Thank you, Mr. Chair.
On behalf of the Thunder Bay Port Authority, I would like to thank you for the opportunity to appear before you today.
The Port of Thunder Bay is western Canada's entry point to the St. Lawrence Seaway system and 95% of the cargo handled at the port originates in western Canada, of which over 75% is grain. Thunder Bay currently ranks as the ninth largest of 19 Canadian port authorities, shipping an average of 7.5 million tonnes annually.
It is the second-largest Canadian port on the Great Lakes, and we have the distinction of being the largest export port on the seaway with over 85% of our shipments travelling the entire system for export to Europe, North Africa, and Latin America. The port also serves domestic markets in eastern Canada and U.S. markets around the Great Lakes.
The St. Lawrence Seaway is the world's largest inland waterway and was built to provide direct access to European markets for the western Canadian farmer. Currently over $2 billion is being invested in the system, including $1 billion in new vessels following the removal of the 25% import duty on foreign-built ships.
While the use of ocean vessels at the port increased last season, the time has come for a review of regulatory costs imposed on the system, including tolls, pilotage, marine services, and ice-breaking fees. These costs have grown to over $135,000 per voyage for an ocean vessel travelling to Thunder Bay and are eroding the competitiveness of the seaway at a time when grain shipments through Churchill are being subsidized.
Thunder Bay currently has eight operating grain elevators with a combined grain storage capacity of 1.2 million metric tonnes, the largest in North America.
The port has the fastest ship turnaround time of any western Canadian port as well as an improved railcar cycle time, which has improved 36% over the last 10 years, bringing us to one of the fastest turnaround times in western Canada. James Richardson, Viterra, Cargill, P & H, Canada Malting, the Canadian Wheat Board, Western Grain, and MobilEx operate grain facilities at the port.
In January of this year the Wheat Board purchased facilities in Thunder Bay and Trois-Rivières, a major vote of confidence in the St. Lawrence export corridor.
Thunder Bay is served by both CP and CN. Our grain shipments last season were lower than in 2012. A slow spring and fall were followed by an average November and December. Car unloads this crop year were average and we have not as yet experienced the surge relating to the record harvest.
The past shipping season was the first full year following the removal of the Canadian Wheat Board monopoly. Shipping the majority of the wheat and barley is now controlled by companies with facilities in the port, and with the exception of Richardson's, all of the other terminals experienced reduced shipments in 2013.
The Port of Thunder Bay stands ready to accommodate last year's record harvest with the largest grain storage in North America and a grain handling capacity of over 18 million tonnes. Manitoba country storage is at a record with over 100% capacity as the spring flooding season approaches.
With that, I'll end my remarks.