Production and export potential of the resource-based industries of Canada in intracontinental conditions

Abstract

The transport-geographical and transport-economic continentality of the resource-extraction industries of Canada is considered. A study of the distribution of extraction and export of raw materials according to the zones of remoteness from the sea routes showed that the example of Canada does not fit in with a global pattern. A change in the territorial structure of Canada’s extractive complex most dramatically shows a shift of the resource-producing sectors far inland, whereas the main trend worldwide has been the movement from the landlocked areas to the sea. The intracontinental functioning predetermines an increase in specific transportation costs and enhances the negative influence upon the finance and economic indicators of the operation of producers and exporters of raw materials. For offsetting the costs connected with the intracontinental location of its resource-extraction facilities Canada, first, is using to advantage its border location, and, second, a relatively inexpensive pipeline and railroad transport is being used in transporting raw materials. On the other hand, it is the economic sea transport that serves as the main vehicle in decreasing the transportation costs of Canadian raw materials delivered to the world market. The cost of shipping via sea routes justifies and offsets the transportation costs incurred in the event of using land transport between the place of extraction of raw materials and the ports of exportation.