The Commercialisation of Canada’s Ports: A Case Study 27 th APEC Transportation Working Group Meeting May 22-25, 2006, Hanoi, Vietnam

2 Pre-Commercialisation

3 Post-Commercialisation

4 Canada – A Maritime Nation Major cities & industry concentrated on East/West coasts & along St. Lawrence Seaway and Great Lakes Over 200,000 km of coastline; one of only two nations to border three Oceans Ports serve as gateways to North America – first & last point of trade entry and exit In 2003, Canadian ports handled million tonnes of international cargo representing Cdn $107.4 billion in trade

5 Impetus for Change 1993 federal government programme review –Burgeoning deficit and public debt –Focus on cost cutting, improving efficiency House of Commons Standing Committee on Transport –Canada’s ports suffered from overcapacity, inefficiency, and over dependence on subsidies –Overall assessment,“an uncoordinated collection of federal entities trying to accomplish similar objectives under different sets of rules.”

6 The National Marine Policy Shift to Commercialisation –Withdrawal of federal government from direct operating role –Create new management structures to make operations more efficient –Reduce costs to taxpayers and allow users to decide what services they receive and pay for –Eliminate unnecessary regulation and outdated legislation

7 Pillars of Commercialisation The Canada Marine Act –Created Canada Port Authorities (CPAs) –Commercialisation of the St. Lawrence Seaway National Ports System –Nineteen ports considered to be vital to domestic and international trade based on 4 criteria Self-sufficiency National & International traffic Links to rail & highways Serve a large market area –Establishment of a new business and governance model

Canada Port Authorities Federally incorporated non-share capital, non- for-profit corporations Governance Board of Directors nominated by user groups, local, regional & federal governments Directors bound by fiduciary and legal responsibilities as in all corporations Accountability/transparency Annual report, audited financial statements, annual meeting open to public Special examination at least once every 5 years

9 Report Card Benefits to Canada and Canadians –$100 million savings to the Government of Canada –Increased port competitiveness & productivity –Increased local representation in governance Benefits to all APEC economies –Canada’s commitment to the pursuit of free trade and investment –Canada’s commitment to further reducing barriers to trade and investment