Canadian ports-external challenges and reform

Abstract

The federal ports system in Canada faces considerable challenges and opportunities from the rapidly changing international trading environment in which they operate. Global trade has grown as a result of tariff reductions and removal of non-tariff barriers emanating from successive rounds of GATT trade discussions. Ports in Canada and the U.S. have been pressured to improve productivity to handle increasing amounts of cargo in a timely manner. Trans-border trade continues to grow due to the FTA and subsequent NAFTA. However, most continental trade is transported by surface mode to the detriment of ports and the coastal trade in both countries. Improvements to transport technology and economic deregulation challenge ports due to the growth of an integrated intermodal system serving a continental transportation network. Such integrated intermodalism enables the diversion of containerized cargo through load-centre ports in both countries. The many challenges facing Canadian ports are partly driving the current port reform process. Steps have been taken over the past several years to involve the Canadian transportation industry in the development of a national marine policy. The Canada Marine Act, which recently was given royal assent, shifts major commercial ports towards a more businesslike setting. However, this may not be enough, as ports need to be freed from the strictures of the federal government to operate independently in a continental competitive transportation environment.Key words: ports, international trade, shipping, technology, deregulation, reform.