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