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Ottawa pledges cash for supply chain problems, but plenty of gaps persist

Backed-up supply chains can lead to price hikes, product shortages and delays
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Cargo containers are seen stacked at port, in Vancouver, on Thursday, February 10, 2022. THE CANADIAN PRESS/Darryl Dyck

Ottawa plans to spend more than a half-billion dollars to fix supply chain issues, but experts say it falls far short of the kind of comprehensive strategy needed to address long-standing problems.

Last weekB次元官网网址檚 federal budget commits $603 million over five years to support transportation network upgrades such as port or rail expansions on top of the $4.2 billion allocated to the National Trade Corridors Fund since 2017.

Backed-up supply chains can lead to price hikes, product shortages and delays, affecting everything from semiconductors to cold cuts.

But large-scale infrastructure projects are pricey. A proposed container terminal at a Port of Vancouver site, for example, is estimated at $3 billion.

Ottawa last year announced a national infrastructure assessment that aims to lay out a long-term vision and boost co-ordination among infrastructure owners and funders over the next three decades.

Experts say that canB次元官网网址檛 come soon enough.

The extra money laid out in the budget is sure to help. But on top of more cash, whatB次元官网网址檚 needed most is a cohesive approach to the overall flow of goods into and out of the country, says Carlo Dade, director of the Canada West FoundationB次元官网网址檚 trade and investment centre.

B次元官网网址淭he governmentB次元官网网址檚 kind of under the illusion that if they sign trade agreements, goods just get put on a magic carpet and somehow arrive in foreign markets,B次元官网网址 he said in an interview.

B次元官网网址淵es, we need more money. But God help us, we have to be able to spend that money intelligently.B次元官网网址

The United States, European Union, Australia and Switzerland have overarching transport infrastructure strategies, the European Court of Auditors found last year. Canada does not.

Canada also placed 32nd in a World Economic Forum ranking of 141 countriesB次元官网网址 transport networks in 2019, falling from 14th four years earlier.

Billions more are also needed to strengthen road and rail networks against extreme weather like the atmospheric rivers that washed out transport links in British Columbia last year, says John Gradek, a McGill University lecturer specializing in supply chains.

B次元官网网址淭his new round of money will help ports tweak their technology and improve efficiency. It might help twin some sections of highway. But itB次元官网网址檚 not building a new port. ItB次元官网网址檚 not going to bore a hole through the Rockies to protect freight trains from washouts,B次元官网网址 he said.

Stretches of the corridors operated by the Canadian Pacific and Canadian National railways hug the Fraser River east of Vancouver. Others snake through avalanche-prone areas or run along thin plateaus between the river and mountains.

B次元官网网址淚t was river bed erosion from flooding that carved out these spaces B次元官网网址 so you were literally building on flood plains,B次元官网网址 Gradek said. Calling the corridors B次元官网网址渞isky territory,B次元官网网址 he said hefty infrastructure overhauls would involve topographical reviews followed by new routes.

Difficulties with congestion persist in hubs such as the Port of Vancouver, but capacity is not the only obstacle to freight traffic.

In winter, railroad operators have to reduce speeds and shorten train lengths because low temperatures impair the air-brake systems B次元官网网址 a problem that demands a technological rather than a construction solution, said Jacques Roy, professor of transport management at HEC Montreal business school.

Reducing congestion in major cities, increasing access to ports and addressing labour shortages would all mark crucial steps toward smoother goods transport, a puzzle that requires action by multiple levels of government and draws on areas ranging from public transit to skills training and immigration.

The ongoing national infrastructure assessment as well as a supply chain task force established by Ottawa in January aim to put forward solutions. But past reports with similar goals have had mixed results.

The Canada Transportation Act review, completed in 2016 after two years of study and stakeholder consultations, highlighted potential actions to bolster the countryB次元官网网址檚 economic health over the coming decades.

B次元官网网址淧rivate sector companies provided data, they sat down for interviews, the reportB次元官网网址檚 put out B次元官网网址 and it was immediately shelved by the government,B次元官网网址 Dade said.

Launched by Stephen HarperB次元官网网址檚 Conservative government, the review wasnB次元官网网址檛 finalized and submitted until after Justin TrudeauB次元官网网址檚 Liberals gained a majority. Transport Canada said when the report was tabled that its findings would be used to B次元官网网址渋nform the governmentB次元官网网址檚 activities, including the development of a long-term agenda for transportation in Canada.B次元官网网址

Previously, transportation experts mapped out a plan to build infrastructure and streamline trade rules under a 2008 policy report out of Western University related to the B次元官网网址淥ntario-Quebec Continental Gateway and Trade Corridor,B次元官网网址 a federal-provincial partnership.

That proposal called for a range of measures such as additional crossing capacity at border points, harmonized regulations between provinces and U.S. states, and the establishment of an agency to monitor results.

B次元官网网址淭here was a big show of interest and force and money was available. And then everything sort of collapsed over time,B次元官网网址 Roy recalled. B次元官网网址淚 donB次元官网网址檛 know what happened. It just faded away.B次元官网网址

B次元官网网址擟hristopher Reynolds, The Canadian Press





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