North American Port Reform: the Canadian and American Experience
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North American Port Reform: the Canadian and American Experience By MICHAEL C IRCHA The Transportation Group, University of New Brunswick, Fredericton, NB Canada, E3B 5A3
Port reform is a global initiative that reflects the swing of national economies and international lending agencies to the neo-liberal right. Similar to steps being taken elsewhere, Canada began a national port reform process in 1993 that culminated in the implementation of the Canada Marine Act in 1999. This paper considers North American port reform from the Canadian and US perspectives. It provides an overview of the concepts of port privatisation and structural adjustment programmes, the development of port policy in both Canada and the US, and discusses the effectiveness of contemporary Canadian port reform. The research approach taken was to review the process of Canadian port reform and compare it to the US approach that has evolved over time. The paper concludes that despite the lack of contemporary reform in US ports, they remain efficient, effective and competitive (both domestically and internationally with Canadian ports). The Canadian port reform process is a step in the right direction by making major ports more commercial, but more needs to be done to free these facilities from the strictures and constraints of the federal government. International Journal of Maritime Economics (2001) 3, 198-220.
Keywords: Port; administration; reform; privatisation; structural adjustment. INT RODUCT ION Much of North American trade is continental, primarily between Canada and the US. Both are each other's major trading partner. In 1997, the US accounted for 75% of Canada's total trade (exports 82%, and imports 68%). Similarly, Canada accounted for 22% of US trade, larger than with any other nation. During the past several decades, continental trade has grown in importance for both countries. The creation of the Free Trade Agreement between Canada and the US in 1989 and
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the subsequent North American Free Trade Agreement that included Mexico contribute to continued integration of these national economies on a continental scale. These trade agreements directly impact Canadian ports by encouraging a shift from the country's traditional east-west commerce to a north-south trade. Since most of this north-south trade is by surface mode (road and rail), overseas trade and cargo throughput in Canadian ports have diminished on a relative scale. Although Canada maintains both a multilateral (supporting the World Trade Organisation and seeking trade partners abroad) and a bilateral trade policy (NAFTA), Canada's primary international economic success has come from its continental trade with the US. As such, the marine sector with its focus on overseas trade is not as important in Canadian transportation policy as it is in other more maritime-oriented nations. Canada's major commercial ports were initially restructured in 1983 through the adoption of the Canada Ports Corporation Act. This Act dealt with Canad
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