Location: National
Key Messages:
- The National Trade Corridors Fund (NTCF) is making important investments toward transportation supply chain projects across Canada. These investments have significant advantages for the Canadian economy by improving trade gateways. This makes it easier for Canadian businesses to deliver their products to consumers around the world, with improved efficiency and reliability in the supply chain.
- The selected projects improve and increase the transportation system, including helping to withstand the effects of climate change and better adapt to new technologies and innovation, as well as address the transportation needs of the Arctic and northern communities.
- Since its launch in 2017, the NTCF has completed seven calls for proposal, the most recent having closed in April 2023, with a focus on Advancing Supply Chain Digitization.
- A total of $4.6 billion over 11 years (2017-2028) has been allocated to the program.
Summary of Issue / Background:
- The $4.6 billion NTCF helps fund infrastructure projects in Canada. Infrastructure projects can include work to airports, ports, railways, transportation facilities, and access roads.
- Through the NTCF, the Government of Canada is investing in well-functioning trade corridors to improve the flow of goods and people in Canada, as well as to help Canadians compete in key global markets, trade more efficiently with international partners and keep Canada’s Supply Chains competitive.
- The program represents a long-term commitment by the Government of Canada to work with stakeholders on strategic infrastructure projects to address transportation bottlenecks, vulnerabilities, and congestion along Canada’s trade corridors.
- It is a merit-based program designed to help infrastructure owners and users invest in the critical assets that support economic activity and the physical movement of goods and people in Canada.
- The NTCF funds projects that:
- improve the flow of goods and people in Canada;
- increase the flow of trade in and out of Canada;
- help the transportation sector withstand
- withstand the effects of climate change
- better adapt to new technologies and innovation; and
- address the transportation needs of Arctic and northern communities.
- Eligible applicants under the NTCF calls for proposals include provincial, territorial and municipal governments, Indigenous groups, not-for-profit and for-profit private-sector organizations, federal Crown Corporations or agencies, Canadian Port Authorities, National Airport System airport authorities, and academia.
- An initial envelope of $1.9 billion over 11 years (2017-18 to 2027-28) was allocated for the NTCF in 2017.
- To address the unique transportation needs in the Arctic and northern regions of Canada, Budget 2019 increased the allocation of the NTCF to these regions by $400 million over eight years, starting in 2020–21, bringing the total regional allocation to $800 million, and increasing the National Trade Corridors Fund funding envelope to $2.3 billion.
- Budget 2021 provided the NTCF with an additional $1.9 billion over four years, increasing the NTCF funding envelope to $4.2 billion. This additional funding aimed to spur investments in much-needed enhancements to Canada’s roads, rail, and shipping routes, build long-term resilience for the Canadian economy, and support internal and international trade. Of this total funding, 15% was noted as dedicated to building and improving transportation networks in Canada’s Arctic and Northern regions.
- Budget 2022 provided the NTCF with an additional $450 million over five years, as well as dedicated funding for the advancing Industry-Driven Digitalization of Canada’s Supply Chain initiative, bringing the total National Trade Corridors Fund envelope to $4.6 billion. The additional funding will increase focus on supporting supply chain issues to help ease the movement of goods across Canada’s transportation networks.
- To date, Transport Canada has launched seven calls for proposals (see appendix for further information).
Appendix: Calls for Proposals undertaken to date
National Call to Address Capacity Constraints
- In July 2017, the first call for proposals was launched to address urgent capacity constraints and to improve supply chain performance. Under this call, Transport Canada approved $890 million to fund 39 transportation projects across Canada, including every province and territory.
Canada’s North
- The Northern call for proposals was launched on November 19, 2018, and focused specifically on targeting transportation-related infrastructure investments in Yukon, the Northwest Territories and Nunavut. This call, which closed on March 29, 2019, funded 11 projects, and provided $316 million in federal contributions to address unique transportation priorities in Canada’s territorial North.
Continuous Call for Trade Diversification
- Launched on January 15, 2019, this call targeted projects that would:
- Improve the fluidity and/or performance of the transportation system to contribute to an increase in the value and/or volume of goods exported from Canada to overseas markets; and/or
- Increase existing, or generate new, overseas trade as a result of the investment.
- In addition to the above criteria, projects were assessed for the extent to which they would add capacity or address bottlenecks near major ports, airports, or along road and rail corridors in Canada that help generate or increase overseas trade.
- The Continuous Call for proposals closed on December 9, 2021 and resulted in the approval of 63 projects with a total federal contribution of $1.4 billion.
Arctic and Northern Call
- This call for proposals targeted projects that address transportation challenges in Canada’s Arctic and Northern regions and was launched on October 23, 2020. The geographic scope of this Arctic and Northern call for proposals included the territories; the northern extent of Labrador containing the Nunatsiavut region; the Nunavik region in Quebec; and the Port of Churchill and related assets in northern Manitoba.
- The Arctic and Northern Call for Proposals closed on March 15, 2021 and resulted in the approval of 16 projects with a total federal contribution of $217 million.
Increasing the Fluidity of Canada’s Supply Chains
- Launched on December 9, 2021, this NTCF call for proposals prioritizes infrastructure projects that will strengthen the national supply chain, support critical investments in digital infrastructure and technology adoption to ensure a more resilient and efficient supply chain that can better adapt and better support national freight movements while ensuring it is resilient and adapting to the impacts of a changing climate. Investments will connect Canadian producers and shippers to global and domestic supply chains and enable access to international and internal markets.
- Transport Canada will advance funding under two major investment themes: Strengthening Canada’s Connections to Global Markets, and Building Internal Trade Corridors.
- To date, this call for proposals has resulted in the approval of 45 projects with a total federal contribution of $831 million. A second round of funding approval is pending a Ministerial decision.
Relieving Supply Chain Congestion at Canadian Ports
- Launched on January 31, 2022, this targeted call for proposals prioritized projects that will assist Canadian Ports with measures to relive immediate supply chain congestion and facilitate the movement of goods. The call for proposals closed on February 25, 2022.
- This call for proposals has resulted in the approval of nine projects with a total federal contribution of $28 million.
Advancing Supply Chain Digitalization
- Launched on February 13, 2023, this targeted call for proposals will prioritize projects that will strengthen Canada’s digital infrastructure to enhance the efficiency and reliability of our transportation supply chains. Transport Canada is currently assessing the proposals and all applicants will be notified of the results through email. The Advancing Supply Chain Digitalization call for proposals closed on April 11, 2023.
- A Ministerial funding decision for projects under this call is pending.