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Canada to Apply National Security Test to New Port Investments

Bill C-33 is said to propose targeted legislative changes to implement the new approach and review port investment.

The Government of Canada has announced a new policy statement to support private investment in its national ports, which will apply various factors such as the national security scanner.

Expected to help investors act with confidence and provide additional due diligence, the new approach will offer more clarity and predictability to the port market.

Bill C-33 is said to propose targeted legislative changes to implement the new approach and review port investment.

The move comes three weeks after Canada announced tougher rules around investments in critical minerals, making it harder for foreign state-owned enterprises to pursue takeovers or invest in the sector. Proposed transactions now face “rigorous” national security oversight if they have such foreign involvement.

Various steps will be taken to modernise the review of investments and adapt its public interest test to the new international and domestic market.

It will change the financial thresholds to extend the number of transactions, which are eligible for evaluation and subject to international trade agreements.

The transport minister can use the new tools to intervene in the dangerous conditions that could harm Canada’s critical port assets and long-term economic performance.

The Port of Prince Rupert welcomed the biggest container ship to dock in  Canada - Prince Rupert Northern View

To promote Canada’s trade objectives, protect critical infrastructure and bolster market-oriented investor behaviour and competition, investment reviews will cover the application of a national security lens and existing factors such as economic impacts and implications for users.

For better reflection of inter-port competitive forces, an assessment of competition on a regional gateway level will be conducted under public interest factors that inform investment reviews.

Set annually by the Competition Bureau, the threshold presently stood at $93m. Transport Canada aims to lower the value of transportation undertakings at Canada Port Authorities to $10m.

Transport Canada is ‘proposing a new legislative authority enabling the Minister of Transport to issue a Ministerial Order under the Canada Marine Act, to enable the Minister to take swift, decisive action in response to significant and immediate threats to the safety and security of Canada’s ports system, and the reliability of our supply chains’.

Big day for Port of Prince Rupert as container facility doubles capacity -  My Prince George Now Port of Prince Rupert to increase supply chain capacity

On the other hand the Minister of Transport, the Honourable Omar Alghabra, announced an investment of nearly $75 million under the National Trade Corridors Fund to increase capacity at the Port of Prince Rupert.

With Trigon Pacific Terminals Limited’s contribution, the total combined investment in the project would be $163.1 million.

No description available.

The funding will support the construction of a second berth at the Port of Prince Rupert terminal. This second berth will help reduce congestion, and increase the port’s capacity to export products for green energy and other clean commodities.

This project will also increase the capacity of the trade corridor linking the Port of Prince Rupert to Western Canada.

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