The importance of the seaway
Question: What is the Seaway, and why is it so important to the Canadian economy?
Answer: The St. Lawrence Seaway is a system of locks, channels and canals that link the Great Lakes with the St. Lawrence River and the Atlantic Ocean. It’s one of Canada’s most important transport networks, facilitating transportation of goods throughout Canada, the U.S. and all over the world. The Seaway is a huge part of Quebec’s economy: a recent study showed that it employs 35,000 people and brings in $6.2 billion dollars of business income to the province each year.
“Marine commerce, through the Great Lakes and the Seaway, is really Quebec’s prosperity trump card,” said Stephen Brooks, President of the Chamber of Marine Commerce. “It’s efficient, incredibly safe, and an environmentally smart transport link, and it provides all kinds of benefits in terms of socio-economic contributions.”
Transporting essential goods
As well as increasing the efficacy of Canada’s national and international trade, the Seaway is of great benefit to provincial governments, who rely on the steady income that it generates. “Governments are acutely aware of the tax benefit,” explained Brooks. “Taxes generated from Quebec marine industry operations generated almost $800 million in 2010.”
The Seaway is the most efficient way to transport grain, one of western Canada’s best exports, across the country to Ontario and Quebec, where it can then be transshipped to Europe and other world markets. It also transports the raw materials that are used to service Canada’s construction and manufac- turing industries.
“The goods that build Canada, and the world, are going through the Seaway,” said Brooks. “Steel and Iron ore, and their bi-products, are a major commodity moving through the system. Iron ore coming from Sept Iles and Labrador is shipped to ports like Hamilton, Toledo, Burn’s Harbour and Chicago, and then manufactured. Semi-finished steel products are then shipped throughout Canada, the U.S. and the world.”
“Shipping gives us the bread, salt and sugar on our tables, the cars, appliances and tools we use everyday and the stone and concrete that builds our world.”
Rebirth of the seaway
In 2010, the government of Canada removed a 25 per cent import duty that was applied to any new ship built off shore. This import duty was affecting the industry: it wasn’t cost effective to buy new ships, and so the Canadian fleet was getting very old.The removal of this duty, along with significant investments in infrastructure, is helping the Seaway undergo a thorough rejuvenation.
“Since the government removed that duty the industry has replied with over $1 billion in new ship purchases,” said Brooks. “These ships are starting to come into the system and it’s a very exciting time. We’re seeing a complete rebirth of the Great Lakes and the Seaway.”
As well as increasing fuel, time and cost efficiency, these new ships will play a major role in fulfilling the current government’s aims of maximizing international trade opportunities.