Transport Committee on Sept. 24th, 2018

[Matt Jeneroux]

Yes, Mr. Aubry-Morin, go ahead.

[Jean Aubry-Morin]

If you look at the last 20 years, we talked about close to $1 billion in investments and 60% of it was in the Welland Canal. We have not reached the funding you're talking about because it's out of reach for us, but we encourage—

[Matt Jeneroux]

Why is it out of reach for you?

[Jean Aubry-Morin]

Since the appropriation on the strategic plan that we have is provided to us directly, we have a limited ability to deviate from the agreement we have with Transport Canada to do so. It's precluded to a certain degree, but we encourage all our partners to do so. We help them access that and support them in their application where possible. We can see in the performance we have that the funding we have has been used, and we would like to see that in the full network of the system.

[Ian Hamilton]

I know we're running tight on time, but in addition to the NTCF fund, I think there are probably better ways to address public-private partnerships. I believe there's a lot of capital available in the private area that could be leveraged. Part of that will be addressed through recommendations through the port modernization and how we can tap into that available money. It doesn't always have to be a handout. The Infrastructure Bank may help, but I think that trying to develop legislation that really supports public-private partnerships is a great way to tap into the billions of dollars that are sitting idle in the country today.

[Matt Jeneroux]

Right.

Mr. Hodgson, I think you wanted to—

[Bruce Hodgson]

Just to clarify, in terms of our tenants and our stakeholders, we do work with them and encourage them to try to apply and take advantage of that funding, although, to date, we have not seen any funding for any of our tenants.

[The Chair, Liberal, Judy Sgro]

We'll move on to Mr. Aubin for three minutes.

[Robert Aubin, NDP, Trois-Rivières, QC]

Thank you, Madam Chair.

I have a few questions for Mr. Hamilton.

Since the passage of Bill C-49, port authorities can receive funding from the Bank of Canada, but for projects over $100 million, if my memory serves me well. I have two questions about this.

Is funding from the Canada Infrastructure Bank a good approach for ports?

Isn't there a risk of a two-tier system? Not all ports are of the same importance or budget. Some can fund projects worth more than $100 million, but others have smaller, but equally important projects.

[Ian Hamilton]

I couldn't agree more. The Hamilton Port Authority is a great example. Based on the current legislation, we have a borrowing limit of $45 million, so there's no possible way we could even borrow money from the Infrastructure Bank at $100 million. Effectively, it would be illegal, so I totally agree that they need a more flexible approach to creating a two-tiered system, potentially even moving the Infrastructure Bank into more of a loan guarantee type of role.

The United States had a group called MARAD a number of years ago, and they dealt with loan guarantees, which could be another way. If the money is loaned to smaller port authorities, it's not viewed as a liability on their balance sheet, which would allow them to have more flexibility with their borrowing powers. However, you're right. The Infrastructure Bank means nothing to probably 14 out of the 18 port authorities in the country.

[Robert Aubin, NDP, Trois-Rivières, QC]

I was pleased to hear you say earlier that you were complying with Ontario's environmental regulations in your development plans. We know that federal port authorities are exclusively under federal jurisdiction. In Quebec, we experienced this problem: we wondered how some port authorities could ignore Quebec's environmental rules, but not the federal ones.

Do you think the two sets of environmental regulations should carry the same weight and that we should respect both the federal guidelines and the ones for the provinces where the ports are located?

[Ian Hamilton]

We've always chosen to respect the provincial rules, believing that this was the right commitment to being a good neighbour. In a lot of situations, we lease out the land to a third party. That tenant is obligated to follow those provincial rules, as opposed to a project developed by us. There's always a slippery slope in giving up the federal paramountcy to allow us to fulfill our core mandate, which is facilitating trade, but wherever possible, I think it's important to respect the communities that we're in and protect the environment as much as possible.

[Robert Aubin, NDP, Trois-Rivières, QC]

Thank you.

[The Chair, Liberal, Judy Sgro]

Thank you very much to our witnesses for starting out our study. We appreciate your time and your effort.

We are having a round table between 6 p.m. and 7 p.m. this evening for anyone who wants to come and speak further with the committee and make some points that they maybe didn't get a chance to make. By that time, we'll probably have a whole lot more questions for you. I hope we will see you at that time.

I will suspend for a moment while we change panels.

[The Chair, Liberal, Judy Sgro]

I will call the meeting back to order.

Thank you all very much for being here and participating in our opening session. We appreciate it very much.

From the Canadian Marine Pilots' Association, we now have Captain Mike Burgess, vice-president for the Great Lakes region. It's great to see you again, Mike.

From Great Lakes Stevedoring Co. Ltd., we have Claudine Couture-Trudel, senior director of strategy and communications, and Bruce Graham, vice-president, Hamilton, Port Colborne.

From the Seafarers' International Union of Canada, we have James Given, president, and Chris Given, director of government relations. We've seen you many times before the committee. Welcome again.

We will open it up for up to five minutes for whoever wants to present. Do you want to start, Mr. Given?

[James Given, President, Seafarers' International Union of Canada]

Certainly, thank you.

It's always a pleasure to see you, Madam Chair.

[The Chair, Liberal, Judy Sgro]

Thank you.

That doesn't give you any extra minutes.

[James Given]

So that doesn't do anything for me. I just wasted 30 seconds.

[The Chair, Liberal, Judy Sgro]

No, you didn't.

[James Given]

That's okay. I'm going to cut through all the fluff and get right down to it, Chair.

Thank you, Chair and committee, for having us here today to speak on behalf of the Seafarers' International Union. As many of you are aware, the SIU represents the majority of unlicensed seafarers in Canada working on Canadian flag vessels. As you will no doubt hear from many witnesses appearing today, maritime transportation plays a pivotal role in supporting the nation's economy and moving goods to and from market.

In all likelihood, 90% of the goods that we use on a daily basis, including the majority of items we find in this room, arrived in Canada by vessel. Likewise, Canadian vessels transport many of Canada's exports through the Great Lakes and St. Lawrence Seaway system, unloading cargo at ports throughout the country, where it is often refined or stored for a period of time before foreign vessels move it overseas.

The main focus of SIU Canada is and always will be maintaining regulations pertaining to Canadian cabotage through the Coasting Trade Act. We believe that any development can and must be done with the goal of supporting and benefiting Canadian workers first and foremost.

The SIU could not support any initiative that involves the use of foreign vessels or workers in Canadian marine cabotage. Maintaining cabotage regulations on domestic shipping is supported by every maritime labour union in the country, as well as the vast majority, if not all, of ship operators under the Canadian flag.

With this said, the Golden Horseshoe and the Welland Canal could be the hub of any Canadian short sea shipping initiative, especially in the area of containers, which is really an untapped area in the Canadian industry.

We have all travelled the 401 corridor and many of you, the QEW yesterday, and we have witnessed the congestion of trucks moving goods from Montreal and Quebec City to the Ontario area and beyond. With the development of short sea shipping, one vessel could potentially remove hundreds of trucks from the nation's highways.

The Niagara region is unique in its proximity to the U.S. border by both truck and rail. Rail lines extend and meet up with other lines that go directly into the U.S. Midwest.

Our ability to transship containers on smaller short sea shipping vessels to areas like Chicago, etc., would further open markets and trade routes that are yet to be fully established.

Montreal and areas east have been operating at close to capacity but recently announced plans for expansion. In order to develop trade, the next logical step is to work on the Great Lakes area to handle small to medium container ships, be it through already existing vessels or tug-and-barge operations.

Europe is far ahead of North America in short sea shipping and taking advantage of its water highways. The benefits of increasing short sea shipping have already been seen in the EU. One example is how short sea shipping results in more frequent port calls, which in turn increases traffic, loading and unloading services, storing and logistic businesses in ports.

As has been, and will be, stated numerous times, the seaway is currently operating at only 50% capacity, so it could handle and would likely welcome a large increase in traffic.

In a similar vein, Canadian marine operators are already highly invested in this market, and many new vessels being purchased or built specifically for operating in the Great Lakes and St. Lawrence Seaway could create a niche market with a high concentration of Canadian-owned and operated vessels employing thousands of Canadian seafarers. These investments would only increase with the reassurances provided by a government-backed short sea shipping policy.

An initiative such as this also lends itself well to the government's priority to invest in environmentally friendly industries.

As we've mentioned, not only could promotion of shipping remove thousands of trucks from the road, but shipping is already the most energy-efficient mode of transportation and will only become greener with the IMO 2020 regulations to decrease marine fuel sulphur content to 0.5% instead of the current limit of 3.5%.

Investments spur growth in the industry and will provide for even more employment opportunities in both shipping and logistics. The SIU is proud to represent seafarers from all across Canada in well-paid middle-class jobs. We recommend that any future transportation policy also take into consideration the importance of promoting and maintaining this vital skill set and the essential role that Canadian seafarers occupy in our overall supply chain.

Let us continue to work together as partners to ensure that the future of the Canadian maritime industry is both prosperous and beneficial for Canadian seafarers and all Canadians alike.

We thank the committee for its time.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

Mr. Burgess.

[Captain Mike Burgess, Vice-President, Great Lakes Region, Canadian Marine Pilots Association]

Good morning, Madam Chair and committee.

As a long-time pilot and member of the executive of the Canadian Marine Pilots' Association, the CMPA, I welcome this opportunity to talk about the role that pilots play in Canada's transportation system.

I understand that you will be in Vancouver later this week, and two of my colleagues from the Pacific region will also be participating in your study.

Pilots are responsible for safely conducting commercial vessels through designated high-risk waters. Pilotage is regulated pursuant to the framework established by the Pilotage Act. Over the years, pilots have contributed significantly to various legislative and regulatory processes initiated by the federal government to improve the safety and competitiveness of shipping.

The CMPA is a member of the International Maritime Pilots' Association, IMPA, which represents pilots from over 50 countries around the world. Incidently, the CMPA's president, Captain Simon Pelletier, has also been IMPA's president since 2014, and was recently re-elected for another four-year period.

First and foremost, Canada's pilot system is focused on ensuring that safety is the first priority. Pilots are proud of their record. There are 50,000 pilot assignments that take place every year in Canada, and 99.99% of them unfold without incident. This near-perfect safety record, in a context where the average size of vessels is constantly increasing on waterways that, for their part, remain the same, greatly contributes to the competitiveness of Canada's maritime trade corridors.

Pilots also play an important role in navigation efficiency and the development of navigational improvements. The first importance is the benefit to the efficiency of supply chain operations and the near certainty that pilotage provides that access to critical marine infrastructure will not be compromised.

Pilots have developed innovative practices for navigation on the Great Lakes and St. Lawrence River, thereby extending the operating seasons of both the seaway and ports on the river, especially Montreal. Also, nighttime navigation during the winter on the St. Lawrence has been greatly enhanced in recent years by the innovative application by pilots of e-navigation and portable pilot units.

The positive impact of an extended navigation season in the Great Lakes region, and the vital role that pilots play in facilitating this when seasonal aids like lighted buoys are not available to ships—that is, when the Coast Guard has either removed or not yet installed them at the beginning and the end of the season—was substantiated by a case study that I have shared with the committee.

I believe that the case study makes a compelling demonstration of the marine mode's competitive advantage as the most cost-effective means for moving grain and other commodities and of the key contribution of pilotage towards this. The case study is part of a larger study analyzing the cost-benefit of pilotage in Canada, which is available on the CMPA's website.

There is another dimension to the Great Lakes trade corridor that highlights the flexibility of Canada's pilotage system and the role it plays in maximizing efficiency. Despite the compulsory nature of Canada's pilotage regime, Canadian shipping companies can avoid having to engage pilots and therefore paying pilotage costs, by taking advantage of provisions in the Pilotage Act regarding pilotage certificates.

Pilotage certificates may be issued to Canadian ship officers who have demonstrated skill and local knowledge of the waters of the compulsory pilotage area equivalent to that required of a pilot. This approach is widely used by Canadian companies throughout the Great Lakes region, and it is also available in other regions of the country.

In closing, I know that one of your focuses has to do with what can be done to improve the efficiency and competitiveness of our trade corridors. Recognizing the important return on investment for both safety and approved operations, we believe that the Government of Canada should undertake the capital projects necessary to ensure adequate and reliable icebreaking, as well as optimally functioning buoys on Canada's waterways, and in particular on the Great Lakes-St. Lawrence waterway.

I thank you for your attention and will welcome questions.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

We'll move on to our last couple of speakers for the moment.

[Claudine Couture-Trudel, Senior Director, Strategy and Communications, Great Lakes Stevedoring Co. Ltd.]

We have prepared something together.

Good morning, everyone. My name is Claudine Couture-Trudel. I am senior director, strategy and communications, at QSL.

[Bruce Graham, Vice-President, Hamilton, Port Colborne, Great Lakes Stevedoring Co. Ltd.]

My name is Bruce Graham, vice-president at Great Lakes Stevedoring, part of the QSL team.