32. PORTS ASSET TRANSFER PROGRAM

FUNDING FOR THE RENEWAL OF THE PORTS ASSET TRANSFER PROGRAM

The Ports Asset Transfer Program is seeking access to $7,085,150 under Vote 1 for operating expenditures and $62,400,000 under Vote 10 for contribution expenditures in planned spending authorities. 

Key Messages:

• The Government of Canada off-cycle funding decision provided Transport Canada with up to $105,207,250 for the renewal of the Ports Asset Transfer Program, including $70,000,000 over two years for transfers, and $35,207,250 over five years for operations.
• The objectives of PATP are:
  (1) to continue to reduce Transport Canada’s role as an owner and operator of local ports through additional transfers supported by financial incentives consistent with the principle of Crown No Worse Off (CNWO) and through closures and demolitions that meet the established criteria; and
  (2) to support the operating and maintenance requirements of port facilities while they remain with Transport Canada.

• Access to $7,085,150 in operating expenditures to support continued operations in 2020-21 at Transport Canada-owned port facilities to ensure the safety and security of port users.
• Access to $62,400,000 in contribution funding to enable the divestiture of ports in 2020-21.

• Previous port divestitures have demonstrated that local entities are better able to manage these assets, deliver transportation services more efficiently and better respond to the needs of port users and local communities.

Background

• First announced in April 2015, the Ports Asset Transfer Program is designed to support the successful transfer of the remaining Transport Canada-owned port facilities to local interests, with possible funding incentives to cover future operational costs. 
   
• As of March 2020, 35 port facilities remain the responsibility of Transport Canada, down from 50 in April 2015.
   
• Since the program and its funding ended in March 2020, a renewal is necessary so that the negotiations in progress for port transfers, as well as the funding for the maintenance of the ports that will remain under the ownership of Transport Canada, can continue.
   
• The Port Assets Transfer Program is being renewed for five years, with $105,207,250 in new funding.
   
• The renewal of the program and its related funding are expected to result in additional port transfers and the safe and secure operation of ports while they remain under Transport Canada’s purview.