Thank you, Madam Chair.
Thank you, members of the committee, for welcoming us this morning.
As the last deepwater port closest to the heart of America, the Port of Québec's strategic advantages make it a key player in the continental supply chain. Our market extends all the way to the Great Lakes. We are one of Canada's top five ports and transship 27 million tonnes of cargo, mainly bulk cargo, worth $20 billion. We do business with some 60 countries and 300 ports.
With a water depth of 15 metres at low tide, the Port of Québec has a fully intermodal terminal and plays a key role as a transshipment port in the St. Lawrence-Great Lakes corridor. According to KPMG, our port has generated 13,250 direct and indirect jobs, as well as $1.3 billion in economic spin-offs across Canada.
The Port of Québec is also a destination for international cruises. With 230,000 visitors a year, it is the largest port in the St. Lawrence for cruise ships. Fully 20% of our territory is dedicated to urban and recreational tourism activities.
I will now give you an overview of the main issues the Port of Québec has to address to ensure its development. In a country like Canada, whose economic vitality relies on access to international markets, port infrastructure is of course a strategic asset. Unfortunately, the Port of Québec, as many other ports, must deal with aging infrastructure. Our most recent sector was built in the sixties, while our oldest dates back to the nineteenth century. We would need over $300 million to rebuild our port heritage. Clearly, our port, much like the other ports, does not have the financial capacity to cover these costs on its own.
Fortunately, in 2018 we received a $15-million contribution from the National Trade Corridors Fund to carry out a $30-million restoration project. However, with a budget of $2.2 billion over 11 years, the NTCF is not able to meet all the pressing needs. Therefore, we think that the sheer scale of those needs calls for the creation of an infrastructure restoration program, specifically for ports, to modernize Canada's strategic port heritage.
Moreover, intermodality is essential for Canadian ports to remain competitive. Rail and road access is vital if we want to offer businesses the best solutions for reaching their markets. The growth of international trade requires increased capacity and fluidity. The reality is that Canada's ports are often built right in a city core, as is the case in Quebec City. It is therefore essential to invest in these intermodal links, both to retain access and to improve capacity. It's just as important to invest in infrastructure to mitigate the impact of port activity on the urban landscape.
The Port of Québec is planning its development from a global perspective. Our development is based on a vision of the St. Lawrence that focuses primarily on the competitiveness of the St. Lawrence-Great Lakes trade corridor, a gateway for eastern Canada. This trade corridor reaches a market of 110 million consumers, but it has to compete with east coast ports in the U.S., which have made massive investments to improve their access to this huge market.
The new Panama Canal opened in 2016 with a new water-depth standard of 15 metres. It can now accommodate a new generation of even larger ships, the New Panamax, which can carry up to 14,000 containers. This depth of 15 metres is now the new industry standard for the American eastern seabord ports, which, like the the ports of the St. Lawrence, also serve the Midwest market. American ports, which are the St. Lawrence ports' main competitors, have launched major dredging operations and are working to modernize their rail networks to adapt to this new standard.
The Port of New York and New Jersey has invested $2.1 billion in dredging alone, primarily to adapt the docks to the new water-depth standard of 15 metres. The port also invested $1.6 billion in works to raise the Bayonne Bridge to allow for the transit of large container ships.
The Port of Québec already has a water depth of 15 metres at low tide. Note that past the Quebec Bridge, the navigation channel is limited to only 11.3 metres as far as Montreal. That is why the Port of Québec is pushing for the construction of a new deepwater container terminal. This would involve a 17-hectare land expansion and a wharf line with water depth of 16 metres. The new terminal will be able to handle 500,000 containers a year and will give the St. Lawrence a viable deepwater option to compete with east cost ports in the U.S. In addition, the terminal will supplement our eastern ports. Ultimately, this project will consolidate our position and regain market share from the U.S. ports. This project is currently under assessment by the Canadian Environmental Assessment Agency.
In closing, I would like to share a few thoughts about some of our development issues. It is vital that we maintain a balance between developing infrastructure and protecting the environment. The significant delays and costs associated with current environmental processes must be considered with care to optimize successful project outcomes.
Canada's port authorities have to deal with borrowing capacity limits, which could become a major constraint in ensuring the closing of financing for major projects. There is a need for greater flexibility.
Our business activities are governed by letters patent, which define both our activities and our business relationships. These letters patent can constrain our efforts to adapt to changing business practices. A more flexible amendment process would be a considerable improvement. It would help us adapt more effectively to the current situation.
Lastly, major development projects should always be examined from the perspective of improving our international competitiveness, within an approach focused on regional complementarity.
Thank you for your attention.
