Strengthening supply chain requires partnering with maritime private sector

It wasn’t until recently that Canadians realized just how interconnected and fragile our current supply chain system is. From the urgent need to get Canadian potash and grain to global markets to bolster food security, to domestic demands for everything from bananas to consumer electronics to holiday gifts—countless men and women are working hard amid a variety of challenges. What Canadians don’t see is the incredible diligence and resilience the private sector employers and operators at Canada’s ports continue to demonstrate, keeping our economy and supply chains functioning through the pandemic and severe human- and climate-caused disruptions. From coast to coast, and through the St. Lawrence, the maritime private sector delivers for Canadians every day. The recent National Supply Chain Task Force’s final report highlighted the urgency with which collaborative action must be taken if we are to successfully cope with the challenges facing us as a nation. Repairing our supply chain demands a more streamlined, efficient, and pro-growth approach to governance and regulation of Canada’s ports. This is only possible with the maritime industry private sector at the table. Rob MacKay-Dunn is executive co-director of the National Maritime Group. Photograph courtesy of National Maritime Group The National Maritime Group, which represents nearly 100 private sector maritime employers and operators across 14 ports and five provinces, is working hard to spread awareness among federal policy-makers of the underlying causes of our supply chain challenges and, most importantly, the solutions to address them and increase Canada’s global competitiveness. Our coalition understands these solutions as we live these issues 24 hours a day, 365 days a year. The trade opportunities facing Canada have never been greater, and yet the risk of inaction has also never been greater. Our members connect Canada to the rest of the world by safely and efficiently handling over $790-million worth of cargo daily from coast to coast and through the St. Lawrence. We support the task force recommendation of the creation of a Supply Chain Office (SCO) to streamline the federal government’s responsibility and authority over supply chain management. This would be an important step, as long as the SCO doesn’t simply become another level of bureaucracy or gatekeeping. It must have clear decision-making authority across departments, be able to solve problems in real time, and involve private sector operators from the start, with a dedicated maritime desk to address marine and terminal issues. A recent InterVISTAS Economic Impact Study confirmed that Canada’s private sector maritime employers and operators play a crucial role in the national supply chain. Our membership contributes $4.3-billion-annually to the national GDP, over $8.5-billion in economic output and more than 213,000 jobs at Canada’s ports depend on coalition member operations. We play a key role in ensuring vital imported products make their way to Canadians and crucial Canadian exports make their way around the world; the maritime private sector must be at the table. Isabelle Pelletier is executive co-director of the National Maritime Group. Photograph courtesy of National Maritime Group If ports are to remain competitive and supply chain disruption minimized, governments and industry must work together in new ways. We see three immediate solution-focused priorities: First, the federal government must overhaul the current system of administration and oversight, which does little to ensure quick, effective solutions to supply chain tangles. Consider just how many departments and agencies with decision-making authority have to be involved in decisions: Transport Canada, 17 port authorities, Employment and Social Development, the Coast Guard, Environment and Climate Change, the Canadian Transportation Agency, and Canadian Border Service Agency, to name a few. This siloed approach slows decisions, increases supply chain costs and makes the risk of unintended consequences from regulation and government intervention all that more challenging to manage. We need fewer and smarter regulations that support Canadian operators by removing trade-inhibiting policies and ensure modernized governance and resilience of our national ports. This means consulting with and keeping the private sector engaged with government decision-making, especially when it comes to developing solutions. Second, the federal government must increase investments in trade-enabling infrastructure at ports, marine terminals, inland terminals, and railways, with prioritization for projects that address bottlenecks and build surge capacity in collaboration with private sector partners. By expediting these partnerships, Ottawa can leverage the big investments Canadian taxpayers have made in their national transportation network. Third, we must collectively address labour shortages in skilled trades through training and upskilling programs. By partnering with the private sector, unions, provinces and trade schools, we can collectively enhance skills and training and nurture the next generation of leaders in the maritime industry. In 2022 alone, coalition members are investing over $48-million in training and upskilling and recruiting over 800 longshore workers to meet the current and forecasted needs of Canadian ports. As the government looks to optimize and maximize supply chain efficiency and reliability, it is crucial to not only listen to our voices, but also to act on our real-world experience, expertise and perspective. That is the only way to ensure our national supply chain system remains globally competitive. Rob MacKay-Dunn and Isabelle Pelletier are the executive co-directors of the National Maritime Group. The Hill Times