November 20, 2023

By Ian Hamilton

It makes me wince to write it, but 2023 is almost behind us. Although it’s been a strong year at the Hamilton-Oshawa Port Authority — the largest port in Ontario, which I’m privileged to lead — in some ways the natural renewal of a new year is only too welcome. Between months of wildfires across the country this summer, the Seaway strike here on the Great Lakes, the extended port workers’ strike in BC, and the local supply chain strains that resulted, our economy took more hits this year, when it was still recovering from the last one.

It’s timely, then, that a new cabinet was cemented, just in time for Parliament to resume last September. The fresh roles and responsibilities have meant new perspectives on Canada’s challenges. As For the leaders of Canada’s ports — eager to connect and collaborate — there’s palpable optimism about strengthening the relationship with Ottawa and tackling what lies on the horizon ahead.

That optimism is rooted in our range of common goals. With ports handling roughly 80% of global trade, their critical role in economic growth is indisputable. Canada’s coastline, the longest of any nation, opens our country to enormous trading opportunities — all enabled by our system of 17 Canadian Port Authorities that together connect us to shipping lanes across the world. With long-term projections pointing to growth in global container shipments — and with a mounting need to decarbonize the transportation sector — there is pressure to act and capture the jobs and opportunity in front of us.

But properly harnessing that growth will be a feat. The National Supply Chain Task Force points out that $110 billion of investment is needed over the next 50 years to maintain, strengthen and decarbonize Canada’s marine infrastructure.

Better access to capital is the key to unlocking improved infrastructure, enhanced resilience and reduced vessel emissions. There were some welcome, positive steps for the sector in Budget 2023. For example: The Green Shipping Corridor Program – the result of ongoing collaboration between government and industry – includes $165.4 million over seven years to support decarbonization and reduce the environmental impact of the marine industry. Budget 2023 also contained a further promise to create a Transportation Supply Chain Office within Transport Canada, launch the pending National Supply Chain Strategy, and recapitalize federal infrastructure programs this fall.

It’s a plain fact that taxpayer dollars alone cannot, and should not, fuel the changes Canada’s ports need to deliver on national goals. Overdue updates to the Canada Marine Act, currently underway through Bill C-33’s proposed legislative changes, could be refined to address financing restrictions on Canadian ports. While we need to understand the financial aspects of the bill better, one things is certain: Accessing and leveraging private capital to fund infrastructure maintenance and improvements is essential for making the investments Canada requires over the decades ahead.

While some form of access to private capital is needed to catalyze the changes needed, the federal government’s role in financing critical maintenance and infrastructure improvements, especially at the country’s smaller ports, is also essential. Given Canada’s vast scale and the strategic importance of ports, ensuring smaller ports with fewer options for revenue growth receive federal support, just as the federal government has offered targeted funding to smaller airports, is critical. Supporting infrastructure projects like the federal government did through the National Trade Corridors Fund would give Canadian port authorities the go ahead to plan and implement updates with greater confidence.

Simply put, modern infrastructure is essential for moving the volume of goods needed by business, government and citizens. Canada’s port authorities are here to play a role in the country’s continued and future success as a trading nation and remain ready to collaborate with public and private sector partners to ensure all parts of the supply chain function and improve in this rapidly changing world. Our sector is ready to partner with Minister of Transport, the Honourable Pablo Rodriguez, start a new era for Canada’s ports, and forge ahead on solutions that deliver economic prosperity to Canadians.

Ian Hamilton is President & CEO of the Hamilton-Oshawa Port Authority, and the new Chair of the Association of Canadian Port Authorities, which brings together the 17 Canada Port Authorities and related marine interests into one national association.