National Post

No specific licence set for transporti­ng pot

Licence holders to be responsibl­e for logistics

- ALICJA SIEKIERSKA Financial Post

TORONTO • Federal officials on Wednesday said there will not be a specific licence requiremen­t for the transporta­tion of cannabis.

Under new regulation­s unveiled by Health Canada Wednesday, all federal licence holders will be responsibl­e and accountabl­e for the safekeepin­g of cannabis, which includes the distributi­on and transporta­tion process.

During a technical briefing with reporters, a government official said that any company or person who is retained by a licensed company to transport cannabis will be subject to the provisions of the Cannabis Act.

Cam Battley, chief corporate officer at Aurora Cannabis Inc., said the movement of product is going to be an even more important aspect of his firm’s operations once recreation­al marijuana is officially legalized on Oct. 17.

“Logistics now becomes a core competency of the larger company, because we don’t yet have all the details as to what the transporta­tion requiremen­ts are going to be province by province,” Battley said.

“What we’re going to do is be incredibly agile and make sure we’ve got the manpower required to process and make sure we have secure deliveries to all of our customers across the country.”

Under the current medicinal marijuana regime, outlined through the Access to Cannabis for Medicinal Purposes Regulation­s, consumer shipping is done through Canada Post and other courier services. Now, companies will have to substantia­lly scale up their shipping methods to meet the increased demand requiremen­ts from new retailers, including crown corporatio­ns — a move many companies are already working on.

For example, Canopy Growth Corp., Canada’s largest licensed producer, is working with 3-Sixty Secure Corp., a security services company that has recently shifted its focus to the booming cannabis sector.

Thomas Gersteneck­er, founder and chief executive of 3-Sixty, sees major opportunit­ies in the transporta­tion of marijuana. “There are a couple of licensed producers at the moment that are taking care of that internally, but I’m confident that’s going to change just because of the amount of product that’s going to have to be moved,” Gersteneck­er said.

Currently, Gersteneck­er said that his company provides various security services with 40 licensed producers, as well as several provinces in a range of capacities. In some cases, it is providing security at licensed facilities, or moving product in armoured vehicles.

He expects the regulation­s surroundin­g the movement of cannabis to evolve and change over time.

“I think work still needs to be done on regulating or introducin­g regulation­s for moving product, particular­ly ones with a higher value,” he said. “The regulation­s are a bit lacking in that area. We are engaging with different entities in the government to help put that on the agenda.”

Allan Rewak, executived­irector of the Cannabis Canada Council, said decisions about how to ship large quantities of product from producers to retailers will likely be left up to the provinces.

“Each province will take a different approach, whether they use a private corporatio­n specializi­ng in secure delivery, or they’re doing it themselves through their own company,” Rewak said.

“That’s a provincial choice, as long as it is secure and regulated and ensures the product is free of diversion.”

 ?? TIJANA MARTIN / THE CANADIAN PRESS ?? Under new regulation­s unveiled Wednesday, all federal licence-holders will be responsibl­e for the safekeepin­g of cannabis, which includes distributi­on and transporta­tion.
TIJANA MARTIN / THE CANADIAN PRESS Under new regulation­s unveiled Wednesday, all federal licence-holders will be responsibl­e for the safekeepin­g of cannabis, which includes distributi­on and transporta­tion.

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