TRAN Appearance: Main Estimates 2023-2024 and Supplementary Estimates (C) 2022-2023

64. Port Cranes and Foreign Interference

  • Transport Canada continues to work with security partners and marine stakeholders to assess current and potential threats that may arise from Chinese-made cranes, and to take risk mitigation measures.
  • In reference to spying capability, the key phrase in the recent Wall Street Journal article on Chinese-made cranes operating in the United States is “could”.
  • Transport Canada is on alert for foreign interference, working with security partners and marine industry stakeholders to mitigate such risks.

SUPPLEMENTARY MESSAGES

  • Following the release of the Wall Street Journal article, Transport Canada had a virtual meeting with marine port authorities and facility operators on March 23, 2023, to share information on cranes built by Shanghai Zhenhua Port Machinery Company (ZPMC).
  • While there is no confirmed threat in Canadian ports with ZPMC cranes, Transport Canada is in the process of obtaining crane-specific information to support threat analysis and to update port security assessments.
  • Transport Canada is not aware of any instances where crane-associated equipment at Canadian ports has been used by outside parties to either track containers or disrupt port operations.
  • Transport Canada encourages the periodic review and updating of port and marine facility security plans, which should address security vulnerabilities.

BACKGROUND

An article in the March 5, 2023, edition of the Wall Street Journal reported that U.S. officials are growing concerned that giant Chinese-made cranes operating at American ports across the country, including several used by the military, could give Beijing a possible spying tool hiding in plain sight.  The article noted that U.S. national-security officials haven’t detailed any instances of cranes being used to nefarious ends.

The Marine Transportation Security Regulations require regulated ports and marine facilities to identify possible threats and establish appropriate security procedures and countermeasures.

On March 23, 2023, the Marine Safety and Security and the Intermodal Surface, Security and Emergency Preparedness Branches conducted a call with select port authority and marine facility operators, as well as TC’s Atlantic and Pacific regional personnel, to share available information and ensure a common understanding of the discussion surrounding ZPMC cranes.  The call generated a discussion on the actual abilities and limitations of the cranes currently in Canadian ports and learned that technical specifications are bespoke to each crane and those specifications are identified as part of the contracting process. Some operators advised that while the physical crane structure may be Chinese, the operating components are manufactured by others.  In addition, operators have an active IT security program to mitigate cyber risks.

TC is continuing the dialogue with stakeholders to secure additional information on the cranes, and operators’ capacity to monitor the equipment that is installed on them.   Engagement with domestic and U.S. security partners on this issue is ongoing.

Bill C-26, An Act Respecting Cyber Security, has completed second reading in the House of Commons. The proposed legislation will protect Canadians and bolster cyber security across the financial, telecommunications, energy, and transportation sectors. This legislation introduces the Critical Cyber Systems Protection Act which will further enhance the security of Canada's critical infrastructure, including marine transportation.

Bill C-33, An Act to amend the Customs Act, the Railway Safety Act, the Transportation of Dangerous Goods Act, 1992, the Marine Transportation Security Act, the Canada Transportation Act and the Canada Marine Act and to make a consequential amendment to another Act, is at second reading in the House of Commons.  Amendments to the Marine Transportation Security Act will strengthen the Port System and promote a more resilient system that is safe and secure.

Bill C-34, An Act to amend the Investment Canada Act, is at second Reading in the House of Commons.  The Investment Canada Act seeks to encourage economic growth, providing for intervention only in cases where an investment would harm Canada's national security.