Thank you very much, Mr. Chair.
The ferry sector is definitely critical to Canada's supply chain. Annually, CFA members transport 55 million passengers, 22 million vehicles and billions of dollars of goods. Ferries connect urban, rural, remote and indigenous communities in every region of the country.
Importantly, ferries service communities are not adequately serviced by other modes of transportation, making them a vital link in supply chains for ferry-dependent communities. For example, Inuvik relies on ferry services to transport goods into the town and surrounding communities during warmer months. Ferries can bring in goods that cannot be safely transported over ice roads. Clearly, Newfoundland and Labrador and Vancouver Island are also serviced by our members. You can find examples throughout the Prairies, northern Canada and the rest of the country.
Disruptions to regular ferry services can significantly impact supply chains. Delayed or cancelled sailings can result in delayed deliveries to businesses. In extreme situations, this can result in shortages of fresh food, fuel and others goods in ferry-dependent communities because ferries transport goods as well, primarily agricultural and seafood products from communities for domestic consumption or exports, making delays in sailings a problem for those communities that lose revenues.
Indeed, disruption in ferry services can result in losses, for example, from the spoilage of freshly caught fish. It can also impact the broader supply chain and transportation networks. More goods may need to be shipped via air or land transportation. Truck traffic at ports can become more congested. Cargo at ports can back up. We believe that investing in the ferry sector can strengthen Canada's supply chain infrastructure in the face of crises like climate change.
I would like to give an example of how the ferry sector has enhanced the resiliency of Canada's supply chain. The flooding that swept through B.C. last year severely disrupted supply chain and transportation networks when sections of major highways and some rail lines were submerged or damaged. On Vancouver Island, shortages of food and fuel were reported. Some people were stranded. To help bring in critical supplies and transport stranded people, BC Ferries ran extra sailings between Victoria and Nanaimo, as well as along their Brentwood Bay-Mill Bay route while the highways were being cleaned up. That is a clear example of how ferries can be part of the solution in some of those crises.
Climate change, indeed, poses a major challenge for the ferry sector. Extreme weather events, erratic freeze-thaw cycles, flooding, erosion and other consequences of climate change have introduced an unprecedented level of uncertainty and risk for ferry operations and infrastructure. Supply chains can also be impacted by prolonged cancellations of ferry services, an increase in delays or cancelled trips and reduced planning and logistical certainty. The prospect of rising sea levels and even more frequent extreme weather events threaten the long-term sustainability of the sector. To withstand disruptions and damage because of climate change, sustained strategic investments to adapt operations, vessels, terminals and other supporting shore infrastructure will be needed. That will also be needed to reduce GHG emissions.
The pandemic has also intensified the chronic labour shortages that have plagued the ferry sector for some time. I noted the representative from Walmart talked about infrastructure and labour. I am talking about infrastructure and labour as well. We have had major challenges as a result of the pandemic. Transport Canada predicts 43% of the marine transportation workforce will retire in the next 10 years. On the ferry side, it will be much more, much earlier.
We also have an example as a result of the pandemic—examples throughout the country actually—of COVID-19 cases preventing ships from moving ahead. We've had that in Atlantic Canada, we've had that in the Prairies, we've had that in Ontario and Quebec, and today the island of Haida Gwaii on the west coast is being served by planes, because since Sunday ferries have not been able to transport passengers in view of a COVID outbreak there.
In some services the pandemic has definitely caused a sharp decline in ridership, and therefore, revenues. Difficult decisions will need to be made in the future, and that could impact service delivery.
Despite the sector being a critical link in Canada's supply chain, especially for ferry-dependent communities, the ferry sector is often overlooked. The sector has been repeatedly excluded from infrastructure programs. There is no dedicated support for the sector to adapt to climate change or reduce GHG emissions.
The sector needs a committed federal partner to address many of the critical issues facing the sector. Actually, the communities that are being served by ferries need a committed federal partner to address some of those issues.
Canadian supply chains need a reliable, affordable and safe ferry service to deliver goods to domestic and international markets and to respond to shocks across the transportation networks.
Thank you.