Canada is Changing the Way Its Ports Work
The logistics industry has a bigger impact on economic conditions for national residents than most give it credit for. Port congestion causes delays, and delays in shipments cause an imbalance in supply and demand, which indirectly causes prices to rise. Likewise, low availability of vessels or equipment causes similar problems which raise prices and inflate the economy.
Canada has already seen a drastic increase in the cost of living, and in an attempt to help level out the economy and strengthen the supply chain, the Canadian government is making necessary modifications to the way its ports will operate.
A couple of weeks ago, Omar Alghabra – the Minister of Transport for Canada – made an announcement that the Ports Modernization Review has been completed. This plan attempts to advance the role of Canada Port Authorities to optimize Canadian ports’ current efficiency and adaptability for future infrastructure and technology changes.
Legislative amendments will be made over the next several months in the integration of this new plan. The Minister claims the Ports Modernization Review will change the way Canadian ports are managed and operated. These are several of the policy objectives listed in the new plan:
- Financial management and port governance will be adjusted to create ease of access to tools for increasing efficiency and productivity.
- Canadian ports will increase their competitiveness in the global logistics industry and increase their position as strategic enablers of trade and traffic.
- They will aim to strengthen relations with indigenous peoples and focus on reconciliation throughout their current and future port development and operations plans.
- Putting focus on environmentally sustainable infrastructure and taking strong actions on climate change.
- Increasing efficiency of cargo movement alongside an increase in safety and security for the sake of protecting transportation systems.
- New investment policies will be put into action that will attract investment capital which is fundamental to the success and improvement of national transportation supply chain for decades into the future.
This recent announcement is only the first small step in a much bigger-picture aim to increase cargo efficiency, become more environmentally friendly, ease congestion, and position themselves as a leader in international trade. Time will tell how these amendments affect Canada’s international supply chain, but thus far the news has been received positively as a step in the right direction.
Should you have any questions regarding this topic and how it could impact your shipments, please reach out to our team today. Additionally, we have our weekly market updates that can provide you with relevant news and updates across the industry.