Port upgrades need to happen faster
Ottawa-Canada’s port authorities will need to spend up to $21.5 billion by 2040 on new cargo-handling infrastructure if Canada is to be able to expand and diversify international trade, says a study by the Association of Canadian Port Authorities (ACPA).
The study examined the projected capital requirements of the 17 Canada Port Authorities (CPAs), which are federally owned but operate at arm’s length of government. It showed that CPAs have $10 billion in planned investments during the next 15 years, with $5 billion required in the next four years alone. However, funding has not yet been identified for 61 per cent of the proposed investments.
Daniel-Robert Gooch, ACPA President and CEO, said “There is significant demand in the world for what Canada has to offer, but to get it to global markets Canada needs ports with greater agility. This study highlights the need for Canada’s port authorities to have access to more flexible financial tools to leverage private capital projects for major projects and streamlined project reviews to make them happen responsibly, but much more quickly.
“By reducing red tape and enabling port authorities to move more swiftly on major infrastructure projects, Canada’s ports can enhance their competitiveness and better collaborate with private partners to diversify global trade.”
Long-term needs are uncertain due to a limited ability to plan beyond five years, but total requirements through 2040 are estimated from $15 to $21.5 billion, Gooch said. The CPAs have received about $1 billion from the National Trade Corridors Fund (NTCF). The fund helped many CPAs fortify Canada’s global trade infrastructure. However, given the federal government’s fiscal constraints and the level of future investment needed, federal infrastructure funding alone cannot meet the challenge.
The study recommended the following measures to provide CPAs greater agility:
-Streamlining the regulatory review process for environmental assessments;
-Modernizing CPA borrowing limits and how they are raised;
-Increasing flexibility for joint ventures with other CPAs and private partners;
-Establishing a permanent federal funding program for trade infrastructure and major equipment to fill gaps that private investment cannot address.
The study said future investments are needed to update infrastructure, meet trade diversification goals and ensure economic and national security. Most port infrastructure investments are for operational efficiency and expansion and growth. Other key projects address aging infrastructure, decarbonization, climate adaptation and supply chain optimization.
ACPA said the ports and marine shipping are indispensable to Canada’s economic security with 80 per cent of global goods shipped by water. Recent data from Statistics Canada shows ports handle 18 per cent of exports, worth $139 billion and 24 per cent of imports, worth $181 billion.
This news item prepared for National Newswatch