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Presentation to the Transportation Border Working Group Montreal Plenary Meeting – October 25, 2007 Presentation by Marc Fortin Director, Seaway and Domestic.

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Presentation on theme: "Presentation to the Transportation Border Working Group Montreal Plenary Meeting – October 25, 2007 Presentation by Marc Fortin Director, Seaway and Domestic."— Presentation transcript:

1 Presentation to the Transportation Border Working Group Montreal Plenary Meeting – October 25, 2007 Presentation by Marc Fortin Director, Seaway and Domestic Shipping Policy G REAT L AKES S T. L AWRENCE S EAWAY S TUDY

2 2 A Marine Highway

3 3 Marine Traffic and Trade Waterway carries upwards of 260 million metric tons of cargo each year – this includes: 40% of Canada’s total domestic marine trade volume 50% of Canada’s total transborder marine trade volume with the U.S. 10% of all U.S. waterborne domestic traffic Furthermore, 25% of annual traffic through the Seaway locks moves to and from overseas ports, notably Europe, the Middle East and Africa Prosperity of several sectors depends on reliable, low-cost waterborne transportation – including the steel, agriculture, construction, electrical generation, natural resources, safety salt and petroleum industries

4 4 Population Served, Economy Served, Transportation Network The GLSLS system serves a region that: Borders 2 provinces and 8 states Is home to 110 million people or 30% of the Canada/U.S. population Accounts for more than 60% of Canada’s GDP Contributes approximately 30% to U.S. GDP Accounts for 55% of North America’s manufacturing Includes major industrial centres Offers strategic competitive advantages with fully integrated supply chains and multimodal transportation network

5 5 Forward Look – Key Considerations for the Waterway Aging infrastructure The locks have been in service for 50 to 75 years and the demands of maintenance are growing as are the costs Economic vitality and efficiency System is under-utilized and has the potential to almost double present cargo volumes within its existing locks and channels Environmental stewardship Taking stock of the environmental impact of commercial navigation on the system turns up a mix of positives and negatives Policy rationale for the GLSLS Study …

6 6 The GLSLS Study Transport Canada U.S. Department of Transportation U.S. Army Corps of Engineers The St. Lawrence Seaway Management Corporation Saint Lawrence Seaway Development Corporation Environment Canada U.S. Fish and Wildlife Service Bi-National Study Report Release in November 2007

7 7 Study Framework

8 8 Study Objective and Scope of Work To evaluate the infrastructure needs of the GLSLS system, including the engineering, economic and environmental implications of those needs as they pertain to commercial navigation Engineering Infrastructure site inspections Component condition and criticality Reliability and risk analysis Timing and costs for maintenance Economics Cargo/industry analysis Traffic forecasts Transportation rate analysis Carrier and shipper surveys New cargoes and new vessel market assessment Environment Identification of value ecosystem components (air, terrestrial, aquatic) Baseline conditions and anticipated future trends Navigation-related impacts and stressor analysis

9 9 Integrating Three Perspectives 1.What role should the GLSLS system play within the highly integrated North American economy? 2.What transportation solutions are available to guarantee a dynamic future for the waterway? 3.What measures need to be taken to ensure the continued reliability of the system’s infrastructure? 4.How should the GLSLS system sustain its operations in a way that responds to concerns about environmental integrity?

10 10 1. Role in North American Transportation The GLSLS system has the potential to alleviate congestion on the road and rail transportation networks as well as at border crossings Projected growth in GDP of the bi-national GLSLS region from $6 trillion to $14 trillion Forecast of market for containerized traffic carried by ALL modes in the bi-national GLSLS region is doubling from 70M TEU to 140M TEU by 2050 When integrated with rail and trucking, the region’s marine mode can greatly increase overall capacity of the transportation system

11 11 2. Solutions for a Dynamic Future A stronger focus on shortsea shipping would allow the GLSLS system to be more closely integrated with other modes of freight movement, while providing shippers with a cost- effective and reliable means to transport goods Shortsea Shipping Promoting modal integration Transhipment/feeder services Cross-border services Niche services and trades Key Considerations Impediments that discourage provision of shortsea need to be addressed Incentives need to identified and promoted to encourage the use of marine as a complement to land transport Opportunities to advance cross-lake freight services on a pilot-project basis Emerging opportunities for new multipurpose vessels that carry both bulk and container cargoes

12 12 3. Optimizing the Existing Infrastructure The existing infrastructure of the GLSLS system must be maintained in good operating condition in order to ensure the continued safety, efficiency, reliability and competitiveness of the system Key considerations Ongoing identification of high priority components as part of a long- term asset management strategy Modern technology to maintain reliability and preserve capability to respond to new cargoes and vessels Infrastructure considerations linked to shortsea shipping Holistic view of ports and their evolving modal links Ongoing Maintenance and Capital Investment at the Lock Systems

13 13 4. Environmental Sustainability The long-term health and success of the GLSLS system will depend in part on its sustainability, including the further reduction of negative ecological impacts caused by commercial navigation Priority management areas Aquatic invasive species Channel dredging Disposal of dredged material Erosion caused by ship wakes Ships’ air emissions Water level management Sustainable development Navigation impacts are intertwined with a variety of non-navigation impacts that cumulatively affect environment

14 14 The GLSLS Study First comprehensive assessment of physical state of the GLSLS system’s infrastructure on a bi-national basis First examination of economy, engineering and environment within the scope of one initiative Presents fundamental understanding of future needs, opportunities and challenges Builds awareness and and understanding of the GLSLS system and marine transportation Bi-national Study Report will be released in November 2007 Inform policy development and planning Maintain collaborative efforts and monitor future progress and success

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