e-2800 (Business and trade)

Ports are vital links in the supply chain and gateways that bring goods to market, making them an important part of Canada’s economy. All aspects of the Canadian transportation supply chain, including shippers, carriers, logistics companies, natural resource firms, and local and regional small- and medium-sized businesses, are in some way connected to the work that happens at ports every day.

Through the Ports Modernization Review, Transport Canada is reviewing Canada Port Authorities with an aim of increasing their ability to promote sustainable and inclusive economic growth through effective governance and innovative operations. The Canada Port Authority system has served Canada well by supporting regional economic development and international commerce. However, over the past 20 years, the operating landscape has changed greatly, and it will likely continue to change at a greater pace. These changes mean new challenges and opportunities. Transport Canada is examining Canada Port Authorities to ensure that Canada continues to be well-positioned to innovate and compete.

Canada Port Authorities are federally incorporated, autonomous, non-share corporations that operate at arm’s length from the federal government. They operate on a commercial basis with a view to being financially self-sufficient. They also fulfil important public policy objectives, such as supporting economic development, and regulatory requirements related to safety, security, and environmental protection.

Their corporate structure strikes a balance between commercial autonomy and limitations in the name of control and accountability for the use of public assets. This model aligns commercial, private sector orientation and freedom of operations, with public policy objectives.

In general, Canada Port Authorities manage port lands as set out in their Letters Patent. The Canada Marine Act does not give Government the power to direct, influence or intervene in their day-to-day operations. Canada Port Authorities are governed by independent board of directors, which are responsible for overseeing a port’s operations, as well as determining a port’s strategic and investment plans, including major capital projects.

As set out in the Canada Marine Act, Canada Port Authorities must be financially self-sufficient. They don’t receive federal funding to meet operating costs or deficits. Canada Port Authorities finance their capital projects using their own revenues. But they can also partner with the private sector, borrow from a commercial lender or apply for certain federal grants related to infrastructure, the environment or security.

Marine terminal expansions, subject to meeting specific criteria, are required to undergo an impact assessment pursuant to Canada’s Impact Assessment Act. In keeping with the department’s obligations under this Act, Transport Canada’s relevant specialist knowledge and expertise is made available to inform the review of marine terminal expansion projects. This expertise contributes to achieving the purpose of a project’s review, which is to establish a fair, predictable and efficient process that enhances Canada’s competitiveness, encourages innovation and creates opportunities for sustainable economic development.