Gateway at a glance: CANADA

Canada’s federal government has renewed its focus on critical trade gateways and corridors across Canada. It has also committed to build new capacity and develop a strong network of Canadian ports to ensure Canadian shippers have access to international markets and enhance Canada Port Authorities’ (CPA) competitiveness in capturing growing trade volumes.

Building Canada
In 2007 Canada announced it was moving forward with a new National Infrastructure Program: Building Canada. The plan includes flexible initiatives and targeted programs that will allocate C$33 billion toward enhancing infrastructure connectivity at the regional level while promoting national priorities between 2007 and 2014. Over half of the funding will be go toward the long-term infrastructure needs of individual provinces.

The Gateways and Border Crossings program will provide C$2.1 billion toward enhancing trade corridors linking international gateways along the St. Lawrence and Great Lakes waterways.

Projects include:

• National Highway System facilities
impacted by increased trade flows
• Intermodal connectors and facilities
•  International bridges and tunnels
• Rail/road grade separations
•  Short-line rail
• Short-sea shipping
• Intelligent transportation systems

At least C$400 million will be devoted to the construction of an access road for the new Windsor-Detroit �crossing — the busiest border point for Canada-United States trade.

Port Prince Rupert - BC
Prince Rupert’s Fairview Container Terminal opened in October of 2007 at a cost of C$170 million.

Fairview handled 181,890 TEUs in 2008, making it Canada’s fourth-largest container port. The terminal’s throughput for the first six months of 2008 was 42,555 TEUs, before jumping more than 300 percent in the second half of the year to 139,335 TEUs — a result of adding the second CKYH Alliance service in July.

Fairview Terminal:

• Enables fastest times between Asia and North America (three days closer than LA/LB)
• Has a harbor depth of 55 feet at mean low water (deepest in N. America)
• Boasts a dedicated intermodal rail connection to Chicago

Canadian National Railroad (CN) spent an estimated C$400 million to augment the new trade corridor through the purchase of new trains and equipment, enhanced rail lines, and expanded tunnels. The dedicated rail line has a design capacity of 4 million TEUs and is consistently delivering containers to Chicago in less than 100 hours.

On January 23, 2009, the U.S. Surface Transportation Board approved CN’s acquisition of the Elgin, Joliet and Eastern Railway Company (EJ&E) at a cost of $300 million, which will allow trains to bypass Chicago en route to other U.S. cities.

Construction on phase two of the Fairview terminal is expected to begin in 2010. The project will add capacity of 1.5 million TEUs at an estimated cost of C$650 million. The project is estimated to be complete by 2014.

Prince Rupert is currently in the design and permitting process for a second container terminal. The terminal would have capacity to move 2 million TEUs annually, potentially bringing Prince Rupert’s capacity to 4 million TEUs by 2020.

Port Metro Vancouver - BC
On January 1, 2008, in an effort to maximize port efficiencies and optimize port planning capabilities, the Fraser River Port Authority, North Fraser Port Authority, and Vancouver Port Authority were amalgamated by federal mandate to become the Vancouver Fraser Port Authority, also know as Port Metro Vancouver (PMV).

PMV is Canada’s primary Asia-Pacific gateway. The port boasts 28 cargo terminals and two international cruise terminals, and it ranks first in Canada for containers, total tonnage, automobiles, and cruise passengers.

In 2007, the port handled 128 million metric tons of cargo. Port Metro Vancouver is linked to the trans-Canada highway and the U.S. Interstate system and is served by three Class One railways: Canadian National, Canadian Pacific, and Burlington Northern Santa Fe.
Terminal Systems Inc. (TSI) operates PMV’s primary container terminals: Deltaport and Vanterm. Deltaport, located 40 kilometers south of Vancouver’s inner harbor, is the port’s largest container terminal. A project to expand capacity at Deltaport by 600,000 TEUs is underway. The project, which will add a third berth and 20 hectares of container storage space, is being constructed at an estimated cost of C$400 million and is scheduled for completion by fall 2009.


The Northwest Passage
Canadian claims that the Northwest Passage is an “internal waterway,” subject to Canadian control, rather than an “international strait,” open to vessels transiting under innocent passage remains a hotly debated topic. This issue will have to be addressed formally as global warming continues to change the face of the Arctic and global trade continues to grow.

Port Halifax - NS
The Port of Halifax is still Canada’s third largest container port; however, container volumes at the port have declined for three consecutive years (volumes were down 20 percent in 2008 from 2007). The port is currently operating at less than one third capacity.

St. John’s - NL
Newfoundland and Labrador are responsible for half of Canada’s conventional light crude production. St. John’s is an essential operational platform for the region’s energy industry. It is also a key entry point for much of eastern Canada’s imported petroleum.

Port Montreal - QC
The Port of Montreal is the world’s largest inland port, handling 26 million tonnes of cargo in 2007. Containers are the port’s primary source of volume, and Montreal is Canada’s second largest container port. Container volumes were up 7.2% in 2008 despite the economic slowdown.

To ensure Montreal remains a vital link in North American freight transport, the port developed the Vision 2020 plan. It focuses on exploiting its strategic location, which offers some of the fastest marine-surface times between Europe or Suez and the U.S. East Coast and Midwest.

The plan calls for over C$2.5 billion to be invested by the port and the Canadian government and through public private partnerships.

Container capacity will be increased incrementally over four phases:

• Phase one will optimize current capacity and upgrade equipment.
• Phase two will redevelop existing lands to handle containers.
• Phases three and four require land acquisitions and construction of two new container facilities.

At completion in 2020 the port will be able to move 4.5 million TEUs annually.

Canada Port Authorities Overview
Canada’s primary seaports — along the Pacific and Atlantic, up the St. Lawrence Seaway, and across the Great Lakes — are managed and governed by federal port authorities.

The 1999 Canada Marine Act (CMA) created a National Ports System to achieve greater efficiency in the marine transportation sector, and CPAs are a component of that system.

The CPAs are 17 independently managed port authorities and one Harbour Commission considered vital in facilitating international and domestic trade. Together they account for over half of Canada’s annual maritime trade volume and 100 percent of container traffic.
The CPAs are required to be financially self-sufficient and must pay a tax or dividend to the national government. Initially the CMA prohibited the federal government from providing direct financial assistance to the CPAs, however, the CMA came under legislative review in 2003, and in June of 2008, Parliament passed a bill amending the CMA.

The amended Canada Marine Act:

• Grants CPAs access to federal funding for projects related to critical infrastructure, environmental sustainability, and the implementation of security measures.
•  Enhances the power of a port authority to borrow money.
•  Allows for the amalgamation of port authorities.

CANADA PORT AUTHORITIES (CPAs)
Belledune Port Authority � NB
www.portofbelledune.ca

Halifax Port Authority � NS
www.portofhalifax.ca

Hamilton Port Authority � ON
www.hamiltonport.ca

Montreal Port Authority � QC
www.port-montreal.com

Nanaimo Port Authority � BC
www.npa.ca

Oshawa Harbour Commission � ON
www.portofoshawa.ca

Port Alberni Port Authority � BC
www.portalberniportauthority.ca

Prince Rupert Port Authority � BC
www.rupertport.com

Quebec Port Authority � QC
www.portquebec.ca

Saguenay Port Authority � QC
www.portsaguenay.ca

Saint John Port Authority � NB
www.sjport.com

Sept-Îles Port Authority � QC
www.portsi.com

St. John’s Port Authority � NL
www.sjpa.com

Thunder Bay Port Authority � ON
www.portofthunderbay.com

Toronto Port Authority � ON
www.torontoport.com

Trois-Rivières Port Authority � QC
progi.com/porttr

Vancouver Fraser Port Authority � BC
www.portmetrovancouver.com

Windsor Port Authority � ON
www.portwindsor.com

In This Issue

New Items

Time for the Tough to Get Going

Supply Chain
Real Estate Responds to Supply Chain Shifts

Taking Your Ship to an IP Environment

Compliance Corner: SOPs, the Foundation of Trade Compliance

New Applications for RFID

Features
Gateway at a Glance ­� Canada

Moving Goods in a Slower Economy

Ports & infrastructure
National Gateway — a Public-Private Partnership in Progress

California River Ports

Port Products
Clean Air Equipment

Commentary
Contract Negotiations Approaching

Who, What, Where, When

Final Say