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The Commercialisation of Canada’s Ports: A Case Study 27th APEC Transportation Working Group Meeting
May 22-25, 2006, Hanoi, Vietnam
2
Pre-Commercialisation
MontrealHalifax
Vancouver
Dept. of Transport Owned (549)Harbour Commissions (9)Canada Port Corporations (14)
3
Post-Commercialisation
HalifaxMontreal
Vancouver
Canada Port Authorities (19)
4
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
5
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.”
6
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decide what services they receive and pay for – Eliminate unnecessary regulation and outdated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
7
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
9
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