Thank you very much.
Good morning to everyone, and thank you for inviting me to speak with you today.
I am the CEO of the Grape Growers of Ontario and also sit on the board of directors for the Buffalo and Fort Erie Peace Bridge Authority, which owns and operates the Peace Bridge and the customs plazas in both Canada and the United States. Previous to these roles I was a regional councillor for the Town of Grimsby, and also served two terms as head of regional government as chair from 1997 to 2003, which actually seems a very long time ago.
The QEW, or the Queen Elizabeth Way, is currently the only trade and tourism corridor through Niagara and serves four international bridges between Canada and the United States: the Peace Bridge, the Lewiston-Queenston Bridge, the Rainbow Bridge and the Whirlpool Bridge. In 2017 the QEW ranked second in Canada in terms of commercial volume and passenger vehicles, with cars totalling almost 10 million crossings and commercial trucks totalling almost two million crossings.
Approximately 85% of all goods traded between the U.S. and Canada moves by land transport modes—trucking or rail—and 54% of all U.S.-Canada trade is transported by truck. The QEW corridor accounts for 37% of that trucking volume into Canada and an estimated $80 billion in two-way trade annually.
The commodity mix on the QEW is much more diverse than other trade corridors due to the Queen Elizabeth Way being a commuter highway as well, and the primary tourism conduit connecting the GTA—the greater Toronto area—with the attractions of Niagara Falls, of course our wineries in the Niagara region, the beaches of Port Colborne, Fort Erie, as well as western New York and the Buffalo region.
In order to relieve this congestion, we—and I—have long been a proponent of a concept called the mid-peninsula trade corridor. It has been discussed for many years. In 2001, the Province of Ontario completed a draft Niagara Peninsula transportation needs assessment to examine the current and future transportation issues, opportunities and alternatives. The assessment concluded that significant additional transportation capacity would be required through the peninsula into the GTA, and would link southern Ontario with the eastern United States, including Boston and Washington.
In Niagara, we are one day's drive to over 44% of what we call the BosNYWash area in the United States. It's the annual trade we do each year that we need to consider as part of this. The 2006 growth plan for the greater Golden Horseshoe indicated that future transportation corridors connecting the Niagara region to the GTA are essential to support the long-term vision of the province.
The majority of trade-related goods between Canada and the U.S. travel by rail and truck with the QEW being the primary route linking Niagara and the GTA. The movement of goods on this trade corridor is expected to grow by 3% to 6% per annum, increasing the strain on this existing highway. The efficiency of the transportation system is critical for international trade through Niagara and to the economic health of these communities, the province and the country. In fact, I can't recall in the last 15 years where we have built a highway in Canada, anywhere. I think it's this lack of transportation that gives us what I think is a disadvantage to the rest of our trading partners.
A trade corridor would not only remove the strain from the QEW and alleviate bottlenecks at the border crossings, but attract new businesses and jobs between Niagara, Hamilton and the GTA. Niagara, as we know, is a key tourist attraction, especially Niagara Falls. I would have to digress to suggest that, being in the wine business, it's our wineries as well. We are also a key agri-tourism sector, including the wine industry, which continues to grow. We're almost strangled by our success.
More importantly, what we have in Niagara are land, rail, air and road opportunities. In fact, the land that surrounds the Welland Canal creates this fluidity. It's part of a land trade corridor, an intermodal hub that creates huge economic opportunity just by the existence of the land base around the canal.
Every year the number of tourists visiting Niagara increases. In fact, according to a recent report, there were 2.4 million visitors to Niagara wineries alone in 2015. In addition to visiting the wineries, the majority of tourists stay at a local hotel or bed and breakfast, and visit the area's restaurants, shops and landmarks, generating $847 million annually in tourism-related economic impact for the province.
The national grape and wine industry contributes over $9 billion annually in economic impact. During a recent round table with the provincial minister of tourism, it was noted by the grape and wine industry stakeholders that infrastructure and transportation congestion continue to be the barriers for success for tourism in Niagara. As a trade and tourism economy, investment in Niagara's highway infrastructure is critical.
One of the things that has struck me as you sit and reflect on your country's growth is that the last time we could actually go out and celebrate was when we had a golden spike for the railway. Quite honestly, I think since that time we have not seen the kind of infrastructure investment we need in new roads, rail and, more importantly, the connection of those for the future. In Niagara we are very blessed to have the Welland Canal.
I hope these comments will be helpful to you in your deliberations for the trade corridors for the future.
Thank you so much.
