Prime Minister Mark Carney’s objective to double Canada’s exports beyond US borders by 2035 faces a significant hurdle—one that stems from systemic issues within the nation’s port infrastructure rather than external pressures. A combination of bureaucratic inertia and labour disputes has hindered the functionality of Canada’s ports, which are crucial for accessing global markets. Transport Canada’s findings reveal that port management prioritises imports over exports, while a report from the Montreal Economic Institute highlights that regulatory constraints are stalling necessary modernisation efforts. This inefficiency poses a considerable economic risk as Canada approaches 2026.
Ports Struggle to Compete
Despite Carney’s vocal commitment to enhancing exports, the reality at Canada’s major ports tells a different story. The ports in British Columbia, especially, are lagging in productivity when compared to their American counterparts. The World Bank’s most recent rankings illustrate this stark reality, positioning the Port of Vancouver at a dismal 389th and the Port of Prince Rupert at 362nd globally. In contrast, American ports like Seattle and Long Beach are operating far more efficiently, emphasising a critical vulnerability in Canada’s export strategy.
The Port of Montreal, which handles approximately $400 million in goods daily, does not fare much better, ranking 344th. This inefficiency is troubling not only for businesses but also for the sovereignty of Canada, especially amid rising economic coercion from the United States.
Economic Consequences of Inaction
The implications of this inefficiency are profound. Take, for example, Canada’s potash industry, which is vital for agricultural production globally. Canada contributes a third of the world’s potash supply, and while it primarily exports to the United States, there is significant potential for market expansion in Asia. However, last year, Nutrien, one of the country’s leading potash companies, opted to invest $1 billion in the Port of Longview, Washington, rather than in Canadian ports due to ongoing challenges such as rail congestion and outdated infrastructure.
This decision not only highlights Nutrien’s need to mitigate risks associated with Canadian ports but also raises alarms regarding future job losses and reduced tax revenues in Canada. If the trend continues, an alarming portion of potash produced in Canada could be shipped through American ports, exacerbating the already precarious economic reliance on the US.
A Call to Action for Port Modernisation
Carney is aware of these challenges, as evidenced by his recent discussions with Mike Henry, CEO of BHP, regarding investment in the Jansen Potash project. With BHP’s substantial financial commitment to Canadian mining, the urgency for Canada to enhance its port infrastructure has never been clearer. The federal government has the opportunity to expedite improvements through Bill C-5, the One Canadian Economy Act, which allows the cabinet to declare national interest projects and streamline approval processes.
Immediate action is required to elevate the productivity of Vancouver and Prince Rupert, two critical ports whose inefficiencies are not just a national embarrassment but a direct impediment to achieving Carney’s ambitious export targets.
Why it Matters
The current state of Canada’s ports poses a serious threat to the nation’s economic aspirations. As global competition intensifies and the need for diversified export markets grows, the inefficiencies in port operations could lead to a significant loss of market share. With the potential for job losses and decreased government revenue looming, Canada must prioritise the modernisation of its port infrastructure to ensure that it can compete effectively on the world stage. The time for action is now, as failing to address these issues could have long-lasting repercussions for Canada’s economic health.
