Introduction

The first report of the House of Commons Standing Committee on Transport, Infrastructure and Communities (the Committee) on the Canadian Transportation and Logistics Strategy was presented to the House of Commons on 20 February 2019. It provided an overview of the discussions held with transportation corridor users and various stakeholders about the challenges and opportunities associated with the implementation of a Canadian transportation and logistics strategy.

This report also examined the fluidity of supply chains in Canada, border service performance, the transportation infrastructure deficit in remote regions, the protection of industrial land along trade corridors, and current and future capacity issues for road and rail transportation infrastructure moving freight to and from Canada’s gateways.

The recommendations in the first report sought to improve the overall effectiveness of Canada’s trade corridors, optimize the capacity of transportation, logistical and service infrastructures, and encourage cooperation among stakeholders in Canada’s supply chain.

During the second phase of this study, the Committee focused on issues involving the effectiveness of transportation corridors in Eastern Canada. The Committee held seven meetings, heard twenty-one witnesses and received three briefs in the second phase of its study.

The first section of this second report focuses on national issues common to the first report. The subsequent sections present case studies identifying trade and transportation challenges and opportunities in the Atlantic provinces and in Quebec.

Issues from Coast to Coast

Echoing what other witnesses said in the first phase of the study, Ryan Greer, Senior Director for Transportation and Infrastructure Policy at the Canadian Chamber of Commerce, was pleased that the National Trade Corridors Fund (NTCF) had been created. However, he mentioned that there was not enough funding available to meet trade infrastructure needs. Alain Sans Cartier, Vice-President of Public Affairs and Strategic Partnership at the Quebec Port Authority, also believes that infrastructure needs exceed the $2 billion investment allocated over 11 years. He called for “the creation of an infrastructure restoration program, specifically for ports, to modernize Canada’s strategic port heritage.”

According to François-Xavier Morency, Managing Director for Maersk Supply Service Canada Ltd., establishing a Canadian transportation and logistics strategy must align with the objective to reduce the transportation sector’s carbon footprint and increase the use of renewable energy. Mr. Morency made the following recommendation:

[R]educe the transportation sector’s carbon footprint to zero by 2050. This can be enabled by ensuring that infrastructure is built in a flexible way, ready to receive ships that might change their propulsion methods in the next decades; rails that can be electrified; and highways that can support alternative vehicles. Ensuring that all port slips have access to renewable shore power could be an immediate first step. Maximizing oil and gas exports with a minimal transportation carbon footprint, such as pipelines, could be another.

Some witnesses expressed concerns about some of the provisions of Bill C-69, An Act to enact the Impact Assessment Act and the Canadian Energy Regulator Act, to amend the Navigation Protection Act and to make consequential amendments to other Acts, particularly about the delays associated with the environmental permitting process.[2] Mr. Sans Cartier made the following observation: “The question is how to reduce delays without compromising the quality of environmental assessments. Time limits should be more reasonable and more in line with development projects.”

Witnesses also pointed out that some airports play an essential role in remote regions, particularly on Labrador’s northern coast and Quebec’s Lower North Shore, giving residents a way to travel and resupply.[3] Jean Côté, Deputy Managing Director for Innovation et développement économique Trois-Rivières, spoke about the impact of the activities of the Trois-Rivières airport on the economic development of the Mauricie region, and he mentioned that the airport planned to build a new terminal to accommodate more flights to more destinations.

Other issues raised during the first interim report were also of concern to transportation corridor users and various stakeholders in the eastern part of the country. These concerns include the following:

• inter-provincial regulatory harmonization for truck weight and size;
• labour shortage in the transport industry; and
• Cohabitation and dialogue between municipalities and ports.

Recommendation 1

That the Government of Canada work with provincial and municipal governments as well as the private sector to make strategic investments in projects that connect Canada from coast to coast to coast and support transportation fluidity and efficient supply chains.

Recommendation 2

That the Government of Canada look to invest in and expand our network of deep sea port facilities and upgrading of complementary transportation infrastructure, through sustainable funding envelopes, to allow for the more efficient movement of goods to international markets taking into consideration recommendations identified within the Port’s Modernization Review.

Recommendation 3

That the government of Canada give consideration to funding the development of dedicated short distance sea shipping infrastructures.

Recommendation 4

That the government of Canada consider funding for the new Maritime Information System to enhance knowledge related to the performance of the Eastern Canada Trade Corridor.

Recommendation 5

That Transport Canada work with port authorities and adjacent communities to modernize letters patent of Canadian ports to allow them to use their infrastructures in a more diversified manner.

Recommendation 6

That the Government of Canada ensure that the development of a National Trade Corridors Strategy is consistent with the objective of reducing the carbon footprint of the transport sector and increasing the use of renewable energies.

Case Study: Atlantic Provinces

Trade between the Atlantic provinces and the northeastern United States is primarily through marine and road transportation.[4] The port of Saint John, in New Brunswick, was the busiest of the Atlantic provinces in 2016, ranking 3^rd in the country, with 26.4 million tonnes of traffic. The ports of Halifax, in Nova Scotia, Belledune, in New Brunswick, and St. John’s, in Newfoundland and Labrador, ranked 9^th, 13^th and 15^th in Canada, respectively. The busiest border crossings for road transportation in the Atlantic provinces were Woodstock and St. Stephen in New Brunswick.

For rail transportation, Nova Scotia and New Brunswick ranked 7^th and 8^th in Canada, respectively, for volume of imports by rail in 2016. For exports by rail that same year, the rankings were reversed, with New Brunswick and Nova Scotia ranked 7^th and 8^th respectively. In terms of air transportation, the Moncton and Halifax airports were ranked 8^th and 9^th, respectively, for cargo loaded and unloaded in 2016.

Figure 1: Inset of Atlantic provinces

Source : Maps prepared by Library of Parliament, Ottawa, 2019, using data from Natural Resources Canada (NRCan), Administrative boundaries in Canada – CanVec Series, “Administrative features”, 1:5M, Ottawa, NRCan, 2018; Lakes, rivers and glaciers in Canada – CanVec Series, “Hydrographic features”, 1:5M, Ottawa, NRCan, 2018; Transport networks in Canada – Canvec Series, “Transport features”, 1:5M, Ottawa, NRCan, 2018; and Transport Canada, Canada’s National Highway System, 2015.  The following software was used: Esri, ArcGIS Pro, version 2.1.0. Contains information licensed under Open Government Licence – Canada.

Making Route 185 a Double-Lane Highway

Route 185 is a 101-km stretch of road between Highway 20 in Quebec and the New Brunswick border. The estimated completion date for widening Route 185 between Rivière-du-Loup and the New Brunswick border is 2025, with about 40 km remaining to link Saint-Antonin and Saint-Louis-du-Ha! Ha!.[5] Various witnesses mentioned that the remaining untwinned stretch is a major bottleneck for road trade between the maritime provinces and the rest of Canada, as longer road trains[6] cannot take this route.[7] According to Adrienne O’Pray, President and Chief Executive Officer of the New Brunswick Business Council, and Glenn Davis, Vice-President of Policy of the Atlantic Chamber of Commerce, it should be a priority to twin Route 185 sooner, so that more double road trains can be used: this would help address the shortage of truck drivers while also reducing greenhouse gas emissions.

Establishing a Fixed Link to the Mainland for Newfoundland

Newfoundland and a number of communities in Labrador and on Quebec’s Lower North Shore rely heavily on ferries for transportation and supplies. However, ferry sailings may be cancelled or delayed due to bad weather or ice conditions.[8] According to John Spencer, Mayor of Channel-Port aux Basques, Marine Atlantic’s trip cancellations have risen by more than 50% since 2016.[9] Some witnesses were concerned the situation would get worse in years to come due to the effects of climate change in the region.[10]

In addition, some witnesses indicated that fares were very high:[11] about $121 for an adult ticket between Argentia and North Sydney (non-constitutionally obligated service) and about $46 for a ticket between Port aux Basques and North Sydney (constitutionally obligated service).[12] According to Jim Lane, Councillor for Channel-Port aux Basques, since the Government of Canada set cost-recovery targets for Marine Atlantic of 65% of its operational costs for the constitutionally obligated service and of 100% for the non-constitutionally obligated service, either fares have gone up or service has been cut.

Other witnesses said that having a reliable fixed link between Newfoundland and the Lower North Shore would reduce their dependence on ferries.[13] Danny Dumaresque, who appeared before the Committee as an individual, believes the best solution would be a tunnel under the Strait of Belle Isle between Point-Amour in Labrador and Yankee Point in Newfoundland. According to several witnesses, the fixed link project must go hand in hand with the Route 138 extension from Kegashka to Old Fort in Quebec, which would reduce freight transport times between central Canada and Newfoundland.[14]

Recommendation 7

That the Government of Canada work with the Province of Quebec to accelerate the twinning of Route 185 for the section between Saint-Antonin and Saint-Louis-du-Ha! Ha!.

Recommendation 8

That the Government of Canada work with the provinces of Quebec and Newfoundland and Labrador to complete the expansion of Route 138.

Recommendation 9

That the Government of Canada partner with the Government of Newfoundland and Labrador, the Government of Quebec, and the private sector work toward building the fixed link, linking the province of Newfoundland and Labrador and the province of Quebec to increase the reliability of transportation between the two provinces and alleviating an existing bottleneck that exists with the current ferry service.

Recommendation 10

That the Government of Canada partner with provincial and municipal governments as well as the private sector to invest in strategic transportation infrastructure to allow the development of the Labrador Trough that will bring the cost-effective and efficient movement of resources to market.

Recommendation 11

That the Government of Canada work in collaboration with Marine Atlantic Inc. to investigate means to lower fares and cost-recovery rates on the constitutionally mandated ferry service between North Sydney, Nova Scotia and Port aux Basques, Newfoundland and Labrador to allow more efficient and cost-effective transportation of people and goods.

Case Study: Province of Quebec

Trade between Quebec and the United States is primarily by road, and the province’s busiest border crossing is the Lacolle crossing.[15] For rail, Quebec was ranked 4^th among the provinces for volume of rail imports and 5^th for exports in 2016.

In terms of marine transportation, the Port of Montreal was ranked 2^nd in Canada, with 35.4 million tonnes (Mt) of traffic in 2016. The Port of Quebec City was 4^th, with 24.8 Mt, the Port of Sept-Îles was 5^th, with 22.9 Mt, and the Port of Trois-Rivières was 12^th, with 2.8 Mt. For air transportation, the Montreal and Mirabel airports ranked 4^th and 7^th in Canada respectively in terms of cargo loaded and unloaded in 2016.

Figure 2: Inset of the Province of Quebec

Source : Maps prepared by Library of Parliament, Ottawa, 2019, using data from Natural Resources Canada (NRCan), Administrative boundaries in Canada – CanVec Series, “Administrative features”, 1:5M, Ottawa, NRCan, 2018; Lakes, rivers and glaciers in Canada – CanVec Series, “Hydrographic features”, 1:5M, Ottawa, NRCan, 2018; Transport networks in Canada – Canvec Series, “Transport features”, 1:5M, Ottawa, NRCan, 2018; and Transport Canada, Canada’s National Highway System, 2015.  The following software was used: Esri, ArcGIS Pro, version 2.1.0. Contains information licensed under Open Government Licence – Canada.

Opening up the North Shore

One of the North Shore’s regional priorities is to help connect communities by taking action on the transportation and telecommunication fronts. According to Randy Jones, Mayor of the Municipality of Gros-Mécatina, completing Route 138 would make the region less dependent on marine and air transportation, which are often affected by bad weather, for travel, resupplying fresh food and maximizing the region’s tourism and economic potential.

As indicated in the Committee’s first report, according to Rajesh Sharma, Strategic Advisor and former Chief Executive Officer of Tata Steel, although it is important to invest in port infrastructure and terminals, the transportation infrastructure that brings the goods to port must not be overlooked, either. Mr. Sharma and Nick McGrath, a Labrador City Councillor, believe that additional investments are needed to improve the infrastructure at the Port of Sept-Îles, as well as the rail line at the port, in order to support current and future demand from the mining industry on Quebec’s North Shore and in Labrador.

Maximizing the Potential of St. Lawrence Ports

In a brief submitted to the Committee, the St. Lawrence Economic Development Council explained that, in order for Quebec’s ports to remain competitive, efforts to promote the St. Lawrence–Great Lakes trade corridor at the international level would need to be increased, and investments in port infrastructure, innovation and optimizing navigation conditions would have to be made.

The three Quebec port authorities that appeared before the Committee each have projects underway to increase their capacity, such as building the Contrecœur terminal for the Port of Montreal, a new deep water terminal for the Port of Quebec and a new dock for the Port of Trois-Rivières.[16] Representatives also mentioned the importance of optimizing the rail and road networks to improve port capacity. Some witnesses also mentioned that the federal government should review the letters patent to grant the port authorities more flexibility for expanding their operations or developing the shoreline.[17]

Recommendation 12

That the Government of Canada work with provincial and municipal governments as well as the private sector to upgrade existing rail infrastructure and associated road infrastructure to allow for capacity building in the area from Schefferville, Quebec to the deep-sea port in Pointe-Noire (Sept-Îles).

Recommendation 13

That the Government of Canada collaborate with the Government of Quebec and all stakeholders, including the St. Lawrence Seaway Management Corporation, the ports, marine operators and businesses, in order to increase promotion of the St. Lawrence–Great Lakes trade corridor at the international level.

Recommendation 14

That the Government of Canada increase its efforts to promote the St. Lawrence-Great Lakes Trade Corridor internationally.