Thank you very much.
Hello, Mr. Chair and members of the committee.
Thank you for the opportunity to speak with you today.
We welcome the essential question this committee is pursuing: How do we as Canadians do more than simply protect what we have? How do we build something more resilient, more diversified and more ambitious?
HOPA operates a port network on the Great Lakes. With your indulgence, that's where I will be focusing my remarks today.
HOPA operates ports and marine facilities in Hamilton, Oshawa and Niagara and, coming soon, a public port in Sault Ste. Marie, where we're building, in partnership with the City of Sault Ste. Marie, a corridor that connects northern Ontario's minerals and forest products with steel processors and manufacturers in Ontario's south and with overseas markets beyond.
The Great Lakes St. Lawrence Seaway system is Canada's industrial heartland, home of steelmakers, grain farmers, miners of critical minerals, energy producers and manufacturers of products shipped around the world. This region is at the heart of our shared mission to increase and diversify our trade, but the catch is this: If we are successful in our trade diversification goals, we don't have the port capacity we need to make it work.
We believe port authorities are uniquely positioned to help Canada meet this moment, but ambition requires capacity, and capacity requires a systems approach. With that context, let me turn to some specific actions this committee may consider in its work.
The first of these is treating the capacity as a national system issue. In addition to coastal gateways, Canada needs inland and regional capacity that relieves pressure on those gateways and moves goods closer to where they are produced and consumed. Better corridor integration creates efficient flows of raw and semi-processed materials, reduces long-haul trucking and builds the sovereign supply chains Canada is now urgently seeking.
Second, invest in the Great Lakes St. Lawrence Seaway network. The ports and marine facilities in this system already serve Canada's industrial heartland. With a systems approach to investment, they can drive our “Canada Strong” goals for domestic supply chains, for export growth, and for Canada's industrial capacity and competitiveness. The good news is that it's not all brand new infrastructure. It builds on a seaway that's already in place and that has capacity to spare in terms of the number of ships that can transit the system.
Third, ensure that system enablers are in place. Extending the Great Lakes shipping season is critical. We know that our colleagues at the Great Lakes St. Lawrence Seaway are working on this. Enhanced icebreaking capacity will be necessary. We are pleased to see Canada rapidly investing in new icebreaking.
Fourth, sustain the commitment to Great Lakes containerization. We were thrilled to see that the recent federal budget recognized Hamilton, alongside our colleagues in Quebec City, as an emerging container-capable port. Hamilton is advancing an inland rail terminal as a first step, moving imports and exports of containers by rail, connecting the big market of the GTHA to ports like Quebec, Montreal and Halifax. Our next step is to support marine container shipments—imports and exports—directly into the Great Lakes to provide system resilience and market flexibility. This is the kind of novel offering needed to build modernized and diversified trade relationships.
Fifth, focus on Canada's reliability and competitiveness as a trading partner. Labour disruptions, congestion, system costs and productivity challenges have had a cumulative impact on our reputation and on our supply chains. These issues don't stay at ports and waterfronts; they impact productivity in manufacturing, agriculture and other sectors. The disruptions we've seen in the past few years have damaged Canada's brand as a place to do business. The committee has an opportunity to signal that Canada is serious about being a dependable, competitive trading partner.
Finally, there is governance flexibility. Canada's ports have a solid track record of financial self-sufficiency and stewardship of federal assets. To meet our ambitious goals as a country, port authorities can be better empowered as active instruments of Canadian trade policy, as well as responsible stewards of infrastructure. The current borrowing limits and the capitalization structure of subsidiaries are a good place to start looking at how to maximize port authorities' agility in the market.
Again, we believe port authorities are in a unique position to be proactive instruments of an assertive national trade policy. We are ready to work with you to deliver on behalf of Canadians.
Thank you. I look forward to your questions.