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Transportation Infrastructure Programs Past, Present & Future

Transportation Association of Canada Fall Conference September 2011

Edmonton, Alberta

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Presentation Outline

• Importance of Transportation in Canada

• Federal Initiatives in Transportation Infrastructure• Recent Federal Investment

• Challenges• Efficiency, Productivity and the Economy• Trade & Canada’s International Crossings• Urban Growth• Minimizing Environmental Impact• Infrastructure Financing

• Looking Ahead• Near Term Commitments• Developing the Next Infrastructure Agenda

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Importance of Transportation in Canada

Connects workers with jobs, travelers with destinations, and products with markets

• More than $1 trillion of goods move through the Canadian Transportation System every year

• Accounted for 4.1% of GDP by industry in 2009

• Provides important linkages between cities and communities,

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Federal Initiatives in Transportation Infrastructure

Responsibilities: • Regulator • Owner • Facilitator and Knowledge broker• Funding Partner

Partnership Approach across Canada: • Building Canada Plan • Economic Action Plan • Gateway Strategies

The federal government has made financial contributions to highway construction activities since 1919.

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0 2 4 6 810

Highways / Roads

Public Transit

Borders, Airports, Ports, Rail

Total : $19.8 Billion

$3.3 B

$6.5 B

$10.0 B

Recent Federal Investment in Transportation Infrastructure 2002-2010

Federal Investments leverage significant funding from other levels of government and the private sector

Federal contributions under the Infrastructure Stimulus Fund of over $1.5 billion for 1650 highway and road projects; $245.6 million for 70 public transit projects; $39.6 million for 19 airport projects; and $169.6 for 55 port projects.

Infrastructure Funding for Economic Stimulus

Canada’s Economic Action Plan

• Timely, Targeted and Temporary action

• Funding delivered in record time through strong partnerships

• Together we invested more than $30 billion

• Over 8,100 provincial, territorial and municipal infrastructure projects

Acceleration of Building Canada, and close to $17 billion in new funding for infrastructure and housing

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Canada’s Investment in Strategic Gateways

Asia-PacificAsia-PacificGateway andGateway and

Corridor Initiative Corridor Initiative (APGCI)(APGCI)

Ontario-Quebec Ontario-Quebec Continental Continental

Gateway andGateway andTrade CorridorTrade Corridor

Atlantic Atlantic Gateway Gateway

and Trade and Trade CorridorCorridor

North America's closest ports to

Asia

North America's closest ports to Europe, Latin America and ships transiting the Suez Canal

Each gateway has its own characteristics, challenges and opportunities; connections among the three gateways reflect inter-provincial and international supply chainsEach gateway has its own characteristics, challenges and opportunities; connections among the three gateways reflect inter-provincial and international supply chains

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1961 1968 1975 1982 1989 1996 2003 2010

Transport

Bridges

Roads

Transit

• The average age of roads, bridges and transit infrastructure in Canada has been getting younger

• This trend started at the beginning of the last decade, but has gained momentum since 2006

…And our investments are having an impact

Average Age of Core Surface Transportation InfrastructureAverage Age of Core Surface Transportation Infrastructure

Source: Statistics Canada, Investment and Capital Stock Division

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Challenges:Efficiency, Productivity and the Economy

• How do we maintain productivity growth?

Going Forward:• Importance of

maintaining “state of good repair”

• Improve efficiency of national transportation system

• Promotion of efficient market-oriented operations

Source: Conference Board of Canada

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Challenges:Trade & Canada’s International Crossings

• International trade totalled $724 B in 2009

• Border delays cost Canada an estimated $15 to $30 billion per year

Canada is the most trade-dependent nation in the G7 with exported goods and services accounting for 35% of GDP (2008)

Going Forward:• Strong focus on trade-driven multi-

modal system

• Integrated Canada-US strategies for perimeter security: Beyond the Border Declaration

• Continued development of Gateway Strategies

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Challenges:Urban Growth

• Congestion costs Canadians $2.3 - $3.7 billion per year

• How do we ensure the transportation system can support accelerated growth in our cities?

Going Forward:• Federal/Provincial/Municipal cooperation in regards to urban

transportation infrastructure investments• Focused investments on strategic infrastructure promoting

efficient freight movements in urban centres• Maintaining basic transportation infrastructure in rural and remote

areas

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Challenges:Minimizing Environmental Impact

Going Forward• Regulation of

emissions from all modes, aligned across North America

• Integrated land use and infrastructure planning, and multi-modal “green” supply chain strategies

• Maximizing efficiency of movement of goods

Source: Environment Canada, "2011 Emissions Trends"

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1990 1995 2000 2005 2010 2015 2020 2025 2030Total Historic Emissions Total Expected Emissions No Policy Total Expected Emissions With Existing Policy Road Freight Road Passenger

Historic Projected

Existing measures (e.g., light-dutyvehicle regulation, ecoTransport, ecoEnergy, 5% ethanol, federal and provincial tax measures) expected to reduce emissions by 14.8 Mt in 2020

Transport GHG emission trends – Historic and Forecasted

No Government Actions

Mt CO2e

Current Actions

• Transportation is the largest source of GHG emissions• How do we balance environmental impact with economic growth?

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Challenges:Infrastructure Financing

• Competing priorities for public funding

• Fiscal constraints all jurisdictions are facing

Going Forward• Several provinces are leading the

way in using P3 models

• Federal support through Building Canada Plan P3 fund ($1.25 B)

Of 158 P3 projects in Canada, 36 are transportation-related - Canadian Council for Public-Private Partnerships Project Database

• How can we best tap private sector capacities in addressing future

infrastructure needs?

Looking Ahead

• The Government of Canada remains committed to addressing transportation infrastructure issues

• Legislation of a permanent annual investment of $2 billion in the Gas Tax Fund

• Provide $228 million to federal bridges in Greater Montréal

• Contribute $150 million toward the construction of an all-season road between Inuvik and Tuktoyaktuk

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Looking Ahead:Developing the Next Infrastructure Agenda

…to ensure continued support for Canada’s economic growth.…to ensure continued support for Canada’s economic growth.

• While we have achieved a lot working in partnership and have made significant investments, there are challenges that need to be addressed

We must continue to work together…We must continue to work together…

TAKING STOCK OF PAST

ACCOMPLISHMENTS

IDENTIFYING GAPS AND PRIORITIES

LESSONS LEARNED AND THE NEXT

AGENDA

• Engagement with provincial, territorial, municipal partners and stakeholders will be integral to the process

• Budget 2011 commitment:“The Government will work with provinces, territories, the Federation of Canadian Municipalities and other stakeholders to develop a long-term plan for public develop a long-term plan for public infrastructureinfrastructure that extends beyond the expiry of the Building Canada plan”

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