International trade has contributed to more than half the value of Canada’s gross domestic product (GDP) each year since 1992. In 2021 alone, Canada’s merchandise trade amounted to approximately $1.24 trillion, its highest annual value of trade on record. The trade opportunities for Canadian natural resources and products, including critical minerals, potash, energy, and grain, have never been greater. In order for stakeholders to capitalize on these opportunities, it is critical for Canada to create a resilient transportation supply chain. Unfortunately, due to the COVID-19 pandemic which created wild swings in supply and demand, the impacts of climate change, and geopolitical uncertainty, the fluidity and efficiency of Canada’s transportation supply chain has been significantly disrupted. In an attempt to alleviate the issues affecting Canada’s transportation supply chain, a National Supply Chain Task Force (the “Task Force”) was struck by the Minister of Transport. On October 6, 2022, the Task Force released recommendations to all levels of government and industry in a final report urgently calling on the Government of Canada to join forces with industry stakeholders, taking a national approach to address the transportation supply chain crisis (the “Report”) [1].

In preparing the Report, the Task Force consulted with transportation organizations, stakeholders and industry experts across Canada and the United States, Canada’s largest trading partner. The industry stakeholders that were consulted shared many of the same perspectives on how to address Canada’s transportation supply chain issues. For example, many stakeholders believed that the federal government should increase investment in critical infrastructure, including investments in port modernization, rail infrastructure, airport infrastructure, and marine infrastructure. Stakeholders also expressed issues they were facing regarding labour shortages and regulatory uncertainty (e.g., stakeholders stated that they were burdened by multiple layers of regulations and reporting requirements to a variety of government departments).

According to the Task Force, it is vital that Canada continue to invest in critical infrastructure assets, including seaports, railways, highways, and airports:

“over the 50-year period from 2020 to 2070, investments of $4.4 trillion (or approximately $88 billion per year) in marine and transportation infrastructure will be required to meet projected growth in population (assuming a 0.7% compound annual growth rate) and in GDP (assuming a 2.1% compound annual growth rate). The majority of this needed investment is in highway and road structures and networks ($3.3 trillion), railways ($284 billion), and seaports ($110 billion).”[2] 

In its Report, the Task Force provided several recommendations for the federal government. The recommendations are divided into two categories: (1) immediate response actions (which are further divided into two categories: operational shifts and governance shifts), and (2) long-term strategic actions.

Below are five Report recommendations that we consider particularly relevant to stakeholders in the infrastructure and construction sectors:

• Airport rent reduction: Waive 50% of airport rent payments to be made to the Government of Canada, on a short‑term basis, to enable airport authorities to invest in capital improvements that enhance transportation supply chain reliability. This could be done immediately and would free up capital for airports to construct improvements to their facilities and infrastructure, enhancing supply chain reliability in the process.[3]
• National transportation supply chain strategy: Finalize, implement and regularly renew a long‑term, future‑proof (30‑to 50‑year) Government of Canada transportation supply chain strategy to provide a comprehensive response to current issues and to develop long-term approaches to governance and planning. Creating such a strategy would enable the Government of Canada to identify and plan for strategic and long-term investments aimed at improving the transportation supply chain. The strategy could include leveraging of the Canada Infrastructure Bank to prioritize public-private investments in infrastructure.[4]
• Supply chain visibility: Digitalize and create end‑to‑end supply chain visibility for efficiency, accountability, planning, investment and security. This recommendation contemplates investment by Canada in data sharing infrastructure.[5]
• Facilitate the addition of new labour: Address immediate labour needs across the transportation supply chain through: (i) expanding government programs to attract under-represented populations to the sector; (ii) supporting the Temporary Foreign Worker (TFW) Program; (iii) expediting refugee and immigration processing for individuals who have experience in or would be eligible to work for transportation supply chain-related businesses; and (iv) supporting businesses, community settlement agencies and other organizations that can help temporary foreign workers, refugees and immigrants acclimate to Canadian work and social environments.[6]
• Protect critical corridors: Protect corridors, border crossings and gateways from disruptions to ensure unfettered access for commercial transportation modes and continuity of supply chain movement. This recommendation includes the development and funding of infrastructure to mitigate disruptions to Canada’s transportation supply chain as a result of climate-related disasters.[7]

For further details, readers can access the Report here: Act. Collaboration. Transformation. Final Report of the National Supply Chain Task Force 2022 (canada.ca).

Dentons will continue to monitor developments related to the Report. For questions on these matters, please fell free to contact Alexis Barr-Gusa, Lucas Colantoni, or any other member of the Dentons Canada Infrastructure and Construction Group.

[1] Act. Collaboration. Transformation. Final Report of the National Supply Chain Task Force 2022 (canada.ca).

[2] See the Report at page 8.

[3] Ibid at page 19.

[4] Ibid at page 23.

[5] Ibid at page 25.

[6] Ibid at page 18.

[7] Ibid at page 32.