Economic Impact Study of Independent Marine Ports in Atlantic Canada - PDF document

Economic Impact Study of Independent Marine Ports in Atlantic Canada FINAL REPORT Prepared for: Independent Marine Ports of Atlantic Canada Prepared by: Gardner Pinfold October 2018

Canada Atlantic Canada Independent Marine Ports USA 163 Atlantic Canada Ports Shipping Value $$ 574,000 cruise visitors spend 29% $105 million 18% every year 25% 18% of ferry rides and 28% 25% of vehicle trips in Canada 14 IMPAC Port Complexes $219 million 39% in salaries of regional cargo 43% 3,750 of fisheries full-time jobs $368 million $60 million in added value in taxes to federal and provincial governments (506)-624-8025 www.impacports.com 1. Gardner Pinfold, 2018. Economic Impact Study of Independent Marine Ports in Atlantic Canada

TABLE OF CONTENTS Page I EXECUTIVE SUMMARY 1. i Study Focus 2. i Critical Port Infrastructure 3. ii Key Economic Findings 4. ii Issues and Challenges I. 4 INTRODUCTION 1.1 4 Study Ports 1.2 5 Study Purpose and Objectives 1.3 5 Measuring Impacts II. 8 OVERVIEW OF ATLANTIC CANADA PORTS 2.1 8 Ports and Management 2.2 9 Economic Role 2.2.1 9 Critical Shipping Infrastructure 2.2.2 12 Marine Port Cluster 2.2.3 13 Port Activities and Types of Cargo 2.2.4 14 Cargo Tonnages Handled 2.3 15 Context and Business Climate 2.3.1 15 Marine Transport Demand 2.3.2 16 Business Climate III. 17 NOVA SCOTIA 3.1 17 Strait of Canso 3.1.1 17 Description 3.1.2 17 Dependent Industry Sectors 3.1.3 17 Community Profile 3.1.4 18 Economic Impacts 3.2 19 Digby 3.2.1 19 Description 3.2.2 19 Dependent Industry Sectors 3.2.3 19 Community Profile 3.2.4 20 Economic Impacts 3.3 21 Shelburne 3.3.1 21 Description 3.3.2 21 Dependent Industry Sectors 3.3.3 21 Community Profile 3.3.4 22 Economic Impacts 3.4 23 Sydney 3.4.1 23 Description 3.4.2 23 Dependent Industry Sectors 3.4.3 23 Community Profile 3.4.4 24 Economic Impacts 3.5 25 Yarmouth 3.5.1 25 Description 3.5.2 25 Dependent Industry Sectors 3.5.3 25 Community Profile 3.5.4 26 Economic Impacts Gardner Pinfold

Economic Impact Study of Independent Marine Ports in Atlantic Canada IV. 27 NEW BRUNSWICK 4.1 27 Bayside 4.1.1 27 Description 4.1.2 27 Dependent Industry Sectors 4.1.3 27 Community Profile 4.1.4 28 Economic Impacts 4.2 29 Dalhousie 4.2.1 29 Description 4.2.2 29 Dependent Industry Sectors 4.2.3 29 Community Profile 4.2.4 30 Economic Impacts V. 31 PRINCE EDWARD ISLAND 5.1 31 Charlottetown 5.1.1 31 Description 5.1.2 31 Dependent Industry Sectors 5.1.3 31 Community Profile 5.1.4 32 Economic Impacts 5.2 33 Souris 5.2.1 33 Description 5.2.2 33 Dependent Industry Sectors 5.2.3 33 Community Profile 5.2.4 34 Economic Impacts 5.3 35 Summerside 5.3.1 35 Description 5.3.2 35 Dependent Industry Sectors 5.3.3 35 Community Profile 5.3.4 36 Economic Impacts VI. 37 NEWFOUNDLAND AND LABRADOR 6.1 37 Corner Brook 6.1.1 37 Description 6.1.2 37 Dependent Industry Sectors 6.1.3 37 Community Profile 6.1.4 38 Economic Impacts 6.2 39 Placentia Bay 6.2.1 39 Description 6.2.2 39 Dependent Industry Sectors 6.2.3 39 Community Profile 6.2.4 40 Economic Impacts 6.3 41 Long Pond 6.3.1 41 Description 6.3.2 41 Dependent Industry Sectors 6.3.3 41 Community Profile 6.3.4 42 Economic Impacts 6.4 43 Stephenville 6.4.1 43 Description 6.4.2 43 Dependent Industry Sectors 6.4.3 43 Community Profile 6.4.4 44 Economic Impacts VII. 45 SUMMARY AND KEY ISSUES 7.1 45 Economic Summary 7.2 46 Issues and Challenges Gardner Pinfold

Economic Impact Study of Independent Marine Ports in Atlantic Canada 7.2.1 46 Sustainable Revenue 7.2.2 46 Harbour Dues 7.2.3 47 Harbour Maintenance Fees 7.2.4 47 Capital Assistance Program 48 APPENDIX A: ECONOMIC IMPACT METHODGY A.1 48 Economic impact analysis A.1.1 48 System of National Accounts Framework A.1.2 49 Water Transportation (NAICS 483) A.1.3 49 Scenic and Sightseeing Transport (NAICS 487) A.1.4 50 Support Activities for Water (NAICS 4883) A.1.5 50 Cruise Passenger and Crew Onshore Spending (NAICS – Various) 51 APPENDIX B: FISHERIES LANDINGS B.1 51 Landings by Fisheries and Oceans Region B.1.1 51 Maritimes Scotia-Fundy Region B.1.2 52 Gulf Region B.1.3 57 Newfoundland and Labrador Region LIST OF TABLES & FIGURES Figure 1.1: Atlantic Canada map of “study ports” 1 Table 2.1: Demand for general* freight shipping by mode in the Atlantic provinces (2014) 9 Table 2.2: Provincial export demand for port-related activities in Atlantic Canada (2014) 10 Table 2.3: The top sectors demanding support services for water transport including ports and harbours, by Atlantic province (2014) 10 Table 2.4: Sectors with highest dependence on marine shipping according to share of spending on air, rail, water, and truck general freight in the Atlantic provinces (2014) 11 Table 2.5: Port-related businesses in the Atlantic provinces with employees (2018) 12 Table 2.6: Tonnages handled at study ports and CPA ports in Atlantic Canada (2011) 14 Table 2.7: Financial profiles for small and medium-sized enterprises (SMEs under $5 million revenues) related to marine transport in Atlantic Canada (2006, 2016) 16 Table 3.1: Strait of Canso* socio-economic profile (2016 Census) 18 Table 3.2: Strait of Canso direct and spin-off economic impacts 18 Table 3.3: Digby socio-economic profile (2016 Census) 20 Table 3.4: Digby direct and spin-off economic impacts 20 Table 3.5: Sydney* socio-economic profile (2016 Census) 24 Table 3.6: Sydney direct and spin-off economic impacts 24 Table 3.7: Yarmouth socio-economic profile (2016 Census) 25 Table 3.8: Yarmouth direct and spin-off economic impacts 26 Table 4.1: Bayside* socio-economic profile (2016 Census) 28 Table 4.2: Bayside direct and spin-off economic impacts 28 Table 4.3: Dalhousie socio-economic profile (2016 Census) 30 Table 4.4: Dalhousie direct and spin-off economic impacts 30 Table 5.1: Charlottetown socio-economic profile (2016 Census) 32 Table 5.2: Charlottetown direct and spin-off economic impacts 32 Table 5.3: Souris socio-economic profile (2016 Census) 34 Table 5.4: Souris direct and spin-off economic impacts 34 Table 5.5: Summerside socio-economic profile (2016 Census) 35 Table 5.6: Summerside direct and spin-off economic impacts 36 Gardner Pinfold

Economic Impact Study of Independent Marine Ports in Atlantic Canada Table 6.1: Corner Brook socio-economic profile (2016 Census) 38 Table 6.2: Corner Brook direct and spin-off economic impacts 38 Table 6.3: Placentia Bay* socio-economic profile (2016 Census) 40 Table 6.4: Placentia Bay direct and spin-off economic impacts 40 Table 6.5: Long Pond socio-economic profile (2016 Census) 41 Table 6.6: Long Pond direct and spin-off economic impacts 42 Table 7.1: Atlantic Canada study ports combined economic impacts 45 Table A.1: Economic output (expenditures) by subsector, by Atlantic Canada province 49 Figure B.1: Map of Gulf Region and Maritimes Scotia-Fundy region statistical areas 47 Table B.1: Maritimes Scotia-Fundy Region Landings by County (MT, $000s) 48 Table B.2: Gulf Region Landings by Stat District (MT, $000s) 48 Table B.3: Newfoundland and Labrador Region Landings by Stat Section (MT, $000s) 53 Figure B.2: Map of Newfoundland and Labrador Region statistical areas 55 Gardner Pinfold

EXECUTIVE SUMMARY 1. STUDY FOCUS This study focuses on marine activities tied to fourteen (14) port complexes located in Atlantic Canada, all of which include members of the Independent Marine Ports of Atlantic Canada (IMPAC). While the major ports in the region tend to dominate public attention, the region’s independent ports are integral to the economic health of key businesses and the Atlantic Provinces’ broader economic fabric. The first aim of this study is to convey the role of these ports and the impact they have in the Atlantic Provinces’ economy. The second aim is to address key issues with a view to improving the sustainability of ports over the long-term. 2. CRITICAL PORT INFRASTRUCTURE Marine shipping, more than any other form of transportation, provides linkages to overseas markets for a vast array of goods. It represents the least cost and lowest environmental impact mode of shipping, especially for many importers and exporters of large items and bulk goods. Ports are strategically located in favourable harbours near large exporters to help bring their products to global markets. q Greatest share of freight - Over $2.7 billion worth of general freight shipping is provided by companies in Atlantic Canada and the greatest share (29%) is the $803 million in marine shipping, followed closely by air (28%), then truck (25%), and rail (17%). q Export focused – Nearly half of all marine transport is export-oriented and improves the balance of trade for each province in Atlantic Canada. Exports (interprovincial and international) represent 46% of demand for marine transport. q Large scale - There are 353 marine port-related businesses in Atlantic Canada with employees, including 163 ports and harbours. q Study ports handle 39% of cargo – The study ports handle 39% of shipping by tonnage, along with CPA ports at 42%, and all other ports account for 19%. q International growth opportunities - The United Nations International Maritime Organization states that seaborne trade now represents about 90% of all international trade in goods. World seaborne trade quadrupled from 8,000 billion- tonne-miles (BTMs) to 32,000 BTMs in the four decades from 1968 to 2008. There was a pause following the financial crisis then growth resumed at about 7.5% on an annual average basis. Canadian trends in marine shipping are similar. Gardner Pinfold i