Maersk, based in Denmark, and having operations in Canada, is the biggest marine transportation company in the world, by volume. One of Maersk's five core values is constant care. We translate constant care into our business by taking care of today, while actively preparing for the future.
Most of our activities involve marine operations and logistics. We are conscious that understanding, influencing and partaking in how this industry will evolve is key to our business survival in the next century, and that it affects deeply the society we live in.
Maersk has taken the ambitious step to reduce its carbon emissions to zero by 2050. We will achieve this goal without buying carbon offsets. This means potentially abandoning carbon-based fuels within 30 years. It is therefore with this view that we present some of our perspectives on the evolution of the transportation industry in Canada and its intimate interconnection with the world.
Moving towards decarbonization does not mean reducing our business ambitions. We believe in sustainable growth. In an era of increased global trade and integrated supply chains, the challenges associated with such goals are tremendous. We believe Canada, through its land mass, oceans access, advanced economy, natural resources and initiatives to modernize its transportation network is in a unique position to become a global leader in a modern logistics network. This can be realized in conjunction with environmental stewardship and economic health.
We are in support of the recommendations highlighted in the work done by the committee on the west coast and in the Niagara areas. We would like to add to this view that there should be a drive to use renewable, low-carbon emission solutions to these challenges, especially where technology is already available.
One example could be the electrification of all new rail transport in the Niagara area. Such electrification would spur vigorous economic activities in several layers of the industrial fabric, such as transmissions, construction, heavy industry, etc.
One of the underestimated and underdeveloped trade corridors lies to the east of Montreal-Windsor. It is imperative that Canada work in parallel, tapping into the potential to develop industrial centres in rural areas along the St. Lawrence Seaway and into the eastern provinces.
This trade corridor is rich in resources and renewable energy. It has direct access to what should be important trade diversification targets that are in the Atlantic Basin, namely, Europe, Africa and South America. The eastern trade corridor is key to economic diversification.
There is a significant effort to develop sustainable access to deepwater ports on the Atlantic Basin. Such ports, existing or not, can serve as additional distribution centres for goods that will trade with Asia through the Arctic. They can be adapted or built with renewable power in mind. The cargo coming on giant ships can be redistributed within North America through the road and rail networks, or through short-sea shipping.
For technical reasons, one could argue that the smaller vessels will first see a change in fuel from carbon-based to renewables. The northern routes will open, and Canada must prepare.
The economics of such major infrastructure projects are challenging and only a long-term, non-partisan infrastructure program that is centred on a vision of an efficient carbon-neutral network will ensure that Canada benefits from a privileged access to three oceans.
We therefore would like to recommend an objective to reduce the transportation sector's carbon footprint to zero by 2050. This can be enabled by ensuring that infrastructure is built in a flexible way, ready to receive ships that might change their propulsion methods in the next decades; rails that can be electrified; and highways that can support alternative vehicles. Ensuring that all port slips have access to renewable shore power could be an immediate first step. Maximizing oil and gas exports with a minimal transportation carbon footprint, such as pipelines, could be another.
We recommend accelerating change in the transport industry by building a network of rails, roads and marine routes with access to a renewable energy grid.
We recommend fostering economic acceleration by funding technology programs in such a way that Canada becomes the world leader in developing and deploying non-carbon emitting transportation methods.
We recommend continuing to invest in the infrastructure with a view that the business cases, especially for zero-carbon projects, might take decades to pay off.
Finally, we recommend prioritizing, as a way to diversify the economy, the development of the eastern trade corridor, including deepwater ports, interconnecting networks and Arctic access.
Thank you.