Opportunity to increase Canadian competitiveness, strengthen supply chains, and bolster the economy in Budget 2024
Dear Deputy Prime Minister Freeland,
On behalf of the National Maritime Group - Coalition maritime canadienne and our members from coast-to-coast, thank you for the opportunity to provide input in advance of Budget 2024. We are pleased to take part in these important consultations. As you prepare the budget, we believe that it is imperative that the government take into account the private maritime employer sector’s role in providing Canadian jobs across the country while playing a crucial role in the national supply chain and driving Canada’s overall economic and social prosperity.
About National Maritime Group
The National Maritime Group represents nearly 100 private sector maritime employers and operators from coast to coast and through the St. Lawrence, moving essential goods and providing well-paying family-supporting jobs in 14 Canadian ports across five provinces.
National Maritime Group member companies safely and efficiently handle over $790 million worth of cargo daily and directly contribute nearly $4.3 billion annually to the national GDP.
Member operations work 24 hours a day to ensure that the Canadian economy continues to flourish, while coping with the accumulated negative effects of several disruptions, including labour disruptions, extreme weather events, and increased geopolitical conflict and uncertainty. Moving over 21% of Canada’s total traded goods, our members play a key role in ensuring vital imported products make their way to Canadians and crucial Canadian exports make their way around the world.
Ensuring stable and resilient supply chains now and for the future
We want to again commend the government for funding and establishing the Supply Chain Office. In its final report, the Supply Chain Task Force reiterated that collaborative action between government and the private sector must be taken if we are to successfully cope with the challenges facing us. “To position Canada as a strong competitor in the global market and strengthen our economy, it is imperative that the Government of Canada join forces with industry stakeholders to address the transportation supply chain crisis,” the report notes.
We understand the issues facing supply chain operators as we live them 24 hours a day, 365 a year. The private sector must be at the table. While the trade opportunities presented to Canadian businesses have never been greater, the risk of inaction has also never been greater.
Increased investments in trade enabling infrastructure for greater competitiveness
From a marine terminal and carrier perspective, National Maritime Group members believe there are several key areas to consider in boosting port competitiveness and our national economic resilience – perhaps the most important being physical infrastructure.
It is critical that Canada’s supply chain remain competitive with that of our nearest trading partners in the United States. While Canadian ports offer an efficient and effective opportunity for Canadian importers and exporters, we must be aware that our industry is deeply competitive and changes to supply chain infrastructure in the United States remain a threat to our continued success. For that reason, we recommend that through Budget 2024, Canada take immediate and concrete actions to improve Canada’s trade-enabling infrastructure.
We cannot be blind to the investments being made in this same infrastructure in other jurisdictions, including our largest competitor. For example, near the end of 2023, the Biden-Harris Administration invested more than $653 million USD in U.S. ports to strengthen American supply chains – which is part of the largest dedicated funding for ports and waterways in U.S. history (nearly $17 billion USD through the President’s Bipartisan Infrastructure Law). Acknowledging the significant portion of domestic and international U.S. commerce that moves by water, as part of President Biden’s Investing in America agenda.
U.S. Secretary of Transportation Pete Buttigieg highlighted the importance of the maritime supply chain and private sector, reminding “Everything from the food we eat to the cars we drive to the lumber and steel used to build our homes passes through America's ports, making them some of the most critical links in our nation’s supply chain.”
This type of investment is critical, as related port improvement projects will strengthen supply chain reliability, create workforce development opportunities, speed up the movement of goods, and improve the safety, reliability and resilience of ports in the U.S.
The National Maritime Group understands the vital nature of these infrastructure investments prioritized by the U.S., as our coalition members oversee the movement of 340 million tonnes of cargo through Canadian ports annually – directly contributing nearly $4.3 billion annually to the Canadian national GDP. Investments of this nature in Canada could expand port capacity, add fluidity to the movement of goods through our ports and contribute to job creation.
We are proud that the work of our members is imperative to get Canadian goods to global markets — such as grain and potash — and aiding Canadian businesses in receiving essential goods needed for mills, the automotive industry, construction sites and more.
To remain competitive in the global market and respond to the significant investments made by the U.S., the Canadian federal government must increase investments in trade-enabling infrastructure at ports, marine terminals, inland terminals and railways. There should be a prioritization for projects that address bottlenecks and build surge capacity, and this should be done in collaboration with private sector partners. Expediting these partnerships will help the federal government leverage the big investments Canadians have made in their national transportation networks.
Labour availability
Currently, one of the most substantial challenges to the day-to-day operation of our members is the availability of skilled trades capable of ensuring the safe and efficient operations and maintenance of cargo equipment at our terminals.
In our view, Canada should address labour shortages in skilled trades through training and upskilling programs. Partnering directly with the private sector and working with unions, provinces and trade schools, can help collectively enhance skills and training and nurture the next generation of leaders in the maritime industry. Supporting these jobs will improve the flow of goods in and out of Canadian ports.
In 2022, National Maritime Group members invested over $48 million in training and upskilling and recruiting over 800 longshore workers to meet the current and forecasted needs of Canadian ports.
The private maritime sector directly employs 35,000 Canadians working in port-related operations. They help the supply chain to keep moving. We know that any disruptions to the supply chain have negative effects on Canada’s economic stability. We are increasingly concerned that a number of the government’s recent changes affecting federally-regulated private sector employees are impacting our members' ability to operate. The cumulative impact of new policies such as 10 paid medical leave days, three paid personal leave days, new paid statutory working holidays, and the proposed banning of the temporary use of replacement workers in a heavily unionized sector such as ours, are dramatically increasing costs for our customers (Canadians) and having a detrimental effect on the stable supply of labour. This, in turn, is negatively impacting our ability to sustain operations and support a thriving Canadian economy. We urge the government to consult with the private maritime sector on how we can work together to ensure global competitiveness, stable and resilient supply chains and our ability to continue to provide well-paying family-supporting jobs from coast-to-coast.
Conclusion
There are substantial challenges facing our national supply chain but are optimistic that by working together the public and private sectors can continue to deliver for Canadians.
Sincerely,
Rob MacKay-Dunn & Isabelle Pelletier
Co-executive Directors
Considerations for Transport Committee’s review of Bill C-33, Strengthening the Port System and Railway Safety in Canada Act
Rob MacKay-Dunn and Isabelle Pelletier, co-executive directors of the National Maritime Group, made the following submission to the House of Commons Transport Committee, currently studying Bill C-33, Strengthening the Port System and Railway Safety in Canada Act.
Introduction
The modernization of Canada’s supply chain governance is essential for today’s economy. We are pleased to see the bill recognizes that national economic security is closely linked to the stability of Canada’s national and international supply chain. We thank the committee for undertaking this important work, which recognizes the significance of Canada’s supply chains and ports in ensuring the safe and efficient movement of goods across the country.
Canada’s private sector maritime employers play a crucial role in Canada’s national supply chain, driving Canada’s overall economic and social prosperity
National Maritime Group is a coalition that represents nearly 100 private sector maritime operators from coast to coast and through the St. Lawrence, moving over $790 million worth of cargo daily — that’s 340 million tonnes of cargo through Canadian ports annually.
Additionally, coalition partner associations contribute $2.1 billion to GDP annually and $4.3 billion in economic output.
Our member companies provide well-paying family-supporting jobs directly and indirectly to more than 35,000 Canadians working in port-related operations, while 213,000 jobs at Canada’s ports are dependent on coalition member operations. Our coalition includes marine carriers and agents, stevedores, container, break bulk terminal operators.
Our members invest billions of dollars into infrastructure, technology, equipment and people to ensure sufficient capacity to address current and projected growth in trade volumes efficiently, safely and in an environmentally responsible manner.
We are a collaborative partnership of the British Columbia Maritime Employers Association (BCMEA), Maritime Employers Association (MEA), Halifax Employers Association (HEA) and the Port of Saint John Employers Association (PSJEA).
Thoughtful and measured approach to evaluating Bill C-33 needed
Bill C-33 is a comprehensive and substantive piece of legislation, proposing significant changes to several complex aspects of existing legislation governing the Canadian supply chain and potentially impacting the safe and efficient movement of goods. These consequential amendments will be brought to life in the coming years through new regulations, and as such, it may be premature to offer an ultimate comment on the overall efficacy of the proposed bill, given that the true impact of this legislation will be determined by the subsequent regulations that will be developed.
We therefore urge the committee to take a thoughtful and measured approach in evaluating the proposed bill. As with any piece of legislation governing complex operations, it is critical to acknowledge potential risks and unintended consequences that may arise.
As such, the government must take an active role in working with all stakeholders in the course of the development and implementation of the subsequent regulations if C-33 is passed. Effective and balanced oversight is essential to ensure that the legislation is operationalized in a manner that best serves the interests of supply chain users and all Canadians. This oversight should include addressing any unintended consequences that may arise during the implementation phase.
With regards to some specific known elements of the legislation and proposed changes during witness testimony in committee to date, we would like to offer the following comments:
Ministerial appointment of board chairs could undermine the perceived independence of port authorities
We are concerned with elements of the governance regime proposed in the bill, particularly with respect to the potential politicization of port authority boards. Specifically, we request clarity on the intent and efficacy of clause 105, which would grant the Minister of Transport the authority to directly appoint the board chairs of Canada’s Port Authorities (CPAs).
Such a provision could undermine the perceived independence of CPAs, make them less responsive to local users and communities and potentially shift them towards the characteristics of a crown corporation. Granting this authority to the minister may also contribute to the perception that decision-making is centralized in Ottawa, rather than involving experienced professionals in the local communities where the ports operate.
We recommend these clauses be removed from the bill.
Proposal to include direct labour representation on port authority boards may hinder effective, balanced decision-making
We understand there has been a suggestion to amend the proposed legislation to include the appointment of active union representatives on CPA boards.
As the President and Chief Executive Office of the ACPA recently told the committee, the proposal suggests that there is some confusion about what the role of the board directors is.
Their role is not to run the port or to serve a personal or professional agenda. They owe a fiduciary duty to the corporation itself.
We strongly believe that including direct labour representation on CPA boards is not a prudent governance choice. It has the potential to hinder effective and balanced decision-making and may result in constant and unmanageable conflicts of interest at both the board and operational levels, just as it would if terminal operators themselves were appointed as directors to CPA boards.
Timeliness of appointments to port authority boards critical for economic competitiveness
Timely appointments to CPA boards are critical for ensuring the smooth functioning of our industry. Delays in board appointments can have significant impacts on both CPAs and operators. We encourage the committee to further consider this aspect and suggest defining clear timelines for the minister to designate appointees based on the recommendations received.
Conclusion: Resilient supply chains critical to Canada’s economic vitality
In conclusion, we urge the committee to take a thoughtful and measured approach when considering the provisions of Bill C-33, particularly with respect to the governance clauses and proposals that have been put forward during recent committee hearings. We also ask the government to continue working with all stakeholders during the development and implementation of subsequent regulations, should the bill become law.
Canada is a trade-dependent economy that relies on both exports and imports, as well as the efficient movement of goods within the country. As a result, well-functioning supply chains are critical to the welfare and economic vitality of the country. The potential impact of this legislation on the operation of Canada’s supply chains is significant, and it is essential to balance the need for reform with the requirement for prudent governance.
We look forward to ongoing collaboration as we work together to strengthen and build resilient supply chains to ensure Canada’s economy thrives.
Timely conclusion to labour disruption at St. Lawrence Seaway should be a priority for all
National Maritime Group co-executive directors Rob Mackay-Dunn and Isabelle Pelletier made the following statement today regarding the St. Lawrence Seaway port strike:
National Maritime Group (NMG) urges all parties in the tripartite relationship — employer, union, government — to prioritize reaching a fair and balanced agreement in a timely manner and end the ongoing labour disruption at this Canadian port.
A functioning, reliable, and affordable supply chain is essential to maintaining Canada’s global competitiveness, reputation and keeping costs low for Canadians.
The St. Lawrence Seaway supports more than 66,000 Canadian jobs and is responsible for $34 million in economic activity per day. Labour disruption prevents vital Canadian goods from getting to global markets, such as grain and potash — passing costs onto farmers and threatening crop seasons — and prevents Canadian businesses from receiving essential goods needed for mills, the automotive industry and construction sites.
These commodities drive investments and family-supporting jobs in our communities, across multiple provinces. It puts our national economic security at risk.
After three years of disruptions hurting the reliability and reputation of Canada’s supply chain, a timely resolution to this labour disruption should be a priority for all.
For more information
info@nationalmaritimegroup.org
National Maritime Group welcomes proposed changes to Canada Marine Act to enhance transparency, ensure competitiveness and economic growth
OTTAWA, JUNE 20, 2023 — National Maritime Group (NMG) applauds the federal government’s move to modernize port governance and ensure economic competitiveness and growth under the newly tabled legislation, Bill C-52, the Enhancing Transparency and Accountability in the Transportation System Act.
The bill proposes to enhance rules for Port Authorities who set annual terminal fees. If passed, the bill would also provide enhanced criteria and a modernized complaints mechanism administered by the Canadian Transportation Agency to allow the government to make regulations regarding dispute resolutions related to port terminal leases.
“More than 213,000 jobs at Canada’s ports depend on coalition member operations. Bill C-52 is an important step to ensure our sector remains competitive and keeps Canadians employed. We thank the government for moving forward with this necessary legislation and call on all parliamentarians to quickly pass it in order to keep our supply chain stable and ensure economic growth,” said NMG co-executive director Isabelle Pelletier.
“On a daily basis, National Maritime Group member companies support the movement of $790 million worth of cargo through Canadian ports. Our members contribute $4.3 billion annually to the national GDP and over $8.5 billion in economic output. Transparency in operations is essential to this continued success,” added NMG co-executive director Rob Mackay-Dunn.
Where ships meet shore, Canada’s private sector maritime employers play a crucial role in Canada’s national supply chain, driving Canada’s overall economic and social prosperity.
NMG represents nearly 100 private sector maritime employers and operators from coast to coast and through the St. Lawrence, moving essential goods and providing well-paying family-supporting jobs in 14 Canadian ports across five provinces. This is done safely and in an environmentally-responsible manner.
NMG welcomes the important measures in Bill C-52 and looks forward to working with the government on implementing it.
For more information:
info@nationalmaritimegroup.ca