April 18, 2024 | Category: Published Articles

 

(Published by The Hill Times)

Budget overlooks need for trade-enabling infrastructure
The National Trade Corridor Fund needs to be urgently recapitalized for our economic prosperity as Canada lags behind on national transportation infrastructure strategies.

The federal budget presented a critical opportunity to demonstrate that the government understands the link between trade, transportation, and economic prosperity. In today’s global economy, the vitality of a nation’s trade infrastructure is integral to its economic prosperity. But it seems like Canada did not receive the memo. 

As a trade-dependent country, the strategic enhancement of our transport and logistics network is not only beneficial, but essential. Investing in modern, resilient, and efficient infrastructure must be a priority in our federal and provincial budgets to ensure sustained economic growth and productivity. These investments to grow Canada’s economy are exceedingly crucial as an alternative to tax increases to address fiscal deficits. 

Consider this: trade accounted for over two-thirds of Canada’s GDP in 2022, according to the World Bank. Yet, the importance of resilient, trade-enabling infrastructure seems to be overlooked. This infrastructure not only connects us to our customers and moves goods, but it also shapes the very communities in which we live. Other leading, developed nations have robust national transportation infrastructure strategies, but Canada lags behind. This lack of strategic planning is not only a local concern, but it’s also eroding our global reputation and competitiveness.

With the near depletion of the National Trade Corridor Fund (NTCF), which has significantly contributed to enhancing our trade routes, the government should recapitalize the NTCF but also improve the processes, communication, and transparency with project proponents. Recent conversations between the Western Transportation Advisory Council (WESTAC) and senior transportation stakeholders have indicated the desire to invest and be active in enhancing Canada’s infrastructure landscape if supported by initiatives like the NTCF, and a clear and predictable regulatory framework. 

Infrastructure across Canada faces numerous challenges, from aging infrastructure to climate-related disruptions. We need to recognize that these issues will not magically disappear. The 2019 Canadian Infrastructure Report Card produced by the Federation of Canadian Municipalities indicated that nearly 40 per cent of roads and bridges in Canada are in fair, poor, or very poor condition, with roughly 80 per cent being more than 20 years old. The time to take concerted action was yesterday, but we can start today. These challenges also present unique opportunities for improvement. The available technology can be our friend. For instance, investment in digital technology can maximize the efficiency of existing assets and be used to detect vulnerabilities in existing infrastructure. 

Funding is only part of the solution. The government needs to urgently address the regulatory intransigence and barriers to project approvals limiting capital investment in Canada. According to WESTAC’s 2024 Compass Report, the government’s inability to make timely decisions has been the top transportation challenge, underscoring leaders’ frustration with delays and perceived inefficiencies in government processes. By providing financial incentives, speeding up permitting processes, and improving communication, the government can foster an environment where public-private partnerships can thrive. 

As we look back on the missed opportunity to address this issue in the most recent federal budget, it becomes clear that significant allocations towards upgrading our trade infrastructure are not only desirable, but also imperative. These investments must be guided by a national transportation infrastructure strategy, a product of collaboration between the federal and provincial governments, and industry input. Only through this unified approach can we ensure the strategic enhancement of our trade infrastructure.