To build a future-ready trade infrastructure network, Canada must develop a long-term strategy and invest in transformative trade infrastructure projects, according to research from the Conference Board of Canada.
With global markets shifting and an increasingly volatile global climate, Canada’s trade infrastructure stands at a critical juncture. Effectively addressing today’s challenges requires a strategic, systems-level approach that aligns objectives across the country’s different regions and lays the foundation for sustained global competitiveness.
Canada’s share of global trade fell from 4.1 per cent in 2000 to 2.3 per cent in 2023.This decline highlights how existing infrastructure has not kept pace with the evolving demands of an increasingly complex global trade environment. A lack of investment in trade infrastructure has led to network congestion, reduced connectivity, and longer end-to-end travel times, among other issues.
Canada has an opportunity to redefine its trade corridors and build an infrastructure network that is both resilient and future-facing. However, this will not be achieved through standalone, isolated projects – it calls for coordinated efforts across key sectors and a shared vision that accounts for both federal and provincial-territorial priorities.
Already, collaborative efforts between governments and private industry are advancing transformative projects. These partnerships are working to align trade infrastructure projects with broader economic development objectives. And they are also facilitating the deployment of new technologies.
Market diversification will be central to Canada’s forward-looking vision. While the United States remains Canada’s largest trading partner, opportunities in Europe and Asia are emerging and require infrastructure investment to facilitate new trade corridors.
To fully unlock the benefits of these efforts, Canada must also broaden its focus beyond primary trade assets. For example, while considerable investments have been directed toward major projects like the Port of Vancouver, supporting regional infrastructure—such as the Port of Nanaimo and Port Alberni—remain overlooked. Tapping into these systems could enhance the efficiency and resilience of trade networks.
Intermodal efficiency—the seamless and efficient transfer of freight and goods across different modes of transport—will be another key factor in strengthening our system. Inland ports improve transshipment efficiency and reduce emissions per tonne-mile, particularly from truck to rail. They also alleviate congestion at maritime ports and provide greater route flexibility on the trade network.
Canada has several examples of prospective and existing transformative trade infrastructure projects that advance federal and provincial–territorial strategic objectives in trade and trade infrastructure. These projects provide insight into how Canada can pursue a strategic, integrated, long-term approach to the country’s trade network.
- Canada’s Pacific gateway: Expanding capacity at the Port of Vancouver and Prince Rupert is key to alleviating congestion. Additional rail capacity is a priority for the Port of Vancouver.
- Inland terminals: Projects such as the expansion of CentrePort Canada in Manitoba and the We’kopekitk Inland Shipping Terminal in Nova Scotia can improve competitiveness by easing congestion and cutting costs.
- Hydrogen corridors: Hydrogen refuelling infrastructure along major trucking routes is essential to the decarbonization of freight. In Alberta, a hydrogen refuelling network is being developed along Highway 2, which connects Edmonton and Calgary.
- Port-based hydrogen hubs: Regional ports, particularly in Atlantic Canada, are poised to become green hydrogen production hubs, supporting decarbonization and trade diversification.
- Mackenzie Valley Highway: This all-season highway will improve connectivity in the North and reduce reliance on seasonal infrastructure.
- Slave Geological Province Corridor and Grays Bay Port and Road: These projects will unlock critical minerals in Northern Canada and strengthen Arctic sovereignty
Canada requires $4.4-trillion in transportation infrastructure investment between 2020 and 2070. With seismic shifts in the economic and geopolitical landscape, Canada should adopt a mission-critical approach to trade diversification and infrastructure deployment. However, pace should be balanced with prudence. Meaningful consultations with, and the inclusion of, Indigenous rights holders and other communities will be indispensable to our success.
Four strategic pillars should guide a strategic vision for Canada’s trade network:
1. Network efficiency: Alleviate congestion and improve capacity.
2. New product markets: Support growth in key areas of our industrial policy, such as critical minerals for markets in Europe and Southeast Asia
3. Northern development: Strengthen trade infrastructure in the North, focusing on Indigenous-led projects and Arctic sovereignty.
4. Climate change: Reduce emissions through projects like hydrogen-powered freight trucks and the increased use of rail. Invest in projects that build resilience and adapt the network to a changing climate.
Overall, for Canada to seize trade opportunities in the coming years, it must embrace a unified, future-oriented vision. Aligning federal and provincial efforts, while deepening public-private partnerships, will be essential to developing a trade network that is well-equipped to meet the demands of today and tomorrow.
Stefan Fournier is the executive director of the Conference Board of Canada.
The Hill Times