CANADA PORT AUTHORITIES

Under the 1995 National Marine Policy, 19 major Canadian ports were deemed vital to Canada’s domestic and international trade. These 19 ports were designated Canada Port Authorities (CPAs) under The Canada Marine Act which received Royal Assent on June 11, 1998.

The Canada Port Authorities (CPAs), established under the Canada Marine Act, also met criteria pertaining to financial self-sufficiency, diversified traffic and intermodal connections.

Canada Port Authorities were created to operate particular ports on behalf of the Government of Canada. In certain cases CPAs possess the power to engage in activities related to shipping, navigation and transportation of passengers and goods. For other purposes, for example when borrowing funds, CPAs are not an agent of the Government of Canada. They may also be given Crown land to operated and manage, but not to own. They may, however, acquire and own land in their own name.

CPAs are required to be self-sufficient and fund their operations through the revenues that they generate. Under Section 25 of the Canada Marine Act, CPAs are not eligible for federal funding, other than grants of general application or in the case of emergencies.

CPAs are required to abide by strict principles of public accountability. Boards of directors of CPAs are composed of seven to nine representatives, most of which are from the private sector. User groups, carrier groups, municipalities, provinces and the Government of Canada nominate each member of the board. They are responsible for the management and port authority activities, including decisions related to port authority expenditures. Nominees cannot be officers or employees of user companies, government employees or elected officials.

Transport Canada is responsible for ensuring that Canada Port Authorities conduct their affairs in accordance with the provisions of the Canada Marine Act, the Port Authorities Management and Operations Regulations, as well as the provisions set out in their Letters Patent. Letters Patent are the federal governments issued to the port authorities that grant them the special right to operate a particular port. Transport Canada monitors ports across the country in order to ensure CPA compliance with these legislative provisions and regulations.

Transport Canada is also responsible for ensuring that federal real property transactions requested by a Canada Port Authority occur within the authorities of the Canada Marine Act, the Federal Real Property and Federal Immovables Act and Treasury Board Policy. A CPA does not have the authority to acquire or sell the federal real property it manages.

Transparency of CPA operations is maintained through:

• An annual meeting open to the public;
• An annual report and annual financial statements to be made available to the public;
• Annual disclosure of remuneration and benefits paid to directors and officers;
• A public land-use plan;
• A financial examination at least once every five years with a report to be made available for inspection by the public; and
• Disclosure of information related to the CPA operations under the Access to Information Act.

February 2006