Transport Committee on March 11th, 2026

[Barry Penner, Advisor, Cruise Lines International Association]

Thank you, Mr. Chair and members of the committee.

My name is Barry Penner, and I'm appearing today on behalf of Cruise Lines International Association, which is also known by its acronym CLIA.

CLIA is the world's largest cruise industry association, representing ocean, river and specialty cruise lines, as well as travel advisers, suppliers, ports and maritime partners across Canada and across the world.

Cruising is an important contributor to Canada's economy. In 2024 alone, 3.7 million cruise guests entered Canada through ports in British Columbia, Quebec and Atlantic Canada. The sector generated approximately $5.1 billion in economic activity right across the country, contributing $2.7 billion to Canada's GDP, supporting more than 24,000 Canadian jobs and generating $1.4 billion in wages and salaries. This represents real economic activity flowing into Canadian communities, from longshore workers and shipyards to tourism operators and local businesses.

Our recommendations today focus on ensuring that Canada's cruise sector remains competitive, modern and positioned for sustainable growth.

First, let's modernize and expand port infrastructure. Canada has more than a dozen cruise ports that deliver significant economic opportunity. However, as you heard just moments ago, some infrastructure is aging and several facilities cannot accommodate newer and larger vessels. At the same time, permitting processes and capital approval processes are delaying necessary upgrades. Cruise ships are becoming more technologically advanced and environmentally efficient. Port infrastructure needs to evolve accordingly.

CLIA recommends enhanced federal support for cruise-compatible port infrastructure, streamlined permitting timelines and targeted investment programs that recognize cruise tourism as an important driver of regional economic development. This is not about expansion for its own sake. It's about ensuring that Canadian ports remain internationally competitive with U.S. and European ports that are actively modernizing.

Second, we support marine alternative fuel development. The cruise industry is committed to achieving net-zero emissions by 2050. Cruise lines are investing billions of dollars in fuel-flexible engines and emissions-reduction technologies. However, ships can only transition to new fuels where alternative fuels are available at scale and at a commercially viable cost.

Canada has an opportunity to become a leader in the production and supply of low-carbon marine fuels. Federal policies that support production capacity and encourage marine fuel infrastructure while aligning regulatory frameworks with international standards will help make this transition possible.

Third, let's continue to expand shore power infrastructure. Shore power, which allows ships to plug into land-based electricity while they're in port, is one of the most effective ways to reduce emissions at berth. By 2028, roughly 80% of the global cruise fleet will be equipped to connect to shore power, and virtually all new ships on order now will have that capability. Canadian ports such as Vancouver, Halifax and Montreal already have shore power facilities, and I know that others are exploring installation. Continued federal investment can help expand shore power availability as part of Canada's green corridor initiatives.

Fourth, let's enhance maritime competitiveness. Cruise volume in Canada rose by about 7% in 2024, and this year is expected to be another growth year. However, maintaining that growth requires an efficient and competitive operating environment. We support expanding the Canada Border Services Agency's virtual clearance pilot, which took place on the east coast, and making regulatory changes that allow broader adoption across Canada.

Ship maintenance and refits represent a growing economic opportunity. In 2024 alone, cruise lines spent about $93 million on Canadian ship-related expenses, but high fees and long processing times in allowing experts from other countries, who are required for sensitive work on technologically advanced systems due in part to warranty requirements, can create barriers to bringing more of that valuable refit work and the jobs that come with it here to Canada. Further streamlining visa and entry processes for crew members and technical specialists will help support jobs for Canadians.

In closing, Canada has a strong cruise sector with growing demand and a highly capable workforce. With strategic infrastructure investment, support for alternative fuels, expanded shore power and regulatory modernization, Canada can strengthen port competitiveness and support thousands of Canadian jobs while advancing environmental leadership and securing long-term economic growth for our coastal communities.

Thank you, Mr. Chair. I would welcome the committee's questions and be pleased to expand on any of these recommendations.

[The Chair, Liberal, Peter Schiefke]

Thank you very much, Mr. Penner.

Finally, we turn it over to you, Mr. Estabrooks. Thank you for staying late today. I know it's 7 p.m. out there in Saint John.

I'll turn the floor over to you for your five-minute opening remarks, sir.

[Craig Bell Estabrooks, Chief Executive Officer, Saint John Port Authority]

It's my pleasure to be here no matter what time of day.

Thank you, Mr. Chair and members of the committee for the opportunity to meet with you today.

I am grateful for the opportunity to speak today on behalf of our growing global gateway, which serves as an increasing critical conduit for Canada's trade.

I would also like to recognize, Mr. Chair, your visit to the port of Saint John last summer, which we greatly appreciated. It provided an opportunity for you to see first-hand the role our port plays in strengthening Canada's trade and our national supply chain.

Port Saint John manages 330 acres of land and adjacent waterways on behalf of the Government of Canada as a Canadian port authority. Handling over 1,000 vessels annually, we support a diverse cargo base, from more than one million tonnes of Saskatchewan potash exports to 24 million tonnes of liquid bulk—imported crude oil, exported refined petroleum and liquefied natural gas—alongside a wide range of other break-bulk and bulk commodities.

We also play an important role in southern New Brunswick's tourism ecosystem, welcoming between 150,000 and 200,000 cruise passengers via the Bay of Fundy each year. As a key economic driver for New Brunswick, the port contributes an estimated $1.3 billion to provincial GDP and supports more than 6,000 jobs.

Perhaps the most exciting story, and the one increasingly putting us on the global stage, is our container sector. Having recently completed a nation-building project of our own, we understand well the benefits of public investment in Canada's supply chain. With support from such programs as the build Canada fund and the original trade diversification fund and in partnership with the Government of Brunswick, we completed the transformational $247-million modernization of our west side container terminal at the end of 2025. This project has quadrupled our container capacity, significantly increased our vessel handling capabilities and attracted world-class partners committed to the long term.

Today, the port of Saint John is one of North America's fastest-growing ports. Container volumes increased 29% between 2024 and 2025, doubling over the past five years and growing by 315% over the past decade. This growth has been driven in large part by the nearly $1 billion in private sector investments in infrastructure and equipment across our growing gateway. Investments from terminal operators, rail lines and shipping lines were catalyzed by the initial public funding in our container terminal infrastructure. Sometimes when you build it, they really do come.

Momentum continues to build. Later this year, we will open the first Canadian import-export hub by Americold, a global leader in cold storage for temperature-controlled goods. This facility will expand value-added services for shippers and support the development of the broader agri-food strategy at the port of Saint John.

To ensure that we can reach our full potential and support the federal government's trade diversification agenda, we can't let our foot off the gas. That's why we are aggressively investing in our infrastructure to the tune of $35 million through our annual capital program over the next five years. This is not to create anew; rather, it's to replace and restore aging infrastructure. In alignment with many other ports across this country, our infrastructure deficit remains a major issue.

To strengthen the gateway and bolster Canada's supply chain resilience, we must invest strategically to address these infrastructure deficits while also looking beyond our piers and channels. A holistic approach is required to ensure fluidity across the entire supply chain. This includes targeted investments in rail, road and inland infrastructure so that Canadian goods can move seamlessly to and from global markets on each coast. We welcome the federal government's new trade diversification corridors fund, which reflects this system-wide approach.

From a governance and regulatory standpoint, the federal government should maximize our financial flexibility to support those system-wide investments by revisiting the borrowing limit process under the Canada Marine Act. Simplifying and streamlining this process would enable us to strategically invest in our gateway without cash flow constraints.

I echo the comments of my port counterparts. From coast to coast to coast, our ports play a critical role in securing Canada's economic sovereignty. Our growing gateway is uniquely positioned to support the federal government's trade diversification goals. I appreciate the opportunity to share that message with you here today.

Thanks for having me. I look forward to answering any questions you may have.

[The Chair, Liberal, Peter Schiefke]

Thank you very much, Mr. Estabrooks.

We'll begin our line of questioning with Ms. Anstey.

The floor is yours. You have six minutes, please.

[Carol Anstey, Conservative, Long Range Mountains, NL]

Thank you, Kelly, for the great work that you do at the Corner Brook port.

Thank you to all the witnesses. It's a pleasure to have you here with us today.

Kelly, in your opening remarks, you talked about some of the challenges that smaller ports have. I want to dig into that a little bit. I think it's important for the work of the committee.

You often operate with fewer resources and fewer staff than large port authorities. When you're applying for these complex federal programs, does that application process create another barrier for you? Can you expand on that a little bit, please?

[Kelly Smith]

Yes, it does. We operate with three people who would be working on an application for this type of funding. The application package tends to be the same for us when we're looking for $50 million as it would be for somebody looking for billions of dollars. The process to do that takes a lot of time and knowledge. We have, as I said, three people who would be working on it on our part.

The CPAs have much more staff, obviously, but they also tend to use outside consultants to prepare those documents and that application package, which would be expensive. It's not something that we can necessarily do without funding, even to do those application packages externally. That's a big drawback for us. We just don't have the staff internally to do that.

[Carol Anstey, Conservative, Long Range Mountains, NL]

Thank you for that.

Something else is that the government has been talking a lot about Bill C-5 and large nation-building projects. We saw on that list, certainly, investment into the Montreal port. I'm curious what your thoughts are in being overlooked in that process, when you play such a critical role.

Is this a concern that you have as a smaller port, that you won't get in on this part of the government strategy?

[Kelly Smith]

One hundred per cent. While the mandate of Bill C-5 is great, our project that we're looking at, which I spoke of, hits on all of the key targets within that, within the national trade diversification corridors fund. Our project would fit there perfectly. The issue comes in the way it's structured.

As I said, the cost-sharing aspect can be limiting for small ports. For example, as I said, we really would like to do this expansion plan and the rehabilitation of our existing berth. We need that, but if the cost is $100 million or up to $200 million, we just don't have the capacity to take on the borrowing for that. We don't have the revenue streams. It pretty well eliminates us, so that's the struggle. The expense of doing these is so high, but the small, independent ports really don't have the revenue stream, as I said, or the ability to borrow $50 million to see this through.

[Carol Anstey, Conservative, Long Range Mountains, NL]

To reflect on that a little bit more, you talked about some emerging opportunities such as critical minerals. Without the modernization of the port infrastructure, which is your biggest issue right now, is there a risk that you'll to miss out on those opportunities? Can you just expand on that a little bit?

[Kelly Smith]

We definitely would miss out. I mean, if we can't....

In western Newfoundland right now, there are quite a few projects on the go that focus on critical minerals. We want to be ready for when they're ready to export. If they have to take their product outside of western Newfoundland, their costs are going to go up, and that's going to impact their project. From our standpoint, we need the second berth to enable us to be ready for when they're ready.

Without that second berth or even work on our existing infrastructure...because we're struggling with our existing infrastructure right now. There are areas we can't use. If we have to work with that, we won't be ready for when they're ready, and we will lose out on those opportunities.

[Carol Anstey, Conservative, Long Range Mountains, NL]

Thank you for that.

With respect to the importance of the Corner Brook port, you mentioned supporting Coast Guard and naval operations, including missions into the eastern Arctic. Could you expand on that a little bit? I think that is also a very important piece in terms of the role that you play in our area.

[Kelly Smith]

Yes, and it's not just our port. A lot of small, independent ports work closely with the Canadian Coast Guard in particular. In the winter months, the port of Corner Brook is a very regular stop for the Canadian Coast Guard. They're there now, actually. We have two icebreakers there, because they service the Newfoundland ferry to Labrador. They frequent our port. As I said, there are two there this week. They're there from December to May. They come in to obtain fuel and replenish their supplies. They also do crew changes there.

We are a critical spot for them. There's nowhere else in western Newfoundland they can access during those months, because we have full, year-round service. We also have a deepwater port, so they can access our port during those periods. It's crucial that we be open for those purposes.

[Carol Anstey, Conservative, Long Range Mountains, NL]

Quickly, because I think I'm running out of time, if the port doesn't get the necessary resources you need to address these infrastructure issues that you have, what does that mean in terms of the long-term economic viability of your operation?

[Kelly Smith]

I touched a little bit on Corner Brook Pulp and Paper, for example. They are a huge exporter through our port, and they export all over the world. They're also looking at diversifying and exporting other products.

One of the things we're looking at is wind energy. If we can't upgrade our facility and refurbish it, we will ultimately not be able to have a service in the long run. I'm not talking 10 to 15 years. I'm talking five to 10 years. As I said earlier, we're already at a point where some of our existing dock has been cordoned off because—

[The Chair, Liberal, Peter Schiefke]

Thank you.

[Kelly Smith]

—it doesn't have integrity anymore, and we can't utilize it. We're at a critical point where we have to make decisions. Do we spend $5 million annually to upgrade—

[The Chair, Liberal, Peter Schiefke]

Thank you very much. I'm sorry, Ms. Smith. Time is up. I appreciate your sharing that.

We'll turn it over to Mr. Greaves, who is joining us online.

Mr. Greaves, the floor is yours. You have six minutes, please.

[Will Greaves, Liberal, Victoria, BC]

Thank you, Mr. Chair.

Good afternoon, colleagues. It's a pleasure to join you, as always.

Thank you to the witnesses for being with us today as well. My question to begin with is for Mr. Penner.

Good afternoon, Mr. Penner. As I'm sure you're aware, my riding of Victoria is home to the busiest cruise ship port in Canada. We welcomed just under one million visitors in 2025, and we're always keen to do so. We recognize the value that the cruise industry brings to our region. At the same time, there are always people in our community who are looking to see how we can improve the experience for tourists, for residents and of course for our local marine ecosystem.

This is a vital part of what makes our community special, so I wonder if you could elaborate on your comments in terms of steps that the industry is taking or perhaps plans to take in the future to help reduce its environmental impact on the port communities that you visit or pass through.

[Barry Penner]

Thank you. It's a pleasure to meet you virtually. I look forward to meeting you in person when time permits.

As I mentioned in my remarks, the cruise line industry has been investing billions of dollars, literally, in advanced technologies, which then later are adopted by the rest of the shipping industry. Cruise tends to dominate public attention, but it represents less than 1% of ocean-going vessels. It's really where the research and innovation take place. We are at the leading edge in making advances in technology, and then they are adopted in other sectors in the maritime industry.

Over the years, we've greatly reduced the amount of waste that's generated on board. The recycling programs are second to none. There are occasionally challenges due to made-in-Canada regulations that we have to deal with, which sometimes limit the amount of recycling we're able to do, and trying to make sure that other objectives don't get in the way of enhanced recycling targets is an ongoing work in progress. Our member lines are very proud of their record in terms of the percentage that's recycled and the waste that's avoided.

Virtually all of our ships, especially on the west coast, have what's known as advanced waste-water treatment systems, which are far superior to many municipal waste-water treatment plants.

I was the minister of environment when British Columbia required Victoria to start treating its sewage. It always struck me as a bit ironic that the cruise ships were performing to a much higher standard than our provincial capital wanted at the time. There was some opposition to my order that they had to start treating the sewage, but we've overcome that, and now Victoria does have advanced waste-water treatment on about par with what's happening on the cruise ships. I can't say the same for the city of Vancouver, where there's still primary sewage treatment.

The environmental performance that you see on board cruise ships exceeds, as I mentioned, many of the waste-water treatment systems operated by municipalities in various parts of Canada.

Along the way, we've made other efforts in terms of energy reduction so that less energy is required to operate the ships on a per-passenger basis, and we're constantly looking for innovations, whether it's LED lighting or more efficient heating and cooling systems on board the ships.

Now, working through the International Maritime Organization with the 2050 zero-emissions target, we're seeing changes in operations of the cruise ships, including slowdowns. Operating at lower speeds overall tends to reduce the amount of fuel consumed over the length of a cruise, whether it's four days or seven days. One of the unintended consequences of that, though, is that the cruise ships sometimes have less time that they can spend in port. If they're moving more slowly between ports, they can't spend as much time in the ports. That's been noticeable in Victoria, and that message has been heard.

[Will Greaves, Liberal, Victoria, BC]

Thank you for those remarks and for reminding us how far we've come in terms of our own relationship with our local environment.

Could you elaborate on the point you just raised about recycling, please? What are the barriers there for some of those recycling measures to be adopted, if I understood you, while the vessels are in Canadian waters?

[Barry Penner]

Obviously, it's due to other competing public priorities around identifying items on the ships that the Canadian Food Inspection Agency might have a concern about—whether they're properly inspected or not, or having at least proof of that. If the CBSA inspectors aren't satisfied that all the food items, for example parmesan cheese, have been stamped with an appropriate mark, then items on board the ship can be considered high risk.

This is a real example of what happened last year and the year before. By the end of the season, we were able to get around that, but the consequence of when items on board the ship are deemed high risk from a public health perspective, because the appropriate stamp on the cheese is not identified, for example, then the recycling process doesn't work the same way. The waste has to be taken off, and it can't go to recycling. The cruise lines would much prefer that wine bottles, pop bottles, cardboard and so on get recycled rather than not.

That's an ongoing issue that we're working with the Canadian Food Inspection Agency on, as well as Transport Canada.

[Will Greaves, Liberal, Victoria, BC]

It's noted. Thank you.

I'm shifting gears slightly. In terms of the economic impact of the cruise industry for Canadian ports, we have certain kinds of data related to direct employment and sometimes the direct economic benefits of cruise passengers, for example, when they dock in a particular community.

Does your organization have more robust data about the indirect economic impact of cruises on different Canadian port cities, and would that data be publicly available?

[The Chair, Liberal, Peter Schiefke]

Would you give a 15-second response, please, sir?

[Barry Penner]

Yes. We do an economic impact assessment almost every year, I think. Maybe it's every two years. I'd have to double-check. We're working, I think, on finalizing the most recent results, and they are made public. It's available through our website and occasionally gets accompanied by a news release.

[Will Greaves, Liberal, Victoria, BC]

I appreciate it.