OPINION: CANADIAN PORTS MUST MODERNIZE OR CONTINUE TO FALL BEHIND

February 13, 2025

SHAL MARRIOTT

OTTAWA – Consistent union efforts to block port automation have left Canada with some of the least productive ports in the world, argues a recent publication by the MEI.

“Canadians depend on ports to bring their products to market and access affordable essentials,” said Shal Marriott, associate researcher at the MEI and author of the study. “Unfortunately, the lack of productivity in our ports makes it harder for Canadian goods to reach markets in Europe and Asia. This makes us much more vulnerable given the current trade uncertainties with the United States.”

Canadian ports rank among the least productive both worldwide and among similar-sized ports, according to the World Bank’s Global Port Index. Halifax is the only Canadian port that places in the top 100 ports, ranking 95th out of 405 Worldwide.

The ports of Montreal, Vancouver and Prince Rupert, meanwhile, respectively place 351st, 363rd and 397th. Even in rankings of ports of similar sizes, they all rank close to the bottom.

The MEI researcher argues that some of the most efficient ports in the world have reached that status thanks to technological upgrades and automation.

She points to examples such as the Ports of Cartegena (Colombia), Yokohama (Japan) and Singapore, which have successfully integrated new technologies to boost productivity and now (respectively) rank 6th, 9th and 17th in the world for productivity.

In Canada, the integration of technological upgrades, including automation projects, has been a source of conflict between unions and port owners.

In Halifax, the dockworkers’ union threatened a work stoppage and launched a campaign opposing automation efforts.

In Vancouver, dockworkers briefly shut-down the port of Vancouver, costing the Canadian economy $2 billion last November. The union cited the increased use of automation as being one of the reasons for their protest.

In Montreal, the International Longshoremen’s Association has also opposed the port’s plans to integrate new productive technologies in its activities.

Adding to the operational challenges is Ottawa’s recent legislation restricting replacement workers. Last May, the federal government passed Bill C-58, prohibiting the use of temporary workers during work stoppages in federally regulated industries.

According to MEI research published last year, such bans have been shown to increase the length of work stoppages as they give unions more leverage to impose their conditions.

“Unfortunately, Canadian unions have been very successful in slowing down the modernization of Canadian ports,” said Ms. Marriott. “Canadian manufacturers and exporters cannot afford for our ports to be inefficient on goods days and paralyzed on bad ones.”

The Port of Montreal handles $400 million in trade daily, while the Port of Vancouver, Canada’s largest port, oversees over $800 million.

The MEI study is available here: https://www.iedm.org/wp-content/uploads/2025/02/lepoint012025_en.pdf

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