Canada s Asia-Pacific Gateway and Corridor Initiative and Future Gateway Strategies
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1 Canada s Asia-Pacific Gateway and Corridor Initiative and Future Gateway Strategies International Conference on Gateways and Corridors Vancouver, May 2-4, 2007
2 Global Commerce is Expanding, Patterns Shifting Global marketplace integration is driving the distribution of economic activity, as well as the expansion of world trade The emergence of new economic powers such as China and India is forcing all trading nations to adjust, or be left behind. Imports from China to Canada grew almost 550%, from $4.6B to $29.5B between 1995 and Partners and competitors are acting aggressively on the intersecting issues of trade, transport and security. Yangshan Port, China: Phase 2 2
3 Transpacific Container Traffic Forecast Global Container Traffic (TEUs, millions) Transpacific Container Traffic (TEUs, millions) 1, Source: Intervistas Consultants 3
4 New Dynamics of Global Commerce Demand New Approaches Efficient, reliable, integrated and secure transportation systems are crucial to economic competitiveness more than ever. Supply chains link warehousing, transportation, manufacturing, retailing, and information and IT, to improve profitability and growth In an increasingly connected world, the key will be an integrated approach to physical and policy infrastructure. To promote a more competitive, more productive Canadian economy, government needs to view policies, planning and investment through new lenses. 4
5 The Asia-Pacific Gateway and Corridor: A System of Transportation Infrastructure including BC Lower Mainland and Prince Rupert ports, their principal rail and road connections reaching across Western Canada and into North America s economic heartlands, as well as major airports and border crossings. 5
6 Gateway Ports and Canada s Class 1 Railways: Reaching into North America s Heartland Prince Rupert Vancouver Montreal Halifax Major gateway ports 6
7 Deltaport Berth 3 at Vancouver Port Source: VPA 7
8 Port of Prince Rupert Fairview Container Terminal Source: PPRA 8
9 Asia-Pacific Gateway and Corridor Initiative Designed to strengthen Canada s competitive position in global commerce by connecting Asia and North America. In particular, the Asia-Pacific Gateway and Corridor Initiative (APGCI) will seek to: Boost Canada s commerce with the Asia- Pacific region; Increase the Gateway s share of North America-bound container imports from Asia; Improve the efficiency and reliability of the Gateway to Canadian and North American exports as Asia s economies expand. The Government of Canada is developing a national policy framework for strategic gateways and trade corridors that will guide future actions. It will draw on the key concepts and lessons of the Asia-Pacific Gateway and Corridor Initiative. 9
10 The Initiative Advances an Integrated Approach It is a coherent set of investment and policy measures that will enhance the efficiency of the Gateway and Corridor, and better equip Canada to take maximum advantage of it. A careful balance of immediate action and long-term direction, it is based on five core elements: 10
11 Selected Private Sector Investments Planned for Railways (CN, CPR) Ports, including terminal operators (Vancouver, Fraser, Prince Rupert) Airports (Vancouver, Calgary, Edmonton, Winnipeg and Pearson) Total $1.6 billion $1.2 billion $3 billion $5.8 billion 11
12 Roberts Bank Rail Corridor: Applying the System Approach The APGCI included $50 million to improve the road-rail interface along the corridor that connects the Roberts Bank terminals with the North American rail network. A Plan to mitigate impacts of increasing volumes of international freight being developed in partnership with the Vancouver Port Authority, the Province of British Columbia, TransLink, the Greater Vancouver Gateway Council, CN, CPR, BC Rail and all the affected municipalities. When finalized, it s anticipated to leverage an overall investment in the range of $300 million. 12
13 Building the Gateway and Corridor Policy Direction: Advantage Canada Strategically located gateways and border crossings play a vital role in fostering Canada s competitiveness. Policy Commitment: Canada s New Government will work toward a comprehensive plan for infrastructure that includes separate national infrastructure funds, accessible on a merit basis, to support gateways and border crossings, particularly projects selected pursuant to a new national gateway and trade corridor policy. 13
14 Establishing Long-Term Funding: Budget 2007 National Fund for Gateways and Border Crossings - $2.1 Billion The focus of the fund will be a limited number of national gateway strategies, and support for key intermodal linkages to enhance Canada s trade competitiveness and the efficiency of the national transportation system. The new National Policy Framework will help guide federal investment decisions. Asia-Pacific Gateway and Corridor Initiative - $1 Billion An expanded federal commitment with additional investment to foster an even more effective transportation system that links North America with Asia. This further strengthens the pan-western, system-based approach that tackles infrastructure, policy, governance and operational issues in an integrated, public and private sector strategy. 14
15 The Gateway and Corridor Approach: Integrating Policy, Planning and Investment Vision A Canadian economy in which competitiveness is advanced by efficient, safe, secure and sustainable transportation systems that support the country s success in the rapidly changing world of international commerce. A National Policy Framework for gateways and trade corridors will provide focus and direction for strategies that foster further development and optimize the use of the transportation systems of national significance for international trade. Gateways and trade corridors are major systems of marine, road, rail and air transportation infrastructure of national significance for international commerce, within a defined geographic zone. Gateway: a multi-modal entry/exit point through which goods and international passengers move beyond local, and even regional, markets. Trade Corridor: a linear, multi-modal orientation of international passenger and freight flows that connect gateways to major markets. Gateway and corridor strategies are integrated packages of long-term investment and policy measures that advance the development and exploitation of gateways and corridors for national benefit. 15
16 The Gateway and Corridor Approach: Responding to Canadian Realities A national economic policy that is tailored to the geography and regional realities of Canada. Future gateway and corridor strategies will draw on the Pacific Gateway experience: International commerce strategy. Volume/value of national significance. Future patterns in global transportation. Capacity and policy issues. Federal role. Safety underlies all activities. 16
17 The Gateway and Corridor Approach: Partnership in a Systems Approach Yesterday s approaches measure commitment only in taxpayers dollars. Systems approach places emphasis on: Integration of a range of policy and regulatory issues, governance, land use planning, skills/labour market. Climate for private sector investment. Research and development. Analysis and long-term planning. Legislative frameworks. Public investments in infrastructure. Partnerships are crucial. 17
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