Evidence of meeting #9 for International Trade in the 41st Parliament, 2nd Session. (The original version is on Parliament’s site, as are the minutes.) The winning word was europe.

On the agenda

MPs speaking

Also speaking

Ann Janega  Vice-President, Nova Scotia Division, Canadian Manufacturers and Exporters
George Malec  Vice-President, Business Development and Operations, Halifax Port Authority
Peter Connors  President, Eastern Shore Fishermen's Protective Association
Jerry Staples  Vice-President, Air Service, Marketing and Development, Halifax International Airport Authority
Martha Crago  Vice-President, Research, Dalhousie University
J. Colin Dodds  President and Vice-Chancellor, Saint Mary's University

2:25 p.m.

Vice-President, Nova Scotia Division, Canadian Manufacturers and Exporters

Ann Janega

No, I don't think I've seen that. Clearwater is an exceptional company in many respects, and we're proud to do business with them. I think many of their competitors would like to be on the same level as they are.

One trend I do see is in the area of continuous improvement and a reliance on such things as lean manufacturing technology and lean management techniques, where firms work very hard to remove waste from their organization and become more efficient and more productive. That's one trend we have identified.

2:25 p.m.

Conservative

Erin O'Toole Conservative Durham, ON

Thank you.

Mr. Malec, Ms. McGrail, thank you very much for appearing. I like key statistics from presentations, and one I found very compelling in yours, Mr. Malec, is that 38% of your volume as a port authority are goods from Europe coming ashore here.

My two questions are, first, what are you doing in terms of marketing within Canada to be the choice for exporters? And within Europe, we heard from the Gateway people yesterday, but what are you doing to be that first, two-day earlier, port of entry for European exporters to Canada? And then after that, what are the priorities for your capital campaign, your capital infrastructure, in the coming years?

2:25 p.m.

Vice-President, Business Development and Operations, Halifax Port Authority

George Malec

Thank you.

In terms of the first question, we recognize very clearly that, as we said, this is bilateral trade; it must benefit both parties—the Europeans and the Canadians. So to that extent, we have to be out in the market building awareness and knowledge about supply chain efficiency using the port of Halifax to facilitate that trade.

You heard yesterday from the Halifax Gateway that we've done a recent trade mission, for example, to Europe on that, and we have a regular outreach in Europe. In fact, we have a business agent in Europe who we've had for the last number of years. Personally, I and other members of the business development team are frequently in Europe working on that. That's half the equation.

The other half of the equation is, of course, the domestic Canadian knowledge and awareness. Approximately two months ago, we had a gateway session in Toronto itself, and as I alluded to before, in many respects we consider ourselves to be that port of Toronto in terms of accessibility for major areas for importers and exporters in this country.

We had exactly the same type of concept. We're inviting the freight forwarders, third-party logistics operators, manufacturers, importers, and exporters to these information sessions, where we, in conjunction with entities like CN Rail, Nova Scotia Business Inc., and the Halifax international airport, talk specifically about the supply chain that we offer to shippers, how that can be advantageous to them, and establish that connectivity so that when they have questions they need to drill down into, they know who to speak to, and we follow up with them on a consistent basis about how we can do that.

We also take very keen statistical databases with us wherever we go and develop those. We drill down into, for example, exporters and importers over the port on a commodity basis, on a tonnage basis, so we get very detailed shipping profiles, and again follow up with companies like that. We also invite major Canadian companies, such as Canadian Tire, to participate in some of our major trade events. For example, the Port Days event celebrates the port of Halifax on an annual basis. In past years, you will have seen major Canadian enterprises like Canadian Tire as the keynote speaker. This particular year, CN was the keynote speaker at Port Days.

So it's very much an integrated strategy, encompassing the fact that we have to be active on two complementary markets—the Canadian market and the overseas market in Europe—to promote and accelerate the opportunities around CETA.

In terms of infrastructure, as I alluded to earlier, we're just on the cusp of completing $110 million.... Over the last number of years, we've kept a running tally of all the infrastructure in the port of Halifax. We plow back in much of the revenue we generate through the operation of the port of Halifax, as the port authority, because we recognize we have to have top-quality infrastructure in the port to support this supply chain. That's why we built out both container terminals over the last number of years; that's why we're building this multi-purpose break-bulk terminal.

We've put money in the Halifax grain elevator, for example, to build a tip-and-load facility, which is nothing more than the opportunity to take soybeans from Prince Edward Island, bring them by truck into Halifax, have those converted from truck into the 20-foot containers we have on the trade lane surplus that's created here, and then ship those out to countries that are particularly well-suited towards containerized Canadian agri-exports. In this particular case, it was 10,000 tonnes of P.E.I. soybeans going to Indonesia. That type of project is first and foremost what we do in our business planning. We identify both the market opportunities in the business, as well as the infrastructure needs and demands.

We've just recently completed another couple of upgrades as well.

2:30 p.m.

Conservative

The Chair Conservative Rob Merrifield

I'm sure you'll have another opportunity to answer that question in a more fulsome way, but our time is gone. I have to yield the floor to Mr. Pacetti. It sounds like you win coming and going; you can't lose on this one.

Go ahead, Mr. Pacetti.

November 26th, 2013 / 2:30 p.m.

Liberal

Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC

Good point, Mr. Chair.

Thank you to the witnesses for appearing.

First, Ms. Janega, you spoke about your manufacturing sector here in Nova Scotia. I'm just wondering if you have a particular concentration. Is there a particular industry that's more predominant than others?

2:30 p.m.

Vice-President, Nova Scotia Division, Canadian Manufacturers and Exporters

Ann Janega

Traditionally, the emphasis has been on natural resource-based industries, anything related to the sea, as we mentioned, and wood and wood products. Those industries continue to thrive. I would say one of our growing and important industries relates to aerospace and defence. There are a number of companies that are involved in the manufacture of equipment that relates to those industries, for example, a growing ocean resources industry, underwater acoustics.

2:30 p.m.

Liberal

Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC

I come from Montreal, and our manufacturing sector is not moving. It's actually decreasing because of the competition we get from China, so it's good to see that the manufacturing sector is a little different here in Nova Scotia.

The number 500 is quite small, I think. That means companies that you're representing here in Nova Scotia must be small?

2:35 p.m.

Vice-President, Nova Scotia Division, Canadian Manufacturers and Exporters

Ann Janega

Well, there are many more companies than that. These are the ones that clearly identified as international exporters. Other firms are vibrant and viable, but selling internally.

2:35 p.m.

Liberal

Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC

Comments that I receive are usually because these companies are too small and don't have the proper financing to export. Is that what you're seeing? Is there going to be the ability for these companies to go and get the investment required to export to Europe? It's going to require some type of investment. It may not necessarily mean capital. It could mean hiring an extra person to handle the exporting part of the business. I'm not sure—

2:35 p.m.

Vice-President, Nova Scotia Division, Canadian Manufacturers and Exporters

Ann Janega

There are a number of obstacles, and we can access a few studies that show what the key obstacles are. I think these firms can do it. They're going to need help. They're going to need information.

2:35 p.m.

Liberal

Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC

That's the question. Where can they get this help? Are they going to be going back to the government and asking for help?

2:35 p.m.

Vice-President, Nova Scotia Division, Canadian Manufacturers and Exporters

Ann Janega

No, I don't think so.

I'd also like to raise the opportunity of suppliers as well, firms that are in the service industry. I think there are opportunities for those firms as well to become exporters, which traditionally they have not been.

With our organization, with CME, we partner with groups such as the Export Development Corporation, which provides services to make it easier for firms to become traders. That's our challenge, at agencies like CME, to demonstrate the opportunity. You can't do it for them.

2:35 p.m.

Liberal

Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC

Yes, that's what I was asking.

Mr. Malec, my time is limited, so I have a couple of quick questions. First, for information, who's your biggest competition in terms of a port city? Would it be New York, as you mentioned, or would it be more a Canadian city, like Montreal or Toronto?

2:35 p.m.

Vice-President, Business Development and Operations, Halifax Port Authority

George Malec

I'd say when we look at it in strategic terms, it's more likely New York. Most people don't realize that only a year ago, CN, the Port of Montreal, and the Port of Halifax embarked on a joint trade mission together through Southeast Asia. In many respects, we were having a strategically complementary business trip on that, because for the vessel operators that are operating these key bigger vessels that are too big to go up the seaway, Halifax is the port that's competing directly.

2:35 p.m.

Liberal

Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC

Which were the three? Montreal, Halifax—

2:35 p.m.

Vice-President, Business Development and Operations, Halifax Port Authority

George Malec

They are Montreal, CN, and the Port of Halifax. So on face value, you'd think Montreal and Halifax are competing for this. On a strategic level, we both bring something very unique to the market to support Canadian enterprise and business. Montreal has a very good track record of working direct...a complete discharge and loading vessels of a smaller scale to go to the seaway. Our sweet spot is handling the bigger vessels that cannot transit that way.

The important thing here is for us to be out in the market offering the purveyor of the goods and the carrier of the goods the commercial wherewithal to come to Canada.

2:35 p.m.

Liberal

Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC

How long does it take for a vessel to cross the Atlantic? What would be a major port? Would it be London, Barcelona—

2:35 p.m.

Vice-President, Business Development and Operations, Halifax Port Authority

George Malec

There are several. Feed ports could be Bremen, they could be London, Le Havre, Antwerp. Two of the bigger ones we service right now are Antwerp and Bremen. Now, the transit time, generally at an economical steaming speed, is about five days. So it depends on the—

2:35 p.m.

Liberal

Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC

So if you're able to save two days out of five days, that's huge.

2:35 p.m.

Vice-President, Business Development and Operations, Halifax Port Authority

George Malec

It's significant, sir.

The other important thing is what trade lane that ship is on. If it's going down the east seaboard of North America, starting in Halifax and going all the way down to Savannah, that's a specific trade lane. If it's going down and then through the Panama and around the world, it's a specific trade lane. If it's just going point to point, Montreal to Le Havre, for example, that's a specific trade lane. The important point is we have to be able to service those ships.

2:35 p.m.

Liberal

Massimo Pacetti Liberal Saint-Léonard—Saint-Michel, QC

In your earlier comment—

2:35 p.m.

Conservative

The Chair Conservative Rob Merrifield

Time is gone.

2:35 p.m.

Vice-President, Business Development and Operations, Halifax Port Authority

George Malec

I love to talk about this.

2:35 p.m.

Conservative

The Chair Conservative Rob Merrifield

And it's very interesting to the committee. I was blown away that you can compete with New York two days faster. I wouldn't have believed it if you hadn't said it, and I trust you.

Mr. Cannan, the floor is yours.

2:35 p.m.

Conservative

Ron Cannan Conservative Kelowna—Lake Country, BC

Thank you, Mr. Chair.

Thank you, ladies and gents, for being here this afternoon.

I will continue on in that vein. The chair was minister of state for transport a few years back. I come from British Columbia; in Prince Rupert it is similar with Asia—we have that day competitive advantage on our west side. I think it's something we need to definitely tell the world about. I'm glad you are expanding your marketing.

Looking at some of the investments that have taken place over the last few years.... My colleague, Gerald Keddy, the hard-working member of Parliament from out here in South Shore, used to be on the trade committee.

I think the government has invested over $52.5 million, including $17.5 million recently, to expand your south terminal. Have those investments been able to put you in a competitive advantage or keep you competitive with what's happening in the shipping world?