Mr. Speaker, I am pleased to speak to Bill C-23.
During these debates, we have heard much about the tremendous benefits of pre-clearance, both in terms of the operations that are currently in place, as well as future opportunities that will be available once the agreement on land, rail, marine, and air transport pre-clearance is ratified on both sides of the border.
It is clear that pre-clearance works. As we have heard, air pre-clearance is a huge success story. Since its early beginnings at Toronto Pearson International Airport over half a century ago, pre-clearance has made clearing customs easier for millions of air passengers heading from Canada to the U.S. It has opened new markets for business and tourism by making it possible for airlines to fly directly to smaller U.S. airports that do not have their own customs operations on site. This also decreases the costs for Canadian passengers who fly to those cheaper airports.
It has helped to increase in-transit traffic, helping to make Canadian airports and carriers more competitive. It has added an important layer of security to cross-border traffic as threats are dealt with at the point of origin rather than being allowed to transit. In fact, I personally use the pre-clearance areas when travelling to the U.S., and find it easier and more efficient than going through a customs facility in the United States.
As we have heard, the agreement in principle reached in March 2016 will allow for the expansion of pre-clearance operations into other modes of transportation. Furthermore, it will allow for expansion of airport pre-clearance to new locations in Toronto and Quebec City, and it will enable pre-clearance to be conducted at rail locations at Montreal's central station and of course Vancouver's own Rocky Mountaineer.
This expansion is a long time coming. Industry and government stakeholders on both sides of the border have pushed for these changes for many years because they know the enormous economic and security potential of pre-clearance. Understandably, those outside the air transportation sector want to be able to reap the same benefits in their marine, rail, and land transport sectors. In fact, we already have concrete numbers that illustrate the benefits of pre-clearance in other transportation modes, including through two truck cargo pilot projects as well as a number of informal pre-inspection sites currently operating along the west coast.
We look forward to opportunities under this new agreement to streamline our border crossings to ensure that we maintain strong economic growth and trade with our great friends and neighbours in the United States. This includes exploring the terms and conditions necessary for cargo pre-clearance, and identifying opportunities to pilot this approach.
As for pre-inspection on the west coast, it is currently conducted by U.S. pre-clearance officers at five sites in British Columbia: first and foremost, Port Metro Vancouver, Prince Rupert ferry terminal, Vancouver's central rail station, Sidney ferry terminal, and Victoria ferry terminal. Port Metro Vancouver is a great example of the economic importance of efficient and effective border management. The cruise ship industry produces a huge economic benefit to Canada with Port Metro Vancouver contributing some $420 million a year to the economy and employing some 4,500 people locally.
Port Metro Vancouver is the main hub for cruise ships heading to Alaska for a number of reasons, including being the only port to offer inside passage along the west coast of B.C. to Alaska. During high season, U.S. customs and border protection officers work out of the port, processing passengers as they board their cruise ships to Alaska. Both nations benefit from these operations. Canada remains a key port for these cruise ships which bring hundreds of thousands of passengers to Vancouver every year. The U.S. can secure its borders and allow smaller Alaskan communities with no post-clearance services to remain part of these cruise ship itineraries. This is a win-win arrangement and one that will benefit from regularized pre-clearance operations.
Rail transport is another important mode that will benefit from expanded pre-clearance. For example, Vancouver's central rail station is the hub for regular Canada-U.S. rail service provided by U.S. Amtrak. The Amtrak service runs two trains per day with passengers undergoing primary immigration inspection in Vancouver.