Ambitious Quebec maritime strategy blueprint nearing completion

The Quebec government that came to power last spring is proceeding with an unprecedented plan to soon unveil a maritime strategy blueprint seeking to transform the St. Lawrence River into a competitive gateway of choice for continental logistics and for trans-Atlantic trade in the coming years. A June launch date has been announced. Whether the billions of dollars of public and private investments required will be found remains to be seen. The grand scheme covers a broad range of areas ranging from port infrastructures and intermodal services to creating logistics hubs. It is motivated in part by the prospect of increased commercial exchanges expected to be generated by a Canada-European Union free trade agreement that could be ratified by 2016. In addition, the enlargement of the Panama Canal promises to boost the flow of goods between Asia and the East Coast of North America. And the Quebec authorities want the St. Lawrence corridor to be competitive with various US ports on the eastern seaboard carrying out substantial capacity improvements to capture some of the traffic. Some 30 ports handling 110 million tonnes of cargo annually are situated on the St. Lawrence River, which provides direct access to the North American heartland. These include Montreal, a leading container port, and Sept-Iles, the continent’s largest iron ore gateway which is destined for bigger things under efforts aiming to bolster Plan Nord objectives currently impacted by depressed commodity prices.

Jean D’Amour, Quebec Minister for Transport and the Implementation of Maritime Strategy, was picked by Premier Couillard to lead the charge. Couillard himself has taken a special interest in the ambitious undertaking, as illustrated by his recent visit to the Port of Antwerp, Europe’s leading maritime trading partner with Canada. Addressing an industry conference in Montreal in February, D’Amour reiterated the provincial Liberal government’s plans to create 30,000 new jobs between now and 2030 by investing C$3 billion in infrastructure, intermodal improvements and other undertakings encompassing ports, shipyards and shortsea coastal activities. The establishment of eight so-called “industrial-port zones” and a large logistics cluster in the Greater Montreal region are envisaged. The government scenario also assumes that private investors will be prepared to invest up to an additional $4 billion over the next 15 years. What he called “the Quebec of tomorrow” must be ready to meet severe competitive challenges for ensuring a smooth and efficient flow of goods. Major Financing Challenges The maritime strategy blueprint has even been billed as a cornerstone of overall economic policy of the Canadian province. Its sole existence has made a favourable impression on Quebec marine industry and manufacturing circles, despite some palpable underlying skepticism over sufficient financial resources for the plan’s achievability. Eric Tétrault, President of Manufacturers Exporters Quebec, recently told an industry conference: “We need to create a supply chain and a logistics chain that will enable us to export in greater quantities at lower cost. Basically, it is as simple and as complicated as that. As the saying goes in English, we will have to walk the talk.” According to Claude Comtois, a university professor specialized in transportation logistics, a heavy assignment lies ahead for bringing Quebec infrastructure up to world standards as seen in China and Europe. He affirms that at least C$250 million in fresh government funding should be allocated annually for expanding and improving certain infrastructures and adding such features as multi-task berths. “Otherwise, it will not be credible.” Observers consider that the present tense climate of contract negotiations with Quebec’s civil service and key departments raises serious questions that persist on the capacity of the government to financially maintain its lofty goals of maritime strategy. Some hints should be offered in the 2015-2016 budget slated for this spring. (Reuters)