February 28, 2022 | Category: Published Articles

(Pubished by The Hill Times)

Transportation to Rely On

We need to take bold steps and come together as an industry.

The freight transportation industry has collaborated and adapted to minimize supply chain disruptions caused by the COVID-19 pandemic and extreme weather events in British Columbia in 2021. The industry needs to continue to adopt the same tenacity and spirit of cooperation to resolve long-standing challenges such as capacity constraints, lack of transparency and limited inter-jurisdictional coordination. 

It comes as no surprise that in WESTAC’s recent survey, half of the industry leaders consider competitiveness to be unchanged in the past year. Canada’s reputation as a reliable supplier and trading partner has suffered, with frequent disruptions, delays, and congestion. The recent border blocking protests impacted $3.9 billion worth of trade, and this is just the value of goods that were unable to move across the border.  The reputational impact on Canada as a trading nation has been much higher. We must actively work together to prevent further disruptions to our transportation trade network. This work also needs to address the regulatory uncertainty and the lack of regulatory clarity hindering Canada’s capital investment. Without shorter approval processes and clear requirements, Canada’s reputation for ease of doing business will erode further.

If there has been anything positive to come from the COVID-19 pandemic and extreme weather events Western Canada—it is that Canadians now know the importance of supply chains, and the impact on their lives when supply chains falter. We have learned how vulnerable our infrastructure and economy are to the changing climate from the disruptions caused by wildfires, drought, and flooding. Failure to address these vulnerabilities will not bode well for other efforts to minimize supply chain disruptions. On the contrary, capital investments that can be made with certainty will aid Canada's economy, support job creation and increase exports to markets.

In the face of challenges, the industry has risen to the occasion and resolved issues quickly. However, more must be done, and the industry cannot do it alone. A new trade corridor strategy is needed to enhance competitiveness. The strategy should focus on increased data sharing and strategic climate-resilient infrastructure investments to improve system-wide fluidity. This cannot be emphasized enough, as infrastructure and capacity has remained as a top challenge facing the freight transportation sector for several years.

It’s not just about infrastructure. We need to prioritize people. With the increased adoption of technology, many fear for their job security. These concerns are particularly high among carriers, logistics providers and shippers, as indicated in Compass 2022.  WESTAC’s survey also found that more than 3-in-5 organizations (63%) face labour shortages—the largest number in the past four years. Without a doubt, this number has been impacted by the pandemic. Organizations need to pay greater attention to their workforces to build resilience and make transportation the industry of choice.  This includes training today’s staff for the jobs of tomorrow.

The call to action for Canada is clear. To thrive and build back better, we need to recognize the importance of transportation to our economy and develop a new trade corridor strategy through increased industry and stakeholder collaboration. Fluidity in the system cannot be created and maintained without forward-thinking, which is truly forward.   

You can read the WESTAC Compass 2022 here.

 

About the Author

Lindsay Kislock is the President & CEO of WESTAC (Western Transportation Advisory Council).

 

About WESTAC

The Western Transportation Advisory Council (WESTAC) is a council of organizations in the transportation sector represented by senior decision-makers. WESTAC’s members span all aspects of freight transportation in Canada. They include carriers and logistics providers, ports and terminals, shippers, labour unions, and the three levels of government. Members represent a significant share of the western Canadian economy. We focus on critical issues that affect Western Canada’s freight transportation network to ensure that it is safe, efficient, reliable and competitive.

 

The comments here are of the author and do not reflect the opinions of WESTAC members. For media inquiries, contact Marzia Rizvi, WESTAC’s Manager, Program Development and Communications.