2 TRANSPORTATION AND THE ECONOMY
IMPORTANCE OF TRANSPORTATION TO THE CANADIAN ECONOMY
VALUE-ADDED OUTPUT OF COMMERCIAL TRANSPORTATION
Value-added estimates 5 of
output are available for transportation services that are offered on
a commercial or for-hire basis. Such estimates do not include transportation
services that are operated by a company for its own use, such as private
trucking.
In 2003, commercial transportation industries in Canada accounted for
$40.1 billion in 1997 dollars, or four per cent of the value-added GDP;
this percentage was unchanged from 2002. The most important industry
is trucking, which accounted for $12.3 billion, or 1.2 per cent of the
total output. The air and rail transportation industries accounted for
$3.7 billion (0.4 per cent) and $5.6 billion (0.6 per cent), respectively.
Table 2-4 compares the contribution of the different modes of transportation
to Canada's GDP in 2003.
TRANSPORTATION-RELATED DEMAND
In 2003, the total of all transportation expenditures for the final
demand of goods accounted for 13.0 per cent of expenditures in Canada's
economy. Personal expenditures on transportation were the largest part
of transportationrelated demand, accounting for 8.5 per cent of GDP.
TABLE 2-4: COMMERCIAL TRANSPORTATION AS A PROPORTION OF GDP, 1 2003
| |
Millions of
constant 1997
dollars 1 |
Per cent
of GDP |
| Industries |
|
| Air |
3,722 |
0.4 |
| Rail |
5,630 |
0.6 |
| Truck |
12,261 |
1.2 |
| Urban transit systems |
3,095 |
0.3 |
| Interurban and rural bus |
209 |
0.0 |
Miscellaneous ground
passenger transportation |
1,853 |
0.2 |
Other transportation 2 |
12,108 |
1.2 |
Transportation industries |
40,137 |
4.0 |
- Gross Domestic Product at basic prices.
- Includes scenic and sightseeing, postal and courier services as well as support activties for
other modes of transportation such as baggage handling, pilotage, harbour operation and
rail car loading and unloading.
Source: Statistics Canada Cansim Table 379-0019
These expenditures grew by 1.9 per cent over 2002 levels. This growth
was well below the 5.1 per cent average growth rate of the previous five
years and reflects a six per cent decrease in the purchases of motor
vehicles. Transportation equipment purchases, mostly motor vehicles,
made up 4.0 per cent of the GDP, while other motor vehicle expenses,
including maintenance and repair, fuel and licences, made up another
3.5 per cent. Personal expenditures on commercial transportation made
up 1.0 per cent of total GDP. For a more detailed breakdown of personal
expenditures for transportation, see Table A2-63 in the Addendum.
Investment in transportation made up 2.8 per cent of the GDP in 2003.
Business investment in transportation was the largest part of this, accounting
for 2.3 per cent of GDP. In 2003, overall investment by business in transportation
fell by 2.5 per cent, as business investment in transportation equipment
decreased 4.6 per cent. Government investment was dominated by expenditures
on roads, which made up 85 per cent of government investment spending
on transportation and accounted for 0.5 per cent of the GDP. For more
detailed information on government transportation spending, see Chapter
3 of this report.
Transportation exports and imports were dominated by automotive trade.
In 2003, exports of automotive equipment, including parts, accounted
for 7.2 per cent of the GDP, while imports accounted for 6.3 per cent.
Automotive exports fell 9.4 per cent in 2003, while imports fell 5.0
per cent.
Transportation-related domestic demand accounted for 12.8 per cent of
final domestic demand in 2002. This percentage is lower than for transportation-related
final demand, reflecting the importance of automotive products to Canada's
external trade.
Table 2-5 breaks down transportation demand as a proportion of GDP.
TABLE 2-5: TRANSPORTATION DEMAND AS A PROPORTION OF GDP, 2003
| |
Millions of
dollars
2003 |
Per cent
of GDP
2003 |
Per cent
Annual
Growth
2002 -
2003 |
Per cent
Annual
Growth
1997 -
2002 |
| Personal Expenditures on Transportation |
103,006 |
8.5 |
1.9 |
5.1 |
| New and used transportation equipment |
48,013 |
4.0 |
(1.6) |
5.7 |
| Repair and maintenance expenditures |
14,148 |
1.2 |
7.4 |
5.7 |
| Other motor vehicle related services |
6,961 |
0.6 |
3.8 |
3.6 |
| Purchased commercial transportation |
11,982 |
1.0 |
(0.1) |
2.1 |
| Investment in Transportation |
34,431 |
2.8 |
(1.7) |
N/A |
| Business investment in transportation |
27,801 |
2.3 |
(2.5) |
N/A |
| Transportation infrastructure (roads and railways) |
2,146 |
0.2 |
(0.2) |
8.8 |
| Transportation equipment |
22,592 |
1.9 |
(4.6) |
5.9 |
| Inventories |
3,063 |
0.3 |
14.6 |
N/A |
| Government investment in transportation |
6,630 |
0.5 |
1.4 |
2.2 |
| Transportation infrastructure (roads) |
5,667 |
0.5 |
3.1 |
0.1 |
| Transportation equipment |
963 |
0.1 |
(7.9) |
19.9 |
| Government Spending on Transportation 1 |
12,980 |
1.1 |
4.5 |
2.1 |
| Road maintenance |
8,580 |
0.7 |
6.7 |
5.7 |
| Urban transit subsidies |
2,617 |
0.2 |
9.3 |
(0.9) |
| Other spending |
1,783 |
0.1 |
(10.1) |
(6.3) |
| Exports |
97,959 |
8.1 |
(9.2) |
6.7 |
| Automotive products |
87,941 |
7.2 |
(9.4) |
6.9 |
| Commercial transportation |
10,018 |
0.8 |
(7.5) |
5.2 |
| Imports |
90,843 |
7.5 |
(5.0) |
5.8 |
| Automotive products |
76,357 |
6.3 |
(6.3) |
6.0 |
| Total Transport-Related Final Demand |
157,533 |
13.0 |
(2.1) |
N/A |
| Gross Domestic Product at Market Prices |
1,214,601 |
100.0 |
5.2 |
5.5 |
| Transportation-related domestic demand |
147,675 |
|
0.9 |
N/A |
| Final Domestic Demand |
1,157,613 |
|
5.0 |
5.2 |
Note: N/A = Not available.
1 2002 figures; growth rates over previous year are growth rates over 2001.
Source: Statistics Canada National Income and Expenditure Accounts, Transport Canada
IMPORTANCE OF COMMERCIAL TRANSPORTATION TO PROVINCIAL / TERRITORIAL
ECONOMIES
COMMERCIAL TRANSPORTATION
Table 2-6 shows the importance of commercial transportation to provincial
and territorial GDP. In 2002, commercial transportation was most important
to Manitoba, where it accounted for 6.0 per cent of GDP; in Prince Edward
Island, it accounted for only 2.2 per cent of GDP. Most of the commercial
transportation activity took place in Ontario and Quebec, which together
accounted for almost 58 per cent of the total commercial transportation
measured in the GDP. Alberta and British Columbia combined accounted
for 28 per cent.
TABLE 2-6: COMMERCIAL TRANSPORTATION AS A PROPORTION OF GDP BY PROVINCE AND TERRITORY, 2002
| |
Millions
of constant
1997
dollars
|
Per cent of
Total Canadian
Commercial
Transportation
|
Per cent of
Total Provincial/
Territorial
GDP
|
| Newfoundland and Labrador 1 |
420.3 |
1.0 |
3.3 |
| Prince Edward Island 1 |
67.6 |
0.2 |
2.2 |
| Nova Scotia 1,2 |
974.3 |
2.4 |
4.3 |
| New Brunswick 1,2 |
954.9 |
2.4 |
5.2 |
| Quebec |
8,895.10 |
21.9 |
4.1 |
| Ontario |
14,698.10 |
36.2 |
3.5 |
| Manitoba 1 |
1,919.90 |
4.7 |
6.0 |
| Saskatchewan |
1,034.70 |
2.6 |
3.7 |
| Alberta |
5,034.60 |
12.4 |
4.1 |
| British Columbia |
6,354.30 |
15.7 |
5.4 |
| Territories 1 |
193.6 |
0.5 |
4.1 |
Note: GDP at basic prices.
1 Includes warehousing.
2 Includes pipeline.
Source: Statistics Canada Cansim Table 379-0025
PROVINCIAL AND TERRITORIAL PERSONAL TRANSPORTATION SPENDING
In 2002, Canadians spent $101.1 billion on personal transportation.
Of this, Ontario residents spent 40 per cent, Quebec residents 23 per
cent, British Columbia residents 13 per cent and Alberta residents 11
per cent.
On a per capita basis, Yukon residents spent the most on transportation,
an average of $3,877 in 2002, while Nunavut residents spent the least,
only $1,035. In the provinces of Ontario and Alberta residents spent
more than the national average of $3,222.
On average, 15.4 per cent of total personal expenditures by Canadians
in 2002 had to do with transportation. Personal transportation spending
in New Brunswick accounted for 16.3 per cent of total personal spending,
the highest proportion of any province or territory.
In 2002, personal expenditures on transportation represented 9.2 per
cent of final domestic demand in Canada. It made up over 9.0 per cent
in New Brunswick, Quebec and Ontario but only 6.9 per cent in the Yukon,
3.8 per cent in the Northwest Territories and 2.0 per cent in Nunavut.
Table 2-7 shows personal expenditures on transportation by province
and territory in 2002.
TABLE 2-7: PERSONAL EXPENDITURES ON TRANSPORTATION IN THE PROVINCES AND TERRITORIES, 2002
| |
Millions
of
Dollars |
Per
capita
Dollars |
Per cent
of Total
Provincial/
Territorial
Personal
Expenditures |
Per cent
of Total
Canadian
Personal
Transportation
Expenditures |
Per cent of
Provincial/
Territorial
Final
Domestic
Demand |
| Newfoundland and Labrador |
1,390 |
2,677 |
15.2 |
1.4 |
8.0 |
| Prince Edward Island |
372 |
2,725 |
14.9 |
0.4 |
8.5 |
| Nova Scotia |
2,661 |
2,850 |
14.7 |
2.6 |
8.3 |
| New Brunswick |
2,234.00 |
2,977 |
16.3 |
2.2 |
9.6 |
| Quebec |
23,031.00 |
3,130 |
16.1 |
22.8 |
9.7 |
| Ontario |
40,480.00 |
3,346 |
15.4 |
40.1 |
9.4 |
| Manitoba |
3,091.00 |
2,675 |
13.6 |
3.1 |
8.3 |
| Saskatchewan |
2,716.00 |
2,729 |
13.9 |
2.7 |
8.0 |
| Alberta |
11,408.00 |
3,663 |
15.8 |
11.3 |
8.3 |
| British Columbia |
12,749 |
3,098 |
14.2 |
12.6 |
8.9 |
| Yukon |
117 |
3,877 |
16.0 |
0.12 |
6.9 |
| Northwest Territories |
136 |
3,292 |
13.4 |
0.13 |
3.8 |
| Nunavut |
30 |
1,035 |
7.4 |
0.03 |
2.0 |
| Canada |
101,058 |
3,222 |
15.4 |
100.0 |
9.2 |
Source: Statistics Canada
5 A value-added measure of output
is referred to as net output. It is equivalent to gross output or total
sales net of goods and services purchased by a firm as intermediate inputs
and includes only primary inputs such as labour. Back
to text
Canadian Economic Performance
International Trade and Trade Flows
Tourism
Employment
Energy Consumption
Productivity and Price Performance of Transport
Importance of Transportation to the Canadian Economy
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