Transport Committee on April 13th, 2026

[The Chair, Liberal, Peter Schiefke]

I call this meeting to order.

Welcome to meeting number 28 of the Standing Committee on Transport, Infrastructure and Communities.

Pursuant to Standing Order 108(2) and the motion adopted by the committee on Thursday, December 11, 2025, the committee is resuming its study of supporting, diversifying and modernizing Quebec and Canada's ports. Today's meeting is taking place in a hybrid format, pursuant to the Standing Orders.

Before we continue, I'd like to ask all in-person participants to consult the guidelines written on the cards on the table. These measures are in place to help prevent audio and feedback incidents and to protect the health and safety of all of our participants, including, of course, our interpreters. You'll notice a QR code on the card, which links to a short awareness video.

I'd like to make a few comments for the benefit of our witnesses and members.

First, please wait until I recognize you by name before speaking. For those participating by video conference, click on the microphone icon to activate your mic, and please mute yourself when you are not speaking.

For those on Zoom, at the bottom of your screen, you can select the appropriate channel for interpretation: floor, English or French. For those in the room, you can use the earpiece and select the desired channel.

This is a reminder that all comments should be addressed through the chair.

For members in the room, if you wish to speak, please raise your hand. For members on Zoom, please use the “raise hand” function. The clerk and I will manage the speaking order as best we can. We appreciate your patience and understanding in this regard.

Colleagues, I'd now like to welcome our witnesses for the first round today. From the National Maritime Group, we have Mr. Derrick Hynes, interim president and chief executive officer. From the Railway Association of Canada, we have Mr. Eric Harvey, president and chief executive officer. From the Toronto Port Authority, we have Mr. Atul Sharma, senior director of government and stakeholder relations, who is joining us by video conference.

Welcome.

We'll begin our opening remarks. For that, I'll turn the floor over to you, Mr. Hynes. You have five minutes.

[Derrick Hynes, Interim President and Chief Executive Officer, National Maritime Group]

Thank you, Chair, and good day, honourable members.

The National Maritime Group represents nearly 100 private sector maritime employers and operators from coast to coast and through the St. Lawrence. Our members work 24 hours a day to keep the flow of goods moving in and out of the country, handling over a quarter of Canada's total traded goods.

The status quo is no longer an option. Canada faces an economic crisis. We need to act with a sense of urgency to improve the performance of our transportation infrastructure. It is imperative that we not shy away from difficult conversations in areas like labour productivity, technological improvements and supply chain connectivity.

We have a series of recommendations organized under four themes.

Our first theme is labour stability. Our transportation network has endured 60 work stoppages in the past two years. Yes, there is a fundamental right to strike, but no one can argue that this pattern is acceptable. Collective bargaining is not functioning as it should.

Government has already studied this problem. The Industrial Inquiry Commission on West Coast Ports recommended solutions. Its report was released a year ago; no change has yet been introduced. Two recommendations would help.

The first is that geographic certification of unions along west coast ports be established. This would allow for one employer and one union, in line with all other major ports around the country. This would bring greater stability and certainty to the bargaining table.

For background, bargaining is currently conducted at only two tables under a voluntary agreement between the parties. There is a real risk in the year ahead that this could balloon to up to 39 tables. This could bring chaos. According to the IIC report, “the uncertainty created by the parties' largely voluntary bargaining structure is not consistent with the need for reliability in Canada's national supply chain nor with the structure of other ports in Canada nor around the world.”

The report also goes on to recommend the introduction of a special mediator to keep the parties at the bargaining table working towards a resolution. Strikes and lockouts would be paused during this mediation process. We support this recommendation.

Our second topic is labour availability.

We currently have a government-imposed labour availability challenge. Legislative changes over the past decade have simply disincentivized worker availability. One example is 10 days of government-mandated paid medical leave. We can find no jurisdiction in North America with such a requirement. Adding insult to injury were the three paid personal leave days mandated by government about a year before paid medical leave was announced. That's 13 days, most of which are now being taken with limited recourse for employers. The evidence suggests that these paid days have become entitlements in the “use it or lose it” basket. Shift shortages have become common.

We propose some changes, the first of which is an exemption for the longshoring industry, as this employment model does not align with such a benefit. Second, if no exemption is permitted, we propose a reduction in the number of days from 10 to five. Third, employers should be permitted to request medical certification where they are concerned about sick leave abuse. The final recommendation is that the stacking of this leave on similar leave not be permitted.

Our third topic is performance.

NMG members are private sector companies that want to invest in infrastructure and technology. Public investments should be made where a clear business case exists and where there are private sector partners present. Port modernization benefits us all; more efficient throughput means more traffic and more jobs.

We also believe government can help improve port performance with the following advancements: digitizing CBSA processes around customs container clearing, requiring electronic documentation throughout the shipping process, and encouraging real-time data sharing between federal agencies and private sector partners.

Our final topic is governance.

Our members want to invest, but our project approval process takes too long. Often there are dual federal and provincial reviews, leading to costly delays. The newly established Major Projects Office could be empowered to take leadership on project reviews via a one-window approach, or even the port authorities could do this under valid land-use plans, if more appropriate.

With respect to port authorities, the NMG believes more transparency and accountability are needed in their operations.

First, standard criteria should be established for sending port rent rates. Currently, there is limited visibility and transparency here.

Second, we need a borrowing code for port authorities that requires consultation with stakeholders. Our members ultimately pay this borrowing cost.

Third, a guidance document should be created that outlines all community consultation requirements for port projects. Social licence is critical. We need a clear process for how to attain it.

Finally, port authorities, like all others in the maritime industry, should be required to report all lobbying activities for greater public visibility.

Thank you, Chair.

[The Chair, Liberal, Peter Schiefke]

Thank you very much, Mr. Hynes.

We'll now turn it over to Mr. Harvey.

Mr. Harvey, the floor is yours. You have five minutes, sir.

[Eric Harvey, President and Chief Executive Officer, Railway Association of Canada]

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

At a time when U.S. tariffs and shifting trade policies are creating uncertainty, the efficiency, diversification and modernization of our port system has never been more important. As many parties have already explained to you, Canada's ports are not isolated assets. They are essential components of an integrated supply chain that supports our economic resilience and trade sovereignty. Strengthening ports, therefore, strengthens the entire supply chain that connects Canada to global markets.

Canadian railways are part of this supply chain and contribute to the collective effort. Every day, across more than 43,000 kilometres of track, rail networks connect farms, mines and production sites to export terminals. Last year, the railways transported $400 billion worth of goods, reaching a record volume of 348 million metric tons, half of which was destined for export through Canadian ports. Last year, the railways also achieved their best-ever safety record for freight transport, reducing the accident rate by 4.8%. It is important to note that this is a privately funded system. Railroads reinvested $4.5 billion in their Canadian network last year alone, and more than $35 billion over the past 10 years.

When we talk about diversifying trade, reaching new markets and strengthening our export capacity, we're glad to be part of that discussion, because railways can enable trade diversification. The good news is that our rail network is strong and resilient. Canadian railways operate with among the lowest average freight rates in the world, helping Canadian exporters stay competitive. There remains, however, a need for additional port capacity.

If we are serious about growing exports beyond the U.S., we must also accelerate the approval of projects by focusing on substance and results over process. One simple but telling example is grain-handling at the port of Vancouver. Today, grain is often not loaded onto vessels during inclement weather. In a region where rain is common, that matters. According to the port, this reduces effective capacity by about 7%. The railway industry is encouraged by the work being done by Transport Canada, in collaboration with stakeholders, in that respect. Now it's time to act and fix this long-standing capacity issue.

Like many witnesses who have appeared before you, our view is that we need to strengthen the investment environment in Canada in the interests of our entire economy. Private capital is essential to building the infrastructure we need, but it will only flow if conditions are competitive.

The U.S. has implemented permanent 100% depreciation, creating a strong incentive to invest south of the border. Canada needs to level the playing field and expand the productivity superdeduction for all sectors to access immediate depreciation. This policy would unlock investment, support productivity and ensure that capital is deployed here at home.

We must also address labour stability. Over the past three years, Canada's transportation sector has experienced more than 100 work stoppages. In 2024 alone, that resulted in more than 1.3 million lost workdays, the highest level in decades. These disruptions affect businesses and workers and how international partners see Canada. Reliability matters.

A modernized framework that supports timely dispute resolution, especially where there is a risk of broader economic harm, is essential. This includes rapid implementation of the Industrial Inquiry Commission's recommendations, including B.C.-wide certification, while avoiding fragmented bargaining and enabling binding arbitration when needed to protect the national interest.

Finally, we agree with port witnesses that effective governance requires diligent appointments to their board with strong supply chain experience. The rail industry fully supports this direction.

Canada is well positioned. We produce what global markets are looking for, and we have a strong, integrated supply chain connecting inland production to our ports. Each part of that system has a distinct role to play. Ensuring that every link in the supply chain performs reliably and competitively will be key to expanding into new markets.

Thank you.

[The Chair, Liberal, Peter Schiefke]

Thank you, Mr. Harvey.

Mr. Sharma, you have five minutes, sir.

[Atul Sharma, Senior Director, Government and Stakeholder Relations, Toronto Port Authority]

Thank you, Chair.

Thank you for the invitation to speak with the transport committee about port modernization. This topic is both timely and important as we seek ways to operate more efficiently and effectively and with greater resilience.

The Toronto Port Authority has served Toronto's harbour for over 150 years. Many Canadian cities have grown up around their ports, and Toronto is no exception. We continue many of the traditions from those early days as well, including our “top hat” ceremony, where we celebrate the first saltie arrival within the harbour.

While the Toronto Port Authority shares many similarities with the 16 other Canada port authorities, it stands apart in one key way. Under the Canada Marine Act, we are the only port authority that also owns and operates an airport. Although there has been much debate recently about the airport's growth and future, today's focus is on the port and its modernization opportunities.

The Toronto Port Authority operates as a gateway for imports, bringing in over two million metric tons of bulk materials each year to fuel the local economy. Key products include sugar from Central America and South America, primarily used for the food and beverage industry; salt for keeping Toronto roads safe during the winter; and cement, aggregate, and products like rebar for local construction projects.

Utilizing the port for regional deliveries has eliminated roughly 51,000 trucks annually from congested roads and highways. Marine cargo and vessel vehicles directly support nearly 700 jobs at the Port of Toronto and generate close to $500 million in economic activity.

Beyond cargo, the port also acts as a turnaround destination for a Great Lakes cruise industry. In 2026, we anticipate nearly 50 itineraries from five cruise lines, bringing over 20,000 passengers to Toronto. As a turnaround port, passengers either embark or disembark, often spending a couple of days, which contributes to local tourism as well.

Despite being limited to 52 acres along the harbourfront, we see great potential for growth and to further boost Toronto's economy. This was recognized by the City of Toronto in their 10-year economic action plan, “Sidewalks to Skylines”, and the mayor's recent economic action plan as well.

Although the federal government does not directly protect employment land, a clear statement of principles and directions could demonstrate support for preserving areas that create jobs and facilitate national trade. There are several specific actions the government can take to assist and modernize ports, both in Toronto and nationwide. I've categorized them into four areas: containers within the Great Lakes corridor; upgrading aging infrastructure; access to capital, which we've heard from a few of the other witnesses as well; and improvements to governance.

Last year's budget recognized that bringing containers into the Great Lakes could build local resilience and drive economic growth by bringing containers to where the goods are actually required. The St. Lawrence and Great Lakes region, spanning two provinces and eight states, is the world's third-largest economy. Enhancing port operations and efficiency in this region would significantly contribute to economic prosperity. The federal government could also look to address aging infrastructure, some of which is nearly 100 years old and is in desperate need of replacement or repair.

Another improvement could be easier access for ports to get capital. Airport authorities can invest based on their credit ratings and access to debt funding, but port authorities must come to the government and obtain approval for increasing borrowing limits. This process involves requests to Transport Canada, co-operation from Finance and then final approval from Treasury Board, all of which is time-consuming and can take months and sometimes years.

Another area burdened by bureaucracy is board appointments. Timely federal appointments are essential for an effective board of directors.

These are just some of the areas where I think the government can play a key role. I welcome further discussion during the Q and A.

Thank you for your attention.

[The Chair, Liberal, Peter Schiefke]

Thank you very much, Mr. Sharma.

We'll now begin our lines of questioning. For that, I have the pleasure of turning the floor over to Mr. Albas.

Mr. Albas, you have six minutes, sir.

[Dan Albas, Conservative, Okanagan Lake West—South Kelowna, BC]

Thank you, Mr. Chair.

Thank you to all our witnesses for coming today and sharing their expertise with our committee.

I'll start with you, Mr. Harvey. I know that your association has partnered with other industry groups in talking about the need for regulatory reform writ large. Right now with Bill C-5, even with the powers that have been given to the Prime Minister and his government, they have not made use of Bill C-5 to really get things going. They've opened up a new office, but they have not actually gotten anything designated under schedule 1.

Do you believe the tool should be utilized more? What would you like to see? Hundreds of other projects that could advance your industry—bridges, tunnels and culverts—need to be done, but right now the regulatory side, from my understanding, holds a lot of that up.

[Eric Harvey]

The rail industry, as you said, is not the only industry that is asking for faster permit approvals. I think it's a general demand from most industries.

If we look at the coalition you were referring to—moving economies—we have representatives from the marine sector, the mining sector, lumber, automotive, etc. Everybody is agreeing on the fact that, in Canada, the approval for projects takes time. As reported by the OECD, we trail. We're the last in that aspect, which is critical.

When Bill C-5 was adopted, intuitively, we thought that this was exactly a step in the right direction. It is basically centralizing and having a single desk for approvals to avoid delays among the various jurisdictions. At this stage, I would say that we remain confident that this office will deliver on those representations.

[Dan Albas, Conservative, Okanagan Lake West—South Kelowna, BC]

Do you think there needs to be more of a writ-large approach to regulatory reform and not just necessarily favoured projects that in certain parts of the country could be influenced by politics or by connections?

[Eric Harvey]

The acceleration of projects should be for big or small projects, in our view. I certainly agree that sometimes what could be considered small infrastructure could have a big impact on throughput.

If you're thinking of the west coast in particular, where sometimes people say that investments need to be done, I would simply say.... I talked about grain in the rain, which is a typical example of something relatively simple to fix and would increase capacity by 7%. From that perspective, we'd like to think this could be accelerated, just like many other little projects.

[Dan Albas, Conservative, Okanagan Lake West—South Kelowna, BC]

Speaking about little projects, there's the trade corridors funding. A lot of railroads have received support from the government over recent years for digitalization. I'm sure that's been very successful on their part, but my understanding is that the ports don't connect with that information, so you essentially have ports that are not part and parcel of an information-sharing regime. Is that your experience?

[Eric Harvey]

I'd say there's definitely good communication between railways and their individual customers. In other words, customers in Canada are now very sophisticated. They're very aware of their supply chain. The railways provide tools for them. They have their own tools as well, and there's constant communication. Generally speaking, I would say that from that perspective, it's working well.

The coordination, though, among the various players at ports is sometimes where we sense that there might be a need to establish some priorities based on different considerations. This is why, historically, we've been asking for some form of push towards the sharing of data of all the supply chains that go to one port, so that coordination can happen and priorities can perhaps be better established to make sure that the traffic that goes first is really needed prior to other traffic.

[Dan Albas, Conservative, Okanagan Lake West—South Kelowna, BC]

There seemed to be a bit of a governance issue with the CN Second Narrows Rail Bridge in British Columbia when it was closed for about four days in February. You mentioned that some priorities should be raised. The fact is that this stopped shipments of our energy to international markets at a time when that's something the government wants. One small piece of infrastructure caused a close to $40-billion pipeline, which was bought by the government, to come to a standstill.

Do you believe there needs to be a more strategic coming together of parties—Transport Canada, the port of Vancouver, CN and others—to try to make sure that these priorities are mapped out ahead of time?

[Eric Harvey]

In regard to Second Narrows in particular, I'm very aware that there have been communications and discussions between the port and CN about managing when the bridge is open in order to facilitate rail movement so that it happens at scheduled moments and so that capacity is maximized.

On the specific event you're mentioning, I think it's fair to say that CN acted very quickly. They assigned a lot of resources. In our view, the impact on the overall economy was not that significant. There was a little blip, but historically, February this year was equal to February last year. We believe that the numbers are pretty consistent.

[The Chair, Liberal, Peter Schiefke]

Thank you very much, Mr. Harvey.

Thank you very much, Mr. Albas.

Ms. Nguyen, the floor is yours. You have six minutes.

[Chi Nguyen, Liberal, Spadina—Harbourfront, ON]

Thank you, Mr. Chair.

I extend a huge thank you to the witnesses for joining us today. It's very helpful to have these perspectives as we consider the whole ecosystem of our ports as part of important critical infrastructure.

As a downtown Toronto MP, I see first-hand how critical the port of Toronto is to the movement of goods into our region and city. This port is part of a much broader system, through its connection to the Great Lakes corridor and Canada's overall trade strategy, especially as we look to diversify beyond the U.S. I want to focus my questions on how we strengthen that role, both locally and as part of the national infrastructure.

This is a question for the Toronto Port Authority. Given the port's proximity to major road and rail networks, are there any gaps today in integrating those systems? What specific improvements would allow the port to function more effectively as part of the broader supply chain?

[Atul Sharma]

Certainly, one of the things that would really be helpful in enhancing the future growth of the port would be access to rail. Historically, the port had some access to rail. Some of those spurs and lines are still in place but not actively used. If we could continue to bring them back into the port of Toronto, that would certainly help to integrate within the larger network.

There are a number of transportation boats that exist around Toronto with respect to rail. It's actually not that difficult for us to connect to them and utilize that ability as well.

[Chi Nguyen, Liberal, Spadina—Harbourfront, ON]

Given the diverse range of activities happening on the waterfront, I was wondering if you could share with us any of the practices or effective approaches you have in place to engage with stakeholders, residents and other community partners on an ongoing basis.

[Atul Sharma]

As the locally federally mandated organization, the harbour provides regulation as well, and we are consistently and constantly speaking with our community stakeholders and having those discussions. As I mentioned before, we're in a bit of a unique position, as we also have the airport. There are a number of discussions that happen around the port and its development and economic importance, as well as with the airport.

One thing we are seeing and that we certainly recognize is the need for local housing. We are working with our coalition partners on the waterfront to see how we can most effectively ensure that housing gets developed, while at the same time ensuring there is a balance for and protection of employment lands to ensure that industrial lands continue to service the local economy as well.

[Chi Nguyen, Liberal, Spadina—Harbourfront, ON]

With some of the resourcing that's coming online through the trade diversification corridors fund, the federal government is making significant investments in trade-enabling infrastructure. Could you speak to whether these kinds of investments would help with improving capacity and reducing some of the congestion we see in the city?

[Atul Sharma]

The trade diversification corridors fund is something we are looking at very seriously to see what kind of opportunity there is for how to utilize it within the 52 acres we have, as well as in other innovative projects that as the Toronto Port Authority we could engage in with some of our local stakeholders.

That is something from the federal government that we are looking at very closely and is certainly very much appreciated by the port authority.

[Chi Nguyen, Liberal, Spadina—Harbourfront, ON]

I have one final question for Mr. Hynes.

In your pre-budget submission, you raised questions about labour productivity and workforce capacity. You spoke to some of the potential recommendations or changes we should be considering as we look to create more labour stability in the maritime sector. Is there any other information you'd like to provide in terms of recommendations or steps forward?

[Derrick Hynes]

From our perspective, if we were to leave this committee with one single recommendation on where we can make the biggest impact around labour stability for the year ahead, it's the implementation of the Industrial Inquiry Commission report. It has recommendations that we think would bring great stability to the system of labour relations.

This year, ports in Saint John and Halifax are bargaining. Vancouver is coming up later this year. Montreal is in the midst of a process of binding arbitration. The risks are very high that we may find ourselves back in a period like 2023, when we saw a work stoppage.

The geographic certification of unions along the west coast will bring greater stability to that bargaining. The implementation of a special mediator would help keep parties at the table, which is what we want. We want the parties at the table finding a deal and not essentially grinding the economy to a halt, which is what happens when we shut down major transportation infrastructure such as railways and ports.

Our message to this committee and to government writ large is to implement this report. It's a no-cost solution and it will bring a great benefit.

[Chi Nguyen, Liberal, Spadina—Harbourfront, ON]

I have just a few seconds left, so I will ask a final question of the Toronto Port Authority.

As the Great Lakes cruise industry continues to expand, could you talk about what kinds of investments or policy changes would help strengthen the port of Toronto's position to welcome more cruises?