Question Period Note: National Supply Chain Strategy

About

Reference number:
TC-2022-QP-00009
Date received:
Oct 17, 2022
Organization:
Transport Canada
Name of Minister:
Alghabra, Omar (Hon.)
Title of Minister:
Minister of Transport

Issue/Question:

Supply Chains

Suggested Response:

  • Ensuring that Canada’s supply chains are strong and resilient is a top priority for the Government of Canada.
  • Canada’s transportation supply chains have been significantly impacted by the global COVID-19 pandemic and recent extreme weather events. These disruptions impact the daily lives of Canadians and the ability of our economy to grow.
  • The Government of Canada recognizes that measures taken to address supply chains must consider the important role of transportation, which is why we continue to make important strategic investments through the National Trade Corridors Fund to alleviate congestion and bottlenecks in our supply chains while building back better for lasting solutions.
  • Understanding that any solution to persistent supply chain problems must be developed in tandem with industry, a Supply Chain Task Force was created to develop independent advice that identifies ways to mitigate supply chain pressures, and identify innovative solutions on potential action areas.
  • The Task Force submitted its Final Report to the Minister of Transport on October 6, 2022, and will help inform the development of a National Supply Chain Strategy.

If pressed

Collaboration with Industry Partners

  • The National Supply Chain Task Force undertook extensive consultations, which informed its recommendations regarding short and long-term actions to alleviate supply chain congestion.
  • We also recognize the importance of ensuring our National Supply Chain Strategy supports other ongoing efforts – it will complement measures the Government is already taking, including a series of roundtables and consultations, pandemic recovery, and collaborative efforts with the U.S. Supply Chain Disruptions Task Force.

Strategic invesments

  • Transport Canada issued two Calls for Proposals under the National Trade Corridors Fund that seek to increase supply chain fluidity and relieve supply chain congestion at ports.
  • The Department will continue to invest in projects that reduce bottlenecks and capacity constraints to help strengthen our supply chains while building smarter and more resilient against our changing climate.

Background:

  • The transportation sector is essential to the success of the Canadian economy – serving as an integral component of supply chain flows that function as the backbone of domestic and international trade.
  • Since the creation of the National Trade Corridors Fund (NTCF), the Government of Canada has announced over 100 projects and committed more than $2.1 billion supporting marine, air, rail, and road projects.
  • On December 9, 2021, a Call for Proposals was launched under the NTCF focusing on increasing the fluidity of Canada’s supply chains. The call seeks to advance funding under two investment themes: (i) strengthening Canada’s connections to global markets; and (ii) building internal trade corridors.
  • On January 31, 2022, a new targeted Call for Proposals was launched under the NTCF to assist to assist Canadian ports with the acquisition of cargo storage capacity and other measures to relieve supply chain congestion. The fund will dedicate up to $50M to support eligible priority projects. The call was open for four weeks.
  • Budget 2022 provided the groundwork for a National Supply Chain Strategy, committing $603.2M over the next five years to support continued investment in transportation infrastructure to help strengthen Canada’s supply chains, including $450M in new funding for the National Trade Corridors Fund. It also comprises funding for initiatives to create digital-first solutions, with industry, to relieve supply chain congestion, which will, in turn, help our supply chains become more sustainable and efficient.
  • These investments will be complemented by the work of the National Supply Chain Task Force, which submitted its Final Report on October 6, 2022.
  • The Task Force’s Final Report included recommendations related to easing port congestion, addressing labour shortages, protecting trade corridors, harmonizing regulations, and developing a transportation Supply Chain Strategy.
  • Jean Gattuso and Louise Yako were named as co-chairs of the national Supply Chain Task Force in March, 2022. The remaining members of the Task Force, industry experts with transportation, business and digital backgrounds, have been appointed and include: Robert Armstrong, Keith Bruch, Howard Eng, Shauna McMillan, Gretchen Polhkamp and Stephane Roche.

Additional Information:

Location: National/TRAN