No. H093/06For release August 22, 2006
OTTAWA — The Honourable Lawrence Cannon, Minister of Transport, Infrastructure
and Communities, today announced the extension of Transport Canada's Port
Divestiture Program until March 31, 2007.
"The extension of the Port Divestiture Program will continue this new
government's efforts to save Canadians money and improve efficiency in the port
system," said Minister Cannon. "The program allows communities to benefit from
the advantages of local operation, including the flexibility to respond to
changing needs and new business development opportunities."
As of March 31, 2006, Transport Canada had transferred, deproclaimed (to revoke
the designation of a port as a public facility) or terminated its interest at
466 of the 549 sites identified at the outset of the program. This process has
saved Canadian taxpayers more than $210 million, and accounts for 85 per cent of
Transport Canada's public port inventory. Only 83 ports remain to be divested.
The Port Divestiture Program is an initiative under the National Marine Policy.
The policy aims to reduce overcapacity and improve efficiency of the port system
in Canada, and has established three categories of ports: Canada Port
Authorities, regional/local ports and remote ports. The Port Divestiture Program
was established as a means to transfer regional/local ports to local ownership
and control.
Transport Canada will continue to own and operate certain designated remote
ports unless local groups express an interest in discussing divestiture.-- 30 --
Contacts:
Natalie Sarafian
Press Secretary
Office of the Minister of Transport,
Infrastructure and Communities, Ottawa
613-991-0700
Robin Browne
Communications
Transport Canada, Ottawa
613-993-0055
Transport Canada is online at www.tc.gc.ca. Subscribe to news releases and speeches at apps.tc.gc.ca/listserv/ and keep up-to-date on the latest from Transport Canada.
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BACKGROUNDER
PORT DIVESTITURE PROGRAM
The National Marine Policy underpins the Government of Canada's ongoing
initiatives to modernize Canada's marine transportation system. One initiative
within this policy framework is the Port Divestiture Program, under which
Transport Canada transfers ownership and operation of regional/local ports and
harbour beds to provincial or local interests. As of March 31, 2006, Transport
Canada had divested 466 of its original inventory of 549 ports and, in the
process, saved Canadian taxpayers more than $210 million.
The public port system supports the safe and efficient movement of vessels and
cargo and is integral to regional economic prosperity. Transferring
regional/local ports to local interests places decision-making responsibilities
in the hands of those best able to gauge local requirements. This allows for a
more effective and efficient port system with local accountability. The new
owners have the same rights and obligations of any property owner and are
subject to all applicable legislation.
Under the Port Divestiture Program, regional/local ports, including harbour
beds, owned by Transport Canada are first offered to other departments within
the Government of Canada and then to the provinces and territories. If the
province or territory is not interested in acquiring these facilities, Transport
Canada then seeks expressions of interest from local stakeholders, including
municipalities. A public tender may be used as a final option in the event that
no expressions of interest are received.
The Port Divestiture Fund was created to ease the transfer process. The fund
provides an incentive to local interests to assume ownership of the facilities
and to give operators flexibility to operate within the local business
environment. Contributions from the fund must be applied to eligible
expenditures directly related to the operation of the port or to eligible
capital projects designed to bring existing port property up to minimum safety
or operating standards.
Audits of contribution agreements help safeguard the efficiency and
effectiveness of the Port Divestiture Program. For each year of a contribution
agreement, the port operator must provide the Minister of Transport with
evidence certifying that the contribution funds have been applied to eligible
expenditures directly related to port operations. In addition, a port operator's
books and records must be open for audit and inspection at the discretion of the
Minister, a requirement that continues for six years after the end of the
contribution agreement. The transfer documents also provide for the full
repayment of the contribution in certain instances, such as if the port operator
ceases to operate the port.
Under the National Marine Policy, the vast majority of ports in Canada were
classified as regional/local. However, the policy also includes two other
categories not covered by the port divestiture program:
Canada Port Authorities (CPAs): These 19 ports, which are vital to domestic and
international trade and are financially self-sufficient, continue to be owned by
Transport Canada but independently managed by boards of directors nominated by
user groups and various levels of government. CPAs are governed by the
Canada
Marine Act, which enables them to operate in a more commercial, efficient and
timely manner.
Remote Ports: These 26 remote ports that serve basic transportation needs of
isolated communities rely on the presence of an existing Transport Canada wharf
structure. Remote ports will continue to be operated by Transport Canada unless
local groups express an interest in acquiring them.
While Transport Canada is transferring its property interests in the case of
regional/local ports, the Government of Canada retains jurisdiction over lawful
navigation on the water. As a result, the need for ships to obey all applicable
federal statutes such as the Canada Shipping Act remains unaffected.
August 2006
