Transport Committee on Sept. 26th, 2018

[Peter Xotta]

Perhaps I can chime in.

Here's the picture that I would paint. In Canada, when your vessel arrives at the port of Vancouver, you come under the Lions Gate Bridge. If you're entering Burrard Inlet, on the left-hand side is a pile of sulphur and coal. On the right-hand side you have Stanley Park, a bunch of condominiums, and Canada Place. We have done an exceptional job in this country, and in Vancouver in particular, of balancing our underlying trade and industrial activity with preserving the coast for all other users, including the residents here.

That means increasingly being focused on the collaboration that was referred to by another committee member, but it also means investing in innovating and in ensuring that we have timely investment in infrastructure through monitoring programs. I mentioned the visibility program that the port is involved in. Ultimately, that allows us to be confident that we're using the corridors that are preserved for trade as efficiently as possible. That will also point us to when we are exhausting that opportunity and either need to invest capital or do something else. Finally, it helps us demonstrate all the measures we're taking to those local constituents, whether they're concerned about impacts on commuters or other things or about impacts on the environment.

At the port, along with different agencies, including Transport Canada, we're investing in technology, as I mentioned previously, supported strongly by both CN and CP. We believe that's the path forward—being able to demonstrate in the Canadian context that we have a solid focus on the future while demonstrating that we're sensitive to those issues that are appropriate to preserve Vancouver.

[Angelo Iacono, Liberal, Alfred-Pellan, QC]

Thank you.

[Ewan Moir]

At the port of Nanaimo, we are in the fortunate—or unfortunate—position of going through change. We're just removing the last sawmill from our Nanaimo assembly wharf site. It's basically 37 acres of flat land with Helijet on one side and our main office on the other. That's where we're building the vehicle processing centre.

Directly to your question about “tomorrow's port”, we are in the advantageous position to actually introduce technology as we build new infrastructure in our heavy industrial area at Duke Point and in our light industrial area of the Nanaimo assembly wharf. I believe that this is the only way we should be going as ports, introducing technology.

I would use Amazon as a classic case. No one would have thought 10 years ago that you could have something delivered to you tomorrow from Montreal if you ordered by 9 o'clock in the morning. Amazon can do that. That's using technology to get the goods to you very quickly, right to your door. Now they're talking about putting it in the back of your car, because they can electronically unlock your car and leave the parcel for you.

Ports are looking at a very infant stage of blockchain technology. The port of Halifax is working with Maersk on that. As to how blockchain technology would fit and work with us as a port, and whether we would become part of the blockchain technology as a port, that's something that has to be answered, but we have to be moving toward the use of technology to get goods to market. “To market” doesn't mean to Nanaimo or to Vancouver; it means right to the customer's door. That's interconnecting all the modes of transport and connecting them very efficiently.

To really do that, you have to understand what's coming at you well in advance, and you have to be able to electronically transfer that information to the relevant people to make the right decisions before the product actually arrives at the port. We're looking at that. We're learning about it, and we're using the car project as our start.

[Angelo Iacono, Liberal, Alfred-Pellan, QC]

Thank you.

Just quickly, is there somewhat of a collaboration between ports when it comes to port intelligence?

[Ewan Moir]

Yes, there is. We have an association of the 18 port authorities. That is ACPA, the Association of Canadian Port Authorities. Blockchain technology is one of the things we are discussing collectively. We're trying to understand where it fits. As an association, we sit down and we take subjects that are common—

[Angelo Iacono, Liberal, Alfred-Pellan, QC]

Sorry. You mentioned the association, but I'm also talking about the ports.

[Ewan Moir]

Oh, do you mean directly with ports?

[Angelo Iacono, Liberal, Alfred-Pellan, QC]

Yes.

[Ewan Moir]

We have a round table where all 18 CEOs meet. What we actually want to look at collectively would be part of the discussions.

Here on the west coast, the port of Vancouver and I will be meeting to discuss all subjects, from technology right through to products, the rail, and so on. Therefore, there is a common discussion; there is an idea of working together.

[Angelo Iacono, Liberal, Alfred-Pellan, QC]

Have you had a common discussion about—

[The Chair, Liberal, Judy Sgro]

I'm sorry, Mr. Iacono. Can you hold your question and we'll see if we can get another round in?

Mr. Badawey, go ahead.

[Vance Badawey, Liberal, Niagara Centre, ON]

Thank you, Madam Chair.

Good morning and welcome.

My name is Vance Badawey, and I am from the Niagara region. I want to take this opportunity to preface my comments and my questions by stating that this session is not about me. It's not about my personal interests. It's not about the interests of my riding in Niagara. It's not about political interests. It's simply about business. It's about performance. It's about your interests, your partnership with the federal government and your partnership with the people you work with on a daily basis, your colleagues. Therefore, the direction we're trying to take here is to strengthen our global trade performance by enhancing our logistics and distribution transportation system locally, here in B.C., but equally, if not more importantly, nationally and internationally. I am going to base my questions on that.

When we look at your area and the trade corridor here—which, by the way, is performing very well—we understand that it can perform better, hence the reason we're here.

My first question goes to a comment that Mr. Moir made earlier with respect to integration and looking at really integrating our logistics and distribution system here locally, as well as nationally and internationally. Traceability is a big issue.

With that, what direction or what methods or mechanisms are you putting in place not only to satisfy your individual business plans, but to make them more robust, to enhance them and make more capacity available? What are you doing together?

Mr. Moir, in your comments you mentioned working together and integrating, and therefore everybody performing at a higher level, so what are you doing together?

Second to that question, what can you do—and bringing us in as a federal government, what can we all do to help you along—in that direction, not just for a 5- or 10-year business plan, but a 30- to 50-year business plan well into the future?

[Ewan Moir]

There are two layers of communication. As an example, in Nanaimo, we work with DP World, which runs our container terminal that connects back to Vancouver and their facility at Centerm. DP World is operating on both the east coast and the west coast. They're exceptionally knowledgeable with regard to movement of products globally and in Canada. By working with DP World, and because they're also located in Prince Rupert and in the port of Vancouver, we have the proponents' viewpoint, and then we have the ports communicating together as well. We're connecting the ports through communication, but also through the proponents who are actually moving the goods.

That's a very important part of tomorrow's business as well, that we are not at arm's length from our proponents. We have to work very closely with our proponents and share information collectively, because we're not competing against each other. We're supposed to be for the good of our communities, the good of Canada, and the good of B.C., and that is occurring.

That is happening because of the way we work, and I understand it's happening because of the way we work with the port of Vancouver as well.

[Peter Xotta]

We certainly need to look at emerging issues in other gateways. Perhaps to the previous question that was asked, the port is very actively engaged in discussions with L.A. and Long Beach, because we can foreshadow some of what might happen in our port, in the container sector; with Rotterdam particularly, because they have port operation systems providing oversight of vessel traffic that are of interest to us and might be something that emerges for us in the future; and of course, with local ports such as Seattle, Tacoma, Nanaimo and Prince Rupert, with whom we have regular discussions.

With regard to what we should be doing, I mentioned it several times and I apologize for repeating myself: Technology is the key. Creating data-based, data-informed conversations will help us produce a made-in-Canada solution for our supply chain. Simply emulating what happens in other ports around the world in their political or cargo context is not likely to produce the results we need. A made-in-Canada solution informed by the information around our capacities and our supply chain will help us have the correct conversations.

[Sonterra Ross]

From a cruise perspective, we have a great opportunity right now. For Victoria, most of our ships are homeported out of Seattle, so we have a close working relationship with Seattle. Also, in Vancouver, capacity is probably our biggest challenge as we look at cruises ahead.

With the opening of the Asian market, there is lots of business to go around and be shared across all the ports in B.C. I know that our CEO, with some of his conference attendees, does engage with many ports to ensure that we're all working together and to determine where the right size of ship and the movement of people best fit to showcase B.C. and Canada as a whole.

[Vance Badawey, Liberal, Niagara Centre, ON]

Thank you.

That's great that you're doing it here locally. How do we do it nationally?

Mr. Xotta, you mentioned that you are in collaboration with other gateways nationally, for the domestic market but also internationally, as you mentioned Rotterdam. I'm going to hit you with both the transport industry and the cruise ship industry. Not only are we trying to bring people here to this area of the country, but we're trying to bring people to the country. How do we work together to do that, starting in the west and moving to the east?

That's the premise of what I'm trying to get at here. Yes, we have assets here locally in B.C. How do we use those assets to bring in more of the national or domestic and, of course, the international market?

Moving forward, how do we do that? We talked about this in Niagara as well. How do we integrate and bring together our distribution logistics system, as well as our tourism and, in your case, the cruise industry?

[The Chair, Liberal, Judy Sgro]

Could we have a short answer, please, to the point?

[Sonterra Ross]

One of the main focuses that we use in the tourism sector is engaging with Destination Canada, so we're enhancing that tourism sector with our Destination Canada partners to really highlight all the ports and the infrastructure needs, and that's right across the country. That's the forum we use.

[Peter Xotta]

I'll take it up a level, to be brief.

What's happened in the federal trade corridors initiative is incredibly powerful. Being prepared to facilitate analysis and leaving the door open to potential infrastructure asks is actually the primary and most useful role that the Government of Canada can take.

There's a lot of “going down the rabbit hole” and analysis that can be done, but at a high level, that leadership is very valuable. It acts as a catalyst for bringing people together. It unearths the truth, at least as close to the truth as we can get, on any given issue. Hopefully, it results in merit-based projects moving forward.

[The Chair, Liberal, Judy Sgro]

Thank you very much.

I have to go on to Mr. Jeneroux.

[Matt Jeneroux]

Do you have to, or do you want to?

[The Chair, Liberal, Judy Sgro]

I'm sorry. I clearly want to.

[Matt Jeneroux]

It's a pleasure to have everyone here, even the chair.

I want to revisit some of the questions I was briefly talking about earlier with regard to Bill C-69, and perhaps give Mr. Moir and Ms. Ross an opportunity to weigh in.

Could you provide some tangible examples of what exactly Bill C-69, which is not official yet, would mean as legislation for your industry, and on the competitiveness piece?

First, we'll go back to Mr. Xotta, and then we'll go across the table.

[Peter Xotta]

I'd probably be restating what I said previously. There are two dimensions to the potential change. As I mentioned, one is the potential for exceptionally long and costly permitting reviews, such that projects may not be brought forward.

The second piece is with regard to the role of port authorities across Canada and permitting projects within their jurisdiction. This is a strategic advantage for Canada, by acting as a catalyst to bring the various analyses together to make a determination on a particular project. By and large, I think that the ports in Canada have held that responsibility very dear and have done a robust job of reviewing projects in their jurisdiction. It's important to take those projects and continue to give the authorities that role. Generally speaking, the nature and size of the projects that fall within the auspices of the port authority should remain, in our view.

[Matt Jeneroux]

Are you saying, then, that people would look at Canada less favourably and that strategic advantage you spoke of—