180 150 50 P a c i f i c A N o r t h LE UT IAN R IL KU S AND IS L S A N D IS L 150 JAPAN Bering Sea Sakhalin O c e a n Sea of Okhotsk 60 Bering Strait Anchorage Provideniya Anadyr' Nome Okhotsk Arctic Circle UNITED STATES Juneau Khabarovsk Amur Kodiak Gulf of Alaska Riv er Fairbanks Chukchi Sea Yu ko n Whitehorse Dawson CHINA Cherskiy Pevek 70 120 120 Peac e Verkhoyansk Great Bear Lake Beaufort Sea Yellowknife Great Slave Lake average minimum extent of sea ice Laptev Sea A r c t i c O c e a n QUEEN R U S S I A ELIZABETH Resolute Rankin Inlet 90 W North Pole ISLANDS Kara Sea Qaanaaq (Thule) Baffin Island Baffin Bay 80 Nord Iqaluit Greenland Nuuk (Godthåb) Paamiut (Frederikshåb) Barents Sea (DENMARK) Greenland Sea Ittoqqortoormiit (Scoresbysund) (NORWAY) Murmansk Tasiilaq Labrador Sea Arctic Norwegian Sea O c e a n SWEDEN Faroe Islands (DENMARK) Scale 1:39,000,000 Oslo SHETLAND ISLANDS Azimuthal Equal-Area Projection 500 Miles 30 Belfast IRE. Dublin U.K. 0 Helsinki Stockholm Tallinn Nizhniy Novgorod Saint Petersburg Moscow Saratov North Sea Copenhagen DENMARK Berlin GERMANY Riga Vilnius LITH. Baltic Sea RUS. Volgograd Minsk Kharkiv BELARUS Dnieper Warsaw POLAND DISCUSSION PAPER KAZ. 50 EST. LATVIA 500 Kilometers 0 The Arctic region is often defined as that area where the average temperature for the warmest month is below 10ºC. Samara FINLAND NORWAY Tórshavn 60 Kazan' Volga A t l a n t i c Lake Onega Circle ICELAND Reykjavík 0 Perm' Arkhangel'sk Tromsø (NORWAY) Narsarsuaq Denmark Strait N o r t h 70 Bjørnøya Jan Mayen Kam a 60 NOVAYA ZEMLYA Svalbard (NORWAY) Longyearbyen Davis Strait 90 E Yenisey Noril'sk Ellesmere Island Alert Repulse Bay Hudson Bay NEW SIBERIAN ISLANDS 80 Victoria Island Cambridge Bay Lena Tiksi (as of 1975) Banks Island C A N A D A a Len 60 Lake Athabasca East Siberian Sea Vy ch egd a R i er Inuvik Rostov Kyiv UKRAINE 30 Black Sea 2 Canada’s Arctic Gateway DISCUSSION PAPER Prepared By PPM Public Policy Management Limited SEPTEMBER 2010 2 Canada’s National Arctic Gateway – For Discussion Only Prepared by PPM Public Policy Management Limited 3 TABLE OF CONTENTS Page INTRODUCTION 3 OVERVIEW AND KEY QUESTIONS Gateway Perceptions National Framework Governance and Structure Implementation 3 BACKGROUND AND CONTEXT 6 1. Arctic and Northern Perspective 1.1 Climate Impact 1.2 Development Basis 1.3 Policy Directions 6 2. Applying the Gateway Concept 2.1 Defining Gateways 2.2 Arctic Gateway Perspective 9 3. Canada’s Gateways 3.1 Asia-Pacific Gateway and Corridor 3.2 Atlantic Gateway 3.3 Ontario-Quebec Continental Gateway and Trade Corridor 3.4 National Gateways Program 3.5 Lessons for the Arctic Gateway 11 4. Arctic Gateway-Related Initiatives 4.1 Advisory Reports 4.2 Research Relevant to an Arctic Gateway 4.3 Territorial and Provincial Initiatives 4.5 Regional Gateways 17 5. Strategic Direction 23 Disclaimer: Please note that the views expressed throughout this discussion paper are exclusively those of the author. They are put forward to encourage debate and constructive dialogue. They do not represent opinions or perspectives other than those of the researchers and policy specialists of the discussion paper’s author, PPM Public Policy Management Limited. 3 Canada’s National Arctic Gateway – For Discussion Only Prepared by PPM Public Policy Management Limited 4 INTRODUCTION This discussion paper serves as a reference point for consideration of Canada’s designation of a national Arctic Gateway. It presents information and poses questions for debate regarding the implementation of the Arctic Gateway that will be discussed in the “Northern Directions” Arctic Gateway Summit, November 8-10, 2010 in Winnipeg, an event organized by the Province of Manitoba and the University of Winnipeg. The preparation of this discussion paper has been sponsored by the University of Winnipeg through its special programs funded by the OmniTRAX/Broe Quest Series Inc to support innovative ideas and spark new initiatives. However, it is important to note that the views expressed in this discussion paper are solely those of the authors and do not necessarily represent the positions of the University of Winnipeg, Province of Manitoba, or any government agency. The intent of this paper is to provide a starting point for discussion to take place at the “Northern Directions” Arctic Gateway Summit. It is hoped that the discussion paper will give rise to a wide-ranging assessment of the ways to define and establish the Arctic Gateway. It provides perspectives and opinions on the importance of adopting an approach in governance, strategic investments and decision-making that builds on a coherent sense of purpose. It outlines issues for dialogue about the structure and procedures necessary to make Canada’s Arctic Gateway a reality in terms of both national public policy and international presence. This discussion paper was designed to provoke an examination of the ways to establish the Arctic Gateway within the Government of Canada’s national gateway policy framework. This discussion paper’s use of the term “Arctic” is meant to reference in many instances the subArctic areas of the territories and northern regions of the provinces that share a number of the conditions and challenges of isolated Canadian communities and populations. It also points out the potential significance of an Arctic Gateway to the international community, and the important role this initiative could play in Canada’s international relations. The first section entitled “Overview and Key Questions” presents a summary of the background information, findings and opinions that are more extensively explained in the latter section. This section also puts forward some specific questions that should be addressed as the concepts underlying the Arctic Gateway are considered. The second section “Background and Context” reviews the experience and lessons of the three current national gateways and the policy framework that supports them. It also presents an overview of the various initiatives that have already set the stage for the establishment of a national Arctic Gateway. OVERVIEW AND KEY QUESTIONS The Arctic is undergoing unprecedented changes in climate, accessibility of resources, and transformation in marine transportation conditions. The potential for resource development and viable shipping routes, unanticipated until very recently, also brings the prospect of significant impacts on communities and ways of life across the North. The challenge of balancing commercial and traditional values, particularly related to the transportation system and infrastructure of the North, has become daunting. Framing the future of Canada’s Arctic from a national gateway perspective would enable governments and the private sector to adopt a more comprehensive and coordinated approach 4 Canada’s National Arctic Gateway – For Discussion Only Prepared by PPM Public Policy Management Limited 5 to development in the region. For example, the governance structures to enable international involvement and indigenous community participation in shaping the future of the North will be crucial in Arctic Gateway development. Innovative governance arrangements that emphasize consensus-building are widely considered to be necessary in the North to assess and make decisions about proposed trade and development initiatives, as well as new transportation and related infrastructure. That being said, the future of Canada’s Arctic and Northern regions is a concern of the international community, not only a matter of interest to Canadians. Decisions about Canadian policies and activities in the Arctic in the coming years will directly affect Canada’s international links, as well as transportation costs and speed of shipping from Russia, India, China and other Pacific nations into Europe and the east coast of North America. Indeed, Canada’s decisions about the future of the Arctic will have significant implications for international relations and the future of trade patterns across the globe. The Arctic Gateway must be visualized in the context of its several different issues and challenges, including national sovereignty, indigenous stewardship and environmental integrity, not simply in terms of economic impacts and transportation systems. In particular, an Arctic Gateway must contribute to the sustainable development of isolated northern areas of Canada that have had little in common with the country’s long-established east and west coast seaports and urban transportation hubs. Based on this recognition, the organizers of the “Northern Directions” Arctic Gateway Summit have identified three themes for exploration: Gateways and Corridors; Sustainable Communities; and Indigenous and Northern Participation. The participants will be asked to examine each of these themes in terms of their importance in establishing a national Arctic gateway in Canada. In contrast with a traditional conference, this Summit is designed to engage participants in an activity to develop the elements of a strategic plan, including the initial priorities for action and investment. Key questions arising from this discussion paper and from informed sources involved in trade and transportation corridors will be addressed during the Summit events. As a start, questions arising within each theme would include: • • • Gateways and Corridors: How would an Arctic Gateway enable Canadian companies and investors to capture emerging opportunities, strengthen the viability of new shipping avenues, and facilitate access to new international markets? Sustainable Communities: In what ways would an Arctic Gateway reinforce environmental protection and regional sustainability objectives, as well as reinforce Canada’s sovereignty objectives across the North? Indigenous and Northern Participation: How could the lives of Arctic and Northern residents and their communities be enhanced through effective governance in the development and implementation of a comprehensive national Arctic Gateway strategy? In addition to these matters, several other issues and related questions are relevant for consideration of the national Arctic Gateway and will also be reviewed in discussions at the “Northern Directions” Arctic Gateway Summit. Gateway Perceptions The current national gateways in Canada were established on the strength and growth potential of the North American economy and markets -- as both a supplier and a consumer of goods and merchandise. When combined, the continental market of Canada, Mexico and the United States totalled last year over 450 million consumers with a combined Gross Domestic Product of US$16 5 Canada’s National Arctic Gateway – For Discussion Only Prepared by PPM Public Policy Management Limited 6 trillion. In 2008, North America’s merchandise trade consisted of US$2.0 trillion in exports and US$2.9 trillion in imports. Canada’s national gateways are crucial facilitators for the country’s existing and potential international trade. In Canada, the term “gateway” has been used primarily to describe ports, transportation, distribution and logistics, with an emphasis on factors such as volumes of traffic. The notion of gateways, however, has been evolving to encompass national issues including environmental protection, human security, national sovereignty, international relations, and economic development strategies. Gateways today are about more than trade and transportation facilities, locations and connections, particularly when viewed in terms of Canada’s Arctic and northern regions that are becoming more accessible. They especially need to account for unique social, environmental and governance needs, as well as the changing physical landscape and ocean conditions brought on by climate change and long-term sustainability requirements. • In what ways could leadership and support by Canadians and the international community be mobilized to address the array of relevant issues and enable the Arctic Gateway to obtain national designation by the Government of Canada? National Framework Under a national policy framework, the Government of Canada has, so far, designated three major trade and transportation gateways: Atlantic region, Asia-Pacific region, and the central Ontario/Quebec region. Over the past five years, these national gateways have become hallmarks of Canada’s evolving trade and transportation strategy. Ottawa’s designation of an Arctic Gateway would complete the family of national gateway organizations that already constitute Canada’s main western, eastern and southern connections with the world. The national designation of an Arctic Gateway under the current federal government policy framework requires meeting five policy lens criteria: 1. Alignment with Canada’s international commercial strategy, 2. Significant volumes and trade value, 3. Prospects in emerging trade and transportation opportunities, 4. Scope for improvement through strategic investment, and 5. Role for federal government involvement. While the sheer volume of Arctic trade is considerably lower than the established gateways, the Arctic Gateway already fulfills all of the national policy framework requirements. Some of the criteria, such as growth potential and significance for contributing to national objectives, are particular strengths of the Arctic Gateway. • How should the national gateway qualification criteria be applied to accurately measure and reflect the unique opportunities and nature of the Arctic Gateway and its rapidly growing significance for Canada? Governance and Structure The unique conditions of the Arctic include jurisdictional, cultural and collective decisionmaking differences from the rest of Canada. The governance arrangements in the Arctic particularly need to respect and accommodate the ways in which indigenous communities have been developing consensus and determining their futures. The existing government structures and international agencies involved in decisions related to gateway issues could be supplemented by an innovative Arctic Gateway governance structure to 6 Canada’s National Arctic Gateway – For Discussion Only Prepared by PPM Public Policy Management Limited 7 enable indigenous communities, environmental organizations and the business sector to become more directly and collaboratively involved in shaping the future. One recent proposal in particular -- the establishment of a network as the organizational basis for the Arctic Gateway -could be given consideration as the means to enable inclusiveness and accommodate consensus-building in an appropriate governance structure. • What governance structures should be adopted for an Arctic Gateway? Could a network model for Arctic Gateway governance effectively reflect the array of international and regional interests in the North? As the Asia-Pacific Gateway has shown, research is an essential element that would be necessary to underpin the strategic planning and operational objectives for the Arctic Gateway. Focussed and applied research at the technical and policy levels is needed to provide the necessary basis for understanding emerging gateway-related impacts and trends, such as climate change and international shipping issues, and their significance for the Arctic regions. • What knowledge gaps need to be filled, and which unique Arctic circumstances relevant to gateway development should be given particular attention or priority by researchers? Implementation The two initial national gateways have made use of existing organizations (port and airport authorities, not-for-profit institutions, and industry sector associations) to provide the operational platform and staff to implement their objectives in tangible ways. Among the lessons learned from the experience of those first national gateways was the importance of private sector leadership and organizational resources, in addition to government participation, as essential ingredients at the earliest stages of national gateway development. It may be necessary to create a new private-sector-led organization to enable the Arctic Gateway to be launched and become operational. The existing organizations in Nunavut and Manitoba working in Arctic trade and transportation are limited by their regional or local mandates, and none has the current resources or scope of mandate to act as the primary Arctic Gateway implementing agency. • How could the resources of companies, government agencies and community groups be pooled in support of an organization that could lead the development of the Arctic Gateway? How should the Arctic Gateway supporting infrastructure of funding and personnel be established and structured? BACKGROUND AND CONTEXT This segment of the discussion paper is intended to provide technical and historical information to help to inform dialogue on the points and questions outlined in the preceding “Overview and Key Issues” segment. It presents an explanation of various aspects of gateway development and its relevance to a national Arctic Gateway. It also offers interpretations and opinions about the activities and current initiatives that have helped to set the stage for the designation of Canada’s Arctic Gateway and the development of a strategic plan for its future. 1. Arctic and Northern Perspective Transportation and trade are increasingly crucial issues for the future of the Arctic and Northern regions of Canada. Imminent decisions about polar shipping routes, new trade linkages with the 7 Canada’s National Arctic Gateway – For Discussion Only Prepared by PPM Public Policy Management Limited 8 world, and transportation infrastructure investment will set the stage for the Arctic’s growing role in Canada’s and the world’s commerce. These will be vital components in the shaping of communities, activities and prospects in Canada’s North throughout the coming decades. And yet to most Canadians, the Arctic regions are given little thought or attention, beyond sporadic news coverage or glimpses at maps showing what appears to be a huge empty space of northern Canada reaching towards the North Pole. For some Canadians, the Arctic has a mystical reverence. For others, it evokes thoughts of the vast untouched, timeless wilderness. The sheer distance from urban Canada makes the northern regions and the Arctic in particular seem like a foreign land. Few Canadians have, so far, thought of the Arctic as being an emerging international transportation and trade venue. But, the general perception of the Arctic as a place frozen in time and space is an illusion. The northern regions of Canada are undergoing monumental changes in natural conditions, human presence and investor interest. New climate patterns are dramatically altering the landscape and environment. The ice that had once blocked and deterred shipping in many parts of the Arctic has been receding, and leaving open water. While the Arctic waters bordering Russia are opening even more rapidly than Canada’s, the phenomenon and scale of this change is apparent. Canada’s Arctic region is increasingly becoming integral to the country’s geopolitical strategies and future. 1.1 Climate Impact The changes in the Arctic are matters of serious concern for their impacts on community life, traditional economies, and natural conditions that had once seemed immune to any alteration. At the same time, they present the opportunity to introduce significant shifts in transportation systems and governance arrangements, and to begin linking the Arctic region to the rest of Canada and the world in new ways. The changes in ice conditions, with icebreaking assistance in winter months, offer the opening of the Northwest Passage to commercial shipping. The extraordinary savings in time and distance resulting from it will make this route viable and irresistible. The expanded shipping season for the Port of Churchill through northern waters has already been demonstrating the greater practicality and value of Arctic shipping. One of Canada’s Arctic experts, Michael Byers, described the situation: Canada has the longest coastline of any country, most of it in the Arctic. For centuries, that coastline was rendered inaccessible by thick, hard “multiyear” ice. But climate change is suddenly causing the sea ice to disappear… Soon, all of the Arctic’s sea ice will melt away during the summer months… And this will make icebreaker-assisted, yearround shipping commercially feasible. At the same time, the lure of natural resources in the Arctic is making it increasingly attractive to investors and developers. New northern transportation systems to serve mining and energy projects are becoming crucial considerations. This situation is giving rise to an array of unanticipated decisions and unpalatable choices in some instances about development in Arctic regions and communities. For instance, the significant initiative to create another Arctic deep sea port facility (in addition to the Port of Churchill) at Nanisivik is a federal government initiative announced in 2007 to provide more shipping support. Its establishment was not seriously contemplated even a decade ago. While this will mean greater economic opportunity for some, it also brings the prospect of changing traditional ways of life and environmental impacts. 8 Canada’s National Arctic Gateway – For Discussion Only Prepared by PPM Public Policy Management Limited 9 The opening of Arctic regions to shipping is also beginning to tip the geopolitical balance of countries in the northern hemisphere. The possibility of international shipping through the Arctic routes bordering Russia, rather than via Canada’s Northwest Passage, would have significant implications for trade and development requirements in the Canadian Arctic. The possibility of establishing an all-weather road into Nunavut through Manitoba, connecting with the Churchill rail and Trans-Canada highway systems is being investigated. It may become more technically feasible, although costly, in light of climate change impacts. While it would face serious significant construction and maintenance challenges, an all-weather road into the Arctic could, in future decades, dramatically alter Canada’s northern transportation system and community life across the North. Climate change has affected other strategic national policy decisions related to the Arctic and northern regions. Central issues for the Arctic are the intertwined policies of national security and environmental protection. The conflicting views and interests of several countries regarding sovereignty in the Arctic are gaining greater attention as concerns about sustainability in resource development and responsibility for environmental integrity are becoming more apparent for Arctic communities and residents. The capacity of Canada to enforce its environmental protection laws is also a concern, especially given the on-going issues of national boundaries across parts of the Arctic. 1.2 Development Basis In the midst of these all these changes and trends, northern communities and residents are looking for ways to maintain control of their destiny, and they need to ensure that the benefits of development outweigh the costs, particularly in terms of impacts on their traditional ways of life and environmental conditions. For many in the North, the sudden shift towards resource development has made them wary about decisions made elsewhere that would undermine their communities. The measures taken by northerners to halt seismic testing in Lancaster Sound this year reflects their determination to have development proceed only with their free, prior and informed consent. The traditional economic development model followed by Canada for two centuries involved prevailing assumptions about the basis for resource extraction and prairie agriculture. Mining and farming proceeded across southern Canada with few impediments or concern for environmental effects. That economic development model is no longer valid, particularly for the Arctic. The notion of exploiting Canada’s hinterland for the sole purpose of stripping resources and establishing settlement to support it may have been acceptable in its time, but no longer fits with the realities of Canada’s North. The Diefenbaker government’s “Roads to Resources” program was an appealing slogan for a northern development program sixty years ago, but it took place in an era that overlooked indigenous land entitlement, vulnerable northern ecology, and impacts on societies in isolated communities. It will be particularly important to develop innovative ways to involve indigenous communities in decisions and governance arrangements for the evolving transportation and international trade systems. This involvement of all interested and affected northerners in governance and decision-making is necessary to counterbalance the prevailing conventional economic development approach. The future of Arctic transportation and trade needs to be considered in broader perspectives of development than simply resource exploitation. Measurement of progress in the Arctic requires more than economic valuations. The adoption of a gateway strategy is an essential step to guide the development of the Arctic’s trade and transportation connections with Canada and the world. It could establish a new model for development that incorporates the unique needs and 9 Canada’s National Arctic Gateway – For Discussion Only Prepared by PPM Public Policy Management Limited 10 conditions of the Arctic in terms of shared values, participatory governance, collaborative planning, and careful environmental protection. 1.3 Policy Direction Canada needs to build a unique national Arctic Gateway strategy that encompasses sustainability and gives full weight to community and social objectives as it facilitates all significant future development in trade, transportation and resource use. The growing interest of resource companies in the Arctic is driven by the shortages of commodities and energy, and the region has become a “hot spot” for investor interest from around the world. Until recently, there were few government transportation policies in place that were able to address the evolving northern conditions. The risks associated with shipping are among those that raise obvious concerns. The fragile Arctic environment could not withstand the effects of serious accidents in resource extraction or transportation catastrophes. In light of the environment’s vulnerability, the decisions related to development in the northern regions must be rigorously driven by risk-averse strategies to a greater extent than they have been for other parts of Canada. The recent work of governments in setting and re-positioning effective northern transportation policies has been a timely and valuable start. Manitoba’s transportation policy directions have helped to restore the province’s traditional role as a major distribution centre serving the North. The Nunavut government is beginning to implement its recent Ingirrasiliqto (Let’s Get Moving) Nunavut Transportation Strategy and High Arctic Transportation Strategy that both serve as guiding service frameworks and plans for the region. Addressing air, marine and road transportation and their connections, the Nunavut transportation strategies acknowledge the vastly different needs of passengers, perishable goods, and bulk commodities. The 2008 policy document entitled Northern Connections: A Multi-Modal Transportation Blueprint for the North represents yet another valuable contribution of information on the challenges and possible responses by all three northern territorial governments. At the same time, the provincial and territorial governments are constrained by their jurisdictional limits, tight budgets and restricted policy-setting capacity to implement the measures they identify as priorities in northern trade and transportation. They also focus, as they must, on serving local and immediate needs of northern communities, rather than the larger national and international context. By contrast, Canada’s national gateway initiatives have not been significantly limited by geographic or jurisdictional boundaries. They have been succeeding, to a considerable degree, in bringing together all of the stakeholders in industry, trade and transportation to build a potent, united effort. They have, in many instances, drawn together government and private sector participants to establish common cause to support the large-scale initiatives and longterm investments that are needed to expand and consolidate their transportation and international trade systems. 2. Applying the Gateway Concept The notions underlying trade and transportation gateways, and their application in Canada, are often vaguely or too simplistically described. The task of finding the appropriate description for the gateway concept as it is being applied in Canada has been daunting. 10 Canada’s National Arctic Gateway – For Discussion Only Prepared by PPM Public Policy Management Limited 11 2.1 Defining Gateways At the earliest stage of gateway policy development, the Asia-Pacific Foundation of Canada faced the dilemma of describing its notions of the gateway concept. They chose to portray it as being subject to “multiple visions”. They variously described the Pacific Gateway’s basis as being: “A gate through which people and goods pass; an open (or closed) door; the path to new opportunities; a point of exchange. These are all possible synonyms depicting the physical nature of a gateway.” The Asia-Pacific Foundation also explained that the gateway concept was seen differently from municipal, provincial and national government levels, and differently again from a local, national or international perspective. It went on the state: “…the crucial challenge for the Gateway is to implement coordinated policies that will offer a balance between facilitating the effective and rapid flow of goods, people and ideas and preserving national security, sovereignty and sustainability.” Others have portrayed gateways in Canada as being about people and communities, as well as physical access and infrastructure. They have variously been explained as being: • • • • “a burgeoning set of national strategies” “framework for policies, investments and initiatives” “network of transportation infrastructure” “integrated transportation systems and facilities”. In 1998, the intergovernmental Task Force on the Mid-Continent International Trade Corridor faced a similar problem in defining corridors and gateways. They cited the parable of the blind wise men touching a different part of an elephant and each giving a vastly different description of it. For that task force, the vision encompassed geography, communities, transportation connections and evolving new trade patterns -- all particularly relevant factors for a national Arctic Gateway today. The Government of Canada’s National Policy Framework documents that constitute the federal gateway strategy describe gateways and trade corridors as: “…major systems of marine, road, rail and air transportation infrastructure of national significance for international commerce, within a defined geographical zone.” The Framework documents go on more precisely to describe a gateway as being: “…a multimodal entry/exit point through which goods and services and international passengers move beyond local, or even regional, markets”. And, they explain that a trade corridor is “…a linear, multimodal orientation of international passenger and freight flows that connect gateways to major markets.” They state further that gateway and corridor strategies involve integrated packages of long-term investment and policy measures that advance the development and exploitation of gateways and corridors for national benefit. Local transportation gateway and trade organizations have sprung up throughout Canada to declare their gateway status and serve as advocates for increased business activity, investment, branding, and marketing of their communities and regions. 2.2 Arctic Gateway Perspective 11 Canada’s National Arctic Gateway – For Discussion Only Prepared by PPM Public Policy Management Limited 12 The creation and designation by the federal government of a national Arctic Gateway and a supporting strategy would be an appropriate and timely step. An Arctic Gateway would serve a crucial role in Canada’s national interest to serve the emerging Northwest Passage transportation route and reinforce Canada’s sovereignty, security and environmental protection in the Arctic. The segment of the national policy framework that describes the qualification of a major Canadian gateway as having “national significance for international commerce” is entirely applicable to an Arctic Gateway. In the view of some, the Arctic Gateway could be visualized in a “T” formation. The primary north-south segment is the region bordering the western side of Hudson Bay including portions of Manitoba and Nunavut. The east-west segment is the Northwest Passage and the shipping routes through Arctic waters, connecting the Pacific and Atlantic. At the same time, the T-shaped Arctic Gateway would, like the other national gateways, need to encompass a wide geographic swath, not simply represent the transportation infrastructure and routes themselves. That T-shaped visual image of the Arctic Gateway could be misinterpreted as excluding or overlooking the crucial transportation connections of the Arctic with Quebec and other parts of Canada. Still, the T-shape is a useful reminder that the Arctic Gateway constitutes both east-west and north-south directions. It would include several communities and modal connections across the region, rather than one large urban hub like the port-based Asia-Pacific and Atlantic gateways. It would particularly include the communities of Iqualuit, Churchill and Winnipeg that have multi-modal facilities, and it would extend in its linkages with the other territories and provinces through air, rail and port connections for both passengers and freight. The Arctic Gateway would support the ongoing effort to expand the vital transportation links with Russia to serve markets in the midwestern United States and into Mexico, as the Arctic Bridge concepts of recent decades have envisioned. The Arctic Gateway could provide the means to ensure the consideration of sustainable development criteria in the establishment of a comprehensive transportation approach. It would provide the opportunity to adapt the Arctic’s trade and transportation infrastructure as it is being built and be ahead-of-the-curve as climate change is destroying many long-standing assumptions about transportation limitations and options. It would provide a focal point in a coordinating and supporting role for the many organizations, programs, activities and efforts related to Arctic trade and transportation. The “network” approach to Arctic Gateway governance and development, outlined in a recent article by Lloyd Axworthy and Dan Hurley, suggests cooperative and consensus-based decisionmaking. The networks they propose for Arctic issues, particularly those related to gateway development, would be widely-inclusive governance regimes that would span national and international boundaries and include the array of public and private sector interests. The geopolitical conditions and community expectations that prevail in the Arctic and Northern communities require adopting a different point of view about governance than the one that prevailed in the establishment of the other national gateways. The network governance and cooperative approach that could be considered for the Arctic Gateway would be in accord with the prevailing ethic and decision-making processes of Arctic residents whose Nunavut government operates on a consensus basis. The network approach’s emphasis on building agreement on objectives and pooling resources on a coordinated basis is consistent with the priority-setting that prevails in Northern communities. 12 Canada’s National Arctic Gateway – For Discussion Only Prepared by PPM Public Policy Management Limited 13 3. Canada’s Gateways Canada has three major gateway initiatives that are nationally designated: Asia-Pacific, Atlantic, and Ontario-Quebec Continental. Other gateways and corridors have also been proclaimed by local and regional authorities or have been put into place at provincial, regional and municipal levels, mainly related to the promotion of business for seaports and trans-shipment hubs. 3.1 Asia-Pacific Gateway and Corridor The Asia-Pacific Gateway and Corridor is the most extensively developed and funded of the three national gateways. It emerged in October 2005 and was declared in the federal government’s Pacific Gateway Strategy, as it was then called. In announcing it, federal ministers stated a spending commitment of up to $590 million for projects to improve transportation infrastructure, border services, research and trade development with Asian countries. Considerable additions were subsequently made to the initial spending commitments, and the timing of the fiscal stimulus measures in 2009 expanded the extent of project funding related to the Asia-Pacific Gateway to over one billion dollars. The Asia-Pacific Corridor and all other federal government gateway initiatives were funded in their initial stages with resources assembled from the several federal government departments and programs. Only more recently was a distinct funding mechanism established. The Asia-Pacific Gateway has been especially successful in capturing the imagination of Canadians in relation to the growth and strong future prospects of North America’s trade with Asian countries, particularly China. While the Province of British Columbia has pursued its own Pacific Gateway and BC Ports strategies, it has done so in conjunction and close cooperation with the federal government’s gateway work. The coordinated federal and provincial effort has involved supply chain initiatives for Roberts Bank, Fraser Port, Vancouver Port, Prince Rupert Port and Vancouver International Airport facilities. In contrast with the Atlantic Gateway experience, the west coast transportation gateway has united its gateway supporters and resources in a cohesive effort. There was to have been a Pacific Gateway Council, along with advisory committees, formed under the proposed legislation and supported by a secretariat based in Vancouver, but this organizational arrangement did not proceed. Instead, the Greater Vancouver Gateway Council, formed in 1994, remained the focal point for stakeholder involvement and participation in advising governments on gateway-related policies and directions. The Council’s membership of transportation executives is supplemented by provincial and national business community representatives as well as designated government officials from Alberta, Saskatchewan and Manitoba. This breadth of geographical and sector interests represented in the Council has helped the Asia-Pacific Gateway to garner wide support by serving interests beyond the boundaries of British Columbia. An activity integral to the early development and growth of the Asia-Pacific Gateway was the production of research studies and sponsorship of roundtables and conferences. Forty-two research papers on a variety of transportation, logistics, intermodal, and trade issues were commissioned under the Asia-Pacific Gateway initiative to enable informed, evidence-based decisions about the gateway’s future. The forward-looking perspectives presented in the research papers served as a basis for discussions at events in major Western Canadian urban centres, and they were intended to promote understanding of the relevance and value of the Asia-Pacific Gateway. The driving forces and organizational bases for this gateway have been the Asia-Pacific Foundation of Canada and Vancouver’s airport and port authorities. These organizations have 13 Canada’s National Arctic Gateway – For Discussion Only Prepared by PPM Public Policy Management Limited 14 been instrumental in leading the advocacy process for funding of projects related to the AsiaPacific Gateway. They have served as the operational hubs and organizational platforms providing the tools and staff resources that have been necessary to make the Pacific Gateway’s strategy a success. 3.2 Atlantic Gateway Canada’s Atlantic Gateway was also announced in 2005 as a federal government initiative, with the involvement of local leaders in the transportation and logistics sectors. This step reflected the fact that, over many decades, Halifax established itself as the pre-eminent east coastal transportation centre, and has served as the main hub for the port’s connections with rail, air and road transportation. The development of the national Atlantic Gateway has proceeded at a considerably slower pace than its Asia-Pacific counterpart. In 2007, the four Atlantic provincial governments entered into an agreement with the federal government to develop an Atlantic Gateway Strategy. The subsequent creation of the Atlantic Gateway Advisory Council in September 2009 was meant to deliver input on issues and investment priorities for related trade and transportation activities and infrastructure. During the same period other gateway organizations were being formed within the Atlantic provinces to serve as advocates for their regional or port-related transportation facilities and routes. One was the New Brunswick Gateway Council, comprised of several transportation businesses and other stakeholders in trade, transportation and tourism in the province. Its purpose is twofold: improving the competitiveness and efficiency of the transportation of goods and people through New Brunswick as part of the Atlantic Gateway; and promoting the province’s trade, tourism and transportation system. Based at the Saint John Port Authority, the New Brunswick Gateway Council works towards collaboration and consolidation among shippers and carriers, and cooperation to improve efficiency and reduce costs. The Council’s members include a cross-section of major businesses and other organizations involved in manufacturing, commodities, regional development, shipping logistics and business services. Another gateway initiative was the establishment of the Nova Scotia Gateway Secretariat and provincial government advisory council to develop a vision and strategy and provide leadership and coordination. The new provincial government in 2009 proceeded with this Secretariat while recognizing its apparent overlap with the federal and municipal gateway efforts. Other gateway organizations in the Atlantic region have included the Sydney and Area Gateway Council and Corner Brook Gateway Committee. In addition, the Halifax Gateway Council, operating since 2004, involves businesses and organizations that work collectively to improve the competitiveness and efficiency of goods and passenger movements through the region. In January 2010, it issued a five-year strategic plan with the intention of making Halifax the preferred eastern gateway for North America and the world. While the Halifax transportation system emerged from its seaport roots, the Halifax Gateway Council encompasses air, sea, road and rail modes and their connections. Its strategic plan issued this year set out five overarching goals, including improvements in infrastructure and brand marketing nationally and internationally. Notably, one of the five goals in the strategic plan of the Halifax Gateway Council cited the need for coordination among the myriad of gateway councils and organizations in Atlantic Canada. The report pointed to the necessity for the federal government’s anticipated Atlantic Gateway 14 Canada’s National Arctic Gateway – For Discussion Only Prepared by PPM Public Policy Management Limited 15 Strategy document to be issued soon to set the stage for coordination of the region’s gateway initiatives that seemed to have become more competitive than cooperative. 3.3 Ontario-Quebec Continental Gateway and Trade Corridor Established in 2007, the Ontario-Quebec Continental Gateway and Trade Corridor is primarily concerned with trade and transportation links with the United States through the rail and road modes. It is described as encompassing a system of land, air and marine transportation assets, including the St. Lawrence River and Great Lakes. It includes an extensive transportation infrastructure in the two provinces and four of Canada’s highest-volume border crossings. This nationally-designated gateway has a large and elaborate governance structure involving officials from the two provincial governments and Ottawa, as well as advisory roles for private sector participants, mainly from the transportation and distribution sectors. The Continental Gateway, as it has become more commonly known, appears to be governmentled to a greater extent than its Asia-Pacific and Atlantic counterparts. This may be the result of having a geographically dispersed set of transportation routes, especially when contrasted with the dominant roles of Vancouver and Halifax as the hubs in their gateways and corridors. The variation in needs and conditions across the Ontario and Quebec transportation sectors may have given cause for the provincial governments to take a particularly active role in this gateway’s development. At the same time, private sector institutions, such as the Ontario Chamber of Commerce, have come to see the importance of this gateway approach to build transportation infrastructure and facilitate trade with the United States. Due to be issued soon (Fall 2010) is the strategy paper that will present the vision, directions, and anticipated actions of the Ontario, Quebec and federal governments for the Continental Gateway. Another gateway organization within the region with some overlapping interests and activities is the Southern Ontario Gateway Council whose membership spans all modes and includes transportation providers, shippers, industry associations and several levels of government. The organization has representation with the Continental Gateway, and its attention is focussed on four policy areas: • • • • Infrastructure and funding – solving the urban gridlock problem Integrated planning – improving land use policies to protect transportation routes Network efficiency – ensuring that the existing network is optimized Border security and safety – speeding the flow of goods through the NAFTA gateway in order to maintain the competitiveness of Ontario’s economy The Continental Gateway’s gradual implementation and its imminent adoption of a strategic plan seems to reflect the previous preoccupation of the federal government with NAFTA trade and transportation links across all regions rather than those concentrated in Central Canada. However, the successful launch of the coastal gateways and their potential to serve markets in the United States on an increasingly cost-effective basis provided the impetus for the Ontario and Quebec governments, along with the private sector, to press for their national gateway entity. 3.4 National Gateways Program The National Policy Framework for Strategic Gateways and Trade Corridors issued in 2007 includes a commitment for federal long-term funding for infrastructure projects. In conjunction 15 Canada’s National Arctic Gateway – For Discussion Only Prepared by PPM Public Policy Management Limited 16 with that Framework statement, Ottawa’s Gateways and Border Crossing Fund will provide federal government investment of $2.1 billion over seven years. The Framework document was meant to provide, albeit after the fact, the rationale for the designation of the first three national gateways. It also served to set criteria that would halt demands by the various local “gateway” organizations across Canada to be designated as national gateways and, not surprisingly, qualify for funding similar to what the national gateways were receiving. The federal government’s Framework document stated criteria in five policy lenses: (1) International commerce strategy – strategies must help align Canada’s major transportation systems with our most important opportunities and challenges in global commerce. (2) Volume and values of national significance – strategies must have, at their core, systems of transportation infrastructure that carry nationally significant levels of trade. (3) Future patterns in global trade and transportation – strategies must be forwardlooking, addressing major trends in international transportation. Long-term planning is essential, but must be based on empirical evidence and analysis, not just optimism. (4) Potential scope of capacity and policy measures – strategies should go beyond infrastructure systems to address interconnected issues that directly impact how well the system works and how well Canada takes advantage of it. (5) Federal role and effective partnerships – strategies must ground federal actions in concrete federal responsibilities and effective partnerships with other governments and the private sector. The National Policy Framework acknowledges that there are variations among the national corridors and also points out that there are convergence opportunities. It attempts (and has succeeded to a considerable extent) to establish a degree of rigour to the processes of both identifying criteria for national gateways and allocating federal government resources to gateway-related projects. At the same time, it could be said that a rigorous application of the criteria would have made the qualification of all three gateways questionable in some respects, particularly in terms of the potential scope of capacity and policy measures and the extent of the federal role. Based on the criteria of this national policy lens, an Arctic Gateway would qualify in all respects. While the current volume of transportation activity is small compared to the established eastern and western coastal ports and the surface transportation systems of Central Canada, an Arctic Gateway would be ranked particularly high in terms of: • • • • • its strategic importance related to reinforcing Canada’s sovereignty in the Arctic, responding to trends in global commerce that make Arctic shipping competitive, jurisdictional responsibilities of the federal government in the Arctic, future high traffic volume prospects and scope for tangible rapid growth, and supportive partnerships of governments, communities and the private sector wanting the mechanism to work together for sustainable Arctic development. 3.5 Lessons for the Arctic Gateway 16 Canada’s National Arctic Gateway – For Discussion Only Prepared by PPM Public Policy Management Limited 17 For the purpose of considering the formation of an Arctic Gateway strategy and organizational structure, it is useful to look at the lessons that could be derived from the experience of the three national gateways and the federal government framework that supports them. Leadership: The three gateways have shared the commonality of private sector and federal political leadership in their formation and initial activities. The widespread and non-partisan political support for the gateways, particularly Asia-Pacific, has enabled them to draw endorsements and financial resources for their initial strategy development and begin to obtain significant levels of project-related funding. An Arctic Gateway appears to have similar initial widespread non-partisan public support and strong prospects for endorsements from federal, provincial and territorial governments as well as international institutions. Structure: The national gateways have adopted different organizational forms, but have all relied upon existing supporting structures and institutions, such as the Asia-Pacific Foundation of Canada and the port and airport authorities of major cities, to drive their adoption. Rather than creating new entities, the gateways have generally been able to affiliate with existing business and transportation sector organizations that were already capable of providing leadership, management, administrative support, organizational platforms and staff resources for their work. Finding or creating the appropriate organization to serve in this vital role in at least the initial stages of the Arctic Gateway’s development is a challenge when no existing business or not-for-profit entity is immediately identifiable. Hub: The two coastal gateways have had a clear geographic focus on their port connections in the urban centres of Vancouver and Halifax. The Continental Gateway has Toronto and Montreal as its dual multi-modal transportation hubs. An Arctic Gateway lacks a single urban focal point, although Churchill would have a central transportation role and Winnipeg would serve as the most obvious multi-modal population centre with advanced infrastructure. This geographical uniqueness, compared to the other national gateways, requires the development of a cooperative infrastructure strategy at an international level, in addition to agreement among the federal, provincial and territorial governments, in order to build an economically sustainable Arctic Gateway. Private sector: All three national gateways have, from their beginnings, been driven by the involvement of transportation companies, shippers and logistics firms active in the region. The enlistment of the business community across the geographic swath of the Arctic gateway would be a necessary component for success. Close working relationships across the public and private sectors based on the adaptation of network-like governance arrangements has proven to be highly beneficial, particularly for the Asia-Pacific Gateway. At the same time, the Arctic Gateway would require more inclusive participation, especially by indigenous communities and organizations, than the other gateways that have been inordinately influenced by transportation sector participants. Stage of Development: Each of the gateways is at a different phase, including their extent of development, infrastructure, traffic composition and volumes. The Arctic Gateway is at a far earlier stage than the other three, but has the prospect of much more rapid growth than the others, due in part to the increasing interest of the international community and rapid changes in the Arctic’s climate. The lesson in this instance should be that the Arctic Gateway will need investment to have facilities in place to satisfy future demand, and that a rigorous identification of real growth potential must be part of the strategy development for the national Arctic Gateway. Infrastructure: The three national gateways all had existing and advanced infrastructure of ports, roads, railways and distribution systems. The infrastructure projects introduced under the national gateway programs have provided incremental improvements to that existing capacity and helped to eliminate bottlenecks. Within Manitoba, CentrePort Canada is becoming 17 Canada’s National Arctic Gateway – For Discussion Only Prepared by PPM Public Policy Management Limited 18 instrumental in leading the development of distribution and transportation infrastructure to support the Asia-Pacific Gateway and mid-continent corridor, with the support of the Province of Manitoba and Government of Canada. The Arctic Gateway would require investment in entirely new infrastructure in many instances, especially in the northern regions. It would call for the establishment of transportation and distribution centres, in addition to adding capacity to underutilized systems, such as the Port of Churchill. The forms of infrastructure would also differ, such as the need for icebreaking capacity in addition to the road and rail expansion that has been emphasized in the other national gateway investment. Human Resources: The array of experienced personnel and skills required to work in the existing national gateways is readily available in urban Canada, but not to the same extent in the Arctic and northern regions. The human resource development needed for modern transportation and international trade organizations in the Arctic would be a parallel requirement for the establishment of an effective Arctic Gateway. This educational and training regime for indigenous peoples could also contribute significantly to overcoming the social and income inequities that have been evident in many northern communities. Competition: The three nationally designated gateways see themselves as being in direct competition with US ports and transportation systems, and much of their effort is directed towards building efficiencies and seamless transportation connections to enable them to attract new business. The enormous potential for shipping cost advantages related to an Arctic Gateway would not make it a competitor of Canada’s coastal gateways. In fact, it could help the other national gateways become even more attractive and cost-effective for international shipping by shifting ocean transportation away from the Panama Canal and southern US ports and into the northern hemisphere and Canadian ports. The Arctic Gateway strategy should identify the ways in which its development would particularly enhance the competitive position of both its Asia-Pacific and Atlantic gateway counterparts. Sustainable Development: Environmental impact and sustainable development are matters given relatively little attention by the initial three national gateways. Environmental issues have not received more than lip-service in the funding and investments related to the national gateways. By contrast, the issues of environmental sustainability must be front-and-centre for the Arctic Gateway. The need to have an Arctic Gateway that adheres to the strictest sustainability criteria and accounts for the environmental fragility of the North is far more compelling than it has been for the urban areas of Canada served by the existing national gateways. Indigenous Issues: Few matters related to Canada’s indigenous population or communities arose in the process of establishing the first three national gateways. By contrast, the Arctic Gateway would need to serve the interests and values of Northerners and indigenous peoples as a priority. The development of an Arctic Gateway strategy would need to fully involve indigenous community considerations in ways not anticipated or experienced by the other national gateways. The arrangements to establish shared governance and consensus decision-making among all northern stakeholders, including indigenous communities, are challenges not previously addressed in national gateway strategy-setting. Measurement Criteria: The three gateways have all used economic analysis to justify their establishment and to measure their impact and future potential. By contrast, an Arctic Gateway would, at least in its initial phase, have a smaller economic impact or net contribution. With its need for new infrastructure and time to build its business activity, it could have a longer payback period for investments than the existing national gateways that have had extensive capabilities. It would be crucial for the Arctic Gateway strategy to avoid suggesting a build-itand-they-will-come approach. It should, instead, focus on the ways in which it will serve a costeffective combination of economic, security and national purposes. 18 Canada’s National Arctic Gateway – For Discussion Only Prepared by PPM Public Policy Management Limited 19 Strategic Position: Unlike its counterparts, the Arctic Gateway could serve an exceptionally valuable political role in reinforcing Canada’s international strategies and goals. The new alignment in the world’s shipping routes would make the Arctic Gateway strategy all the more important for Canada’s future. The Arctic Gateway could become a lynchpin of Canada’s international policy. The sovereignty claims of Canada in the Arctic could be more effectively reinforced through the national Arctic Gateway structure and activities. 4. Arctic Gateway-Related Initiatives The creation of the Arctic Gateway would not take place in isolation. Several organizations, government policies and programs, studies, and advisory groups have already been involved in inspiring and introducing elements of an Arctic Gateway. The creation of an Arctic Gateway should reinforce the work and initiatives of the past and complement those that are already underway. It should not overshadow or subsume them in any way. It should build on the ideas and experience of the many Canadians and institutions dedicated to advancing the interests of the Arctic. The consensus and cooperation have been significant driving forces for developing Canada’s gateways are all the more important for an Arctic Gateway. The following references to various initiatives and organizations are meant to provide a perspective on what constitutes the important groundwork for creating an Arctic Gateway. These are not meant to be all-inclusive references. They are intended to provide specific citations in some instances and examples in others, and they undoubtedly overlook some valuable contributions. The references are included here to provide a perspective on the initiatives and existing efforts that an Arctic Gateway should build upon and accommodate. 4.1 Advisory Reports Some crucial advisory reports have served as guidance for new Arctic transportation policies and have acted as precursors of an Arctic Gateway. While many were in reference to trade corridors, they dealt with the same goals and issues as those now considered to be gateway topics. These reports continue to serve as noteworthy information sources and explanations of the underlying basis for an Arctic Gateway. The August 1998 report of the Mid-Continent International Trade Task Force was among the first to present the notion of building a comprehensive policy basis to prepare for the emerging Arctic transportation opportunities. This federal government task force of western and northern stakeholders, chaired by Manitoba community leader Graham Dixon, presented a series of recommendations for the formation of a Mid-Continent International Trade Corridor initiative. The task force report suggested a corridor development strategy that dealt with issues in four categories: harmonization, infrastructure and investment, education and training, and innovation. The Mid-Continent International Trade and Transportation Corridor emerged as a concept to advance economic development across the centre of the North American continent. Its rationale was to pursue the notion of pan-regional international trade and transportation systems linking northern Manitoba and other Canadian prairie and Arctic regions with the United States and Mexico. The concept took hold as an opportunity to build on the North American Free Trade Agreement to facilitate cross-border movements and remove the impediments that had inhibited northsouth transportation and business activity. It recognized the need to have better border- 19 Canada’s National Arctic Gateway – For Discussion Only Prepared by PPM Public Policy Management Limited 20 crossing arrangements, but also to have seamless transportation connections in all of the modes across the heartland of the continent. The crucial role of infrastructure was highlighted, including the value of inland multimodal port facilities in the corridor. It explained that the “...creation of a central container port in Winnipeg appears to be an essential ingredient in any plan for the long-term viability of the city as an efficient gateway”. The recent establishment of CentrePort Canada is contributing significantly to fulfill this long-standing objective. One of the main recommendations of this task force was for governments and other stakeholders to establish a new organization -- an entity to take a hands-on implementing role. It suggested that what was needed was: “... a way to mobilize the involvement of the private sector manufacturers, shippers and investors in this economic region and build on the solid base already established by political and government leaders. It requires a concerted, organized effort by a unit that can act decisively to execute the business projects needed to carry forward the MidContinent International Trade Corridor.” The report emphasized the need for an organization and leadership to facilitate business and trade activities for the tangible development of northern gateway and corridor activity. Another important source of advice with direct relevance to the Arctic Gateway was the Green Corridors report in November 1999 that emphasized the sustainable development opportunities for the transportation system and infrastructure from the Arctic through central Canada and the Midwestern United States into Mexico. The building of environmentally sustainable transportation, trade links and tourism expansion was highlighted. The opportunities for ecotourism, particularly crucial for Arctic regions, were explained in relation to the transportation systems that would be required for more reliable and less costly freight and passenger transportation. The report cited the value of adopting network solutions, drawing together stakeholders, researchers and governments through innovative arrangements and cooperative projects to advance the research and policy development for gateways and corridors. 4.2 Research Relevant to an Arctic Gateway Canada has been a significant contributor to international Arctic research, having played a major funding role to support the International Polar Year. An example of this commitment and delivery of support was shown in the Circumpolar Flaw Lead System Study led by a Canadian scientist and involving 300 scientists from sixteen countries and including 40 faculty members, research associates graduate students, technicians and support staff from the University of Manitoba. In addition, the upcoming 6th annual Supply Chain Connections Conference, hosted by the University of Manitoba, is looking at transportation requirements and alternatives for moving people and goods to and from the North. Air, rail, road and water transportation are all involved in meeting the needs of northern communities and shippers, including the retail and resource sectors. The Hudson Bay Ecosystem research projects and the work of the scientific projects based at the Churchill Northern Studies Centre are further demonstrations of valuable and timely studies, some of which could be relevant to the Arctic Gateway. There has been considerable new federal government research funding assigned to these initiatives, and strong research capacity and expertise in several fields to do more. While Canadian universities and other research institutions have had long-standing programs across an array of academic disciplines to investigate Arctic-themed topics, relatively little appears to have been done or is in progress to address the primary questions that are of immediate relevance to an Arctic Gateway. For example, the potential consequences of climate 20 Canada’s National Arctic Gateway – For Discussion Only Prepared by PPM Public Policy Management Limited 21 change, specifically on shipping patterns, have attracted relatively little academic analysis or measurement. It is widely understood that there is a tremendous transportation opportunity related to changing ice conditions, and there have been research efforts by the Arctic Council and its Protection of the Arctic Marine Environment Working Group led by Canada, the United States and Finland. Still, relatively little rigorous study has been undertaken to assess the potential transportation and trade consequences and prospects for Canada. A multidisciplinary research and knowledge-exchange program could have immediate value by applying the gateway lens to the perspective of Arctic research programs. While the existing Arctic research effort is yielding valuable general information, it could also contribute more to the understanding and knowledge base necessary for the establishment of sustainability for the Arctic Gateway. 4.3 Territorial and Provincial Initiatives Mentioned earlier were the transportation planning reports and policy positions adopted by Nunavut and other territorial governments. They contain references to the North being the gateway to Europe and Asia and emphasize the importance of investing in the transportation infrastructure that is necessary to take advantage of the emerging trade opportunities. They point out that transportation infrastructure is the key to safety, security and sovereignty in the North, including the role of northern airports serving in refuelling and emergency capacities. They emphasize the connections with southern regions of Canada in the establishment of polar shipping and air routes. The Nunavut Transportation Strategy document makes reference to Nunavut’s connections to trade corridors and new international trade activity. It points out the benefits of international air traffic through polar routes, as well as the potential impact of a Manitoba/Nunavut highway. The crucial role of federal funding to connect Nunavut with the rest of Canada is a consistent theme, including the provision of search and rescue response capability and environmental crisis responses. The Province of Manitoba has taken an array of measures that help set the stage for an Arctic Gateway. It has initiated several programs in trade and transportation to build north-south connections and reinforce the strong tradition of Winnipeg in serving Arctic communities. Among the Manitoba government programs is the Arctic Bridge initiative that has worked to encourage trade with Russia and other northern European countries interested in connecting with markets in the central region of the United States. The concept of the Arctic Bridge connecting the Port of Murmansk, Russia to Monterey, Mexico has been to attract freight through the Port of Churchill. Another recent Manitoba government initiative was the establishment in 2007 of the Manitoba International Gateway Council to help take advantage of emerging opportunities such as new polar air routes and traffic flows from Asia. Part of its rationale is to help improve the transportation and logistics services that can provide less costly and more efficient freight into Arctic communities. The Council’s membership includes leaders from across the transportation and shipper communities, and is an integral part of the province’s Manitoba International Gateway Strategy unveiled in late 2005. That strategy document states the purpose “...to seize on emerging opportunities from global supply chain trends, such as burgeoning polar air routes and heightened container traffic flows from Asia.” From Manitoba’s perspective, its position in the geographic centre of Canada enables crucial roles for both the Asia-Pacific Gateway and the Arctic Gateway. 21 Canada’s National Arctic Gateway – For Discussion Only Prepared by PPM Public Policy Management Limited 22 Other Manitoba initiatives through programs such as the International Mid-Continent Trade and Transportation Corridor have created the groundwork for greater integration that includes Arctic transportation and strengthens its freight, passenger and tourism links across Canada and North America. 4.4 Federal Arctic Initiatives The Government of Canada has the primary role and jurisdictional responsibility in many of the crucial Arctic Gateway issues. For the Arctic, that federal government accountability spans the key issues of environmental protection, international trade, transport regulation, economic development and public services, including transportation infrastructure and its fiduciary obligations to First Nations based on numbered treaties with First Nations. The Government of Canada has been fulfilling its Arctic responsibilities that have relevance to the Arctic Gateway in a full range of programs and policies. The federal government’s Northern Strategy presents four priorities, all of which would be reinforced by the adoption of a national Arctic Gateway. That document presents the vision of an integrated strategy that involves: exercising Canada’s Arctic sovereignty; promoting social and economic development; protecting environmental heritage; and improving and devolving northern governance. The formation of the Arctic Gateway strategy would support these objectives and give them a tangible basis for implementation. Reinforcing the other federal documents and position papers on the Arctic is the Statement on Canada’s Arctic Foreign Policy: Exercising Sovereignty and Promoting Canada’s Northern Strategy, issued in August 2010. In it, the Minister of Foreign Affairs explained Ottawa’s determination to demonstrate international leadership on matters sustainable resource development and responsible stewardship in its Arctic foreign policy. The 2009 Arctic Marine Shipping Assessment report provided further detailed analysis of emerging shipping conditions and crucial safety and environmental considerations, as well as encouraging the adoption of measures to engage northern residents and communities in new governance arrangements. An example of one of the several recent federal government initiatives for the North is the new Nutrition North Canada program that provides subsidies to improve access to healthy food to Arctic and northern residents. It includes new distribution arrangements that will reinforce the transportation links with Canadian urban centres and establish a more integrated and costeffective supply chain for the benefit of Arctic communities. Another example is the set of measures being taken by the federal government related to sovereignty to protect Canadian waters and airspace, as well as to monitor commercial shipping. The expansion of Canadian defence and sovereignty protection measures has become particularly important with the trend towards greater transportation activity and the potential for more viable resource extraction projects. The federal government plays a major role in protecting the natural environment of the Arctic. For instance, the potential pollution of sensitive Arctic waters has been on the federal government agenda for many decades, and its authority can be exercised through the Arctic Waters Pollution Prevention Act. While Ottawa has devolved some of its powers and responsibilities to the territorial Government of Nunavut, it remains the driver and investor for most of the commercial activity, social development and economic base for the territory. 22 Canada’s National Arctic Gateway – For Discussion Only Prepared by PPM Public Policy Management Limited 23 Through its membership in the Arctic Council, Canada works with other northern nations to deal matters of common concern. The eight Arctic Council countries -- Canada, Russia, Norway, Denmark, Iceland, United States, Sweden, and Finland -- formed their organization in the Ottawa Declaration in 1996 to provide a forum for cooperation. With involvement by Arctic indigenous communities and other Arctic inhabitants, the Council has a particular emphasis on sustainable development and environmental protection. The federal government is signatory to the Law of the Sea that defines the rights and responsibilities of nations in their use of the world’s oceans. It establishes guidelines for businesses and governments in their policies on the environment and the management of marine natural resources. In the rapidly melting Arctic, this legal framework is becoming extremely important as countries stake claims to Arctic resources and insist on unfettered passage through Canadian waters. Through an Arctic Gateway structure, the federal government could enhance its ability to be an environmental guardian and knowledge broker for Arctic waters. This could involve the ability to save or salvage damaged vessels, and strengthen its capacity to enforce environmental regulatory regimes that would prevent disasters like the oil spill this year in the Gulf of Mexico. The Canadian government’s position that its Arctic waters are international, but under the sovereign control of Canada, requires monitoring and regulatory enforcement capability. The federal government’s Arctic activities and programs are largely encompassed in a policy issued in July 2009. The policy paper entitled Canada’s Northern Strategy: Our North, Our Heritage, Our Future explains the many initiatives that are underway to benefit the North across the breadth of programs and government services. Among those are the procurement of Arctic patrol ships and a new icebreaker, upgrading of research facilities, and economic development investments. It also noted the establishment of the new federal agency to promote Arctic economic development. That agency is tasked with making strategic investments in support of business project, as well as public infrastructure for northern communities. 4.5 Regional Gateways Some initiatives that are necessary precursors to the Arctic Gateway are already underway. Some efforts and organizations are in place to address aspects of the challenges that are anticipated on a wider scale for the national Arctic Gateway. International trade-related initiatives already include aspects and activities of gateway organizations, mainly related to the linking across the northern and central North American region from Churchill and the northern prairies with central US states and regions of northern Mexico. Some of these initiatives emerged primarily as responses to the North American Free Trade Agreement. The Manitoba International Gateway Strategy, mentioned earlier, is one government-managed initiative already well underway. North America’s SuperCorridor Coalition is a high-profile tri-national corridor and gateway organization spanning Manitoba and Ontario, several Midwestern US states, and the northeastern and central regions of Mexico. Based in Dallas, Texas, it has a focus on transportation systems of north-south interstate highways and rail systems. It is significantly involved in advocacy for transportation and logistics infrastructure, including the Port of Churchill and inland port intermodal facilities. The Churchill Gateway Development Corporation is a public-private partnership marketing the Port of Churchill and its rail system. Created in 2003, it assumed several of the functions of the Gateway North Marketing Agency that had been established six years earlier by Manitoba’s 23 Canada’s National Arctic Gateway – For Discussion Only Prepared by PPM Public Policy Management Limited 24 federal minister Lloyd Axworthy with the primary purpose of expanding prairie wheat shipments and diversifying traffic through the northern Manitoba rail and port system. Twenty years ago, Churchill had been written off by some federal government officials who could not understand its long-term potential and strategic value. Attempts were made to shut the northern Manitoba rail route and cease grain shipments through the port, in an effort to eliminate transportation subsidies. Through the efforts of northern residents and Ottawa’s willingness to accommodate new concepts for the rail line and port, the transportation system was privatized. The subsequent transformation of the rail line and port into an integrated system and its expansion of traffic volumes and commodity types have proven to be a farsighted strategy with increasingly obvious benefits to northerners and commodity shippers. The board of directors of the Churchill Gateway Development Corporation includes representation of government and business leaders, as well as transportation and logistics experts. Included in the board is the owner/operator of the port and rail facilities, OmniTRAX Canada Inc. The private ownership of both the port and the Hudson Bay Railway Company make the Port of Churchill unique among the major commodity-handling facilities in Canada. While Vancouver and Halifax operate under port authority models with public ownership, the Port of Churchill had been transformed from a government-operated facility of the Canada Ports Corporation into an integrated privately-operated organizational form. A major thrust of the Churchill Gateway Development Corporation has been to diversify the traffic through the port to include handling of other commodities and cargo. This includes container shipments of specialized crops and fuel. The consequent emphasis has been on building two-way movement of cargo by attracting imported goods through Churchill. In many respects, the CentrePort Canada initiative, launched in 2009 and supported by both the Manitoba and federal governments, could serve an important role within the Arctic Gateway stratgey. CentrePort Canada is the inland port and international trade area serving as a hub for Arctic Bridge, mid-continent corridor, and other trade and transportation measures. Among its several initiatives, CentrePort Canada is an enabler of the air freight connection across the Arctic between Canada and Russia. CentrePort Canada constitutes an innovative way to build north-south transportation links that can help draw the Arctic more closely together with other areas of Canada, including the national gateways. As a crucial link in the chain of institutions and programs that will help to support an effective Arctic Gateway structure, CentrePort Canada could play a vital role in conjunction with government agencies and companies such as OmniTRAX Canada Inc. in the new Arctic Gateway. 5. Strategic Direction The primary question about designating a national Arctic Gateway for Canada is no longer about whether it is a good idea, or whether it should be pursued. Its qualification within the national gateway framework is obvious, and its value for Canada’s sovereignty and sustainability are tangible. The relevant questions now are about how to proceed to make it a reality. The establishment of the Arctic Gateway is needed as a new facet of the emerging long-term northern development strategy for Canada. The investments in northern transportation infrastructure and the careful development of international Arctic shipping and economic activity now within the gateway framework will have significant paybacks for Canada in the immediate future and in decades to come. 24 Canada’s National Arctic Gateway – For Discussion Only Prepared by PPM Public Policy Management Limited 25 A recent article by Peter Avis in the Canadian Military Journal regarding gateways and national security contains useful insights, including his view that: Three strategic gateway and corridor initiatives have been identified… A fourth initiative may be possible as the northern climate changes over time: an Arctic Gateway and Corridor system that would use rail, sea and air to handle cargo flows between Asia, North America and Europe. Avis went on to point out: While security of the supply chain is a significant feature… the gateway and corridor approach (national policy framework) is also about linking policy and physical infrastructure together with relationships that transcend traditional institutional boundaries (i.e. public/private, federal/provincial/municipal). A further point by Peter Avis was that the international security and sovereignty issues that are associated with Canada’s transportation gateways make it all the more important for them to develop with an emphasis on their role in relation to national defence, sovereignty protection and environmental integrity. From that security perspective, the Arctic Gateway holds the prospect of becoming the most crucial and valuable of all the national gateways in terms of protecting Canada’s national interests and enhancing its sovereignty position. The designation of the national Arctic Gateway would complete the national gateway family for Canada by enabling the North to participate with its western, eastern and southern counterparts. It would contribute to the development of the other gateways by helping re-orient shipping through the Arctic to Canada’s Asia-Pacific and Atlantic ports. The Arctic Gateway would provide tangible recognition of the importance of Canada’s North and set the stage for the inevitable future of the Arctic as a major international transportation route. In retrospect, it was an understandable but unfortunate oversight that the federal government’s national gateway policy and framework did not anticipate the designation of a national Arctic Gateway. By focussing on the expansion of historical business trends and existing facilities in ports, transportation and international trade, the national gateway policy framework did not, at its initial stage, account for the extraordinary changes that are making the Arctic a viable and valuable national gateway. Two important points should be kept in mind in terms of immediate decisions related to establishing an Arctic Gateway strategy. • The first is to acknowledge the Arctic Gateway as one of national and international importance, not simply a regional initiative. It must become the fourth designated national gateway to complete the balance among Canada’s most important strategic trade and transportation initiatives. • The second is to proceed now with the federal government designating the national Arctic Gateway and starting the process to develop the detailed Arctic Gateway strategy document to guide its future direction. It is useful to recall that the Asia-Pacific and Atlantic gateways were established in advance of the national policy framework and the subsequent creation of the strategic plans for those gateways. The fundamental policy decisions to designate an Arctic Gateway could readily proceed immediately, without the need for operational details to be established in advance. The designation of a federal Arctic Gateway within the federal gateway framework and the subsequent development of a detailed, consensus-based Arctic Gateway strategy document are 25 Canada’s National Arctic Gateway – For Discussion Only Prepared by PPM Public Policy Management Limited 26 essential steps that would replicate the implementation procedures adopted for the other three national gateways. Disclaimer: Please note that the views expressed throughout this discussion paper are exclusively those of the author. They are put forward to encourage debate and constructive dialogue. They do not represent opinions or perspectives other than those of the researchers and policy specialists of the discussion paper’s author, PPM Public Policy Management Limited. 26 Canada’s National Arctic Gateway – For Discussion Only Prepared by PPM Public Policy Management Limited
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