Canada Ports & Corridors
Special Report
The union during past contentious negotiation cycles has threatened to complicate contract talks by negotiating with each of the West Coast’ s more than one dozen employers rather than collectively with the British Columbia Maritime Employers Association.
Out of the consultations focused on ports, backers hope the legislation that follows will allow ports to increase their borrowing abilities. It costs tens of thousands of dollars and takes at least a year for port authorities to increase their borrowing limits, said Daniel-Robert Gooch, president and CEO of the Association of Canadian Port Authorities( ACPA).
ACPA has proposed embedding a debt-to-income ratio in the constitution, rather than enforcing a strict borrowing limit, providing flexibility to faster-growing ports. Port authorities also want a freer hand to engage in activities outside their land and waterway, such as being able to sell unused, prime downtown acreage, Gooch said.
Peter Xotta, CEO of the Vancouver Fraser Port Authority, said,“ If Vancouver is challenged [ in borrowing for ] projects, then surely, just about every other port in the country that is much smaller than Vancouver probably faces the same challenge to a degree.”
Fuss over fees
In addition to wanting labor reform, ocean carriers and marine terminal operators want the Canadian legislation to inject more transparency into its leases with tenants, particularly as it pertains to special fees. The Canada Transportation Agency on Feb. 13 dismissed a request by the Shipping Federation of Canada to intervene against Vancouver Fraser Port Authority’ s empty container fee.
Gooch, representing port authorities, downplayed how much more transparency is needed in terms of port fees, arguing that the current system for challenging these and similar fees is sufficient.
Xotta said tenants need to be able to understand and challenge fees, but it can’ t hamstring the port authority’ s ability to make a return on investment.
“ We can hear the dog whistles of union-busting.”
The federal consultations also addressed potentially repealing the Shipping Conference Exemption Act, a move that ocean carriers and terminal operators support if the limited antitrust exemption allowing operating alliances remains. That protection could be granted by the government via a policy statement, according to one source close to the shipping industry’ s thinking.
The consultations tied to digitalization have been focused on harmonizing systems and could potentially lead to legislation requiring the creation of a maritime single window, a digital platform for the clearing of ships, cargo and crews.
email: mark. szakonyi @ spglobal. com
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