Chamber of Marine Commerce Unveils 2023 Wish List

As the most carbon efficient and cost-effective mode of moving cargo, the marine shipping industry is poised to lead the way for a world seeking greater environmental sustainability, stronger supply chains, and economic growth.  With the domestic marine shipping season about to begin, and Government of Canada about to release a budget that should help with job creation, increasing trade, and meeting net zero carbon emissions targets, the Chamber of Marine Commerce unveiled its 2023 wish list to legislators and policymakers who are valued partners in achieving those mutual goals.

The policy and regulatory wish list for 2023 comprises the following:

• Establishing a Green Corridor: The “green corridor” concept involves bringing together various players along the supply chain – ports, cargo shippers, ship operators, and others – to accelerate the process of getting to zero emissions. Creating this corridor would help make the Great Lakes – St. Lawrence region a global leader in supporting green economic growth, but if Canada and the U.S. are to benefit evenly, there needs to be parity in policy and investment. The U.S. recently announced a $370 billion Inflation Reduction Act aimed in part at investing in green technologies and infrastructure enhancement, but at present there is no directly equivalent undertaking within Canada.

Realizing a green corridor can only be achieved through partnerships between government and industry to ensure the right regulatory and investment environments are in place to enable the adoption of greener approaches to shipping.  To that end, CMC is seeking meaningful progress this year on a “Made in Canada” approach to regulations and funding programs aimed at reducing carbon emissions from domestic short sea shipping vessels used in trading patterns on the Great Lakes – St. Lawrence coastal and arctic regions.

• Prioritizing Marine Shipping in Economic Pillars – The Ontario Marine Transportation Strategy and the Recommendations of the Federal Supply Chain Task Force: The Government of Ontario committed to the development of a first ever Ontario Marine Transportation Strategy in March 2022. Since that time, significant strides have been made toward formalizing the strategy, with consultations and engagement taking place with industry and port communities over several months.  Benefits that can be realized from a provincial marine strategy include job creation, increased trade, and reduced congestion on provincial roads through efficient cargo transport, but in order to realize these benefits, the strategy must be completed and enacted. CMC is seeking the completion of the strategy before the end of 2023, and is ready to work collaboratively with the provincial government to achieve that shared goal.

While the Ontario government pursues a new marine strategy, the Federal Government is assessing the recommendations of the Supply Chain Task Force. The task force highlighted the need for “Action, Collaboration, and Transformation” to enhance Canada’s supply chains, with CMC being especially supportive of the following recommendations:

• Establish a Supply Chain Office to unify the federal government’s responsibility/authority over transportation supply chain management across federal departments;
• Immediately address Canada’s significant transportation supply chain labour shortage; and 
• Develop, implement and regularly renew a long-term, future-proof (30- to 50-year) transportation supply chain strategy.

Taking immediate action on these recommendations is vital to the economy, and would be consistent with the actions of other global powers that are advancing investment and regulatory changes to maintain economic strength. Marine shipping contributes approximately $60 billion in economic activity in the bi-national Great Lakes – St. Lawrence River region, supports more than 300,000 jobs, ensures strong supply chains for businesses and consumers, and does all that while being the most environmentally friendly mode of cargo transport, making it a priority area for the action, collaboration, and transformation the Supply Chain Task Force requested.

In addition to following through on the recommendations of the task force, other actions that would improve our domestic supply chain include: 

• Water level management: CMC is asking the U.S. and Canadian governments to ensure that water level management leads to safe and continued navigation on the Great Lakes-St. Lawrence Seaway System. Specifically, CMC requests two industry representatives be appointed on the International Lake Ontario-St. Lawrence River Board (ILOSLRB) to ensure infrastructure ownership and commercial users are part of the decision-making for outflow levels through the Moses-Saunders dam.
• Pilotage reform: high inflation makes it vital to ensure that Canadian government mandated pilotage services take into account today’s technology, make more effective use of risk assessments, and improve efficiency and cost effectiveness. The current monopoly held by those providing pilotage services impacts the competitiveness of Canada’s marine supply chain, and has the potential to place greater cost pressures on consumers already struggling with cost of living increases.
• Public investment in port and waterway infrastructure: The U.S. government committed billions in funding through the Port Infrastructure Development Grants Program and Inflation Reduction Act to support a stronger, greener economy. CMC seeks partnership to ensure the goals of such funding are achieved, and to ensure the Canadian Government takes steps to keep pace from a policy and investment perspective.

Quotes

“In a world focused on improving environmental sustainability, strengthening supply chains, and maintaining economic momentum, marine delivers.  With continued partnership from Federal and provincial governments, we can achieve tremendous progress safeguarding our environment, protecting our economy, and meeting the needs of businesses and consumers throughout North America.”

– Bruce R. Burrows, President and CEO, Chamber of Marine Commerce

Key Facts

The Canadian St. Lawrence Seaway Management Corporation (SLSMC) and U.S. Great Lakes St. Lawrence Seaway Development Corporation (GLS) recently emphasized the importance of marine shipping to the economy, having announced that more than 36 million tonnes of cargo transited the system during the 2022 navigation season.

While the transportation industry comprises approximately 30 per cent of Canada’s GHG emissions, it is road, rail and air transport that make up the bulk. Marine accounts for only two per cent, and domestic ships only 0.59 per cent, making it possible to reduce carbon emissions just by emphasizing marine within multimodal transportation.

The pursuit of a green corridor envisions the creation of a regulatory and investment environment that supports the adoption of alternative fuels and green technologies for ships, ports and other industries.

Flickr – Download photos of the Great Lakes-St. Lawrence shipping industry

https://www.flickr.com/photos/marinecommerce/albums/72157657049769546

About the Chamber of Marine Commerce

The Chamber of Marine Commerce is a bi-national association that represents more than 100 marine industry stakeholders including major Canadian and American shippers, ports, terminals and marine service providers, as well as domestic and international ship owners. The Chamber advocates for safe, sustainable, harmonized and competitive policy and regulation that recognizes the marine transportation system’s significant advantages in the Great Lakes, St. Lawrence, Coastal and Arctic regions.

Media Contact:

Jason Card

Chamber of Marine Commerce

jcard@cmc-ccm.com

(613) 447 5401