Canada Gazette, Part I, Volume 153, Number 6: ORDERS IN COUNCIL

February 9, 2019

DEPARTMENT OF TRANSPORT

Certificate of intent to amalgamate port authorities

P.C. 2019-70 January 31, 2019

Her Excellency the Governor General in Council, on the recommendation of the Minister of Transport, pursuant to section 59.1 of the Port Authorities Management Regulations, hereby issues the annexed certificate of intent to amalgamate the port authorities specified in the certificate (therein).

CERTIFICATE OF INTENT TO AMALGAMATE PORT AUTHORITIES

WHEREAS the Minister of Transport has recommended that the Oshawa Port Authority and the Hamilton Port Authority be required to amalgamate and continue as one port authority to be named the Oshawa-Hamilton Port Authority.

NOW THEREFORE under the authority of section 59.1 of the Port Authorities Management Regulations, the intent to require the Oshawa Port Authority and the Hamilton Port Authority to amalgamate and continue as one port authority to be named the Oshawa-Hamilton Port Authority is hereby certified.

EXPLANATORY NOTE

(This note is not part of the Order.)

Proposal

This Order in Council issues a certificate of intent to amalgamate the Canada Port Authorities (CPAs) of Oshawa and Hamilton, pursuant to section 59.1 of the Port Authorities Management Regulations (PAMR), which permits the Governor in Council to require two or more port authorities to amalgamate and continue as one port authority.

Objective

This proposal seeks to strengthen the Canadian supply chain in Ontario by providing a coordinated approach to port development, land use and marketing. This amalgamation would allow the amalgamated port authority to leverage the operations of the Hamilton Port Authority (HPA) and the established operations of the Oshawa Port Authority (OPA) to successfully broaden multimodal transportation options in the Greater Toronto Area.

The benefits of amalgamating CPA have been raised in the context of the 2016 review of the Canada Transportation Act (CTA) as well as the Minister of Transport’s Transportation 2030 vision. The final report of the CTA review recommends that work be conducted to further the amalgamation of CPAs guided by “common user principles embodied in the Canada Marine Act” and also noted the success of the previous Port Metro Vancouver amalgamation that enabled a more strategic approach to transportation system planning. Similarly, Transportation 2030 proposed a broad agenda for the future of Canada’s transportation system that includes examining the governance and the optimization of CPAs.

Background

Canada is a trading nation that relies on the port system. CPAs handle about 60% of Canada’s marine commercial cargo tonnage, and contribute over 213 000 direct and indirect jobs and over $25 billion to Canada’s gross domestic product.

Eighteen CPAs make up Canada’s national port system; these CPAs are non-share capital corporations incorporated under the 1998 Canada Marine Act (CMA) that have been recognized to be of strategic significance to Canada’s trade.

In order to strengthen Ontario’s marine transportation corridor, amalgamation of the two CPAs is being proposed.

The PAMR include amalgamation provisions into the management framework governing CPAs. These provisions set out the process for the federal government to require two or more CPAs to amalgamate and continue as one integrated CPA. These regulatory provisions are to be applied to the amalgamation of the OPA and the HPA so that they combine and continue as one amalgamated CPA.

Implications

Consideration was given to the following implications of an amalgamation between the OPA and the HPA.

Financial

An amalgamation under the PAMR is administrative in nature and would represent no further financial costs for the Government of Canada or to the Canadian public.

Operations at both the Port of Hamilton and the Port of Oshawa would continue without disruption and the amalgamated port would be in a strong financial position. The forecasted performance of an amalgamated port indicates positive growth for the foreseeable future.

Environmental

There are no expected environmental implications, as no changes to the current land holdings, infrastructure, or real property of the OPA and HPA are being proposed.

Economic

Amalgamation would strengthen the Lake Ontario transportation corridor. Available industrial land at both ports would complement one another in terms of business coordination and development planning to strengthen the Ontario regional supply chain. Continuity of operations at both ports would result in continued direct and indirect economic benefits for surrounding communities.

Consultation

Consultations will be conducted after the posting of a notice of Certificate of intent to amalgamate port authorities in the Canada Gazette, Part I. Notice of the Certificate of intent to amalgamate will be published in media outlets in municipalities where the ports are located as well as on the Transport Canada (TC) website. The Notice states that interested persons may, in accordance with the notice, make written representations to the Minister of Transport within 30 days after the day on which the notice is published. The results of these consultations would be considered within the context of a second submission to the Governor in Council on whether to seek the issuance of a Certificate of amalgamation that officially amalgamates the two ports.

Consultation with entities directly affected by a proposed amalgamation will be conducted by Transport Canada within the consultation period.

Contact

Email: TC.PortAmalgamation-Fusionports.TC@tc.gc.ca