Billions Committed in Historic Decade of Investment Aimed at Enhancing Shipping on the Great Lakes – St. Lawrence Seaway

A comprehensive independent survey of public and private investment conservatively estimates that $10.9 billion CAD ($8.4 Billion USD) will be spent to enhance marine shipping on the Great Lakes and St. Lawrence Seaway between 2018 and 2027. 

Prepared by Martin Associates, and titled “Infrastructure Investment Survey of the Great Lakes and St. Lawrence Seaway System” the survey quantifies ongoing investments in the navigation system to help support long term planning and the achievement of economic development goals, while also building confidence in the system’s future viability. 

In addition to identifying the level of investment, the survey also revealed investment in specific aspects of Great Lakes – St. Lawrence Seaway system. This includes:

• $828 million CAD ($636 million USD) was invested in vessel enhancements between 2018 and 2022, with at least another $427 million CAD ($328 million USD) planned between 2023 and 2027.

• $2.7 billion CAD ($2.1 billion USD) was invested to enhance port and terminal infrastructure between 2018 and 2022, with at least another $1.5 billion CAD ($1.1 billion USD) planned between 2023 and 2027.

• $3.9 billion CAD ($3 billion USD) was invested in waterway infrastructure such as locks, breakwaters and navigation channels between 2018-2022, with at least another $1.6 billion CAD ($1.2 billion USD) planned between 2023 and 2027.

This magnitude of investment reveals several important facts about the future of the economy, supply chains, and net zero initiatives in North America – specifically that:

1. The marine shipping industry is focused on maintaining and building on its leadership as the most efficient, reliable, and sustainable way to move cargo;
2. There is broad recognition that economic growth and GHG reduction ambitions can be achieved through significant investment in marine shipping;
3. Navigation infrastructure and its users provide a key conduit for commercial activity for North American businesses – a vital conduit that requires continuous investment to enhance and maintain; and
4. As the world undergoes a historic shift towards more sustainable practices, the marine shipping industry and the US and Canadian governments are partnering to actively invest billions to lead in the transition.

The survey was developed as part of a larger project that was requested by a public/private sector committee of American and Canadian maritime organizations.  That project produced a study titled “Economic Impacts of Maritime Shipping in the Great Lakes-St. Lawrence Region,” which was released last July. The intent of this project was to provide the navigation community, transportation planners, government policy makers, and the public with a credible, independent assessment of the economic contributions associated with commercial maritime shipping in the Great Lakes and St. Lawrence region throughout North America. The study showed that marine shipping on the Great Lakes and St. Lawrence Seaway supports tens of billions in economic activity in North America, hundreds of thousands of jobs, and billions in wages and taxes each year.

In addition to the billions invested by private marine shipping organizations in research and development, new infrastructure, and new service offerings, the survey captures major governmental funding initiatives aimed at enhancing infrastructure and improving supply chains. This includes the U.S. Government’s Bipartisan Infrastructure Law and Inflation Reduction Act, which were aimed in part at investing in green technologies and infrastructure enhancement; the Canadian Government’s Green Shipping Corridor Program, which will support increased sustainability within the marine sector; and the Canadian Government’s establishment of a dedicated Transportation Supply Chain Office to enhance supply chain effectiveness.

Information regarding the author of the survey, and the industry collaboration that led to the survey being prepared is included in the backgrounder that follows.

Media Contacts:

Jason Card Chamber of Marine Commerce jcard@cmc-ccm.com (613) 447 5401

Steve Fisher American Great Lakes Ports Association fisher@greatlakesports.org (202) 744 3234

Quotes

“The survey’s conclusion is clear: both the public and private sector recognize that maritime commerce on the Great Lakes and St. Lawrence Seaway remain essential to the economies of the United States and Canada, and are investing to protect this irreplaceable system. Through President Biden’s infrastructure law, we are investing in marine shipping, which will continue to support high quality jobs, strengthen America’s supply chains, and drive sustainable economic growth.”

– U.S. Transportation Secretary Pete Buttigieg

“Our Government is working with industry to develop stronger and greener supply chains, especially through the new National Supply Chain Office and new Green Shipping Corridor Program. Canada and the US are committed to developing green navigation, shipping infrastructure, and supporting sustainable economic growth. That’s exactly what this study highlights, and we’ll continue building on this in the years ahead.”

– The Honourable Pablo Rodriguez, Minister of Transport

“Investments by the Canadian and U.S. Seaway Corporations, as well as marine shipping industry partners, have made the Great Lakes / St. Lawrence Seaway the strongest link in the North American supply chain. This survey speaks to how these partnerships continue to evolve, and to planned substantial future investments, which will make our economies stronger and our future greener.”

– Terence Bowles, President and CEO of the St. Lawrence Seaway Management Corporation

“The Great Lakes St. Lawrence Seaway System and its countless ports, terminals, ship owners, and cargo owners support the most sustainable and cost-effective way to haul goods to and from North America. The importance of this vital conduit for North American trade is clear, and this survey shows that governments and the maritime industry are jointly focused on supporting marine shipping’s environmental and technological leadership through significant ongoing investment. Simultaneously catalyzing this robust trade corridor is the goal.”

– Adam Tindall-Schlicht, Administrator of the Great Lakes St. Lawrence Seaway Development Corporation

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BACKGROUNDER

Survey Author: Martin Associates

Martin Associates (John C. Martin Associates, LLC) is an internationally recognized economic and transportation consulting firm.  Since its founding in 1986 by Dr. John C. Martin, Martin Associates has conducted more than 1,500 economic and planning studies for nearly every port in the United States and Canada, as well as ports in China, Europe, Ireland, South America and the Caribbean. (https://johncmartinassociates.com/)

Project Sponsors

Martin Associates was retained to perform a comprehensive economic analysis of the entire Great Lakes-St. Lawrence Seaway navigation system by a coalition of U.S. and Canadian Great Lakes and St. Lawrence marine industry stakeholders.  As part of this project, an investment survey was also generated.

The sponsors of the project are:

• The Great Lakes St. Lawrence Seaway Development Corporation (U.S.A): The Great Lakes St. Lawrence Seaway Development Corporation (GLS) is a wholly owned government corporation created by statute May 13, 1954, to construct, operate, and maintain that part of the St. Lawrence Seaway between the Port of Montreal and Lake Erie, within the territorial limits of the United States.  The mission of the Corporation is to serve the U.S. intermodal and international transportation system by improving the operation and maintenance of a safe, reliable, efficient, and environmentally responsible deep-draft waterway, in cooperation with its Canadian counterpart. (https://www.seaway.dot.gov)

• The St. Lawrence Seaway Management Corporation (Canada): The St. Lawrence Seaway Management Corporation is a not-for-profit corporation responsible for the safe and efficient movement of marine traffic through the Canadian Seaway facilities, which consists of 13 of the 15 locks between Montreal and Lake Erie. The Corporation plays a pivotal role in ensuring that the waterway remains a safe and well-managed system, which it shares with its American counterpart, Great Lakes St. Lawrence Seaway Development Corporation.  (https://greatlakes-seaway.com/en)

• The American Great Lakes Ports Association (U.S.A.): Founded in 1977, the American Great Lakes Ports Association (AGLPA) is an organization representing the interests of commercial ports and port users on the United States side of the Great Lakes.   AGLPA works to influence public policies with the goal of fostering maritime commerce and related employment in the Great Lakes region. (https://www.greatlakesports.org)

• The Chamber of Marine Commerce (Bi-National): Founded in 1959, The Chamber of Marine Commerce (CMC) is a bi-national association that represents diverse marine industry stakeholders including major Canadian and American shippers, ports, terminals and marine service providers, as well as Canadian 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. (http://www.localhost:10089)

• The Lake Carriers’ Association (U.S.A): Headquartered in Westlake, Ohio, the Lake Carriers’ Association advocates for its 13 member companies, which operate 43 commercial cargo vessels on the Great Lakes. Its mission is to promote the common interests of U.S.-flag vessel operators on the Great Lakes by creating change and recognition through legislative and regulatory matters. It aims to educate legislators, regulators and the general public on the role of Great Lakes shipping in the American economy and maximize the efficiencies of waterborne commerce in a manner that respects our environment. (https://lcaships.com/)

• The Shipping Federation of Canada (Canada): Incorporated by an Act of Parliament in 1903, the federation is the association that represents and promotes the interests of the owners, operators and agents of ships involved in Canada’s world trade. The Federation’s member companies are involved in all sectors of the shipping industry, including dry bulk, liquid bulk, container and cruise. The Federation’s key activities are to provide advocacy for the ocean shipping industry; offer operational support to its membership; disseminate information to members, governments and the general public; and provide training to members and other industry stakeholders. The Federation’s overall objective is to work towards a safe, efficient, competitive, environmentally sustainable and quality-oriented marine transportation system. (https://www.shipfed.ca/home)