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THE VALUE OF COMMERCIAL MARINE SHIPPING TO CANADA The Expert Panel on the Social and Economic Value of Marine Shipping to Canada Science Advice in the Public Interest THE VALUE OF COMMERCIAL MARINE SHIPPING TO CANADA The Expert Panel on the Social and Economic Value of Marine Shipping to Canada ii The Value of Commercial Marine Shipping to Canada THE COUNCIL OF CANADIAN ACADEMIES 180 Elgin Street, Suite 1401, Ottawa, ON, Canada K2P 2K3 Notice: The project that is the subject of this report was undertaken with the approval of the Board of Governors of the Council of Canadian Academies (CCA). Board members are drawn from the Royal Society of Canada (RSC), the Canadian Academy of Engineering (CAE), and the Canadian Academy of Health Sciences (CAHS), as well as from the general public. The members of the expert panel responsible for the report were selected by the CCA for their special competencies and with regard for appropriate balance. This report was prepared for the Clear Seas Centre for Responsible Marine Shipping (Clear Seas). Any opinions, findings, or conclusions expressed in this publication are those of the authors, the Expert Panel on the Social and Economic Value of Marine Shipping to Canada, and do not necessarily represent the views of their organizations of affiliation or employment or the sponsoring organization, Clear Seas. Library and Archives Canada Cataloguing in Publication Council of Canadian Academies. Expert Panel on the Social and Economic Value of Marine Shipping in Canada, author The value of commercial marine shipping to Canada / The Expert Panel on the Social and Economic Value of Marine Shipping in Canada. Issued also in French under title: La valeur du transport maritime commercial pour le Canada. Includes bibliographical references. Issued in print and electronic formats. ISBN 978-1-926522-26-5 (softcover).--ISBN 978-1-926522-27-2 (PDF) 1. Shipping--Economic aspects--Canada. 2. Shipping--Social aspects-- Canada. I. Council of Canadian Academies, issuing body II. Title. HE769.C68 2017 387.50971 C2017-901692-X C2017-901693-8 This report should be cited as: Council of Canadian Academies. (2017). The Value of Commercial Marine Shipping to Canada. Ottawa (ON): The Expert Panel on the Social and Economic Value of Marine Shipping to Canada, Council of Canadian Academies. Disclaimer: The internet data and information referenced in this report were correct, to the best of the CCA’s knowledge, at the time of publication. Due to the dynamic nature of the internet, resources that are free and publicly available may subsequently require a fee or restrict access, and the location of items may change as menus and webpages are reorganized. © 2017 Council of Canadian Academies Printed in Ottawa, Canada The Council of Canadian Academies iii The Council of Canadian Academies Science Advice in the Public Interest The Council of Canadian Academies (the CCA) is an independent, not-for-profit organization that supports independent, science-based, authoritative expert assessments to inform public policy development in Canada. Led by a Board of Governors and advised by a Scientific Advisory Committee, the CCA’s work encompasses a broad definition ofscience , incorporating the natural, social, and health sciences as well as engineering and the humanities. CCA assessments are conducted by independent, multidisciplinary panels of experts from across Canada and abroad. Assessments strive to identify emerging issues, gaps in knowledge, Canadian strengths, and international trends and practices. Upon completion, assessments provide government decision-makers, researchers, and stakeholders with high-quality information required to develop informed and innovative public policy. All CCA assessments undergo a formal report review and are published and made available to the public free of charge. Assessments can be referred to the CCA by foundations, non-governmental organizations, the private sector, or any level of government. The CCA is also supported by its three founding Member Academies: The Royal Society of Canada (RSC) Founded in 1882, the Royal Society of Canada (RSC) comprises the Academies of Arts, Humanities and Sciences; in addition to Canada’s first national system of multidisciplinary recognition for the emerging generation of Canadian intellectual leadership, The College of New Scholars, Artists and Scientists. Its mission is to recognize scholarly, research and artistic excellence, to advise governments and organizations, and to promote a culture of knowledge and innovation in Canada and with other national academies around the world. The Canadian Academy of Engineering (CAE) The CAE is the national institution through which Canada’s most distinguished and experienced engineers provide strategic advice on matters of critical importance to Canada. The Academy is an independent, self-governing, and non-profit organization established in 1987. Fellows are nominated and elected by their peers in recognition of their distinguished achievements and career-long service to the engineering profession. Fellows of the Academy, who number approximately 600, are committed to ensuring that Canada’s engineering expertise is applied to the benefit of all Canadians. iv The Value of Commercial Marine Shipping to Canada The Canadian Academy of Health Sciences (CAHS) The Canadian Academy of Health Sciences (CAHS) recognizes Canadians of great achievement in the academic health sciences. Founded in 2004, CAHS now has over 600 Fellows and appoints new Fellows on an annual basis. The organization is managed by a voluntary Board of Directors and a Board Executive. The Academy brings together Canada’s top-ranked health and biomedical scientists and scholars from all disciplines across our nation’s universities and its healthcare and research institutes to make a positive impact on the urgent health concerns of Canadians. These Fellows evaluate Canada’s most complex health challenges and recommend strategic, actionable solutions. Since 2006 CAHS has successfully engaged the sponsorship of a wide variety of public and private organizations representing patients and families, professionals, health system leaders, policy-makers and service and private industry providers. They have co-invested in rigorous, independent assessments that address key health issues with outcomes that have shaped their strategic policy and initiatives. CAHS mobilizes the best scientific minds to provide independent and timely assessments that inform policy and practice addressing critical health challenges affecting Canadians. We help put change into action for a healthier Canada. www.scienceadvice.ca @scienceadvice Expert Panel on the Social and Economic Value of Commercial Marine Shipping to Canada v Expert Panel on the Social and Economic Value of Commercial Marine Shipping to Canada Under the guidance of its Scientific Advisory Committee, Board of Governors, and Member Academies, the CCA assembled the Expert Panel on the Social and Economic Value of Commercial Marine Shipping to Canada to undertake this project. Each expert was selected for his or her expertise, experience, and demonstrated leadership in fields relevant to this project. Mary R. Brooks (Chair), Professor Emerita, Rowe School of Business, Dalhousie University (Halifax, NS) Kristian Behrens, Canada Research Chair in Regional Impacts of Globalization and Full Professor of Economics, University of Québec at Montréal (Montréal, QC) David Cardin, Advisor, Canada Transportation Act Review Panel (Rockwood, ON) Jackie Dawson, Canada Research Chair in Environment, Society and Policy, and Associate Professor, Department of Geography, Environment and Geomatics, University of Ottawa (Ottawa, ON) Trevor Heaver, Professor Emeritus, Sauder School of Business, University of British Columbia (Vancouver, BC) Douglas House, C.M., Honorary Research Professor, Department of Sociology, Memorial University of Newfoundland (St. John’s, NL) John Lawson, President and Principal, Lawson Economics Research, Inc. (Ottawa, ON) Charles Menzies, Professor, Department of Anthropology, University of British Columbia (Vancouver, BC) Peter G. Noble, FCAE, Principal Advisor, Noble Associates, Inc.; Past-President, Society of Naval Architects and Marine Engineers (SNAME) (Spring, TX) Siri Pettersen Strandenes, Professor, Norwegian School of Economics (NHH) (Bergen, Norway) vi The Value of Commercial Marine Shipping to Canada Message from the Chair One of the biggest challenges faced by the shipping industry is being “out of sight, out of mind.” Canada is a major trading nation, and its dependence on shipping is underappreciated as a result. Many Canadians neither equate a “Made in South Korea” label with their own economic prosperity nor recognize the need for Canadian exports to reach foreign markets so that, in turn, Canadians can have choices in their purchases at home. While shipping is an enabler of globalized trade, its impacts are broader than just those seen in our local port communities. That is why this report addresses national, regional, and local issues. Shipping cannot be held accountable for the ills of globalization; that is a matter for public policy-makers and beyond the scope of this report. The wording of the charge challenged the Panel. To examine the social and economic value of shipping to Canada indicated a methodological scope greater than the traditional economic impact study. There are many more research disciplines than just the science of economics, so which ones to use became a key decision early in
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