Canada's need to invest in critical transportation infrastructure has never been more evident – and urgent. The challenges of the past few years have shown us the paramount impact of supply chains on our daily lives and availability of goods we previously took for granted. We have been reminded of the reality that our international and networked trade system has made us dependent on vital supplies of energy, food and medicines. And that our trusted trading partners and logistics providers could not be taken for granted blindly.In 2020, the pandemic revealed that a global health crisis provoking a huge surge in demand for vaccines, personal protective equipment and therapeutics made many countries vulnerable, especially those with only minimal domestic production. We were shown the importance that securing resources and supply chains within our borders could have on our ability to effectively respond to such a crisis.The Covid-19 pandemic also exposed other weaknesses in supply channels. Large parts of the workforce who had previously kept supply chains moving were suddenly stuck at home, either through quarantine requirements or because they were ill. Very quickly, shipments were delayed and border processing became backlogged. Canadians found that goods became scarcer, and often more costly. This applied to virtually everything -- food, computers, medicines, appliances, automobiles, etc.As if the pandemic didn't bring enough challenges, the tensions in Ukraine brought further upheaval. In addition to humanitarian suffering, the ongoing conflict created disruptions to the global economy, requiring many countries - particularly in Europe - to find alternative sources of oil and gas. The conflict also affected shipping routes for energy, metals, machinery and equipment, chemical products and food and agricultural products. Meanwhile Ukraine - a country that previously supplied large quantities of iron, steel, cereals, ores, animal/vegetable fats and oils, electrical machinery, equipment and computers - has had its production significantly curtailed.The disruptions to the production and shipping of so many goods further exacerbated shortages and added to public anxiety. These factors have contributed to rising inflation.The pandemic and the conflict in Ukraine were not the only obstacles to timely supply of goods that Canadians encountered. Recent years have brought record heat, wildfires, heavy rainfall and flooding, causing periodic, significant and lengthy blockages of vital supply routes. Climate-related challenges are expected to occur with more frequency and intensity going forward.So, the key question for any national government in these turbulent times is: what steps should be taken to alleviate shortages of critical goods and avoid logjams in ocean and land transport that impede access to these goods even when there would be abundant supply?To ensure we are better prepared for any future health crises, the federal government – often in partnership with provincial governments -- has already taken prudent steps. We have seen strategic investments in the production capacity of critical health supplies, such as therapeutics and PPE.While global trends and more recent events have combined to drive home the need of adding resilience to supply chains, the challenge of ensuring that goods – especially vital ones – can get from Point A to Point B on a timely and efficient basis remains.Increasing supply chain optionality for shippers is the best way to address bottlenecks and add fluidity and resiliency. This will require investments in innovative methods to facilitate intermodal transport. A massive storm system (also referred to as “atmospheric river”) brought record-breaking amounts of rain to the B.C. interior in 2021 which led to extensive flooding, landslides and road washouts along all main highways and roads. Fortunately, rail services were restored quickly and key nodes, such as PSA's Ashcroft Terminal (ATL), were able to provide intermodal capabilities to ensure that cargo could be re-routed and keep moving. Rail proved to be the most resilient form of transportation.Over the past 5 years, PSA International has made significant investments in Canada. In the West, Ashcroft Terminal is a strategically located inland port that services importers, exporters, and domestic shippers. Ashcroft Terminal acts as both a bulk and intermodal hub, enhancing the flow of import and export cargo through the port of Vancouver and adding efficiency to supply chains for goods moving within North America. In Halifax, PSA has invested into container terminals to create Canada's Eastern gateway, capable of handling the biggest vessels to call Canada. Investments are ongoing to expand the port infrastructure and make it more sustainable. The rail capacity is increased so that containers move efficiently from 'big ships' onto 'big trains' for rapid connections to Canada's inland ports, as well as the US Midwest, thereby expanding our natural hinterland by offering alternative routes and cargo solutions to benefit cargo owners. PSA brings its expertise to connect the port community and digitalize the supply chain, making it future-proof and improving the port's long-term competitiveness.To strengthen the resiliency and efficiency of Canada's transportation system, governments and business must work together on strategic investments aimed at increasing supply chain options. Our advice, which is based on our experience in serving exporters and importers throughout 42 countries, is that Canada would benefit from further investments in the following areas:
- rail infrastructure, especially common-user rail tracks used for cargo transloading, railcar storage and buffer staging;
- creation of flexible surge capacity at strategic points along supply chains which would be immediately accessible in the event of outages and climate related emergencies; and
- import/export handling infrastructure to allow bulk commodities to better utilize rail.