The Commercialisation of Canada’s Ports: A Case Study 27th APEC Transportation Working Group Meeting

May 22-25, 2006, Hanoi, Vietnam

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Pre-Commercialisation

MontrealHalifax

Vancouver

Dept. of Transport Owned (549)Harbour Commissions (9)Canada Port Corporations (14)

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Post-Commercialisation

HalifaxMontreal

Vancouver

Canada Port Authorities (19)

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Canada – A Maritime Nation

• Major cities & industry concentrated on East/West coasts & along St. Lawrence Seaway and Great Lakes

• Over 200,000 km of coastline; one of only two nations to border three Oceans

• Ports serve as gateways to North America – first & last point of trade entry and exit

• In 2003, Canadian ports handled 306.6 million tonnes of international cargo representing Cdn $107.4 billion in trade

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Impetus for Change

• 1993 federal government programme review– Burgeoning deficit and public debt– Focus on cost cutting, improving efficiency

• House of Commons Standing Committee on Transport – Canada’s ports suffered from overcapacity,

inefficiency, and over dependence on subsidies– Overall assessment,“an uncoordinated collection of

federal entities trying to accomplish similar objectives under different sets of rules.”

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The National Marine Policy

• Shift to Commercialisation– Withdrawal of federal government from direct

operating role – Create new management structures to make

operations more efficient– Reduce costs to taxpayers and allow users to

decide what services they receive and pay for – Eliminate unnecessary regulation and outdated

legislation

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Pillars of Commercialisation

• The Canada Marine Act– Created Canada Port Authorities (CPAs)– Commercialisation of the St. Lawrence Seaway

• National Ports System– Nineteen ports considered to be vital to domestic

and international trade based on 4 criteriaSelf-sufficiency National & International traffic

Links to rail & highways Serve a large market area

– Establishment of a new business and governance model

Canada Port Authorities

• Federally incorporated non-share capital, non-for-profit corporations

• Governance• Board of Directors nominated by user groups, local,

regional & federal governments• Directors bound by fiduciary and legal responsibilities as

in all corporations

• Accountability/transparency• Annual report, audited financial statements, annual

meeting open to public• Special examination at least once every 5 years

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Report Card

• Benefits to Canada and Canadians– $100 million savings to the Government of Canada– Increased port competitiveness & productivity– Increased local representation in governance

• Benefits to all APEC economies– Canada’s commitment to the pursuit of free trade

and investment– Canada’s commitment to further reducing barriers

to trade and investment