OTTAWA — Canada's Transport Minister, John Baird, today announced his intention to create a Canada Port Authority (CPA) to operate the Port of Oshawa.
The Minister has sent letters to the City of Oshawa and the Oshawa Harbour Commission proposing a framework to address Oshawa Harbour issues that includes a strategy to resolve caveated land issues, options for a marina and a process that will allow the parties to work together to address multiple visions for the harbour.
"Our government recognizes the importance of the Port of Oshawa and its major role in the local economy. As a CPA, the port would have the tools to contribute to national marine infrastructure and related trade objectives," said Minister Baird.
A move towards port authority status would balance the interests of the users, the Oshawa Harbour Commission and the City of Oshawa with critical marine transportation needs. Currently the Oshawa Harbour Commission manages the port and administers some of the port's Crown land. It is the only remaining Harbour Commission in Canada. Strategically located at the eastern edge of the Greater Toronto Area, the port serves industries with specialized needs that are dependent on reliable, cost-effective water transportation.
The Minister's decision to pursue discussions was made after considering the positions of the City of Oshawa, port users, and local and regional stakeholders, as well as the recommendations made in a report on the future of the port that was prepared by the Honourable David Crombie, P.C., O.C. The Minister has chosen to explore the option that best balances the interests of all stakeholders and is consistent with the objectives of the Government of Canada's National Marine Policy. The National Marine Policy provides that the Commission may be continued as a Canada Port Authority or divested to local interests where there is local agreement.
Resolving the land-related issues with the City of Oshawa will serve to reinforce the port's commercial role while allowing the city to achieve significant elements of its vision for the Oshawa Harbour waterfront.
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National Marine Policy
The goal of the National Marine Policy, which was announced on December 14, 1995, is to improve the efficiency of Canadian marine transportation by rationalizing the port system, and placing decision making and operations in the hands of users and local interests.
The National Marine Policy identified the National Ports System, which includes ports that are both financially self-sufficient and vital to domestic and international trade. These ports are managed by Canada Port Authorities (CPAs) made up of representatives nominated by stakeholders, including user groups and various levels of government. This model makes Canada's major ports commercially and organizationally efficient, allowing them to remain competitive in the global economy.
The Port Divestiture Program is a key initiative under the National Marine Policy. The program seeks to transfer the ownership and operation of regional and local ports from Transport Canada to other federal departments, provincial or territorial governments, or local interests such as municipalities.
Necessary steps to create a CPA in Oshawa
Consistent with the requirements of the Canada Marine Act, the Minister of Transport, Infrastructure and Communities has the authority to create a CPA to operate a port if the Minister is satisfied that the port meets the criteria set out in the Act.
Transport Canada has received a request from the Oshawa Harbour Commission to be considered for CPA status. The department has assessed the port according to the criteria identified in the legislation, and the Minister is satisfied that the port:
- is, and is likely to remain, financially self-sufficient;
- is of strategic significance to Canada's trade;
- is linked to a major rail line or a major highway infrastructure; and
- has diversified traffic.
As a result of this determination, the department will initiate discussions with the City of Oshawa to resolve issues relating to land ownership.
Once the matter of land ownership has been resolved with the City of Oshawa, the Minister would need to seek federal approvals prior to issuing the letters patent.
May 2009
