The Carney government has released a discussion paper that opens the door to potentially privatizing elements of Canada’s seaport system. Titled “Strengthening One Canadian Economy Through Trade and Transportation,” the document proposes a broad modernization of the country’s trade corridors and supply chains, including efforts to cut red tape and attract new infrastructure investment.
Among its more constructive ideas are clarifying competition rules in maritime trade, introducing a “tell-us-once” system to simplify reporting, improving collaboration between port authorities, and safeguarding the Saint Lawrence Seaway, the vital link connecting Great Lakes shipping to the Atlantic.
Yet the document’s more concerning elements deserve close examination, particularly its openness to selling or divesting certain ports to private interests.
Under the Canada Marine Act, Canada’s major port authorities — including those in Vancouver, Montreal, Halifax, Quebec, Toronto, and Hamilton — operate as Crown corporations. They function primarily as landlords while overseeing navigation, environmental protection, labour standards, shipping regulations, and logistics.
The government proposes creating a National Corridor Council, reporting directly to the Minister of Transport, to help strategic ports achieve economies of scale, plan long-term investments, and support diversified trade. Buried deeper in the text, however, is language indicating this work “could include consideration of the amalgamation of some key ports and potential divestiture of others.” Which ports might be affected remains unspecified.
This comes shortly after the government signalled interest in alternative ownership models for airport authorities, which operate under a similar framework. It also follows the Canada Infrastructure Bank’s $1.16-billion loan for the Contrecœur terminal expansion at the Port of Montreal. Should that port later be divested, Canadian taxpayers would effectively have subsidized a major upgrade for whatever private entity ultimately assumes control.
Adding to the complexity, virtually all Canadian ports are unionized, with the International Longshore and Warehouse Union on the West Coast and components of the Canadian Union of Public Employees prominent on the East Coast. Any shift toward privatization would test these labour relationships and carry implications for local economies that have long relied on publicly accountable port operations.
National security considerations loom especially large. China’s well-documented strategy of acquiring or securing influence over international ports illustrates how such assets can be leveraged for geopolitical advantage.
Privatizing critical Canadian gateways such as Halifax or Vancouver could create openings for similar foreign influence, increasing dependency and vulnerability at a time when supply chain resilience matters more than ever.
The paper does reference granting the Transport Minister new powers to address threats to ports or supply chains from “foreign actors,” but it offers little detail on the scope of those powers or their effectiveness as safeguards.
All of this unfolds against a precarious backdrop: ongoing trade tensions with the United States, significant supply chain disruptions tied to conflict in the Middle East, and the shadow of a potential global recession. In such conditions, experimenting with the divestiture of core public trade infrastructure feels particularly ill-timed.
Public control of strategic assets such as ports exists for good reason. While private sector involvement can bring capital and operational efficiencies in certain contexts, there are domains where market incentives alone cannot reliably safeguard the national interest. Canada’s ports, which underpin our economy and sovereignty, appear to fall squarely into that category.
The Carney government does deserve credit for tackling long-standing inefficiencies in our trade corridors. But on the question of divestiture, it should proceed with far greater caution and transparency.
Canadians need a clearer business case, detailed answers on national security protections, and assurances that short-term fiscal pressures will not compromise long-term strategic control of our most vital gateways.
This piece was written by an individual contributor and reflects the editorial position of The Provincial Times. Read our Content Policy here.
