Quebec Continental Gateway and Trade Corridor.
We will also incorporate the findings of the Great Lakes St. Lawrence Seaway Study into this Framework.
This study found that the Seaway system has the potential to alleviate congestion on the road and rail transportation networks as well as at border crossings in the Great Lakes Basin and St. Lawrence River region.
The study calls for a stronger focus on short-sea shipping which would provide shippers with a cost-effective, timely and reliable means to transport goods.
Our Government’s Building Canada initiative includes long-term funding for short-sea infrastructure, and we will work with our American counterparts to reduce the regulatory hurdles.
I’d like to make an important point about our National Policy Framework. Any successful gateway and corridor is made up of much more than concrete and steel.
It is also built out of regulatory policies, governance frameworks and operational issues. We need to use our policy tools to create a powerful transportation and logistics system.
Governance measures can lead to a more competitive gateway. An excellent example of this is the amalgamation of the Lower Mainland ports.
The integration of the port authorities in the Lower Mainland is a key policy measure under the Asia-Pacific Gateway and Corridor Initiative.
An amalgamated port authority is in a better position to pursue strategic investments in facilities and inter-modal connections. It can optimize port planning and maximize the efficiency of the port.
Both the regulatory and the infrastructure components of the National Policy Framework come together when we consider the importance of the changes to the Canada Marine Act that are making their way through Parliament as Bill C-23.
I understand that Emile Di Sanza, Transport Canada’s Director General of Marine Policy, will outline the changes to the Act in more detail this afternoon. But let me make a few general observations.
Canadian Port Authorities have proven to be an excellent governance model for promoting the competitiveness of Canada’s ports. You have undertaken your management responsibilities in a sound and fiscally responsible manner, and the strength of Canadian ports today is a testament to your vision and your ability.
But gateways and corridor strategies require port authorities to bring their play to the next level.
Therefore, we need to remove some of the constraints imposed by the Canada Marine Act, and support your ability to make funding decisions.
Bill C-23 addresses financial flexibilities, and removes restrictions preventing port authorities from accessing funding for infrastructure, security and environmental sustainability.
The Act would establish a commercially based borrowing regime for large ports, and introduce penalties for regulatory infractions on port lands.
And as I mentioned, we want to put port authorities on an equal footing with other transportation modes that have access to contribution funding. Port authorities should be able to apply to contribution programs related to infrastructure, security or environmental sustainability for which they are eligible.
Let me mention another initiative that the Government of Canada has introduced recently that will affect the marine sector.
On Monday, Transport Minister Cannon tabled two International Maritime Conventions to govern liability and compensation for pollution resulting from oil spills at sea. These conventions require amendments that would reform and modernize the Marine Liability Act.
The result will be a uniform method for determining liability of ship-owners and ship operators. The conventions will provide increased levels of compensation to those affected by oil pollution caused by ships.
That’s what Canadians expect. Let’s make the rules clear. And let’s make our rules consistent with international standards.
Finally, a few words about security.
Since 9/11 we have taken significant steps to create a national security system to protect travelers and commerce in all modes of transportation, including marine security.
We are implementing a Marine Transportation Security Clearance Program that establishes restricted areas, and grants Transportation Security Clearances to selected marine workers. I am very pleased that the West Coast marine workers have accepted the required provisions.
This is an important step to building a competitive port system in Canada. I believe that Laureen Kinney from Transport Canada will have more to say about this later today.
As I mentioned at the beginning, the 1950s were a monumental time in the building of Canada’s transportation infrastructure. But there were also lesser known accomplishments that provide a symbol for what we are doing today to create a competitive marine industry.
As some of you may know, 1958 was the year in which engineers removed one of the notorious obstacles to navigation through the Seymour Narrows, near Campbell River.
Ripple Rock was a formation of spires between Vancouver Island and the mainland that reached up to within three meters of the surface.
It was estimated that at least 114 people had died since 1875 as a result of ships goring their hulls on the rock.
Engineers dug a tunnel from the shore, and planted enough explosives under the rock to create what was, at that time, the biggest non-atomic explosion ever seen – or heard!
It’s reported that the people of Campbell River stacked dishes on the floor to prevent them from falling from the shock waves. The explosion was a success. Seymour Narrows became safe for ships.
We can use explosives to remove physical obstacles to shipping, such as Ripple Rock.
But it is just as important that we remove the non-physical obstacles that could threaten our shipping industry – regulatory obstacles; governance obstacles.
These kinds of obstructions can be every bit as dangerous to Canada’s marine industry as a pinnacle of rock in the middle of a channel.
That being said, we need to ensure that the marine industry is a sustainable industry, one that is responsible environmentally.
I know that our ports are providing considerable oversight with respect to implementing environmental measures and practices.
Ports are being proactive, having signed an MOU with the Green Award Foundation and working to develop a Green Award Program for Canada.
As I mentioned, the proposed CMA amendments would allow us to assist port authorities with these environmental initiatives.
This is one area we all need to continue to focus on strongly in the coming years and I’m glad that our ports are taking a leadership role.
We want to be part of innovative solutions as a nation.
We are moving ahead with Advantage Canada as our long-term economic plan.
Similarly with yesterday’s Budget, and with the changes to the Canada Marine Act and the Marine Liability Act, we are dedicated to creating an appropriate policy environment, making investments in infrastructure where they are most needed and upgrading our marine security capabilities.
We are removing the obstacles, so it will be clear sailing for the marine industry and our ports as we enter a new golden era of transportation in Canada.
Thank you.
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