LOCATION: National/TRAN
Issue/Source: Supply Chains
Date: November 30, 2022
Suggested Responses
- Ensuring that Canada’s supply chains are strong and resilient is a top priority for the Government of Canada.
- Canada’s transportation supply chains have been significantly impacted by the global COVID-19 pandemic, the war in Ukraine, and recent extreme weather events. These disruptions impact the daily lives of Canadians and the ability of our economy to grow.
- The Government of Canada recognizes that measures taken to address supply chains must consider the important role of transportation. This is why we continue to make important strategic investments through the National Trade Corridors Fund (NTCF) to alleviate congestion and bottlenecks in our supply chains while building back better for lasting solutions.
- Understanding that any solution to persistent supply chain problems must be developed in tandem with industry, a Supply Chain Task Force was created to develop independent advice identifying ways to mitigate supply chain pressures through innovative solutions.
- The Supply Chain Task Force submitted a Final Report to the Minister in October, including recommendations that are informing the development of a National Supply Chain Strategy comes together. As highlighted in the Fall Economic Statement, more details on this Strategy will be released in Budget 2023.
IF PRESSED
Collaboration with Industry Partners
- The National Supply Chain Task Force undertook extensive consultations with industry, which informed its Final Report. The report included both short and long-term actions to alleviate supply chain congestion.
- Transport Canada recognize the importance of ensuring the National Supply Chain Strategy supports other ongoing efforts. It is intended to complement measures the Government is already taking, including a series of roundtables and consultations, pandemic recovery, and collaborative efforts with the U.S. Supply Chain Disruptions Task Force.
Strategic Invesments
- Transport Canada issued two Calls for Proposals under the National Trade Corridors Fund that seek to increase supply chain fluidity and relieve congestion at ports.
- The Department has also been investing in developing digital solutions for transportation infrastructure, and working with industry to find new ways to drive for efficiency and fluidity in our supply chains.
- Transport Canada will continue to invest in projects that reduce bottlenecks and capacity constraints to help strengthen our supply chains while building smarter and more resilient against our changing climate.
BACKGROUND INFORMATION
- The transportation sector is essential to the success of the Canadian economy. It serves as an integral component of supply chain flow that functions as the backbone of domestic and international trade.
- Since the creation of the National Trade Corridors Fund (NTCF), the Government of Canada has announced over 100 projects and committed more than $2.1 billion supporting marine, air, rail, and road projects.
- On December 9, 2021, a Call for Proposals was launched under the NTCF focusing on increasing the fluidity of Canada’s supply chains. The call seeks to advance funding under two investment themes: (i) strengthening Canada’s connections to global markets; and (ii) building internal trade corridors.
- On January 31, 2022, a new targeted Call for Proposals was launched under the NTCF to assist to assist Canadian ports with the acquisition of cargo storage capacity and other measures to relieve supply chain congestion. The fund will dedicate up to $50M to support eligible priority projects. This call was open for four weeks.
- Budget 2022 provided the groundwork for a National Supply Chain Strategy, committing $603.2M over the next five years to support continued investment in transportation infrastructure to help strengthen Canada’s supply chains, including $450M in new funding for the National Trade Corridors Fund. It also comprises funding for initiatives to create digital-first solutions to relieve congestion and help our supply chains become more sustainable and efficient.
- Budget 2022 also highlighted how these important investments will complement the work of the National Supply Chain Task Force, which issued its recommendations in the form of a Final Report on October 6, 2022.
- The Task Force was co-Chaired by Louise Yako and Jean Gattuso. Its Final Report included potential actions that could be pursued, in the short- and long-term, to address both chronic and acute supply chain congestion and inefficiency issues. The Final Report will help inform the development of a National Supply Chain Strategy.
- The Fall Economic Statement (FES), issued in November 2022, provided an overview of actions taken to alleviate supply chain pressures, with an acknowledgement that more information will follow in Budget 2023 in the form of a National Supply Chain Strategy.
- Actions related to supply chains highlighted in the FES include:
- Moving forward with Budget 2022 commitments to invest in critical transportation infrastructure, support industry-driven digitization of supply chains, and make supply chains more competitive by continuing to cut unnecessary red tape;
- Launching a Supply Chains Regulatory Review to consider further regulatory changes that could improve the efficiency and resiliency of Canada’s supply chains;
- Modernizing cargo and clearance inspection practices;
- Streamlining operating policies and regulatory practices that impact the flow of goods through our international gateways;
- Exploring ways to bolster protection and remedies for shippers and service providers due to service disruptions; and,
- Improving data reporting and monitoring.