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.