Transportation 2030: Trade Corridors to Global Markets

From: Transport Canada

“Trade Corridors to Global Markets” is one theme under Transportation 2030, the Government of Canada’s strategic plan for a safe, secure, green, innovative and integrated transportation system.

Our goal for this theme

To improve our transportation system so we can get products to market and grow our economy.

What Canadians told us

In 2016, we consulted Canadians about our transportation system. Here is what they told us about trade:

It takes good collaboration between industry and government to maximize economic opportunities
Cost inefficiencies hurt Canada’s ability to compete globally
The costs of domestic freight transportation greatly affect industrial investments
Beyond infrastructure investment, Canada must use innovation, policy, regulations and creativity to improve the efficiency of supply chains
We must adopt a national and system-wide way of looking at things in order to identify problems
However, we must also keep in mind the individual needs of shippers, as there may not always be one fix for all sectors
Transport data is becoming less available, but Canada needs to make data a priority for a national transportation strategy

Where we go from here

To meet our goals for getting products to market effectively, we committed to:

Support the movement of goods and people by investing more than $180 billion in infrastructure over 12 years as part of the Investing in Canada Plan
Use new ways to collect and analyze data
Make sure that data is available to all who operate, oversee and use the transportation system
Look at new ways to finance transportation infrastructure projects in partnership with other levels of government and the private sector
Make infrastructure investments to address bottlenecks in important trade corridors, including rail export corridors
Work on greater transparency in the rail transportation supply chain
Take a more balanced approach for rail stakeholders
Support a more competitive and efficient rail sector
Make sure our actions support work on government priorities, such as:
- Canada’s progressive trade and investment plan
- a pan-Canadian framework on clean growth and climate change
- a national innovation agenda

Support in Budget 2017

Budget 2017 made a large commitment to trade and transportation priorities, including:

$1.9 billion to the National Trade Corridors Fund, including a dedicated allotment of $400 million in funding for projects to address the transportation needs of Canada’s territorial North
$5 billion to the Canada Infrastructure Bank
$50 million to improve our trade and transportation data and analysis which led to the creation of the Canadian Centre on Transportation Data

Support in Budget 2018

$6 million over the next three years to help modernize the Canadian Transportation Agency
In the 2018 Fall Economic Statement, Transport Canada received $13.6 million over three years to improve transportation data and speed up the creation of the Canadian Centre on Transportation Data. This funding started in 2019

Support in Budget 2019

To support Canada’s Arctic and Northern communities by improving and building infrastructure, Budget 2019 earmarked up to $400 million over 8 years for Arctic and Northern regions under the National Trade Corridors Fund.
This brings the total funds for these regions to $800 million, and the total funding under the National Trade Corridors Fund to $2.3 billion.

Our progress

Improvements to the rail industry

The Transportation Modernization Act (the Act) received Royal Assent on May 23, 2018. This Act amended the laws and regulations that govern the railway industry in Canada, based on the following four principles:

Fair access

Creating a more balanced approach for stakeholders, by:
- better defining “adequate and suitable” rail service in the Canada Transportation Act
- ensuring more accessible and timely processes to support balanced negotiations between shippers and railways on both rates and service, allowing shippers to seek reciprocal financial penalties in their service agreements with railways, which will make both parties more accountable
- creating more informal dispute resolution support and updated guidance on shipper remedies from the Canadian Transportation Agency
Transparency

Increasing transparency of the freight rail sector by:
- making more data on the service and performance of railways publicly available
- expanding the Canadian Transportation Agency’s power to investigate rail service issues
Efficiency

Fostering a more efficient and competitive freight sector by:
- creating a new way, called “long-haul interswitching,” to give captive shippers across sectors and regions of Canada access to a competing railway
- requiring railways to report publicly each year on their ability to move the upcoming grain crop, as well as on their winter contingency plans
Long-term investment

Encouraging investments in the freight rail network by:
- modernizing the formula the Canadian Transportation Agency uses to calculate the Maximum Revenue Entitlement for grain, to better credit railways for their investments and encourage the purchase of hopper cars
- making it easier for the Canadian Transportation Agency to update regulated interswitching rates on an annual basis

Trade and Transportation Corridors Initiative

On July 4, 2017, the Minister announced the creation of the Trade and Transportation Corridors Initiative, which will build stronger, more efficient transportation corridors to international markets. This initiative created:

the National Trade Corridors Fund, an 11-year, $2.3 billion contribution program designed to help the people who own, use and operate transportation infrastructure to invest in projects that strengthen the efficiency and resilience of Canada’s trade and transportation corridors
- As of January 2021, more than $1.8billion has been committed to 87 transportation infrastructure projects across the country with total investments of more than of $3.9 billion (Projects funded by the National Trade Corridors Fund)
- As of January 2021, two of the fund’s calls for proposals are open, including:
  - a continuous call for trade diversification projects, which targets projects that contribute to generating or increasing overseas trade in support of the Government of Canada’s Export Diversification Strategy
  - an Arctic and Northern call for proposals, which targets projects that address the transportation infrastructure priorities and needs of Arctic and Northern communities, such as safety, climate change and fostering socio-economic opportunities. This call for proposals will close on March 15, 2021

a Trade and Transportation Information System, managed by the new CCTD, a joint project between Transport Canada and Statistics Canada
measures for innovative transportation, to:
help us work with key partners in understanding and regulating new transportation technologies
update rules and regulations for remotely piloted aircraft systems (also known as drones) and connected and automated vehicles

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