After enjoying several profitable years in terms of traffic and economic success, most Canadian port authorities are now facing a very different situation.
Indeed, several Canadian port authorities - one only has to think of Metro Vancouver, Québec, Montréal or Saint John, New Brunswick - have reached unprecedented heights over the last few years.
However, like many other players on the international maritime scene, most Canadian port authorities are suffering from effects of the current global financial crisis - a crisis that is making history.
Most Canadian ports do business with dozens of countries. It is therefore unthinkable not to foresee slowing down of our respective activities for the current year. Certain experts among the most optimistic believe that this crisis cannot be resolved for 12 to 18 months yet.
Is the future irremediably dark and hopeless for the Canadian ports? Absolutely not!
It is a fact that ports will have to face new challenges and work within a very different economic context, but the Canadian port community holds all the assets that will help it meet those challenges head-on.
The prevailing situation provides us with an ideal period to evaluate our strengths and weaknesses in order to remain competitive and be ready to meet the market's needs as soon as the economy shows signs of recovery.
The most important thing for all Canadian port authorities is to manage this crisis strategically. Let's not give too much importance to what we cannot control, and let's instead concentrate our efforts on what is relevant. We should not sacrifice long-term endeavors in order to secure short-term activities.
Contrary to what several governments have been doing throughout the world, it is more difficult for ports to initiate massive expenses for the restoration of infrastructures unless they can count on large available cash assets. The idea, therefore, is to limit ill-timed expenses and favor investments that improve upon the quality and efficiency of the infrastructures already in place.
In Canada, initiatives such as the Canada Gateways policy and other similar programs dedicated to infrastructures let several entities profit from important contributions necessary for rehabilitation of assets essential to economic activities. For nearly 10 years, Canadian port authorities were not eligible to receive financing from the federal government, a situation corrected in June 2008 with an amendment to the Canada Marine Act.
Contrary to certain other infrastructure projects, the realization of port infrastructures, such as construction of wharves, generates private investments for terminals and handling and storage equipment. Thus, financing port infrastructures within a more difficult economic context makes it possible for the maritime community to stimulate future development opportunities.
The economy is in constant movement, and we must evolve along with it. Demand will strengthen again over the coming years. The globalization of commercial exchanges - bringing increased port activity - has not yet finished progressing among the continents. Those who are preparing now for this eventuality will emerge even stronger than they were before the crisis.
Canadian ports must look to the future. Since 1999, Canadian port authorities have grown by more than 30 percent. This growth well represents the success of Canadian foreign trade. Canadian ports currently handle 280 million tons of merchandise annually, representing a value of more than $142 billion, and generate 250,000 jobs countrywide.
Investing in our infrastructures and managing this crisis wisely will help us keep on growing, but, most of all, this attitude will inevitably contribute to fulfillment of our primary mission, which is to generate prosperity. Isn't that the very reason for our existence?
