Canada Transportation Profile 2012

Canada's transportation facilities are modern and well developed. They are concentrated in a relatively narrow band in the south, stretching from coast to coast.

Railways form the primary link, especially for freight, between eastern and western Canada. Freight service is provided largely by two giant transcontinental railway systems—Canadian National (CNR) and CP (Canadian Pacific) Rail. Both railways are privately owned and operated. There are also 30 regional railways. Intercity passenger service is provided by VIA Rail Canada, Inc., a government-sponsored corporation that took over CNR and CP passenger routes in 1977.

Extensive road and highway networks are maintained by both the federal government and the provincial governments. Modern four-lane highways are numerous in the densely settled regions of southern Ontario and Quebec. The Trans-Canada Highway, an all-weather route stretching coast to coast, was officially opened in 1962. The Alaska Highway, built during World War II, links Dawson Creek, British Columbia, and Fairbanks, Alaska.

For moving many of its goods, Canada has long depended heavily on the Great Lakes and the St. Lawrence River, which serve the large population and production centers. Use of these waterways was increased with the completion of the St. Lawrence Seaway in 1959, enabling oceangoing ships to enter the Great Lakes. Major canals are those on the St. Lawrence River above Montreal, the Welland, and the Sault Ste. Marie. Canada's chief ports are Montreal, on the St. Lawrence, and Vancouver, on the Pacific coast. The Inside Passage, running between the many islands along the British Columbia coast, provides a protected coastal route.

There are two major airlines in Canada, Air Canada and Canadian Airlines International. Both are privately owned and both fly domestic and international routes. Regional airlines also provide regular commercial service within Canada. In addition, small companies provide charter flights, many of them to remote areas in the north. Toronto, Montreal, Calgary, and Vancouver have the nation's busiest airports.

Shipping Report Q4 2010

The recovery in Canadian consumer spending is running ahead of expectations, and that is making itself felt at the country's ports. The Vancouver Fraser Port Authority reported at the end of June that Port Metro Vancouver (PMV) registered a 41.4% year-on-year (y-o-y) surge in containerised imports to 108,666 20-foot equivalent units (TEUs) in May 2010. This is the port's highest level of imports since September 2008, and has been attributed to a sharp increase in shipping demand. PMV is one of North America's busiest ports, with 25 major marine cargo terminals that handle more than 70mn tonnes of cargo annually.

The outlook for the country's port and shipping sector was good in H210. The political scene was stable and the minority government of Stephen Harper was expected to remain on course with business-friendly economic policies. The administration will be focusing on reducing the fiscal deficit through a combination of spending restraint and improved tax revenues. Most importantly, perhaps, the Canadian economy seemed to be on a 'better than US' recovery course. Following last year's recession, when GDP fell by 2.6%, and based on a strong revival of consumer demand, we lifted its 2010 growth forecast for the country to 3.1% (up from 2.7% earlier).

we are  projecting an increase in volume at Port Metro Vancouver (PMV) in 2010 of 4.7% following the 11.0% contraction during the slump last year. Going forward we believe growth will be comparatively strong, with the annual average over the 2010-2014 period coming out at 3.2%, comfortably above the general growth rate of the Canadian economy. At Port of Montreal (POM) we see this year's volume gaining by 11.7% (this follows a 9.3% drop in 2009). Average growth of volume at POM across the forecast period will be 7.1%, strongly above the general GDP growth rate. The box handling outlook is good for both ports, although growth will be stronger on the eastern seaboard (Montreal) than on the western seaboard (Vancouver).

In real terms, we expect Canada's total trade (imports plus exports) to recover this year, following the steep 13.7% fall in 2009, caused by the US and global recession. 2010 growth will be 7.5% - clearly it will take a few years before pre-2009 trade levels can be re-established. Imports will lead the way this year, with 8% growth in real terms, reflecting the consumer recovery at home; exports will grow by 7.0%. Canada will remain highly dependent on the health of the US economy, its main trading partner. The main downside risk for the Canadian ports and shipping sector comes from its powerful southern neighbour, the US. Roughly half of Canada's imports come from the US, and two-thirds of Canadian exports are shipped there. Therefore, if the expected 'double-dip' growth slowdown in the US in 2011 turns out to be more severe than expected then there will be an very direct negative impact on the Canadian economy and on shipping and port handling demand.