Canada's Atlantic Gateway

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2. Federal-Provincial Officials Committee Newsletters >
3. April 2009 Newsletter

April 2009 Newsletter

Introduction

The Atlantic Gateway is a top priority for Canada. It is Canada's eastern portal for two-way international trade, providing an efficient connection from the Atlantic region to North America and the rest of the world.

The National Policy Framework for Strategic Gateways and Trade Corridors guides the development and exploitation of Canada's most important transportation systems for international trade, including the Asia-Pacific Gateway and Corridor Initiative, the Ontario-Quebec Continental Gateway and trade corridor and the Atlantic Gateway. Its focus is on improving Canada's competitive position in international commerce by linking North America with the world.

This newsletter outlines progress of the Federal-Provincial Officials Committee on the three priority areas for immediate action:

1. marketing the region's assets as a competitive trade corridor;
2. engaging the private sector and other stakeholders; and
3. conducting research and analysis that will guide public investments and actions.

Committee Structure

Marketing

Recognizing the opportunity to increase trade flows, the first priority for governments and the private sector has been to market and promote the Atlantic Gateway for air cargo, the growing container and bulk and liquid cargo trade, cruise ships, short sea shipping and rail - both main line and short line. An aggressive marketing strategy will be implemented to promote the region's natural assets to fully exploit the system's available capacity.

One major marketing activity is trade missions to international markets where the Atlantic Gateway has, or can offer, a competitive advantage. On these missions, delegates from all modes of transportation build business connections and explore opportunities in new and emerging markets while working together to promote the Gateway. Strong commitment and collaboration is evident between the private and public sectors on these missions, which require considerable coordination and financial commitment from all participants. 

Building on that mission's success, Indian Joint Secretary of State Anil Mukim made a return mission to Canada in November 2008, and another is planned for April 2009. "Incoming missions" bring shipping and transportation executives from India to Canada to learn more about the Atlantic Gateway. The April 2009 mission will provide delegates with direct access to key Gateway businesses to identify and explore business opportunities that can be developed in the short to mid-term.

The Department of Foreign Affairs and International Trade has led other trade missions, some jointly with Team Canada Atlantic (including the Atlantic provinces). These include Chicago (Illinois), Bentonville (Arkansas), and Atlanta (Georgia) in June 2008, and Buffalo and New York (New York) in October 2008. These missions promoted Canada's Gateways to major North American importers. Since Chicago plays such a critical role as a hub for both rail and air cargo, Minister MacKay also led a transportation delegation to Chicago in November 2008 to promote the Atlantic Gateway.

Analysis and Research

Public sector investments and actions must be based on sound and rigorous analysis. This is why the Government of Canada and the Atlantic provinces have developed an analytical framework focused on better understanding the multimodal transportation system supporting international trade, foreseeing the impact of future transportation demand on this system and identifying related infrastructure challenges and opportunities.

As part of this framework, a number of studies were commissioned, including:

• the Multimodal Freight and Passenger Traffic Flows and Infrastructure Study, undertaken by Transport Canada on behalf of the Atlantic Gateway Officials Committee,
• the Study of Road Access to Intermodal Terminals and Transload/Distribution Centres in Atlantic Canada, undertaken by Transport Canada on behalf of the Atlantic Gateway Officials Committee,
• the Atlantic Gateway Border Traffic and Infrastructure Study, undertaken by New Brunswick Department of Transportation on behalf of the Atlantic Gateway Officials Committee, and
• the National Commodity Flow, Trade and Traffic Forecasts Study, undertaken by Transport Canada on behalf of the Atlantic Gateway Officials Committee.

This analytical work is based on significant literature review, surveys, and extensive consultation with public and private sector players and key stakeholders in each province. As an introduction to these studies, Transport Canada, ACOA and the Atlantic provinces conducted stakeholder visits during May and June of 2008. To date more than 150 stakeholders have been involved in this analytical work. Since the analytical framework was developed, the Atlantic Gateway Officials' Committee has commissioned more studies to investigate opportunities in specific areas. These include:

• the Atlantic Canada Cruise Study, undertaken by the Atlantic Canada Cruise Association on behalf of the Atlantic Gateway Officials' Committee, and
• Energy Study - Transportation of Liquid Bulk Fuels in Atlantic Canada, undertaken by Newfoundland and Labrador on behalf of the Atlantic Gateway Officials' Committee.

In addition to supporting Atlantic Gateway Strategy development, this analysis and research plays a practical role in identifying and assessing potential projects for public and private investment. This process will be reflected in the Atlantic Gateway Strategy and in the intensive development of gateway opportunities that will follow.

As a complement to this analysis and research, the Atlantic Gateway Business Case was released in October 2007 and identified immediate opportunities for growth in container traffic. It also identified longer-term opportunities for growth in other marine cargo; including energy products, the cruise industry, air cargo and air passengers. It stressed that opportunities for developing the Atlantic Gateway will be longer term and must be supported by sustained marketing efforts.

Stakeholder Engagement

Private sector action and investment are critical to the success of the Atlantic Gateway. Governments have engaged these partners by actively building regional and provincial awareness. Indeed, there has been a high level of consultation and cooperation among all stakeholders since the MOU signing in October 2007. Stakeholders are regularly consulted during the ongoing analysis and research undertaken by governments.

The Atlantic Gateway Council will complement existing Gateway Councils in the region, which have illustrated active and unified private sector involvement and leadership advancing the Atlantic Gateway. Each Atlantic province also collaborates with industry and private sector representatives in their province.

An earlier consultation session in January 2008, featured regional representatives from the transportation, manufacturing, labour and education sectors. Participants identified marketing, education and skills training, environmental sustainability, and collaborative action and leadership from governments and the private sector as top priorities. As a result:

• the Atlantic Gateway Federal-Provincial Officials' Committee produces this newsletter to keep partners informed;
• over 50 representatives of ports, terminal operators, shippers, and others attended an Atlantic Gateway Short Sea Shipping workshop held by Transport Canada in Halifax in November 2008; and
• the Atlantic Gateway website provides information updates to stakeholders: www.atlanticgateway.gc.ca

Federal Actions

On October 30, 2008, the Government of Canada demonstrated its commitment to the Atlantic Gateway when Prime Minister Stephen Harper appointed the Honourable Peter MacKay Minister for the Atlantic Gateway. Minister MacKay's dedication to this initiative, his knowledge of foreign markets and his Cabinet role have made him a strong champion for the Atlantic Gateway since he was first named to Cabinet in 2006. He has tirelessly advocated for the Atlantic Gateway in Ottawa and across Canada, as well as on trade missions to the United States, Europe, Asia, and South America. He has spoken at public events as well as behind closed doors about the value proposition the Atlantic Gateway offers to shippers and about the long-term benefits it can bring to the Atlantic Region.

In November 2008, Minister MacKay hosted an Atlantic Gateway Business Summit with senior executives from the private sector and the transportation industry. This working session identified themes and priorities for the Gateway, including security, regional growth, energy resources, rail competitiveness, cross border trade and harmonization of Canadian regulations with the United States.

As part of the Budget 2009 economic stimulus package, the Government of Canada committed to investing in infrastructure across Canada. Immediate and short-term measures, such as speeding up approval of Canada's infrastructure projects, will help create jobs and stimulate the economy in these challenging times. Some of the priority projects identified for accelerated investment in Budget 2009 will also support longer-term objectives of the Atlantic Gateway. These include:

• Completing the Nova Scotia Highway 104 Antigonish Bypass Phase 2 project;
• Improving the Trans-Canada Highway in Newfoundland and Labrador;
• Engaging in major bridge rehabilitation on the National Highway System in Nova Scotia; and
• Completing the twinning of Highway 185 in Quebec, a major link facilitating the movement of trade between the Atlantic Gateway and major North American markets.

To ensure that Canadian airports remain secure and competitive, a number of initiatives were announced in Budget 2009:

• $282 million over the next two years to support the development of aviation security plans, improve operations of the Canadian Air Transport- Security Authority and implement a new passenger assessment system; and
• $14 million for a new security program for cargo leaving Canadian airports.

Provincial Actions

Nova Scotia

• Dalhousie University's Centre for International Trade and Transportation has launched an Atlantic Gateway Studies program with support from ACOA and the Nova Scotia government. The initiative involves the academic community in the development of the Atlantic Gateway Strategy through academic courses, working papers and an international conference.
• The province is studying the potential benefits of Long Combination Vehicles (LCVs) to the Atlantic Gateway and the feasibility of allowing LCVs to travel on 100-series highways. A pilot project will allow double 53-foot semi-trailers to be hauled by a single tractor-trailer on selected stretches of highway, under specific conditions.
• The province released a study on the feasibility of an Integrated Transportation Corridor (ITC), a limited-access container truck route alongside an existing rail corridor in Halifax. The study determined that the costs associated with consolidating truck and rail traffic in the CN rail corridor were too high from a gateway perspective.
• The province is developing an aggressive Marketing and Business Development Initiative to maximize the province's full potential. Nova Scotia Business Inc., the province's business development arm, is working with key stakeholders to build awareness in international markets - of the Atlantic Gateway's container handling capacity and to attract and retain a greater share of Suez Canal traffic from Asia and the Indian sub-continent.
• Nova Scotia-based private sector firms have also undertaken a number of initiatives. For example:
  • Ceres Container Terminal acquired two new super post-panamax cranes at a cost of $20 million and built a multimillion dollar state of the art truck marshalling yard and gate;
  • Halterm Container Terminal upgraded their terminal yard lighting system to reduce electrical costs by 30 per cent while effectively doubling the amount of light on the terminal surface for greater safety and security, and acquired four rubber-tired gantry cranes valued at $2 million each;
  • both Halifax terminals installed new reefer plugs to allow for handling more temperature-controlled containers; making 1,000 reefer plugs available at the port;
  • The Halifax Port Authority, in partnership with Transport Canada, invested $16 million to refine the port-wide security systems, fully integrating command and control functions with leading-edge technology for surveillance, perimeter control and biometric scans;
  • OOCL introduced the M/V Oakland and the M/V Italy to its services, and now has the largest post-panamax ships stopping in Halifax;
  • Consolidated Fastfrate invested $10 million in its distribution, warehousing, and trans-load facility in Halifax,
  • Armour Transportation Systems invested $15 million to create a 100,000 square foot logistics warehousing and trans-load facility in Halifax;
  • Halifax Gateway Council signed MOUs with the Memphis Logistics Council in Memphis, Tennessee and with Churchill, Manitoba;
  • Halifax Stanfield International Airport Authority signed an agreement with Gateway Facilities Inc. to build and manage a $6 million, 40,000 square foot multi-tenant cargo facility; and
  • The Ports of Sydney Gateway Council was formed by private sector interests in 2008 to help drive the vision for the marine ports and airport.

New Brunswick

• The province will complete the twinning and rehabilitation of the Route 1 Trade Corridor to New England by 2014 or sooner. This key initiative was announced in September 2008 as a cost shared federal-provincial project and will be undertaken through a public-private partnership;
• The Department of Transportation released two comprehensive 10-year strategies :
  • The Provincial Multimodal Transportation Strategy (2008-2018);and
  • The Intelligent Transportation System (ITS) Strategic Plan 2008-2018;
• The province is planning to expand the National Rural Intelligent Transportation Systems (ITS) Research Centre at the University of New Brunswick;
• Provincial policy and regulatory initiatives:
  • allow oversize loads, single wide tires for commercial trucks and long combination vehicles; and
  • expand Canada Border Services Agency's hours of service at national airports.
• New Brunswick-based private sector initiatives include:
  • The Canada East Air Cargo Gateway project to develop air cargo opportunities at the Greater Moncton International Airport (launched in September 2008);
  • The Southern NB Gateway Council;
  • The Northern NB Corridor study and initiative;
  • The CN rail acquisition of the NB East Coast short line railway; and
  • The NB Southern Railway's Halifax to New England (Ayer, Mass) Rail Service Initiative.

Prince Edward Island

• In the Fall 2008 Capital Budget speech, the province signaled its commitment to the Atlantic Gateway. Substantial funds have been earmarked specifically for Gateway initiatives. While investment details must be developed in partnership with the federal government, Prince Edward Island's key strategic priorities under this initiative continue to be in the areas of transportation infrastructure (especially rebuilding Route #1, including the Charlottetown perimeter highway, and Route #2, the province's main economic corridor), skills and training, marketing and expanding cruise capacity.
• The province and The Charlottetown Airport Authority continue to develop international destinations and have expanded customs services at the airport through a Canada Border Services Agency investment. This has helped to attract airlines to invest in seasonal direct flights to Boston, New York, Detroit and Cuba. In June 2008, 7,200 square metres were added to the main apron, adding aircraft parking and maneuvering space for the increased traffic. The airport continues to grow and improve to provide service and facilities that will benefit air travellers, tenants, and the people of Prince Edward Island.
• The Charlottetown Harbour enjoyed infrastructure upgrades, which included a new pier and cruise welcome centre, the expansion of the berth by 113 metres, and 200 tonne bollards. This allows larger ships to visit Charlottetown and has increased passenger numbers three times over pre-expansion figures.
• The Strait Crossing recently completed its analysis of physical wind tests. Results show the present Confederation Bridge Wind Policy, developed in lab tests, is appropriate and should remain. The policy restricts passage of high-sided and other vehicles during periods of high winds.

Newfoundland and Labrador

• Setting Direction: Study of Air Transportation, Newfoundland and Labrador recommends increasing the province's air transportation capacity based on the province's existing strengths in airport infrastructure, routes and airline partnerships. The study supports investing strategically in activities and economic sectors that would support increased capacity.
• Newfoundland and Labradorwill increase infrastructure spending to approximately $800 million in the 2009-2010 fiscal year and in excess of $4 billion over the next several years to stimulate economic activity in the face of the global economic downturn. This represents a jump of $285 million - well over 50 per cent - from the 2008-2009 fiscal year.
• The province's expanding ocean technology sector was strengthened with a $250,000 provincial investment in the next phase of the SmartBay Project. SmartBay began as a vast environmental monitoring demonstration project in Placentia Bay in 2005, with the goal of better observing the marine environment. SmartBay is the largest ocean observation project in Eastern Canada and an example of industry, government and the applied research arm of the Marine Institute working together to position the province as a leader in this aspect of ocean technology. Placentia Bay is becoming the industrial heartland of the province and is busy with marine traffic, a shipyard, wildlife reserves and an active fishery - all of which operate in a harsh weather environment. This funding will enable the project to become a fully operational information service for improved weather forecasting, environmental monitoring, and ship navigation. It will also enhance linkages with international partners.
• In collaboration with exporters, the province provides a range of supporting services to enhance trade and export development activity. Export readiness, market entry and expansion, and in-market support are among the initiatives advanced by the province to increase the export knowledge and preparedness of local companies.

Moving Forward

Much has been accomplished and governments will continue to work together to advance work on Atlantic Gateway priority areas for action. As mandated by the federal/provincial MOU, the Atlantic Gateway Strategy will be released by Fall 2009, and will serve as the foundation for partners' ongoing efforts to keep this vital trade and transportation system at the forefront of existing and emerging global commerce opportunities.

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Date Modified:

2011-04-01