Speaking Notes For The Honourable Lawrence Cannon, Minister Of Transport, Infrastructure And Communities, At The North American Marine Conference

VANCOUVER, BRITISH COLUMBIA
April 19, 2006

Ladies and gentlemen, I’m proud to welcome all of you here to Vancouver for the very first North American Shortsea Shipping Conference.

I’m also honoured to welcome some distinguished guests:

• The United States’ Secretary of Transportation, Mr. Norman Mineta; and
   
• Sr. Cesar Patricio Reyes Roel, the General Coordinator on Ports and Merchant Marine from the Secretariat of Communications and Transport in Mexico.

Bienvenido a Canada y la conferencia.

As you know, the transportation systems in Canada, the United States and Mexico are the backbone of our economies and are central to the development and prosperity of our countries.

Marine transportation, in particular, has played a major role in linking our countries and communities.

Many years ago, our waterways were our only highways.

These highways helped build our countries.

In Canada, the goods necessary for trade and survival travelled by boat along the Atlantic and Pacific Coasts, the St. Lawrence River, the Great Lakes, or along thousands of small rivers.

This was the beginning of our economy and of our international commerce.

Canada would look much different if this transportation system hadn’t existed. For example, where would the North be without the Mackenzie River? How different would British Columbia look without the Fraser or Columbia rivers?

The story is similar in the United States and Mexico.

How many tonnes of material, goods, and essential supplies were transported along rivers such as the Mississippi, the Columbia, and the Rio Grande?

These water highways helped to build nations.

They are continuing to help us build nations.

Because shipping goods by water over short distances isn’t just yesterday’s news.

It’s just as important for the future growth of our countries as it was for their foundation.

That’s what I’m here to talk to you about today.

Many of you have worked hard to expand shortsea shipping. Much has been accomplished and Canada is a proud partner.

But there’s more we need to do to achieve our full potential.

Today I want to speak about how we can move forward together. I will do that by discussing the Government of Canada’s five priorities.

I will also discuss the benefits of utilizing our waterways for shipping, along with some of the challenges we face as we expand this method of transportation.

Finally, I will discuss how we can address some of those common challenges through cooperation — domestically and with our international partners.

OUR PRIORITIES

Earlier this month the Governor General outlined our plans for this parliamentary session in the Speech from the Throne.

The speech re-emphasized the prime minister’s commitment — and mine — to focus on five main priorities.

• First of all, we will clean up government and make it more transparent and more accountable to Canadians. We have taken an important step in this direction by introducing the first Federal Accountability Act in the House of Commons.
   
• Second, we’ll cut taxes, beginning with the GST.
   
• Third, we’ll strengthen the judicial system.
   
• Fourth, we’ll give parents a choice in childcare.
   
• Last, we’ll work with the provinces to shorten waiting times for health care by dealing with underlying financial pressures.

This focused agenda reflects the Government of Canada’s commitment to Canadians. Like all my colleagues, I believe that a sharp focus on clear priorities will allow us to get the right things done.

We will not try to do everything at once.

Instead we’ll work to make real, concrete moves to improve the safety and well-being of our families and communities.

This choice of five priorities doesn’t mean that we have forgotten the other commitments we made in our platform or that we will not listen to other needs expressed by citizens or other governments.

Indeed, we will deliver on a number of commitments in the areas of transportation, infrastructure and communities, for which I am accountable to Parliament and to Canadians.

OUR INTERNATIONAL RESPONSIBILITIES

One of these commitments is to ensure our transportation system meets the needs of the 21^st century. Not only for a strong Canada, but for a strong North America, as well.

In a globalized world we’re all interconnected — whether it’s through our transportation systems, our economies, or through the ways we exchange information. We must do all we can to enhance those connections.

Our three nations are more than trading partners.

We share a neighbourhood in the global economy.

Our firms collaborate for greater efficiency in seamless global supply chains.

That is why the movement of goods in North America is vitally important, and why the three national governments must demonstrate leadership in supporting better ways to do it.

Prime Minister Harper met recently with the presidents of the United States and Mexico in Cancun. The three leaders reaffirmed their commitment to enhance the security, prosperity and quality of life for the citizens of North America.

The Security and Prosperity Partnership of North America provides an action plan to help meet that commitment. Moving toward a better utilization of our waterways for shipping is a key part of that plan.

BENEFITS OF SHORTSEA SHIPPING

And the key to moving forward efficiently and effectively is for us to agree on a strategy. We know that shipping cargo on our waterways has many positive benefits, and together we can:

• alleviate congestion on our highways, border crossings and ports;
   
• enhance supply chain efficiencies;
   
• facilitate trade; and
   
• reduce the growth of air pollutants, including greenhouse gas emissions.

Let’s look at road traffic congestion — an important issue for this government and all of us here today.

In fact, I was in Toronto last month to announce the results of the first systematic review of congestion that we have undertaken in Canada.

The results showed that congestion is costing Canada up to $3 billion per year in lost time and fuel consumption.

And we all know that congestion on Canadian highways is expected to increase as more passenger cars and trucks take to the roads each year.

Now imagine this congestion on a global scale — as if thinking of your local traffic jams isn’t enough!

International trade is projected to reach two billion tonnes a year within the next 20 years. That’s twice today’s level.

This doesn’t only have an effect on the environment — and our health for that matter — it also affects what governments spend on building and maintaining new roads or bridges.

Let me be clear — this government is certainly committed to investing in our infrastructure. However, we need to look at all options to make our transportation systems as efficient, effective and sustainable as possible.

That’s why shipping more of our cargo by water just makes sense. It reduces congestion, while helping to protect our environment.

It’s also better for the economy. Quite simply, shippers want their goods to be delivered to market in a cost-effective manner.

You won’t make much money shipping products by truck if those trucks are stuck in traffic.

We’re not talking about getting all the trucks off the road.

We’re talking about keeping the traffic flowing freely through integrating shortsea shipping as an effective component in the intermodal chain.

We’re talking about providing new opportunities to move freight around areas of congestion or opening up new routes to markets.

Expanding the use of our waterways for shipping can help develop the integrated transportation networks that will enhance trade and economic opportunities.

Many other nations are already experiencing the benefits of doing this.

Shortsea shipping accounted for 63 per cent of the entire volume of goods transported by sea by member states of the European Union in 2003.

This represents a total of 1.6 billion tonnes.

And every one of the member nations within the European Union with a coastline has Shortsea Promotion Centres.

These centres have practical tools to distribute information, and give impartial advice on the use of waterways for shipping, to anybody who wants it.

With strong industry support, they serve as a platform to exchange expertise and unbiased, third party information to both industry and the public.

Ladies and gentlemen, as you can see, other countries have explored shipping by water, have understood the benefits to be gained, and have made it a reality.

This is an inspiration to us. We may need to take a different approach and examine different models, but the benefits of increasing the use of waterways for shipping are clear.

It’s working in other countries. It can work for North America too.

The good news is that we’re already changing.

In 2003, Canada, the United States and Mexico signed a Memorandum of Cooperation. This memorandum outlined how we would share information on using our waterways for shipping.

Today our challenge is to take the next step. At the end of the conference, senior officials from each of the participating countries will be signing a declaration. This marks our trilateral commitment to move forward together to advance shipping on our waterways. Let’s talk about those challenges.

CHALLENGES OF SHORTSEA SHIPPING

One of the first challenges in Canada is to address the shortage of suitable port infrastructure and water terminal facilities, and the current need for greater integration among providers of the various modes of transportation.

On Canada’s West Coast, the Government of Canada and its partners will be addressing challenges like this through initiatives such as the Pacific Gateway.

Another challenge that must be met is maintaining a steady flow of cargo through our ports and terminal facilities.

This isn’t an easy task, especially where seasonal constraints on marine shipping are a factor.

Regulations present another challenge. Proponents may face various tariff and non-tariff barriers when they bring ships into domestic service. Significant security measures — a reality in today’s world — may create hurdles as well.

There are financial barriers, including user and service fees, excise taxes and additional costs for seasonal operation.

Finally, there’s a need to change the overall perception of utilizing our waterways for shipping.

MEETING CHALLENGES AND MOVING FORWARD

Canada believes these challenges can be met. They can be achieved by developing business cases, coordinating policies, sharing best practices, and maintaining ongoing dialogue among stakeholders.

We can do this by moving forward on shortsea shipping in three key areas:

• building a national approach;
   
• advancing a research agenda; and
   
• establishing a North American strategy.

In each of our countries, this means acknowledging that the policy and market considerations associated with shipping on our waterways are complex and independent.

We must also take into account social, economic and environmental factors — all of which cut across several jurisdictions within North America.

We know that sometimes our jurisdictional paths will cross. We can’t allow that to slow us down.

We can solve some of these jurisdictional issues through a North American approach to shipping on our waterways. This requires collaboration among all of us, from all levels of government, and a strong commitment from the private sector.

The Government of Canada envisions Transport Canada acting as a catalyst.

The promotion of shortsea shipping clearly supports my department’s objectives — to improve the national transportation system to meet current and future requirements.

We intend to work with our American and Mexican colleagues, our federal and provincial counterparts, and industry to achieve an integrated North American strategy for shortsea shipping.

Recent consultations with the Canadian industry have indicated that there is indeed a need in Canada for unbiased, current information regarding opportunities for using our waterways for shipping.

To work together, we must gather and share information better.

That’s why we need to advance shipping research and gather more information on shortsea shipping in North America.

The current lack of information hampers our ability to develop effective policy at all levels of government.

So I say, let’s work together to enhance shipping knowledge in areas such as policy, markets, trade, urban transportation, technology and sustainability.

Finally — and as I have previously mentioned — Canada feels it’s important to establish a North American strategy for shipping on our waterways.

A strategy should be our immediate goal, but our ultimate goal needs to be the implementation of our strategy.

We will be taking an important step in that direction at this conference by signing the declaration. This will provide us with a general framework to establish the steering committee.

This committee will create an active relationship among our three countries. In this way we can share our experience and professional knowledge while moving forward on our common goals.

For its part, Transport Canada pledges to work with all its partners to explore the mutual benefits of shipping on our waterways. We’ll also work with our partners to identify and reduce barriers, implement trilateral promotional activities, and investigate specific cross-border corridors.

CONCLUSION

Ladies and gentlemen, shipping our goods by water is both an important part of our past and an important part of our future.

This conference will promote shortsea shipping and will facilitate discussion of the significant role that the marine mode can play within an integrated North American transportation system.

It’s a critical and significant milestone in laying the foundation for the development of a North American Strategy for Shortsea Shipping.

By expanding the way we utilize our waterways, we can help meet the commercial, social, and environmental needs of North America’s growing population and expanding trade. We can also help to reduce congestion and reduce greenhouse gas emissions.

As I have outlined, we face many challenges in making this expansion possible.

The good news is that we’ve come a long way together already.

Let’s keep the momentum going.

Thank you.