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Economic Impact Study of Independent Marine Ports in Atlantic

FINAL REPORT

Prepared for:

Independent Marine Ports of

Prepared by:

Gardner Pinfold

October 2018

Canada Atlantic Canada Independent Marine Ports USA

163 Atlantic Canada Ports Shipping Value $$ 574,000 29% cruise visitors spend $105 million 18% every year 25% 18% 28% of rides and 25% of vehicle trips in Canada 14 IMPAC Port Complexes 39% $219 million of regional cargo in salaries 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

EXECUTIVE SUMMARY I 1. Study Focus i 2. Critical Port Infrastructure i 3. Key Economic Findings ii 4. Issues and Challenges ii

I. INTRODUCTION 4 1.1 Study Ports 4 1.2 Study Purpose and Objectives 5 1.3 Measuring Impacts 5

II. OVERVIEW OF ATLANTIC CANADA PORTS 8 2.1 Ports and Management 8 2.2 Economic Role 9 2.2.1 Critical Shipping Infrastructure 9 2.2.2 Marine Port Cluster 12 2.2.3 Port Activities and Types of Cargo 13 2.2.4 Cargo Tonnages Handled 14 2.3 Context and Business Climate 15 2.3.1 Marine Transport Demand 15 2.3.2 Business Climate 16

III. 17 3.1 Strait of Canso 17 3.1.1 Description 17 3.1.2 Dependent Industry Sectors 17 3.1.3 Community Profile 17 3.1.4 Economic Impacts 18 3.2 Digby 19 3.2.1 Description 19 3.2.2 Dependent Industry Sectors 19 3.2.3 Community Profile 19 3.2.4 Economic Impacts 20 3.3 Shelburne 21 3.3.1 Description 21 3.3.2 Dependent Industry Sectors 21 3.3.3 Community Profile 21 3.3.4 Economic Impacts 22 3.4 Sydney 23 3.4.1 Description 23 3.4.2 Dependent Industry Sectors 23 3.4.3 Community Profile 23 3.4.4 Economic Impacts 24 3.5 Yarmouth 25 3.5.1 Description 25 3.5.2 Dependent Industry Sectors 25 3.5.3 Community Profile 25 3.5.4 Economic Impacts 26

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IV. 27 4.1 Bayside 27 4.1.1 Description 27 4.1.2 Dependent Industry Sectors 27 4.1.3 Community Profile 27 4.1.4 Economic Impacts 28 4.2 Dalhousie 29 4.2.1 Description 29 4.2.2 Dependent Industry Sectors 29 4.2.3 Community Profile 29 4.2.4 Economic Impacts 30

V. 31 5.1 Charlottetown 31 5.1.1 Description 31 5.1.2 Dependent Industry Sectors 31 5.1.3 Community Profile 31 5.1.4 Economic Impacts 32 5.2 Souris 33 5.2.1 Description 33 5.2.2 Dependent Industry Sectors 33 5.2.3 Community Profile 33 5.2.4 Economic Impacts 34 5.3 Summerside 35 5.3.1 Description 35 5.3.2 Dependent Industry Sectors 35 5.3.3 Community Profile 35 5.3.4 Economic Impacts 36

VI. AND 37 6.1 Corner Brook 37 6.1.1 Description 37 6.1.2 Dependent Industry Sectors 37 6.1.3 Community Profile 37 6.1.4 Economic Impacts 38 6.2 Placentia Bay 39 6.2.1 Description 39 6.2.2 Dependent Industry Sectors 39 6.2.3 Community Profile 39 6.2.4 Economic Impacts 40 6.3 Long Pond 41 6.3.1 Description 41 6.3.2 Dependent Industry Sectors 41 6.3.3 Community Profile 41 6.3.4 Economic Impacts 42 6.4 Stephenville 43 6.4.1 Description 43 6.4.2 Dependent Industry Sectors 43 6.4.3 Community Profile 43 6.4.4 Economic Impacts 44

VII. SUMMARY AND KEY ISSUES 45 7.1 Economic Summary 45 7.2 Issues and Challenges 46

Gardner Pinfold Economic Impact Study of Independent Marine Ports in Atlantic Canada

7.2.1 Sustainable Revenue 46 7.2.2 Harbour Dues 46 7.2.3 Harbour Maintenance Fees 47 7.2.4 Capital Assistance Program 47

APPENDIX A: ECONOMIC IMPACT METHODGY 48 A.1 Economic impact analysis 48 A.1.1 System of National Accounts Framework 48 A.1.2 Water Transportation (NAICS 483) 49 A.1.3 Scenic and Sightseeing Transport (NAICS 487) 49 A.1.4 Support Activities for Water (NAICS 4883) 50 A.1.5 Cruise Passenger and Crew Onshore Spending (NAICS – Various) 50

APPENDIX B: FISHERIES LANDINGS 51 B.1 Landings by Fisheries and Oceans Region 51 B.1.1 Maritimes Scotia-Fundy Region 51 B.1.2 Gulf Region 52 B.1.3 Newfoundland and Labrador Region 57

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

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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.

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q Critical ferry services - Study ports are connected to ferry services and the nearly 8 million Atlantic Canada passenger trips in 2014 represents 18% of all trips in Canada, and the 4.2 million vehicles are 25% of the national total.

q Growing cruise business - Three study ports are among the six key ports for cruise lines including Saint John, Charlottetown, Halifax, Sydney, St. John's, and Corner Brook. The number of passengers rose from about 341,000 to 574,000 from 2003 to 2016. This represents an average annual increase of 5.2%. Cruise business now represents over $103 million in spending by cruise lines, passengers and crew at ports in Atlantic Canada.

q Financial challenges persist - Industry Canada profiles for Atlantic Canada businesses involved in water transportation, scenic and sightseeing water transport, and support services to water transportation suggest challenges persist.

3. KEY ECONOMIC FINDINGS

The study ports generate at least $368M in added-value (GDP) and 3,750 FTE jobs in Canada. The study ports generate at least $22 million in tax revenues to the Atlantic provinces and an estimated $38 million to the federal government every year.

Atlantic Canada study ports combined economic impacts ($millions) Direct Indirect Induced Total Provincial* Total Canada Output $397 $147 $61 $604 $851 GDP $178 $76 $38 $292 $368 Income $97 $40 $16 $153 $219 Employment** 1,300 710 428 2,438 3,753 Fed tax $17 $7 $3 $27 $38 Prov tax $14 $6 $3 $22 $0 Source: Statistics Canada 2014 input-output model. *Does not include inter-provincial impacts. **Employment in person-years.

4. ISSUES AND CHALLENGES

q Port-specific challenges: include the need for dredging, wharf repair or expansion, marketing and attraction of new business, re-orientation following business failure among key clients, or meeting new port security requirements.

q Sustainable revenues – The one issue ports consistently share is the challenge of raising sufficient revenues. They currently generate revenues through berthage fees, lease or rental of storage space and real estate, as well as fees for services such as water supply, power, waste disposal, and security. These together are not sufficient and they are tied to specific services provided rather than strategic development work that ports require to sustain or advance their position. Ports require significant capital investment, market research, business development,

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sales and marketing, regulatory compliance for all levels of government, and participation in economic development and waterfront development planning.

q Harbour dues – A revenue stream that is derived from the broader use of the port catchment area would be better aligned with port roles and capital requirements. Harbour dues are an example of such a mechanism, however Transport Canada retains authority to collect these.

q Maintenance fees – Devising a distinct fee would be the responsibility of independent ports. As Transport Canada continues to withdraw from the business of independent ports, a "harbour maintenance fee” charged on the part of ports may be considered legitimate. This has been challenged legally by port users and the outcomes have not favoured the port operators.

q Capital assistance program - In the absence of reliable fee mechanisms for ports a capital assistance program will be required on an on-going basis. The capital assistance must be commensurate with the deferred maintenance and critical role of study ports. Models for such a program already exist in Canada, but it must be sufficient in scale, accessible by study ports, and timely so the purchasing power is not eroded over multiple years.

Opportunities exist for expansion of port and harbour business in break-bulk, transshipment, northern shipping, and some land-side developments. Maintaining and growing opportunities will require investment in business development and capital infrastructure.

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I. INTRODUCTION

1.1 STUDY PORTS

Ports in Atlantic Canada play an important role in The “study ports” consist supporting economic activity in the region. of fourteen (14) Atlantic Industries and consumers throughout the Atlantic Canada independent region rely on ports for the import and export of a marine port complexes. wide range of raw materials, semi-processed goods mprise and manufactured items. Ports also serve passenger , cruise lines, tourism, fisheries and aquaculture activities.

Though the major ports in the region tend to dominate public attention, the region’s independent ports are integral to the economic health of their host communities as well as to the Atlantic Provinces’ broader transportation network. This study focuses on 14 port complexes, all of which include members of the Independent Marine Ports of Atlantic Canada (IMPAC). The following map shows IMPAC members, three of which are part of port complexes (“Placentia Bay Port Complex” includes , “Sydney Port Complex” includes port of Sydney, and “Canso Port Complex” includes the Strait of Canso Superport).

Figure 1.1: Atlantic Canada map of "study ports"

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The main activities at these ports include: vessel traffic control, piloting, tug services, longshoring, stevedoring, harbour and terminal operating, marine salvage, inspections and surveying, maintenance, boat cleaning and provisioning, security and emergency response services. Each port is specialized for the cargo or passenger types that they handle.

Management of ports is very capital intensive since many were built over 60 years ago and were subject to deferred maintenance. Ports must also respond to continual changes in the shipping needs of industry and the advancement of shipping vessels. In particular, the average size of vessels continues to increase and this requires ports to maintain adequate water depth, loading and unloading equipment, utilities and support services. International requirements for security and tracking of goods requires increasing technological advancement at ports.

1.2 STUDY PURPOSE AND OBJECTIVES

This study is intended to inform decision-makers and the public about the role played by ports and the activities in the harbours where they are located. The report also addresses the impact these have in the Atlantic Provinces’ economy. To this end, the terms of reference for the study identifies five main objectives:

q Measure the economic impact of individual ports and the shipping industry in Atlantic Canada using conventional indicators (GDP, employment and labour income).

q Identify and quantify the role of the port in economic growth and development, with a focus on the linkages between shipping/port activity and local industry.

q Provide a measure of each port’s activity, importance and purpose.

q Identify and analyze policy issues related to port financial viability and long-term sustainability, and identify strategic issues facing each port and the impact on local communities.

1.3 MEASURING IMPACTS

The approach to economic impact analysis is expenditure-driven and relies primarily on Statistics Canada for measures of output (expenditures) for port-related activities. In some case, such as cruise line expenditures, the output measures are derived from other economic impact reports (Business Research and Economic Advisors, BREA 2016). Annual financial reports of companies (e.g. ferries) are used in some cases. Finally, each of the study ports provided financial information and contacts for key port users. Primary data collection often helped to understand the nature, scale, and relationships between economic activities tied to the ports. A detailed account of sources and methods is found in the Appendix.

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The next step is to flow the measures of output through an economic input-output model. The Statistics Canada 2014 input-output model is the basis for all economic impact calculations. Economic impacts within each province as well as impacts to Canada as a whole are produced from the Statistics Canada model. The output estimates are flowed through the appropriate industries, and in the case of cruise passenger and crew spending for which there is no specific industry, the outputs are flowed through a collection of industries according to the description of expenditures found in the BREA 2016 study.

Impacts are quantified using conventional economic indicators consistent with the national income accounting framework. Economic impact is measured with these key indicators:

q Gross value of output: Economic impact arises as industry expenditures work their way through the economy. Company spending on inputs becomes the revenue of many another companies, which they in turn spend on inputs for the goods and services they produce, and so on. Gross value of output, then, is the cumulative sum of these sales and purchases of intermediate and final goods and services. These transactions occur in the province, and also spill over to other provinces where supply and service industries may be located.

q GDP: an industry’s contribution to Gross Domestic Product represents its broadest measure of economic impact. The domestic product of an industry captures the value it adds to purchased inputs through the application of labour and capital. GDP represents the sum of the value added by each industry. Value added should not be confused with sales value, since the latter would include the value of purchased inputs.

q Employment: industry employment is important politically because of the significance generally attached to jobs, but from an economic impact perspective, the significance lies in the economic impact generated through the spending of employment income. The greater the employment and higher the average income, the more significant the industry in terms of economic impact.

q Income: this captures the payments to households in the form of wages and salaries earned in the marine industries. Returns to labour in the form of wages and salaries form a key component of GDP. Industries paying relatively high average wages and salaries generate a correspondingly higher economic impact than industries paying lower average incomes.

q Taxes: The model captures federal and provincial taxes on products and production. Custom income tax impacts calculations are based on tax information contained in Statistics Canada’s Social Policy Simulation Database and Model (SPSD/M). Corporate taxes are not included.

Economic impacts are generated through direct, indirect and induced demand in the economy expressed in terms of industry and consumer purchases of goods and services. The sum of indirect and induced impacts is often referred to as the “spin-off” impact.

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q Direct impact: refers to impact arising from the expenditures made by firms in the subject industries on the goods and services needed to produce industry outputs. For example, the fishing industry buys nets and traps from manufacturers; water transportation buys fuel from refineries; the oil & gas industry buys food services from local catering companies.

q Spin-off impact: the sum of indirect and induced impacts. Indirect impact refers to the impacts generated as direct demand triggers a range of inter-industry purchases. For example, net makers buy monofilament line from manufacturers; refineries buy services from maintenance contractors; catering companies buy basic food products. These industries in turn buy more basic goods and services, and so on. Induced impact refers to the demand created in the broader economy through consumer spending of incomes earned by those employed in direct and indirect activities. It may take a year or more for these rounds of consumer spending to work their way through an economy. Spin-off impacts are less likely to occur in the local community of the port, especially if this is not a regional business centre such as a provincial capital.

The sum of impacts flowing from each level of demand gives the overall economic impact. Generally, the greater the domestic supply capability for each industry, the greater will be the economic impact. Conversely, the higher the import content, the weaker the domestic industry (lower multipliers) and the lower the impact.

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II. OVERVIEW OF ATLANTIC CANADA PORTS

2.1 PORTS AND MANAGEMENT

Some ports may be regarded only as the wharf and other infrastructure associated with a port facility. Other ports may also own and manage a portion of the harbour bed, or an entire bay, harbour, or inlet. Each study port has it's own unique circumstances, and the approach here is to refer to ports broadly including the infrastructure, and the various activities associated with the port complexes.

The 1995 National Marine Policy initiated the 's divestiture of ports to local interests. The Port Divestiture Program, directed by Transport Canada, involved the transfer of ownership and management for many ports to federal departments, provincial or municipal governments, community organizations and others.

Contribution agreements were established to provide funding from the federal government for operational costs and port property improvements. The funds are not to be used for capital investment.

Of 559 sites across Canada in 2016, just 18 are governed under the Canada Marine Act as Canadian Port Authorities (CPAs), 48 are under the Port Programs of Transport Canada (TC), and the others have been divested or closed.1 The Atlantic CPA and TC ports include:

Four (4) CPAs: Saint John, Belledune, St. John's, and Halifax.

Twenty (20) Transport Canada ports:

Newfoundland and Labrador (7): Come by Chance, Goose Bay, Holyrood, , Long Harbour, Marystown, Port-aux-Basques Nova Scotia (13): Bridgewater, Digby, Hantsport, , Lunenburg, Mulgrave, North Sydney, Pictou, Port Hawkesbury, Pugwash, Shelburne, Sydney, Yarmouth

There are another 166 ports in Atlantic Canada that are considered “independent” of federal government programs. The fourteen study port complexes are generally the largest of the independent ports according to annual shipping tonnage and number of vessel movements.

1 Transport Canada ports, harbours and anchorages (last viewed July, 2018 online: http://www.tc.gc.ca/en/services/marine/ports-harbours.html).

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2.2 ECONOMIC ROLE

2.2.1 Critical Shipping Infrastructure

Marine shipping, more than any other form of The $803M worth of transportation, provides linkages to overseas markets marine shipping in for a vast array of goods we depend on every day. It Atlantic Canada is more represents the least cost and lowest environmental than any other general impact mode of shipping, especially for many freight transport mode. importers and exporters of large items and bulk volumes of goods.

Statistics Canada provides “supply and use” tables showing the relationships between industries that purchase goods and services and those that supply them. The table below shows the demand for general freight shipping according to each mode of transport (air, rail, water, and truck). 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%).

Table 2.1: Demand for general* freight shipping by mode in the Atlantic provinces (2014) ($000s) NB NL NS PEI Atlantic Air 129,662 252,613 380,075 20,626 782,976 Rail 277,351 65,995 124,263 7,423 475,032 Water 100,334 352,466 321,669 28,305 802,774 Truck 444,334 85,840 136,345 21,622 688,141 Total 951,681 756,914 962,352 77,976 2,748,923 Air 13.6% 33.4% 39.5% 26.5% 28.5% Rail 29.1% 8.7% 12.9% 9.5% 17.3% Water 10.5% 46.6% 33.4% 36.3% 29.2% Truck 46.7% 11.3% 14.2% 27.7% 25.0% Total 100% 100% 100% 100% 100% Source: Statistics Canada supply and use tables, 2014. *Does not include specialty freight

Marine transport is export-oriented and improves the balance of trade for each province in Atlantic Canada. The next table shows the amount of demand for water passenger, freight, and support services that comes from within the provinces (provincial demand), from other provinces (interprovincial), and from other countries (international). The exports (interprovincial and international) represent 46% of the demand for these industries. The export demand is strongest for passenger services (75%), and then freight (56%).

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Table 2.2: Provincial export demand for port-related activities in Atlantic Canada (2014) ($000s) Provincial Interprovincial International Total Water passenger 21,517 55,407 8,057 84,981 Water freight 349,929 156,124 296,721 802,774 Water support 416,015 50,774 104,410 571,199 Total 787,461 262,305 409,188 1,458,954 Water passenger 25.3% 65.2% 9.5% 100.0% Water freight 43.6% 19.4% 37.0% 100.0% Water support 72.8% 8.9% 18.3% 100.0% Total 54% 18% 28% 100% Source: Statistics Canada supply and use tables, 2014. *Does not include specialty freight

The table below shows the sectors within each province that generate the most business from support services for water transport including ports and harbours. As expected water transportation companies are first or second across the four Atlantic provinces, then forest, fishing, government, and defense services are among the other top sectors. The forest sector is a composite of harvesting and processing forest products, and mining is also a composite of resource extraction and processing companies. The top ten for each province account for between 88% (PEI) and 99% (NB) of all demand for ports and related support services.

Table 2.3: The top sectors demanding support services for water transport including ports and harbours, by Atlantic province (2014) Sector NB Sector NL Sector NS Sector PEI Forest sector* 37% Other provincial 36% Water 36% Water 34% government services transportation transportation Water transportation 30% Water transportation 30% Fishing, hunting 19% Fishing, hunting 18% and trapping and trapping Defence services 9% Fishing, hunting and 14% Defence services 12% Other federal 9% trapping government (except defence) Other federal 6% Other federal 9% Forest sector* 11% Food & Agric 5% government (except government (except defence) defence) Mining sector* 6% Energy 2% Other federal 7% Defence services 4% government (except defence) Non-ferrous metal 5% Mining sector* 1% Electric power 2% Lessors of real 4% (except aluminum) generation, and estate production distribution Fishing, hunting and 3% Other transit and 1% Food & Agric 1% Residential 4% trapping sightseeing building transport construction Energy 1% Oil and gas 1% Other municipal 1% Mining sector* 3% engineering government construction services Food, beverage and 1% Forest sector* 1% Repair 1% Cement and 3% tobacco wholesaler- construction concrete product distributors manufacturing Petroleum product 1% Defence services 1% Other transit and 1% Repair 2% wholesaler- sightseeing construction distributors transport Source: Statistics Canada supply and use tables, 2014.

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The next table indicates the sectors most dependent on marine shipping for their general freight needs. Not surprisingly 96% to 100% of water transport company spending on all freight (air, rail, water, truck) is for marine shipping. Other highly marine dependent activities include: other forms of transit, fishing, motor vehicle distributors, cement and concrete manufacturing, wholesale electronic brokers, household goods distributors etc. Even the least dependent listed among the top ten are using marine shipping for about a third of their shipping requirements.

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) Sector NB Sector NL Sector NS Sector PEI Water 96% Water transport 97% Water transport 96% Commercial and 100% transport service machinery manufacturing Other transit 73% Other transit 93% Other transit 83% Water transport 100% Motor vehicle 37% Fishing, 80% Fishing, 74% Cement and 97% distributors hunting and hunting and concrete trapping trapping manufacturing Fishing, 34% Other provincial 69% Auto and light- 50% Mining 94% hunting and government duty vehicle trapping services manufacturing Wholesale 33% Other federal 69% Warehousing 42% Warehousing and 91% electronic government and storage storage brokers (not defense) Household 32% Cement and 59% Non-metallic 34% Energy 87% goods concrete mineral wholesaler- manufacturing manufacturing distributors Building 29% Warehousing 50% Wholesale 33% Fishing, hunting and 85% material and storage electronic trapping distributors brokers Food, 28% Basic chemical 48% Petroleum 32% Other miscellaneous 81% beverage manufacturing product manufacturing distributors distributors Machinery, 27% Non-metallic 45% Defence 32% Defence services 67% equipment mineral services distributors manufacturing Defence 27% Mining 44% Forest sector* 32% Waste management 67% services and remediation services Source: Statistics Canada supply and use tables, 2014.

The high dependence of some sectors on Atlantic Canada's independent marine ports is driven by geography and specific port advantages. Import and export functions currently provided by independent marine ports could not simply be met by the region's major ports. A regional system of ports is critical to communities importing and key businesses exporting because their shipping requirements could not be met in an economical fashion if their local port fails. Shipping to or from the nearest alternative marine port or by another mode would present logistical challenges with costs to great for the businesses to sustain.

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Each independent port has critical relationships with importing and exporting businesses that would not be competitive without the port. It is not an economical option for Martin Marietta Materials and Georgia Pacific to export product using any means other than the Strait of Canso port. The Placentia Bay, NL port complex is ideally positioned to support offshore energy development, marine ferry activity to and from Nova Scotia, and cargo handling that could not be re-located to St John's or elsewhere. The Port of Souris, PEI, maintains interprovincial connections by way of ferry service for the Isles de la Madeleine, and the port is critical to local fisheries, seafood processing, and cargo handling enterprises that need direct access to international markets.

2.2.2 Marine Port Cluster

The main activities linked to ports and harbours are There are 353 marine best described in terms of the North American port-related businesses in Industry Classification System (NAICS) adopted by Atlantic Canada with Statistics Canada. Marine transportation (NAICS employees, including 163 4831) includes passenger ferries and cargo ports and harbours. shipments. Scenic and sightseeing marine transport (4872), support services to water transport (4883), and marine shipping agencies (488511) are all linked to the port business cluster.

Ports and harbours (NAICS 488310) fall specifically under support services to water transport and are closely connected to marine cargo handling (488320), marine salvage (488331), ship piloting (488332), other navigational services (488339), and other support services (488390). The number of port-related businesses in Atlantic Canada with employees is shown in the table below for each of the main activities (top) and breakdowns of support services (bottom).

Table 2.5: Port-related businesses in the Atlantic provinces with employees (2018) NAICS NB NL NS PEI Atlantic Port-related activities Marine transportation 483100 11 17 16 2 46 Sightseeing water transport 487200 8 14 13 2 37 Support for water transport 488300 49 107 69 25 250 Marine shipping agencies 488511 4 6 10 .. 20 Total 72 144 108 29 353 Breakdown - support for water transport Ports and harbours 488310 27 78 36 22 163 Marine cargo handling 488320 9 12 10 1 32 Marine salvage services 488331 .. 1 .. .. 1 Ship piloting services 488332 1 2 4 2 9 Other navigational services 488339 1 7 3 .. 11 Other support for water transport 488390 11 7 16 .. 34 Sub-total 49 107 69 25 250 Source: Statistics Canada. Table 33-10-0092-01 Canadian Business Counts, with employees, June 2018

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NAICS defines ports and harbour functions as follows:

q Operating canal locks q Operating piers, docks, wharves q Canal maintenance (not dredging) q Maintenance of piers, docks, q Canal operations wharves q Marine dock operation q Port facilities operation q Harbour operation q Seaway operation q Lighthouse operation q Waterfront terminal operation

The dividing lines between port functions are not necessarily clear at smaller ports where many of these activities are performed by only a few individuals or companies that hold multiple responsibilities.

2.2.3 Port Activities and Types of Cargo

The array of port components and functions support four main segments of the water transportation industry: bulk, container, ferry service and cruise ship.

q Bulk and Break-Bulk Cargo: several ports in the Atlantic provinces handle international bulk cargoes including Saint John, Halifax, Come-By-Chance and Port Hawkesbury (crude oil and refined products); Sydney, Belledune and Dalhousie (coal). The main cargo across all ports are energy related products such as crude petroleum, gasoline and aviation fuel, and other refined petroleum and coal products. However, stone, gravel, other aggregates and minerals are more important for non-CPA ports.

q Container: Halifax is Canada’s third largest container port (after Vancouver and Montreal), where the port is also handling a range of bulk products including wheat and gypsum. Saint John also handles containers (domestic service), while a service to the Caribbean operates from the Port of Saint John.

q Ferry service: Several services operate in the region, carrying over one million passengers and several hundred thousand cars and trucks. The main ones are North Sydney-Port Aux Basques and North Sydney-Argentia (integral components of the Newfoundland and Labrador supply chain); Yarmouth-; Nova Scotia-PEI, Saint John-Digby and PEI-Magdalen Islands.

q Cruise ship: Traffic has increased steadily over the past decade, with Halifax and Saint John ranking as the 3rd and 4th largest ports of call in Canada. Sydney, Corner Brook, and Charlottetown also have growing cruise line businesses.

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2.2.4 Cargo Tonnages Handled

Cargo tonnages indicate the port roles in the Study ports handle 35% of economy, and the study ports often handle more international and domestic exports as they are located near large manufacturers. cargo in Atlantic Canada.

Table 2.6: Tonnages handled at Atlantic Canada ports (2017) Port Cargo Fisheries (000s MT) % MT % NB Bayside 375 0.4% 41,606 7.5% Dalhousie 120 0.1% 185 0.0% NL Corner Brook 334 0.3% 0 0.0% Long Pond 226 0.2% 23,762 4.3% Stephenville 98 0.1% 3,011 0.5% Placentia Bay 14,956 14.6% 1,801 0.3% NS Canso Complex 17,037 16.6% 45,019 8.1% Digby 0 0.0% 23,539 4.2% Shelburne 2 0.0% 34,096 6.1% Yarmouth 33 0.0% 63,906 11.5% Sydney Complex 5,697 5.5% 3,603 0.6% PEI Charlottetown 700 0.7% 351 0.1% Souris 92 0.1% 1,744 0.3% Summerside 250 0.2% 209 0.0% CPA Belledune 2,000 1.9% 0 0.0% Saint John, N.B. 30,500 29.7% 2,110 0.4% Halifax 8,900 8.7% 18,635 3.4% St. John's, N.L. 1700 1.7% 7,377 1.3% Other ports 19,704* 19.2% 284,859 51.3% Atlantic Total 102,724 100.0% 555,813 100.0% Sources: Transport Canada. 2017. Transportation in Canada (Statistical Addendum); Study Port Harbour Masters; Fisheries and Oceans Canada custom tabulation. *Estimated from latest Transport Canada custom tabulation of historical data.

The study ports handle 39% of all shipping, along with CPA ports at 42% and all other ports accounting for 19%. Tonnages shipped through CPA ports have grown over the past decade (2009 to 2017) from 40 million tonnes to 43 million tonnes (up 6.4%). Transport Canada reports CPA tonnages handled up to 2017 in the annual Transportation in Canada publications. From 2009 to 2017 Belledune declined 23%, Saint John (NB) increased 13%, Halifax declined 7%, and St. John’s (NL) increased 21%.

Fisheries and Oceans provided data for 221 ports according to statistical areas and counties and the 14 study ports handle 243,000 mt of fish, which is 44% of the total

Gardner Pinfold Economic Impact Study of Atlantic Canada's Independent Marine Ports 15 landings in Atlantic Canada. These landings are worth $1.1 billion, which is 37% of the total landings value in the region.

The study ports are mainly located outside of the largest urban centres in Atlantic Canada and are often in proximity to large manufacturing facilities. These ports play a key role in export activities and improving the balance of trade for each province and Atlantic Canada as a whole. The predominantly rural location of study ports means there is less pressure for land development adjacent to the ports and more opportunity for expansion.

2.3 CONTEXT AND BUSINESS CLIMATE

2.3.1 Marine Transport Demand

The United Nations Conference on Trade and The United Nations states Development Secretariat estimates that world that seaborne trade is 90% seaborne trade quadrupled from 8,000 billion-tonne- of international trade in miles (BTMs) to 32,000 BTMs in the four decades goods. from 1968 to 2008.2 The straight average annual growth was 7.5% until the 2008 financial crisis when growth paused briefly and then resumed on a similar trajectory in 2009. The United Nations International Maritime Organization states that seaborne trade now represents about 90% of all international trade in goods.3

Transport Canada reports that cargo tonnages handled at Canadian ports were rising an annual average of 2.4% in the decade leading up to 20084. Tonnages dropped about 12% in 2009 and recovered to pre-financial crisis levels by 2011. The straight average growth since 2009 has been 2.6% per year.

The driving factors for these trends are global growth in trade, competitive advantages for marine shipping due to increasing size of vessels, improved efficiencies due to infrastructure and technology investment throughout the industry, and demand for transport with low greenhouse gas emissions per ton-kilometer of shipping.

Ferry services for passengers and vehicles have also been a long-standing driver of port activities. The Canadian Ferry Operators Association indicated that passenger trips declined 2.8% from 2011 to 2014. Over the same period vehicles carried remained steady with just a 0.53% decline. The nearly 8 million Atlantic Canada passenger trips in 2014 represents about 18% of all trips in Canada, and the 4.2 million vehicles is about 25% of the national total.

2 United Nations Conference on Trade and Development (UNCTAD) (Last viewed online July 2018: http://www.ics-shipping.org/shipping-facts/shipping-and-world-trade/world-seaborne-trade) 3 United Nations International Maritime Organization (Last viewed online July 2018: https://business.un.org/en/entities/13) 4 Transport Canada, 2016. Transportation in Canada.

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Key ports for cruise lines include Saint John, Charlottetown, Halifax, Sydney, St. John's, and Corner Brook. The number of passengers rose from about 341,000 to 574,000 from 2003 to 2016. This represents an average annual increase of 5.2%. The cruise industry has grown remarkably over the last two decades and now represents over $103 million in spending by cruise lines, passengers and crew at ports in Atlantic Canada5.

2.3.2 Business Climate

Financial profiles for Atlantic Canada businesses Industry Canada small involved in water transportation, scenic and and medium enterprise sightseeing water transport, and support services to (SME) profiles suggest water transportation help portray the business financial challenges persist climate ports and harbours operate in.

Industry Canada reports revenues, expenses, and net profits for Atlantic Canada small and medium-sized enterprises (SMEs with revenues under $5M). These are based on Revenue Canada tax returns with measures to protect confidentiality for public release.

In 2006 the profiles showed break-even circumstances for marine water transport (deep sea and coastal), slightly positive returns for sightseeing water transport (1.1%), and positive returns for support services for water transport companies (3.3%). However, ports and harbours were showing a negative return of -2.8%.

A decade later in 2016 marine transport is showing negative returns of -22.1%, while sightseeing water transport is up to 12.4%. Unfortunately, support services for water transport profiles, including those for ports and harbours, have been suppressed due to confidentiality. The decline in water transport profitability is concerning since this represents the primary customers for ports and harbours.

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) Industry Sector ($000s) NAICS # Businesses Revenues Expenses % Profit (loss) 2006 Water transport (marine) 4831 22 $32,028 $31,925 0.3% Sightseeing water transport 4872 39 $12,769 $12,624 1.1% Support services for water 4883 169 $62,902 $60,823 3.3% Ports and harbours 48831 103 $17,100 $17,600 -2.8% 2016 Water transport (marine) 4831 26 $20,579 $25,126 -22.1% Sightseeing water transport 4872 39 $10,659 $9,333 12.4% Support services for water 4883 x x x x Ports and harbours 48831 x x x x Source: Industry Canada Financial Performance Data (online: http://www.ic.gc.ca/eic/site/pp- pp.nsf/eng/home)

5 Business Research and Economic Advisors, 2008. The economic contribution of the international cruise industry in Canada 2007.

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III. NOVA SCOTIA

3.1 STRAIT OF CANSO

3.1.1 Description

The Strait of Canso port complex is located between mainland Nova Scotia and . It is one of the finest natural deep-water harbours on the Eastern Seaboard of North America. The Canso Causeway, built in the mid 1950s, is a permanent link between Cape Breton and mainland Nova Scotia. It forms the northern boundary of the port and ensures that the port, on the south side, remains ice-free year round. The Strait of Canso is 20 km long, up to 1.5 km wide, has a limiting depth of 27 m and can handle vessels up to 500,000 deadweight tonnes (dwt).

3.1.2 Dependent Industry Sectors

q Mining: Martin Marietta Materials exports aggregates from Auld's Cove. q Forestry: Port Hawkesbury Paper exports supercalendered paper products from their location in Point Tupper. q Energy: NuStar energy is a storage and transshipment facility for petroleum products. Nova Scotia Power imports coal for their Point Tupper station.

3.1.3 Community Profile

Inverness County and Richmond County profiles give an indication of the communities that are highly dependent on the port. The socio-economic profile of the community (Table 3.1) indicates the unemployment rate is 17.2%, which is well above the provincial rate of 10.0%. Average earnings of $68,200 are well above the provincial average of $40,300. The top three defined industry sectors by percentage of employment in the community are: primary resources (14%), health and social services ((13%), and retail (11%).

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Table 3.1: Strait of Canso* socio-economic profile (2016 Census) Population 26,199 Employment by industry Population 15 yrs+ 22,065 Primary industry Labour force 12,240 14%

Employed 10,140 Construct 9% Unemployed 2,100 Other Unemployment rate 17.2% 28% Manufact Business & admin 9% Persons with income 21,265 3% Wholesale Average income 73,878 2% 8% Total income ($M) $1,571 Health & Retail 11% Persons with market income 17,625 social Finance & 13% real estate Average market income 68,213 3% Total market income ($M) $1,202 Source: Statistics Canada Census 2016. *Includes: Inverness County, and Richmond County.

3.1.4 Economic Impacts

The economic impacts of the port and related operations below indicate the output (expenses), employment (person-years), GDP, and earned income. Total expenditures of port-related business activities were estimated at $56 million. The total employment is 558 person-years, total GDP (added value) is $53 million, and total income is about $31 million. Total impacts include the direct (port and related businesses), indirect (supply industries), and induced (effect of spending direct and indirect incomes).

Table 3.2: Strait of Canso direct and spin-off economic impacts Direct Indirect Induced Total NS Total Canada Output $56,083,529 $20,211,838 $9,616,924 $85,912,290 $119,815,204 GDP $26,568,993 $10,104,858 $5,995,603 $42,669,454 $53,296,701 Income $13,100,070 $5,706,115 $2,568,204 $21,374,389 $31,399,458 Employment* 176 106 70 353 558 Fed tax** $2,001,163 $871,665 $392,318 $3,265,146 $4,796,573 Prov tax** $1,756,600 $765,138 $344,373 $2,866,111 Source: Statistics Canada 2014 input-output model; Statistics Canada 2017 Social Policy Simulation Database and Model (SPSD/M). *Employment in person-years. **Includes income tax impacts.

Dividing the direct income by the corresponding direct employment provides an average earnings estimate of $74,400 associated with the port and related businesses. This illustrates how these jobs represent leading opportunities in the community, since earnings are more than triple the local average. These are highly skilled positions that help keep trained workers in the area and in the region.

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3.2 DIGBY

3.2.1 Description

The Digby Harbour Port Association (DHPA) purchased the port facilities in 2007 and has assumed responsibility for the port’s operation. The Port of Digby, located near the entrance of the , provides berthage and loading and unloading facilities to a fleet of close to 100 fishing vessels. The port also contains an independently operated marina that provides an 80-berth facility for local and visiting leisure boats. A ferry service to Saint John, New Brunswick draws tourists from the U.S. and elsewhere in Canada and also provides substantial trip time savings for Nova Scotians leaving the western parts of the province. The ferry is an outlet for many fish and wood products that are destined for export markets.

3.2.2 Dependent Industry Sectors

q Fisheries: The Port of Digby provides berthage and service to vessels in the scallop, lobster, groundfish, and aquaculture industries. Fish buying and cold storage facilities at the port are operated by independent companies. In 2017, $128 million was landed in Digby county, which is 9% of the provincial total. q Ferry: A daily 3-hour crossing to Saint John, New Brunswick accommodates up to 160 cars, 650 passengers, drop trailer service, and general cargo handling. q Recreation/Tourism: The Port of Digby operates a marina offering berthage and basic amenities to local and visiting recreational vessels. Cruise ships have been welcomed on occasion.

3.2.3 Community Profile

Digby County is the backdrop for the economic significance of the port. This is a relatively small community in the province, therefore the port plays a significant role in the area's community economic development. The socio-economic profile of the community (Table 3.3) indicates the unemployment rate is 15.0%, which over the provincial rate of 10.0%. The average market earnings of $31,300 are well below the provincial average of $40,300. The top three defined industry sectors by percentage of employment in the community are: primary resources (17%), manufacturing (15%), and health and social services (12%).

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Table 3.3: Digby* socio-economic profile (2016 Census) Population 17,323 Employment by industry Population 15 yrs+ 15,045

Primary Labour force 8,405 industry 17% Employed 7,150 Construct Unemployed 1,260 Business & Other 7% admin 23% Unemployment rate 15.0% 2% Manufact Education 15% Persons with income 14,600 6% Average income 34,000 Health & social Wholesale Total income ($M) $496 12% 3% Retail Finance & Persons with market income 12,170 12% real estate Average market income 31,321 3% Total market income ($M) $381 Source: Statistics Canada Census 2016. *Includes: Digby County.

3.2.4 Economic Impacts

The economic impacts of the port and related operations below indicate the output (expenses), employment (person-years), GDP, and earned income. Total expenditures of port-related business activities were estimated at $5 million. The total employment is 46 person-years, total GDP (added value) is $4.4 million, and total income is about $2.7 million. Total impacts include the direct (port and related businesses), indirect (supply industries), and induced (effect of spending direct and indirect incomes).

Table 3.4: Digby direct and spin-off economic impacts Direct Indirect Induced Total NS Total Canada Output $5,050,000 $1,932,836 $732,104 $7,714,939 $11,119,386 GDP $2,256,888 $937,618 $456,345 $3,650,851 $4,448,259 Income $933,657 $508,510 $195,539 $1,637,707 $2,691,796 Employment* 10 8 5 23 46 Fed tax** $162,168 $90,240 $39,951 $292,359 $471,761 Prov tax** $179,459 $103,062 $54,211 $336,733 Source: Statistics Canada 2014 input-output model; Statistics Canada 2017 Social Policy Simulation Database and Model (SPSD/M). *Employment in person-years. **Includes income tax impacts.

Dividing the direct income by the corresponding direct employment provides an average earnings estimate of $93,400 associated with the port and related businesses. This illustrates how these jobs represent leading opportunities in the community, since earnings are about double the local average. These are highly skilled positions that help keep trained workers in the area and in the region.

The fisheries landings in Digby County represent another $119 million in added-value (GDP), $54 million in earned income, and about 1,100 jobs in Canada.

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3.3 SHELBURNE

3.3.1 Description

The Shelburne Marine Terminal is located in Shelburne harbour along the southwest coast of Nova Scotia. The stem and “T” terminal has lengths 130 metres and 163 metres respectively. There is a minimum depth of 9 metres entering the ice-free harbor and pilots are not required. Wharf and cargo handing services are available for a variety of shipments including containers, bulk commodities and fish products. Adjacent lands are available for storage on a lease basis. This port offers power, water, fuel, tugs, service and repair, stevedoring, refrigeration and dry storage. Security equipment and personnel are in place, and this is a Canada Customs access point.

3.3.2 Dependent Industry Sectors

q Fisheries: Clearwater Seafoods Inc. is a large seafood company focused on shellfish including lobster, snow crab, shrimp and scallops. Clearwater has a facility at the port and fishing vessels are active on a daily basis. In 2017, $301 million was landed in Shelburne county, which is 21% of the provincial total. q Tourism and recreation: Oceana Cruise’s Marina made Shelburne a port of call in 2018. The port is an attractive cruise destination where the historic downtown Shelburne is within walking distance. UNESCO world heritage sites Lunenburg, Southwest Nova Biosphere Reserve, and offer day trips under an hour away. Visitors on smaller vessels can use the Shelburne Harbour Yacht Club for rental moorings and other services. q Other: Shipments of road salt are received in Shelburne along with some break- bulk, and Coast Guard vessels land there periodically.

3.3.3 Community Profile

The port is located in Shelburne County and the socio-economic profile of the community (Table 3.5) indicates the unemployment rate is 11.3%, which is just over the provincial rate of 10.0%. The average market income of $36,940 is below the provincial average of $40,300. The top three industry sectors by percentage of employment in the community are: primary resources (22%), manufacturing (19%), then health and social services (12%).

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Table 3.5: Shelburne* socio-economic profile (2016 Census) Population 13,966 Employment by industry Population 15 yrs+ 11,945

Primary Labour force 7,015 industry 22% Employed 6,225 Business & Unemployed 790 admin Other 2% 19% Unemployment rate 11.3% Education Construct 5% 5% Health & Persons with income 11,585 Manufact social 19% Average income 39,323 12% Finance & $456 Wholesale Total income ($M) real estate Retail 3% Persons with market income 9,625 2% 11% Average market income 36,940 Total market income ($M) $356 Sources: Statistics Canada Census 2016. *Includes: Shelburne County.

3.3.4 Economic Impacts

The economic impacts of the port and related operations below indicate the output (expenses), employment (person-years), GDP, and earned income. Total direct expenditures of port-related business activities were estimated at $1.2 million. The total employment is 12 person-years, total GDP (added value) is $924,000, and total income is about $681,000. Total impacts include the direct (port and related businesses), indirect (supply industries), and induced (effect of spending direct and indirect incomes).

Table 3.6: Shelburne direct and spin-off economic impacts Direct Indirect Induced Total NS Total Canada Output $1,230,015 $449,988 $202,966 $1,882,968 $2,647,413 GDP $574,657 $223,266 $126,533 $924,456 $1,148,055 Income $272,699 $124,831 $54,204 $451,734 $680,595 Employment* 4 2 1 7 12 Fed tax** $41,657 $19,069 $8,280 $69,007 $103,968 Prov tax** $36,566 $16,739 $7,268 $60,573 Source: Statistics Canada 2014 input-output model; Statistics Canada 2017 Social Policy Simulation Database and Model (SPSD/M). *Employment in person-years. **Includes income tax impacts.

Dividing the direct income by the corresponding direct employment provides an average earnings estimate of $68,200 associated with the port and related businesses. This illustrates how these jobs represent leading opportunities in the community, since earnings are more than double the local average. These are highly skilled positions that help keep trained workers in the area and in the region.

The fisheries landings in Shelburne County represent another $280 million in added- value (GDP), $127 million in earned income, and about 2,600 jobs in Canada.

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3.4 SYDNEY

3.4.1 Description

The Port of Sydney, located in the on the northeast shore of Cape Breton Island, is comprised of a number of marine terminals. Activity at the Sydney Marine Terminal is centered around cruise ships, project cargo, break bulk, bulk, and fuel transport; the International Coal Pier is primarily used in the transport of coal for its owner and operator, Emera (Nova Scotia Power); facilities at the Syd-Port Industrial Park are engaged in the handling of bulk, containers, and heavy-lifting cargo, as well as fuel and fisheries-related activity; North Sydney is the Nova Scotia terminus for Marine Atlantic’s passenger and freight service to Newfoundland.

3.4.2 Dependent Industry Sectors

q Fisheries: Port facilities at North Sydney are home to MV Osprey, a privately owned seafood processing facility serviced by its own fleet of fishing vessels. Infrastructure at the North Sydney port includes two 130-metre wharves and a 700 m2 cold storage facility. q Energy: Coal and coke destined for use in Nova Scotia Power’s local power generation is imported through facilities at both the Sydney Marine Terminal (SMT) and International Coal Pier. Petroleum imports arrive regularly, while component parts for turbines used in the region’s wind energy sector have been shipped through the Atlantic Canada Bulk Terminal. q Retail: The Cruise Pavilion, located at the SMT, serves as a marshalling and entertainment facility for cruise passengers. Retail activity occurs through the Pavilion’s visitor centre, art gallery, shops, exhibition centre and licensed bar. q Ferry: Marine Atlantic Inc. (MAI) provides passenger and cargo ferry service to the Province of Newfoundland and Labrador from the terminal in North Sydney. The ferry operates year round to Port-aux-Basques, with additional seasonal service provided to Argentia. Between 420,000 and 520,000 passengers and 79,000 to 87,000 commercial vehicles are transported annually. q Tourism: The Port of Sydney’s cruise ship activities are accommodated at the SMT, where approximately 80,000 passengers and 50 or more cruise vessels visit between May and October. Facilities at the SMT serve as a marshalling and entertainment facility for cruise passengers.

3.4.3 Community Profile

The Sydney Port Complex is situated in the Cape Breton Regional Muncipality, the second largest community in the province after the Halifax Regional Municipality. The socio-economic profile (Table 3.7) indicates the unemployment rate is 17.4%, which is above the provincial rate of 10.0%. Average market earnings of $34,500 are below the provincial average of $40,300. The top three defined industry sectors by percentage of employment in the community are: health and social services (18%), retail (14%), and construction (8%).

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Table 3.7: Sydney* socio-economic profile (2016 Census) Population 94,285 Employment by industry Population 15 yrs+ 80,210 Primary

industry Construct Labour force 42,595 6% 8% Employed 35,175 Manufact 4% Unemployed 7,420 Other Wholesale 31% Unemployment rate 17.4% 1%

Business & Persons with income 76,915 Retail admin 14% 7% Average income 37,101 Finance & Education Health & real estate Total income ($M) $2,854 8% social 3% Persons with market income 62,835 18% Average market income 34,533 Total market income ($M) $2,170 Sources: Statistics Canada Census 2016. *Includes: Cape Breton Regional Municipality.

3.4.4 Economic Impacts

The economic impacts of the port and related operations below indicate the output (expenses), employment (person-years), GDP, and earned income. Total expenditures of port-related business activities were estimated at $79 million. The total employment is 732 person-years, total GDP (added value) is $71 million, and total income is about $43 million. Total impacts include the direct (port and related businesses), indirect (supply industries), and induced (effect of spending direct and indirect incomes).

Table 3.8: Sydney direct and spin-off economic impacts Direct Indirect Induced Total NS Total Canada Output $79,335,856 $29,964,341 $11,976,472 $121,276,669 $173,512,492 GDP $35,936,812 $14,631,603 $7,465,673 $58,034,088 $71,127,608 Income $15,540,731 $8,007,520 $3,198,688 $26,746,939 $42,769,409 Employment* 175 132 87 395 732 Fed tax** $2,665,085 $1,410,307 $638,781 $4,714,173 $7,435,523 Prov tax** $2,892,136 $1,593,205 $845,841 $5,331,182 Source: Statistics Canada 2014 input-output model; Statistics Canada 2017 Social Policy Simulation Database and Model (SPSD/M). *Employment in person-years. **Includes income tax impacts.

Dividing the direct income by the corresponding direct employment provides an average earnings estimate of $88,800 associated with the port and related businesses. This illustrates how these jobs represent leading opportunities in the community, since earnings are more than double the local average. These are highly skilled positions that help keep trained workers in the area and in the region.

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3.5 YARMOUTH

3.5.1 Description

The Port of Yarmouth, located at the southwestern tip of Nova Scotia, offers three berths totaling 292 metres with minimum depths of 5.8 metres. There is also an Irving Oil Tanker Terminal, the International Ferry Terminal, and four private wharves for recreational and fisheries vessels. Fisheries, passenger and commercial ferry crossings, and sightseeing tourism are the main activities for the port.

3.5.2 Dependent Industry Sectors

q Fisheries: Fishing industry vessel movements are daily and numerous. In 2017, $250 million was landed in Yarmouth county, which is 18% of the provincial total. q Ferry: Ltd. operates seasonal daily return crossings to Portland, Maine from the Yarmouth International Terminal. Passenger volumes are in the 60,000 range and commercial traffic benefits the fisheries and other exporters. q Tourism: There is a small but growing cruise development. American travelers aboard the ferries also contribute to tourism in Nova Scotia and the Atlantic region, particularly American motorcoach tours.

3.5.3 Community Profile

The port of Yarmouth is situated in Yarmouth County. The socio-economic profile (Table 3.9) indicates the unemployment rate is 9.1%, and this is just below the provincial rate of 10.0%, Average market earnings of $33,962 are below the provincial average of $40,300. The top three industry sectors by percentage of employment in the community are: retail (16%), health and social services (15%), then primary resources (14%).

Table 3.9: Yarmouth* socio-economic profile (2016 Census) Population 24,419 Employment by industry Population 15 yrs+ 20,535

Primary Labour force 12,400 industry 14% Employed 11,270 Construct 5% Unemployed 1,125 Other 24% Manufact 10% Unemployment rate 9.1% Business & admin 3% Persons with income 19,895 Wholesale Average income 36,481 Education 3% 7% Retail Total income ($M) $726 16% Health & Finance & Persons with market income 16,975 social real estate 15% 3% Average market income 33,962 Total market income ($M) $577 Sources: Statistics Canada Census 2016. *Includes: Yarmouth County.

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3.5.4 Economic Impacts

The economic impacts of the port and related operations below indicate the output (expenses), employment (person-years), GDP, and earned income. Total expenditures of port-related business activities were estimated at $27 million. The total employment is 243 person-years, total GDP (added value) is $24 million, and total income is about $14 million. Total impacts include the direct (port and related businesses), indirect (supply industries), and induced (effect of spending direct and indirect incomes).

Table 3.10: Yarmouth direct and spin-off economic impacts Direct Indirect Induced Total NS Total Canada Output $26,945,109 $10,305,161 $3,915,512 $41,165,782 $59,306,458 GDP $12,051,368 $5,000,897 $2,440,677 $19,492,941 $23,758,670 Income $4,998,685 $2,713,607 $1,045,797 $8,758,090 $14,371,891 Employment* 53 43 29 124 243 Fed tax** $904,073 $504,813 $232,217 $1,641,102 $2,630,779 Prov tax** $1,060,337 $614,560 $341,435 $2,016,332 Source: Statistics Canada 2014 input-output model; Statistics Canada 2017 Social Policy Simulation Database and Model (SPSD/M). *Employment in person-years. **Includes income tax impacts.

Dividing the direct income by the corresponding direct employment provides an average earnings estimate of $94,300 associated with the port and related businesses. This illustrates how these jobs represent leading opportunities in the community, since earnings are more than double the local average. These are highly skilled positions that help keep trained workers in the area and in the region.

The fisheries landings in Yarmouth County represent another $233 million in added- value (GDP), $106 million in earned income, and about 2,200 jobs in Canada.

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IV. NEW BRUNSWICK

4.1 BAYSIDE

4.1.1 Description

Private interests formed the Bayside Port Corporation and purchased the port in 1999 and operate it as a regional port for New Brunswick. Located along the south shore of New Brunswick on the Bay of Fundy at the mouth of the St Croix River on the Canada – US border, Bayside port connects by road directly to the U.S., and New Brunswick's major centres. The port serves exporters in the southeast part of New Brunswick up to and beyond clients in MacAdam, Nackawic, and Sussex. The berth length is over 242 metres long with 9 -10 metre depths at low tide. Frozen food storage for up to 7,000 metric tonnes, and 3,600 square metres of dry storage area facilitate shipment of fish, agricultural, wood and paper products through the port.

4.1.2 Dependent Industry Sectors

q Mining: Jamer Materials with 15 employees annually ships over 1 million tonnes of aggregates, primarily to U.S. and Carribean markets. Mining the quarry will provide up to 95 acres of laydown area adjacent to the port for expansion. q Construction: Certain Teed wallboard in McAdam employs 74 people and depends on the port for reliable supply of unrefined gypsum. q Fisheries and aquaculture: In 2017, $136 million was landed in Charlotte county, which is 25% of the provincial total. Woodstock cold storage operates the cold storage facility with 7,000 capacity. Up to 25 staff at the facility handle fish from Alaska and they are currently undergoing an expansion. Cooke aquaculture’s larger vessels use the port to service multiple sites in the Bay of Fundy. Skretting’s 55 employee fish feed facility operates next to the wharf and ships almost daily to local sites and larger shipments go regularly go Newfoundland and Labrador. q Forestry: AV Group is one of New Brunswick’s largest employers with mills in Nackawic and Atholville producing specialty pulp products for the textile industry. They import high grade solar salt that is critical for their processing.

4.1.3 Community Profile

The port is set within Charlotte County, with a population of about 25,400 (Table 4.1). The unemployment rate at 14.1% is just over the provincial average of 11.2%. The average market earnings of $35,212 are just the provincial average of $37,400. The top three defined industry sectors by percentage of employment in the community are: manufacturing (17%), primary industry (15%), and health and social services (11%).

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Table 4.1: Bayside* socio-economic profile (2016 Census) Population 25,428 Employment by industry Population 15 yrs+ 21,175

Primary Labour force 12,815 industry 15% Employed 11,010 Construct 7% Unemployed 1,805 Other 27% Unemployment rate 14.1%

Business Manufact & admin 17% Persons with income 20,405 3% Average income 37,408 Education 6% Retail Wholesale Health & Total income ($M) $763 Finance & 10% 2% social real estate Persons with market income 17,650 11% 2% Average market income 35,212 Total market income ($M) $621 Source: Statistics Canada Census 2016. *Profile includes: Charlotte County.

4.1.4 Economic Impacts

The economic impacts of the port and related operations below indicate the output (expenses), employment (person-years), GDP, and earned income. Total expenditures of port-related business activities were estimated at nearly $7 million. The total employment is 71 person-years, total GDP (added value) is $6.7 million, and total income is about $3.9 million. Total impacts include the direct (port and related businesses), indirect (supply industries), and induced (effect of spending direct and indirect incomes).

Table 4.2: Bayside direct and spin-off economic impacts Direct Indirect Induced Total NB Total Canada Output $6,754,561 $2,620,115 $1,202,373 $10,577,049 $13,654,796 GDP $3,086,930 $1,069,013 $732,949 $4,888,892 $6,684,229 Income $2,032,486 $626,689 $296,824 $2,955,999 $3,928,446 Employment* 33 13 8 54 71 Fed tax** $276,606 $85,288 $40,396 $402,289 $534,632 Prov tax** $208,922 $64,418 $30,511 $303,851 Source: Statistics Canada 2014 input-output model; Statistics Canada 2017 Social Policy Simulation Database and Model (SPSD/M). *Employment in person-years. **Includes income tax impacts.

Dividing the direct income by the corresponding direct employment provides an average earnings estimate of $61,600 associated with the port and related businesses. This illustrates how these jobs represent leading opportunities in the community, since earnings are almost triple the local average. These are highly skilled positions that help keep trained workers in the area and in the region.

The fisheries landings in Charlotte County represent another $132 million in added-value (GDP), $60 million in earned income, and about 1,500 jobs in Canada.

Gardner Pinfold Economic Impact Study of Independent Marine Ports in Atlantic Canada 29

4.2 DALHOUSIE

4.2.1 Description

The port is situated on the coast of northern New Brunswick at the junction of the St. Lawrence River, the Restigouche River, and the Bay de Chaleur. The Port of Dalhousie Inc. assumed responsibility for the port from Transport Canada in 2006. The port has two wharves: the East Wharf is 340 metres with a low tide depth of 9.1 metres and primarily handles forest products and other bulk shipments, while the West Wharf is a 355 metre wharf with a depth of 10.3 metres and handles aggregates, liquid petroleum and purified water products. The East Wharf has over 10,000 m2 of covered storage and is equipped with loading docks for easy distribution. The West Wharf has a state of the art conveyor equiped with a loading tower connected to a wood chip reclaimer. The terminal can be used to discharge oil, load bulk woodchips, or handle any bulk cargoes not requiring a storage shed. There are 10 acres of exterior storage, and the port is connected by road and rail to major centres in Canada and the U.S.

4.2.2 Dependent Industry Sectors

q Forestry: About 120,000 tonnes of softwood chips were exported through the port in 2017. Roundwood logs and other forest products have shipped through the port regularly. Forest biomass for energy as well as weed pellets are supported by the port. q Other: Salt, animal feed, aggregates and other cargoes have shipped in and out of the port periodically. Renewable energy project components such as wind turbine towers, blades, and heavy parts are handled by the port.

4.2.3 Community Profile

The port is set within Restigouche County, with a population of about 31,000 (Table 4.3). The unemployment rate at 15.6% is over the provincial average of 11.2%. The average earnings of $32,400 are somewhat lower than the provincial average of $37,400. The top three defined industry sectors by percentage of employment in the community are: health and social services (21%), retail (14%), and manufacturing (13%). The well-paying port- related jobs make an important contribution to employment and average salaries.

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Table 4.3: Dalhousie* socio-economic profile (2016 Census) Population 30,955 Employment by industry Population 15 yrs+ 26,230

Primary industry Construct Labour force 14,330 8% 7% Employed 12,090 Unemployed 2,240 Other Manufact 25% 13% Unemployment rate 15.6% Business & admin 3% Persons with income 25,335 Wholesale Retail 1% Average income 34,457 Education 14% 6% Total income ($M) $873 Health & Finance & Persons with market income 20,535 social real estate 21% 2% Average market income 32,418 Total market income ($M) $666 Source: Statistics Canada Census 2016. *Profile includes: Restigouche County.

4.2.4 Economic Impacts

The economic impacts of the port and related operations below indicate the output (expenses), employment (person-years), GDP, and earned income. Total expenditures of port-related business activities were estimated at $5 million. The total employment is 56 person-years, total GDP (added value) is $5.2 million, and total income is about $3.1 million. Total impacts include the direct (port and related businesses), indirect (supply industries), and induced (effect of spending direct and indirect incomes).

Table 4.4: Dalhousie direct and spin-off economic impacts Direct Indirect Induced Total NB Total Canada Output $5,293,239 $2,053,264 $942,245 $8,288,748 $10,700,637 GDP $2,419,085 $837,736 $574,379 $3,831,200 $5,238,124 Income $1,592,766 $491,107 $232,608 $2,316,481 $3,078,543 Employment* 26 10 7 42 56 Fed tax** $216,763 $66,836 $31,656 $315,255 $418,966 Prov tax** $163,722 $50,482 $23,910 $238,114 Source: Statistics Canada 2014 input-output model; Statistics Canada 2017 Social Policy Simulation Database and Model (SPSD/M). *Employment in person-years. **Includes income tax impacts.

Dividing the direct income by the corresponding direct employment provides an average earnings estimate of $61,300 associated with the port and related businesses. This illustrates how these jobs represent leading opportunities in the community, since earnings are more than double the local average. These are highly skilled positions that help keep trained workers in the area and in the region.

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V. PRINCE EDWARD ISLAND

5.1 CHARLOTTETOWN

5.1.1 Description

Located in the province’s capital, the Port of Charlottetown is Prince Edward Island’s most active marine terminal facility, offering over 300 metres of berthage along two piers. The Charlottetown Harbour Authority Inc. (CHAI) acquired ownership of the port in 2005, and has focused the facility on three main areas of marine activity: cruise ships, bulk petroleum transportation, and aggregate shipment. Services offered at the port include fresh water, ship supplies, bunker and diesel fuel, gas and lubricants, security, Canada Customs services, and pilotage.

5.1.2 Dependent Industry Sectors

q Mining/Construction: The Port of Charlottetown provides service to the island’s commercial and industrial construction industry. Aggregate, sand, and gravel are shipped through the port for use in provincial roads and highways construction, as well as a wide range of other industrial and commercial projects. q Energy: The Port of Charlottetown serves as the gateway for the province’s petroleum product supply. Irving Oil Ltd. imports the petroleum products distributed by all gas retailers and heating oil suppliers across the island. q Tourism: The cruise ship industry has become an increasingly important generator of economic activity in the city of Charlottetown. The Port of Charlottetown expects over 100,000 passengers to visit this year and is expanding again in order to accommodate two cruise ships at a time. q Agriculture: Bulk ingredients used in the production of fertilizer are shipped through the Port of Charlottetown by one manufacturer on the island. Chemical and fertilizer products are then sold to agricultural producers across Prince Edward Island.

5.1.3 Community Profile

Charlottetown serves as the centre for government, commerce, and residential development, reflecting the high proportion of provincial activity at the port. The population is about 69,300 (Table 5.1), and the unemployment rate of 9.6% is just under the provincial average of 12.3%, while the average earnings of $39,000 are just over the provincial average of $36,500. The top three defined industry sectors by percentage of employment in the community are: retail (13%), health and social services (13%), and construction (6%). The large proportion of “other” industries reflects the broader distribution of activities in the provincial capital.

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Table 5.1: Charlottetown* socio-economic profile (2016 Census) Population 69,325 Employment by industry Population 15 yrs+ 56,530 Primary industry Construct 6% Labour force 37,760 4% Manufact Employed 34,140 5% Wholesale Unemployed 3,620 Other 2% Unemployment rate 9.6% 39% Retail 13%

Persons with income 54,510 Finance & Average income 41,538 real estate 5% Health & Total income ($M) $2,264 Business & Education social admin 9% Persons with market income 49,760 4% 13% Average market income 39,135 Total market income ($M) $1,947 Source: Statistics Canada Census 2006. *Includes: Charlottetown Census Agglomeration.

5.1.4 Economic Impacts

The economic impacts of the port and related operations below indicate the output (expenses), employment (person-years), GDP, and earned income. Total expenditures of port-related business activities were estimated at $43 million. The total employment is 390 person-years, total GDP (added value) is $39.6 million, and total income is about $21.3 million. Total impacts include the direct (port and related businesses), indirect (supply industries), and induced (effect of spending direct and indirect incomes).

Table 5.2: Charlottetown direct and spin-off economic impacts Direct Indirect Induced Total PEI Total Canada Output $43,267,424 $10,564,304 $4,854,528 $58,686,256 $97,277,477 GDP $15,749,966 $13,207,510 $3,160,624 $32,118,100 $39,612,405 Income $8,591,169 $4,051,429 $1,218,321 $13,860,919 $21,347,572 Employment* 135 106 38 279 390 Fed tax** $1,412,896 $666,295 $200,364 $2,279,555 $3,510,804 Prov tax** $929,288 $438,234 $131,783 $1,499,305 Source: Statistics Canada 2014 input-output model; Statistics Canada 2017 Social Policy Simulation Database and Model (SPSD/M). *Employment in person-years. **Includes income tax impacts.

Dividing the direct income by the corresponding direct employment provides an average earnings estimate of $63,600 associated with the port and related businesses. This illustrates how these jobs represent leading opportunities in the community, since earnings are 40% higher than the local average. These are highly skilled positions that help keep trained workers in the area and in the region.

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5.2 SOURIS

5.2.1 Description

The Port of Souris is at Prince Edward Island’s eastern end. The port consists of five wharves and a breakwater, which are owned and operated by the Souris Harbour Authority Inc. (SHAI). This non-profit community-based corporation took responsibility for the port in 2006. The Port of Souris services include fresh water, ship supplies, fuel, stevedoring, and minor repairs. SHAI also owns and operates two cold storage facilities for seafood, fruit and vegetable processors, and the fishing industry. The authority has purchased an 80,000 sq.ft. former seafood plant and has repurposed it for multi-tenant use. This purchase enabled expansion of the cold storage capacity by Eastern Cold Storage to 60,000 sq.ft. holding 12 million lbs. An agriculture research company, the Center for Aquaculture Technologies Canada, employs 25 professional and technical conducting contract research in feed trials, disease control and related research.

5.2.2 Dependent Industry Sectors

q Fisheries: Fisheries are the predominant activity at the Port of Souris with approximately 40 fishing vessels based there throughout the year. In 2017, $19.8 million was landed at the port, which is 7% of the provincial total. Fish buying and cold storage facilities available at the port are used by a range of companies. q Construction: Aggregate and armour stone are the main commercial commodities shipped through the Port of Souris. The port serves eastern PEI for construction companies involved in municipal and provincial road construction, as well as an array of industrial and commercial projects. q Agriculture: The Souris Food Park is a spacious development that is home to the potato dehydration products firm, AgraWest, and the Souris Harbour Authority’s Eastern Cold Storage facilities. This 48-acre site offers large development lots and on-site waste treatment facilities. The park is located in the Town of Souris and is adjacent to the Souris Port and ferry service to the Isles de la Madeleine. q Energy: Energy sector activity at the Port of Souris is limited to the receipt of a small number of international shipments of windmill components used in Prince Edward Island’s growing wind energy industry. q Ferry: Transport Canada continues to operate domestic ferry service between Souris and Cap-aux-Meules on Isle de la Madeleine, .

5.2.3 Community Profile

Souris is a relatively small community with a population in 2006 of 1,050 (Table 5.3). The unemployment rate of 13.0% is in line with the provincial average of 12.3%, while the average earnings of $25,337 are well under the provincial average of $35,500. The top three defined industry sectors by percentage of employment in the community are: primary resources (36%), manufacturing (12%), and retail (8%). The dominance of primary resources and manufacturing is a reflection of the fishery both in terms of harvesting and processing, which are closely linked to the port.

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Table 5.3: Souris* socio-economic profile (2016 Census) Population 1,053 Employment by industry Population 15 yrs+ 815

Labour force 500 Primary Employed 435 industry Unemployed 65 Other 36% Business & 25% Unemployment rate 13.0% admin 2% Education Persons with income 805 4% Average income 30,269 Health & Construct social 4% Total income ($M) $24 6% Manufact Persons with market income 630 Finance & Wholesale Retail 12% real estate 3% 5%8% Average market income 25,337 3% Total market income ($M) $16 Source: Statistics Canada Census 2016. *Includes: Souris Census Subdivision.

5.2.4 Economic Impacts

The economic impacts of the port and related operations below indicate the output (expenses), employment (person-years), GDP, and earned income. Total expenditures of port-related business activities were estimated at $11 million. The total employment is 103 person-years, total GDP (added value) is $10.5 million, and total income is about $5.5 million. Total impacts include the direct (port and related businesses), indirect (supply industries), and induced (effect of spending direct and indirect incomes).

Table 5.4: Souris direct and spin-off economic impacts Direct Indirect Induced Total PEI Total Canada Output $11,411,818 $2,875,489 $1,269,020 $15,556,327 $25,356,270 GDP $4,273,860 $3,310,212 $825,078 $8,409,149 $10,525,892 Income $2,201,497 $1,068,333 $318,015 $3,587,845 $5,541,182 Employment* 35 28 10 73 103 Fed tax** $362,056 $175,697 $52,300 $590,054 $911,298 Prov tax** $238,131 $115,559 $34,399 $388,089 Source: Statistics Canada 2014 input-output model; Statistics Canada 2017 Social Policy Simulation Database and Model (SPSD/M). *Employment in person-years. **Includes income tax impacts.

Dividing the direct income by the corresponding direct employment provides an average earnings estimate of $62,900 associated with the port and related businesses. This illustrates how these jobs represent leading opportunities in the community, since earnings are more than double the local average. These are highly skilled positions that help keep trained workers in the area and in the region.

The fisheries landings in Souris represent another $17.3 million in added-value (GDP), $8.6 million in earned income, and about 225 jobs in Canada.

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5.3 SUMMERSIDE

5.3.1 Description

The port of Summerside is located on Bedeque Bay on the southwestern coast of PEI. Summerside Port Corporation Inc. acquired the facilities from Transport Canada in 2010. The port activity focuses on potatoes, aggregates, fertilizers and other products. A 5,000 square metre heated transit shed has been a recent addition to the extensive outside storage. The port can accommodate vessels over 152 metres with at least 6 metre berth depths at low tide. There are three independent terminals with protection afforded by two breakwaters.

5.3.2 Dependent Industry Sectors

q Mining: Aggregates including stone and gravel are regularly brought in for construction. q Agriculture: Fertilizer and limestone imports have accounted for up to 120,000 tonnes of cargo in a year. Up to 10 tonnes of potatoes and other agricultural products have been exported primarily to international markets in the Caribbean and South America.

5.3.3 Community Profile

Summerside has a population of about 16,600 (Table 5.5), and the unemployment rate of 11.2% is just under the provincial average of 12.3%, while the average market earnings of $32,600 are just under the provincial average of $35,500. The top defined industry sectors by percentage of employment in the community are: retail (16%), manufacturing (14%), and health and social services (11%).

Table 5.5: Summerside* socio-economic profile (2016 Census) Population 16,587 Employment by industry Population 15 yrs+ 13,585 Primary industry Labour force 8,485 4% Construct Employed 7,530 5%

Unemployed 950 Other Manufact Unemployment rate 11.2% 34% 15%

Business & Persons with income 13,150 admin Wholesale 3% 2% Average income 35,816 Education 6% Retail Total income ($M) $471 Finance 16% Persons with market income 11,475 Health & & real social estate Average market income 32,637 11% 4% Total market income ($M) $375 Source: Statistics Canada Census 2016. *Includes: Summerside Census Agglomeration.

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5.3.4 Economic Impacts

The economic impacts of the port and related operations below indicate the output (expenses), employment (person-years), GDP, and earned income. Total expenditures of port-related business activities were estimated at $6 million. The total employment is 58 person-years, total GDP (added value) is $6.0 million, and total income is about $3.1 million. Total impacts include the direct (port and related businesses), indirect (supply industries), and induced (effect of spending direct and indirect incomes).

Table 5.6: Summerside direct and spin-off economic impacts Direct Indirect Induced Total PEI Total Canada Output $6,466,697 $1,629,444 $719,111 $8,815,252 $14,368,553 GDP $2,421,854 $1,875,787 $467,544 $4,765,185 $5,964,672 Income $1,247,515 $605,389 $180,208 $2,033,112 $3,140,003 Employment* 20 16 6 41 58 Fed tax** $205,165 $99,562 $29,637 $334,364 $516,402 Prov tax** $134,941 $65,484 $19,493 $219,917 Source: Statistics Canada 2014 input-output model; Statistics Canada 2017 Social Policy Simulation Database and Model (SPSD/M). *Employment in person-years. **Includes income tax impacts.

Dividing the direct income by the corresponding direct employment provides an average earnings estimate of $62,400 associated with the port and related businesses. This illustrates how these jobs represent leading opportunities in the community, since earnings are 50% more than the local average. These are highly skilled positions that help keep trained workers in the area and in the region.

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VI. NEWFOUNDLAND AND LABRADOR

6.1 CORNER BROOK

6.1.1 Description

The port complex of Corner Brook, located on the west coast of Newfoundland and Labrador, includes a former Transport Canada port along with private wharves operated by Barry's Seafood's Inc., Corner Brook Pulp and Paper, Irving Oil Ltd., Ultramar, Holcim and Imperial Oil. The port has substantially improved the wharf infrastructure and completed a two-year major building refurbishment. The port is growing as a cruise destination while providing a full range of services to industrial clients. The port plays a key role in waterfront real-estate development and is cultivating local port-related industry developments and short sea shipping opportunities.

6.1.2 Dependent Industry Sectors

q Mining/Construction: Shipments of concrete, stone, sand, and gravel products have shipped through the port. Some piping and other large items have been brought in for recent construction projects. About 34,000 tonnes of salt came into Corner Brook for road salt and fish curing applications. q Fisheries: Fishing vessels operate from the port, processing occurs at the Barry Group facility, and finished fish and seafood products are exported from the port. q Forestry: Corner Brook Pulp and Paper exported about 145,000 tonnes of newsprint and paper products in 2017. q Energy: The three energy companies serve as a fuel hub for the region and bring in or re-distribute about 140,000 tonnes of fuel oils, gasoline and aviation fuel, and other refined petroleum products. q Tourism/Recreation: Corner Brook hosted thirteen (13) cruise ships in 2017, bringing over 13,189 passengers. In addition, five (5) Tall Ships called to port and numerous water-based recreation and scenic tours on smaller vessels visit for the excellent local fishing, sightseeing, and proximity to the UNESCO World Heritage Site at Gros Morne National Park.

6.1.3 Community Profile

The population of Corner Brook is about 32,000 (Table 6.1), and the unemployment rate of 14.3% is just under the provincial average of 15.6%, while the average earnings of $41,600 are under the provincial average of $45,500. The top defined industry sectors by percentage of employment in the community are: health and social services (20%), retail (17%), and construction (9%).

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Table 6.1: Corner Brook* socio-economic profile (2016 Census) Population 31,917 Employment by industry Population 15 yrs+ 26,930 Primary industry Construct Labour force 15,640 4% 9% Employed 13,405 Manufact Unemployed 2,230 Other 6% 28% Wholesale Unemployment rate 14.3% 3% Business & admin Persons with income 25,985 2% Retail 17% Average income 42,305 Education Total income ($M) $1,099 8% Finance & real estate Health & Persons with market income 21,805 3% social Average market income 41,558 20% Total market income ($M) $906 Source: Statistics Canada Census 2016. *Includes Corner Brook Census Agglomeration.

6.1.4 Economic Impacts

The economic impacts of the port and related operations below indicate the output (expenses), employment (person-years), GDP, and earned income. Total expenditures of port-related business activities were estimated at $24 million. The total employment is 235 person-years, total GDP (added value) is $23.2 million, and total income is about $14.3 million. Total impacts include the direct (port and related businesses), indirect (supply industries), and induced (effect of spending direct and indirect incomes).

Table 6.2: Corner Brook direct and spin-off economic impacts Direct Indirect Induced Total NL Total Canada Output $24,046,685 $9,631,544 $4,118,518 $37,796,748 $49,917,172 GDP $11,561,040 $3,889,248 $2,576,969 $18,027,256 $23,250,535 Income $7,599,357 $2,439,054 $1,129,166 $11,167,576 $14,365,621 Employment* 102 39 27 168 235 Fed tax** $1,336,249 $428,876 $198,549 $1,963,674 $2,526,009 Prov tax** $867,520 $278,435 $128,902 $1,274,857 Source: Statistics Canada 2014 input-output model; Statistics Canada 2017 Social Policy Simulation Database and Model (SPSD/M). *Employment in person-years. **Includes income tax impacts.

Dividing the direct income by the corresponding direct employment provides an average earnings estimate of $74,500 associated with the port and related businesses. This illustrates how these jobs represent leading opportunities in the community, since earnings are 80% higher than the local average. These are highly skilled positions that help keep trained workers in the area and in the region.

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6.2 PLACENTIA BAY

6.2.1 Description

The Placentia Bay port complex on the southeast coast of Newfoundland and Labrador consists of three ports: Argentia, Come By Chance, and Whiffen Head. Facilities in Argentia supports the marine ferry service from Nova Scotia, and two docks with a total of 645 metres of berthage space and minimum dockside depths of 7.4 metres and 11.0 metres at two berths. Up to 450 acres of developed land is available for storage including 180 acres dockside. The Come By Chance facilities meet North Atlantic's refinery needs, which involve processing oil from many sources including Russia, Venezuela, and the Middle East. Their oil terminal has 463 metres of wharf space and minimum depths of 29 metres. Whiffen Head has been utilized by Newfoundland Transshipment Limited since 1998, first receiving oil from Hibernia then from Terra Nova starting in 2002. Shuttle vessels bring oil from the field to the terminal where they are then loaded onto larger tankers for delivery. Placentia bay is a year-round ice-free port with depths to accommodate some of the largest current vessels in the world.

6.2.2 Dependent Industry Sectors

q Mining/Construction: A wide range of aggregates, minerals and metallic products have moved through the port. These have been dominated by cement and salt for use in the province. q Fisheries/Food: Up to 48,000 tonnes of seafood and other food products have moved through the port annually. q Agriculture: Small amounts of feed and fertilizers have been brought in through the port. q Energy: Up to 60 million tonnes of crude petroleum, fuel oils, and other refined petroleum products have been shipped through in year. q Retail: A growing number of products have been imported including some vehicles recently. q Ferry: The Marine Atlantic ferry service operates from mid-June to mid September three days a week carrying passengers, vehicles, and freight.

6.2.3 Community Profile

The socioeconomic profile for the Placentia Bay port complex includes Come by Chance, Arnold’s Cove, and Placentia (Table 6.3). The Placentia Bay communities have a combined population of about 2,700, and the unemployment rate of 24.5% is well over the provincial average of 15.6%. However, the average earnings of $79,400 are well over the provincial average of $45,500. The high incomes are in part due to the port-related jobs. The top defined industry sectors by percentage of employment in the community are: manufacturing (17%), construction (17%), and retail (12%).

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Table 6.3: Placentia Bay* socio-economic profile (2016 Census) Population 2,730 Employment by industry Population 15 yrs+ 2,360

Primary industry Labour force 1,410 8% Employed 1,065 Construct Unemployed 345 Other 17% 27% Unemployment rate 24.5% Business & admin 3% Persons with income 2,100 Education 3% Average income 83,300 Manufact Total income ($M) $175 Health & 17% social Finance & Wholesale 11% Persons with market income 1,715 real estate 1% 1% Retail Average market income 79,377 12% Total market income ($M) $136 Source: Statistics Canada Census 2016. *Profile includes: Come By Chance Town, Arnolds Cove Town, Placentia Population Centre.

6.2.4 Economic Impacts

The economic impacts of the port and related operations below indicate the output (expenses), employment (person-years), GDP, and earned income. Total expenditures of port-related business activities were estimated at $127 million. The total employment is 1,215 person-years, total GDP (added value) is $119.8 million, and total income is about $73.6 million. Total impacts include the direct (port and related businesses), indirect (supply industries), and induced (effect of spending direct and indirect incomes).

Table 6.4: Placentia Bay direct and spin-off economic impacts Direct Indirect Induced Total NL Total Canada Output $127,171,886 $53,226,979 $20,702,093 $201,100,958 $265,746,367 GDP $59,040,052 $20,658,566 $12,974,588 $92,673,206 $119,762,785 Income $37,985,003 $13,025,145 $5,684,983 $56,695,131 $73,580,139 Employment* 517 201 135 853 1215 Fed tax** $6,888,755 $2,425,001 $1,107,739 $10,421,495 $13,587,614 Prov tax** $4,918,207 $1,860,930 $949,167 $7,728,304 Source: Statistics Canada 2014 input-output model; Statistics Canada 2017 Social Policy Simulation Database and Model (SPSD/M). *Employment in person-years. **Includes income tax impacts.

Dividing the direct income by the corresponding direct employment provides an average earnings estimate of $73,500 associated with the port and related businesses. This illustrates how these jobs represent leading opportunities in the community, since earnings are about triple the local average. In Atlantic Canada this represents the largest discrepancy between local income levels and those associated with port activities, underscoring the significance of these operations to local development, municipal and provincial tax revenues, and retention of highly skilled workers in the area.

Gardner Pinfold Economic Impact Study of Independent Marine Ports in Atlantic Canada 41

6.3 LONG POND

6.3.1 Description

The port is situated in Conception Bay South just twenty kilometres from Saint John’s. There are 245 metres of berthage with dockside low tide depths of 6.2 metres. The port has served ocean shipping for general cargo, dry and liquid bulk commodities. Proximity to Saint John’s provide other advantages including direct access to main highways, distribution centres, the airport, as well as service and repair companies.

6.3.2 Dependent Industry Sectors

q Mining/Construction: Metallic ores are exported by Trinity Resources. Cement is imported for the oil and gas industry. q Fisheries: In 2017, about $109 million in commercial fisheries catch was landed in the area around Conception Bay, which is about 14.4% of the provincial total. q Agriculture: Inbound chicken feed (grain) is handled by Country Ribbon for farmers in the region. q Energy: Woodwards Oil imports and exports fuel, and offshore energy supply vessels have used the port frequently.

6.3.3 Community Profile

Long Pond is associated with the community of Conception Bay South, which has a population of 26,200 (Table 6.5). The unemployment rate of 9.3% is well below the provincial average of 15.6%, while the average earnings of $50,000 are are also above the provincial average of $45,500. The top defined industry sectors by percentage of employment in the community are: health and social services (13%), construction (12%), and retail (12%).

Table 6.5: Long Pond* socio-economic profile (2016 Census) Population 26,199 Employment by industry Population 15 yrs+ 21,220

Primary industry Labour force 14,355 Construct 6% Employed 13,015 12% Manufact Unemployed 1,340 6% Other Unemployment rate 9.3% 33%

Wholesale Persons with income 20,440 Business 4% & admin Retail Average income 49,981 3% 12%

Total income ($M) $1,022 Education Finance & 7% real estate Persons with market income 18,175 Health & 4% social Average market income 50,037 13% Total market income ($M) $909 Source: Statistics Canada Census 2016. *Includes Conception Bay South Census Subdivision.

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6.3.4 Economic Impacts

The economic impacts of the port and related operations below indicate the output (expenses), employment (person-years), GDP, and earned income. Total expenditures of port-related business activities were estimated at $4 million. The total employment is 40 person-years, total GDP (added value) is $3.9 million, and total income is about $2.4 million. Total impacts include the direct (port and related businesses), indirect (supply industries), and induced (effect of spending direct and indirect incomes).

Table 6.6: Long Pond direct and spin-off economic impacts Direct Indirect Induced Total NL Total Canada Output $4,049,452 $1,614,798 $696,925 $6,361,175 $8,400,545 GDP $1,953,434 $654,666 $436,002 $3,044,102 $3,925,367 Income $1,286,612 $410,342 $191,046 $1,888,000 $2,426,636 Employment* 17 7 5 28 40 Fed tax** $226,234 $72,153 $33,593 $331,980 $426,693 Prov tax** $146,876 $46,843 $21,809 $215,528 Source: Statistics Canada 2014 input-output model; Statistics Canada 2017 Social Policy Simulation Database and Model (SPSD/M). *Employment in person-years. **Includes income tax impacts.

Dividing the direct income by the corresponding direct employment provides an average earnings estimate of $75,700 associated with the port and related businesses. This illustrates how these jobs represent leading opportunities in the community, since earnings are double the local average. These are highly skilled positions that help keep trained workers in the area and in the region.

The fisheries landings in Conception Bay represent another $89.5 million in added-value (GDP), $36 million in earned income, and about 737 jobs in Canada.

Gardner Pinfold Economic Impact Study of Independent Marine Ports in Atlantic Canada 43

6.4 STEPHENVILLE

6.4.1 Description

The port has been privatized since 2003 operating year-round under the Port Harmon Authority Ltd. and is located on the north shore of St George’s Bay. The quay is 293 metres by 20 metres and can accommodate vessels up to 385 metres in length with a draft of up to 10.0 metres. The port serves international and national freight, fishing, aggregate, container, and special freight. The port is connected to the Trans Canada, and has an airport and hospital in the community. The newly refurbished 100,000 sqft warehouse with 60ft ceilings at dockside has three 30 ton cranes next to a custom bonded warehouse.

6.4.2 Dependent Industry Sectors

q Fisheries: Over 50 fishing vessels catch crab, shrimp and groundfish that are shipped through the port. q Aggregate/Construction: Salt, ashphalt, calcium chloride, and scrap metal. q Energy: Large modules for the Hebron project have been assembled in the dockside warehouse and launched from the port.

6.4.3 Community Profile

Stephenville is located within Census Division 4, which has a population of 20,387 (Table 6.5). The unemployment rate of 23.7% is well above the provincial average of 15.6%, while the average earnings of $35,388 are are below the provincial average of $45,500. The top defined industry sectors by percentage of employment in the community are: retail (15%), health and social services (15%), and construction (13%).

Table 6.7: Stephenville* socio-economic profile (2016 Census) Population 20,387 Employment by industry Population 15 yrs+ 17,440

Primary Labour force 8,175 industry 10% Employed 6,240 Construct Unemployed 1,935 13% Other Unemployment rate 23.7% 25% Business & Manufact admin 5% Persons with income 16,690 3% Wholesale Average income 34,626 2% Total income ($M) $578 Education Retail 10% 15% Persons with market income 11,845 Finance & Average market income 35,388 Health & real estate social 2% 15% Total market income ($M) $419 Source: Statistics Canada Census 2016. *Based on N.L. Census Division 4.

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6.4.4 Economic Impacts

The economic impacts of the port and related operations below indicate the output (expenses), employment (person-years), GDP, and earned income. Total expenditures of port-related business activities were estimated at $4.3 million. The total employment is 41 person-years, total GDP (added value) is $4.0 million, and total income is about $2.5 million. Total impacts include the direct (port and related businesses), indirect (supply industries), and induced (effect of spending direct and indirect incomes).

Table 6.8: Long Pond direct and spin-off economic impacts Direct Indirect Induced Total NL Total Canada Output $4,268,362 $1,790,817 $692,804 $6,751,982 $8,922,753 GDP $1,977,639 $693,548 $434,242 $3,105,430 $4,013,649 Income $1,270,758 $437,410 $190,268 $1,898,437 $2,465,108 Employment* 17 7 5 29 41 Fed tax** $223,446 $76,913 $33,456 $333,816 $433,457 Prov tax** $145,066 $49,933 $21,720 $216,720 Source: Statistics Canada 2014 input-output model; Statistics Canada 2017 Social Policy Simulation Database and Model (SPSD/M). *Employment in person-years. **Includes income tax impacts.

Dividing the direct income by the corresponding direct employment provides an average earnings estimate of $74,800 associated with the port and related businesses. This illustrates how these jobs represent leading opportunities in the community, since earnings are more than double the local average. These are highly skilled positions that help keep trained workers in the region.

Gardner Pinfold

VII. SUMMARY AND KEY ISSUES

7.1 ECONOMIC SUMMARY

The following summarizes the key economic analysis The study ports generate findings for the study ports in the Atlantic region. The at least $368M in added- total provincial results do not include inter-provincial value (GDP) and 3,750 impacts so these understate the importance of the FTE jobs in Canada. ports. The total Canada results do include the inter- provincial impacts so these are the focus of key findings.

Table 7.1: Atlantic Canada study ports combined economic impacts ($millions) Direct Indirect Induced Total Provincial* Total Canada Output $397 $147 $61 $604 $851 GDP $178 $76 $38 $292 $368 Income $97 $40 $16 $153 $219 Employment** 1,300 710 428 2,438 3,753 Fed tax $17 $7 $3 $27 $38 Prov tax $14 $6 $3 $22 $0 Source: Statistics Canada 2014 input-output model. *Does not include inter-provincial impacts. **Employment in person-years.

The economic impacts of activities linked to the study ports generate at least $22 million in tax revenues to the Atlantic provinces and an estimated $38 million to the federal government every year. These port-related activities directly employ approximately 1,300 individuals on a full-time equivalent (FTE) basis, and a total of 2,400 FTEs are generated by direct and spinoff activities.

Economic significance:

q Independent marine ports are more export-oriented than CPA ports, and are therefore important contributors to positive provincial and national balance of trade. Owing to land availability the study ports can also grow cost-effectively.

q The independent marine ports and associated businesses in this study are generally situated in the smaller communities of their respective provinces (except Charlottetown) and therefore represent significant employers in their community.

q The average wages and salaries paid by ports and related businesses ranges from 2 to 3 times the average earned income in their communities, underscoring the prime job opportunity they represent and the role they play in retaining or attracting highly skilled workers to the local community.

q The host communities are typically experiencing elevated unemployment rates compared to their provincial averages so the importance of sustaining ports and related businesses is especially pronounced.

Gardner Pinfold 45 46 Economic Impact Study of Independent Marine Ports in Atlantic Canada

The independent study port complexes represent significant economic contributions in their respective provinces. These economic impact estimates are considered conservative since they do not reflect all of the port-dependent business activities, and do not include all inter-provincial and national economic impacts.

7.2 ISSUES AND CHALLENGES

Based on responses from port authorities and key users it is clear that each port complex faces different strategic challenges including: the need for dredging, wharf repair or expansion, marketing and attraction of new business, meeting new port security requirements and so on.

7.2.1 Sustainable Revenue

The dominant issue and challenge that spans across independent marine ports in Atlantic Canada is the difficulty of raising sufficient revenues. Ports need a deferred maintenance fund and/or access to capital for maintenance and expansion projects. Ports currently raise revenues through berthage fees, lease or rental of storage space and real estate, as well as fees for services such as water supply, power, waste disposal, and security. These are not sufficient to cover all costs since these fees are tied to specific services provided rather than strategic development work that ports require to sustain or advance their position. Strategic development work includes: capital investment, market research, business development, sales and marketing, regulatory compliance for all levels of government, participating in economic development and waterfront development planning initiatives.

7.2.2 Harbour Dues

The ports are often expected to drive regional economic development and participate in community planning beyond the port itself, yet they have no clear basis for raising revenues to support such objectives. A revenue that is derived from the broader use of the port catchment area would be better aligned with the role ports play, and harbour dues are an example of such a mechanism.

The consultant's understanding is that harbour dues were initially charged by Transport Canada simply for vessel passage through Canadian waters, and remains separate from port facility fees. These were meant to cover a range of services provided by the federal government including: aids to navigation, ice breaking, emergency response, and port development activities. The authority for Transport Canada to charge harbour dues lies in the Canada Marine Act, Canada Shipping Act, and Navigable Water Act.

As Transport Canada has divested ports to local interests, in some cases only the port facilities were transferred, but in others the harbour beds were also transferred. In neither case does this transfer authority or responsibility for the port waters which is the basis for charging harbour dues. None of the changes associated with the divestiture of ports has allowed local interests to charge harbour dues or an equivalent fee.

Gardner Pinfold Economic Impact Study of Independent Marine Ports in Atlantic Canada 47

7.2.3 Harbour Maintenance Fees

As Transport Canada has gradually withdrawn it's role in the operation of many ports, and shifted towards user fees to cover services such as ice breaking, aids to navigation and others, a gap now exists for harbour maintenance and development that must be addressed. Ports that own their harbour bed may charge vessels that anchor (to the harbour bed) even if they do not necessarily use port facilities. Other ports may charge harbour maintenance or development fees, not harbour dues, to vessels passing through even if they do not use port facilities. However, the outcome of legal challenges from port users regarding maintenance fees have not favoured port operators.

7.2.4 Capital Assistance Program

In the absence of reliable fee mechanisms for ports, a capital assistance program will be required on an on-going basis. Such a program could follow both the principle and design of the Airport Capital Assistance Program (ACAP) that regional and local (non-National Airport System) airports have accessed for capital projects. Dialogue with Transport Canada would serve as a starting point, however other levels of government could play a role in such a program.

The program must be accessible for the study ports, not in competition with CPAs or small craft harbours, but these could have separate funding streams within the program. The capital assistance must be commensurate with the critical role of study ports and the deferred maintenance that must be addressed to ensure their longevity.

The fund design should bear in mind that the cost of capital works and requirements for ports to meet modern vessel standards continues to climb. Infrastructure needs at some ports are immediate. A large sum that flows over a long period of time will not have the required purchasing power when projects are eventually approved.

Opportunities exist for expansion of port and harbour business in break-bulk, transshipment, northern shipping, and some land-side developments. Maintaining and growing opportunities will require investment in business development and capital infrastructure.

Gardner Pinfold 48 Economic Impact Study of Independent Marine Ports in Atlantic Canada

APPENDIX A: ECONOMIC IMPACT METHODGY

A.1 ECONOMIC IMPACT ANALYSIS

A.1.1 System of National Accounts Framework

Measuring the economic impact of the ports follows the approaches set out by Statistics Canada in their system of national accounts. Statistics Canada provides the basis for defining the industry sectors, determining what is included or excluded, the nature of the activities, available data, and basis for economic impact calculations. The measure of economic activity related to ports involves four industry sectors defined here according to the 2002 National Industry Classification System (NAICS)6:

1) Water transportation (NAICS 483): "Industries in the Water Transportation subsector provide water transportation of passengers and cargo using water craft, such as ships, barges, and boats." Water transportation includes cruise line vessels, however the onshore activities and spending of crew and passengers are handled separately below (cruise industry activity).

2) Scenic and sightseeing transportation (NAICS 487): "Industries in the Scenic and Sightseeing Transportation subsector utilize transportation equipment to provide recreation and entertainment. The Scenic and Sightseeing Transportation subsector is separated into three industries based on the mode: land, water, and other. Charter boat fishing, for example, is included in the Scenic and Sightseeing Transportation, Water industry."

3) Support services for water transportation (NAICS 4883): Industries in this subsector include: port and harbour operations (NAICS 48831), marine cargo handling (NAICS 48832), navigational services to shipping (NAICS 48833), and other support activities to water transportation (NAICS 48839).

4) Cruise industry activity (NAICS various): There is no NAICS category specifically for cruise industry activity. The expenditures by cruise lines and vessel operators is captured in Water Transport (NAICS 483) as mentioned, but the onshore expenditures by visiting passengers and crew are separate and these affect a wide range of industries in different sectors.

Economic impact analysis begins with estimates of output (Table 1.3.2.1) by subsector. For some subsectors (e.g., water transport) output values are available from Statistics Canada, but in others (e.g., support services for water transportation) these must be estimated. The methodology for estimates shown in the table is described below, as well as the means for dividing output values across ports in each province.

6 Source: North American Industry Classification System (2012), (online: www.census.gov/cgi-bin/sssd/naics/).

Gardner Pinfold Economic Impact Study of Independent Marine Ports in Atlantic Canada 49

Table A.1: Economic output (expenditures) by subsector, by Atlantic Canada province ($000s) NB NL NS PEI Total Water passenger (483116) 1 $0 $39,680 $85,407 $0 $125,087 Water freight (483115) 1 $5,387 $69,975 $46,169 $31,262 $152,793 Water support (488300) 3 $6,661 $44,943 $28,590 $22,754 $102,947 Cruise (various NAICS) 4 $0 $670 $6,450 $7,130 $14,250 Scenic & other (487000) 2 $0 $0 $1,500 $0 $1,500 Total $12,048 $155,268 $168,116 $61,146 $396,577 Sources: 1. & 2. Statistics Canada, note: cruise line spending is included in water transportation; 3. Gardner Pinfold see methodology below; 4. Crew and passenger onshore spending obtained from Business Research & Economic Advisors 2016 Cruise Industry reports.

A.1.2 Water Transportation (NAICS 483)

Water transportation output is available by province from Statistics Canada but is comprised of both cargo and passenger transport.

The first step is to estimate the output from ferry transportation operations and cruise line spending so this can be separated by port. The information for cruise line spending is available from the Business Research and Economic Advisors (BREA) 2016 report, and detail is available for the main cruise line ports of call in the Atlantic region. The information for large ferry operations is available from company annual reports that are publicly available, previous studies, or direct contact with company representatives.

The second step is to allocate the cargo transport output by port and this must be accomplished by indirect methods. We have used vessel movements handled by ports as a basis for dividing the related economic output across ports. For example, if the Sydney port complex represents 5% of the province's total vessel movements, then 5% of the estimated output is assigned to Sydney. Sydney would also be assigned its share of Marine Atlantic's passenger ferry output to complete the marine shipping total.

A.1.3 Scenic and Sightseeing Transport (NAICS 487)

The economic output for scenic and sightseeing transport is available at the provincial level however this includes air, ground, and water transport.

First, the Industry Canada SME Benchmarking Tool7 provided a basis for determining what portion of total output may be considered water transport. The reported Industry Canada scenic and sightseeing water transport revenues as a percentage of the total scenic and sightseeing transport revenues (with air and ground), were very close to 90% across the provinces and this portion of the output was then assigned to scenic and sightseeing water transport. To obtain a breakdown by port, portions were only assigned to those ports with known scenic and sightseeing water transport operators, using a percentage basis according to estimates of their revenue relative to the rest of the province.

7 Source: Industry Canada, 2010. SME Benchmarking Tool (online: http://www.ic.gc.ca/eic/site/pp- pp.nsf/eng/home).

Gardner Pinfold 50 Economic Impact Study of Independent Marine Ports in Atlantic Canada

A.1.4 Support Activities for Water (NAICS 4883)

The share of provincial output for support services to water transport was divided by port in the same way marine shipping output was divided for each province. The marine passenger ferry, cruise line, and cargo handling output for each port was combined and its percentage share of provincial marine shipping output was calculated. This percentage was used to assign a proportional share of support services output to the port, considering support services activities would be tied to the amount of marine shipping in each port.

A.1.5 Cruise Passenger and Crew Onshore Spending (NAICS – Various)

Detailed estimates of cruise passenger and crew expenditures onshore are reported by BREA (2016) for key ports of call in the Atlantic region. The cruise line expenditures found in the BREA report are not included since these are already captured in the Statistics Canada output values for marine transport.

Gardner Pinfold Economic Impact Study of Independent Marine Ports in Atlantic Canada 51

APPENDIX B: FISHERIES LANDINGS

B.1 LANDINGS BY FISHERIES AND OCEANS REGION

B.1.1 Maritimes Scotia-Fundy Region

Fisheries and Oceans Canada manages the fisheries according to regions and landing statistics for ports are combined by county in the Maritimes Scotia-Fundy Region.

Figure B.1: Map of Gulf Region and Maritimes Scotia-Fundy region statistical areas

Source: Fisheries and Oceans Canada

The combined value of landings for this region is $1.39 billion. The ports are reported by county in the following table and can be referenced to the counties shown in the map above. The table is arranged from highest to lowest landings value. Four of the study ports are among the top six in the region and are certainly key to the economic health of the fishing sector.

Gardner Pinfold 52 Economic Impact Study of Independent Marine Ports in Atlantic Canada

Table B.1: Maritimes Scotia-Fundy Region Landings by County (MT, $000s) Rank Prov County ID Location Quantity (MT) Value ($000s) 1 NS 16 SHELBURNE 34,096 300,540 2 NS 18 YARMOUTH 63,906 250,459 3 NB 21 CHARLOTTE 41,606 135,775 4 NS 3 CAPE BRETON 18,014 133,687 5 NS 7 GUYSBOROUGH 45,019 129,710 6 NS 6 DIGBY 23,539 128,171 7 NS 8 HALIFAX 18,635 69,652 8 NS 12 LUNENBURG 17,274 67,660 9 NS 15 RICHMOND 5,545 55,789 10 NS 14 QUEENS 9,260 36,773 11 NS 17 VICTORIA 2,381 32,182 12 NB 29 SAINT JOHN 2,110 16,305 13 NS 1 ANNAPOLIS 1,069 12,695 14 NS 4, 5, 9 COLCHESTER, 1,195 9,021 CUMBERLAND, HANTS 15 NB 19, 24, 27, 30, 32 ALBERT, KINGS, 2,171 8,310 QUEENS. SUNBURY, WESTMORLAND 16 NS 11 KINGS 432 4,502 17 NS 10 INVERNESS 34 556 Source: Fisheries and Oceans Canada custom tabulation.

B.1.2 Gulf Region

The combined value of landings for this region is $842 million. The ports are reported by statistical section in the following table and can be referenced to the stat section numbers shown in the map above. The table is arranged from highest to lowest landings value. The port of Souris ranks 9th and is the highest ranking among the study ports in this region.

Table B.2: Gulf Region Landings by Stat District (MT, $000s) Rank Prov Stat Section Location Quantity (MT) Value ($000s) 1 NB 67 SHIPPAGAN 11,233 108,774 2 NS 2 CHETICAMP 6,896 78,339 3 NB 65 9,163 61,841 4 NB 66 LAMEQUE 5,943 53,501 5 PEI 92 TIGNISH RUN 5,611 47,782 6 PEI 92 NORTHPORT PEI 2,707 26,301 7 PEI 88 NORTH LAKE 2,143 25,446 8 NB 66 MISCOU HARBOUR 4,206 24,206 9 PEI 88 SOURIS 1,744 19,803 10 NB 66 PIGEON HILL 4,321 18,094 11 PEI 87 BEACH POINT 1,144 13,646 12 PEI 88 NAUFRAGE 1,489 11,910 13 NB 75 POINT SAPIN 934 9,972 14 NS 1 BAY ST. LAWRENCE 907 9,922 (Table continued..)

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Rank Prov Stat Section Location Quantity (MT) Value ($000s) 15 NB 67 LE GOULET 665 9,629 16 NS 11 CARIBOU/FERRY WHARF 3,367 8,824 17 PEI 82 SKINNER’S POND 932 8,552 18 PEI 92 SEACOW POND 686 8,450 19 NB 73 ESCUMINAC 597 7,857 BIDEFORD/FREELAND/KEN SINGTON/MALPEQUE BAY/MISCOUCH/PORT HILL/TROUT RIVER/TYNE VALLEY/EAST BIDEFORD/POPLAR GROVE/BENTICK COVE/STAVERT’S SHORE/CONWAY 20 PEI 93 NARROWS 1,990 7,618 21 NS 2 GRAND ETANG 564 7,423 22 PEI 87 MACHON POINT 658 7,223 23 PEI 82 HOWARD’S COVE 1,053 7,126 24 NB 76 2,615 7,121 25 NS 2 MARGAREE HARBOUR 480 6,546 26 PEI 87 GRAHAM’S POND 448 6,386 27 PEI 95 NORTH RUSTICO 517 6,287 28 NB 68 VAL COMEAU 501 5,980 29 NB 66 STE MARIE/ST.RAPHAEL 1,305 5,965 30 PEI 82 MIMINEGASH 1,383 5,760 31 NB 70 NEGUAC 1,437 5,750 32 NS 3 INVERNESS 428 5,746 33 NS 2 PLEASANT BAY/SOUTH 444 5,522 WEST MARGAREE 34 PEI 87 LAUNCHING 381 5,438 35 NS 3 MURPHY’S POND 572 5,217 36 NB 66 PETIT SHIPPAGAN 1,946 5,122 37 PEI 95 FRENCH RIVER 491 5,111 38 PEI 93 MALPEQUE 437 5,020 39 PEI 93 MILLIGAN’S WHARF 583 4,970 40 PEI 88 ANNANDALE 349 4,926 41 NS 3 FINLAY POINT 367 4,708 42 NB 65 STONEHAVEN 373 4,522 43 NB 70 MCEACHERN POINT 328 4,510 MIMINEGASH HARBOUR/O’LEARY/PLEAS ANT VIEW/WEST CAPE/COLEMAN/DUNBLAN 44 PEI 82 E/BRAE 539 4,492 45 PEI 88 RED HEAD 473 4,157 46 PEI 88 SAVAGE HARBOUR 522 4,026 47 PEI 87 GEORGETOWN 436 3,950 48 PEI 96 TRACADIE PEI 751 3,880 49 NB 76 CAP LUMIERE 632 3,878 (Table continued..)

Gardner Pinfold 54 Economic Impact Study of Independent Marine Ports in Atlantic Canada

Rank Prov Stat Section Location Quantity (MT) Value ($000s) 50 NS 13 BALLANTYNE’S COVE 619 3,868 51 NB 80 MURRAY CORNER/PORT 443 3,573 ELGIN/BOTSFORD 52 NB 78 ABOITEAU 413 3,540 53 NS 3 MABOU HARBOUR 298 3,491 54 PEI 88 FORTUNE 237 3,420 55 NS 11 TONEY RIVER 661 3,247 56 NB 65 ANSE-BLEUE 240 3,233 57 NB 75 KOUCHIBOUGUAG/LOGGIE 309 3,028 CROFT/ST.LOUIS 58 NB 65 GRANDE-ANSE/BAS 221 2,960 CARAQUET/POKESUDIE 59 PEI 86 WOOD ISLAND 523 2,899 60 NS 11 LOGAN’S POINT 188 2,825 61 NB 80 CAPE TORMENTINE 370 2,732 62 NS 12 PICTOU LANDING 174 2,628 63 NB 65 MILLER BROOK WHARF 189 2,599 64 NB 75 CAP ST. LOUIS 266 2,570 65 NB 80 PETIT CAP 309 2,531 66 NB 77 CAISSIE’S CAPE 453 2,378 COTE STE. 67 NB 77 ANNE/CHOCKPISH 298 2,300 68 NS 13 CRIBBENS POINT 159 2,267 69 PEI 83 EGMONT BAY 286 2,252 70 NB 67 INKERMAN 159 2,234 71 PEI 85 NINE MILE CREEK 295 2,226 72 NB 64 POINTE-VERTE 230 2,216 73 NB 64 NIGADOO/PETIT-ROCHER 178 2,203 74 NS 13 ARISAIG 145 2,183 75 PEI 96 COVEHEAD/STANHOPE/MO 157 2,053 UNT STEWARD/GRAND TRACADIE/LITTLE YORK/PLEASANT GROVE 76 NS 12 LISMORE 199 1,954 77 NS 12 LITTLE HARBOUR 128 1,887 78 NS 45 NORTHPORT/PORT 302 1,826 HOWE/RIVER PHILIP/PUGWASH 79 NS 13 BAYFIELD NS 118 1,675 80 NS 3 LITTLE JUDIQUE HARBOUR 109 1,609 81 NS 11 PICTOU/CAPE JOHN 138 1,579 82 NS 46 WALLACE 179 1,548 83 NS 3 BAXTER’S COVE 97 1,545 84 NB 70 BURNT CHURCH 110 1,463 85 NS 3 LITTLE JUDIQUE PONDS 90 1,434 DALHOUSIE/NEW 86 NB 63 MILLS/EEL RIVER 185 1,432 87 PEI 83 BORDEN 369 1,415 88 NS 13 HAVRE BOUCHER 92 1,414 (Table continued..)

Gardner Pinfold Economic Impact Study of Independent Marine Ports in Atlantic Canada 55

Rank Prov Stat Section Location Quantity (MT) Value ($000s) 89 NB 77 COCAGNE BAR 139 1,386 90 PEI 83 HIGGINS WHARF 141 1,314 91 PEI 86 MACAUALAY’S 231 1,311 WHARD/VERNON BRIDGE/JOHNSONS RIVER 92 NB 77 ST. EDOUARD 132 1,289 93 PEI 92 ALBERTON/CASCUMPEC/C 357 1,282 ASCUMPEC BAY/CASCUMPEC HARBOUR/ELMSDALE/FOXL EY RIVER/MILL RIVER/KILDARE/JUDE’S POINT 94 PEI 87 MONTAGUE 141 1,273 95 NB 78 BAS CAP PELE 127 1,272 96 NS 14 AULD’S COVE 73 1,194 97 NB 68 BIG TRACADIE 90 1,173 RIVER/TRACADIE 98 PEI 87 MINK RIVER 102 1,172 99 NS 11 SKINNER’S COVE 141 1,166 PERCIVAL RIVER/WELLINGTON/WILM OT/RICHMOND/TRYON/EN 100 PEI 83 MORE RIVER/DUNK RIVER 444 1,161 101 PEI 87 STURGEON 81 1,151 102 PEI 95 NEW LONDON 132 1,057 103 PEI 83 CAPE EGMONT 222 1,055 104 PEI 87 BRUDENELLE 102 941 RIVER/LOWER MONTAGUE/NEWPORT/GRE EK RIVER 105 NB 78 POINTE DU 94 931 CHENE/ BRIDGE/ KOUCHIBOUGUAC RIVER 106 NS 13 BARRIOS BEACH 58 895 107 PEI 93 DARNLEY 260 875 108 PEI 95 PARK CORNER/STANLEY 372 832 BRIDGE/SOUTH RUSTICO/HUNTER RIVER/NEW LONDON BAY 109 PEI 93 ELLERSLIE 72 821 110 NS 10 BARRACHOIS 52 790 111 NS 11 PICTOU ISLAND WEST 48 720 112 PEI 83 SUMMERSIDE 209 700 113 NB 78 ROBICHAUD 92 693 114 NB 77 ST. THOMAS 72 596 115 NS 13 LIVINGSTONE’S COVE 37 570 (Table continued..)

Gardner Pinfold 56 Economic Impact Study of Independent Marine Ports in Atlantic Canada

Rank Prov Stat Section Location Quantity (MT) Value ($000s) 116 NS 46 FOX 42 561 HARBOUR/MALAGASH/WAL LACE BAY 117 NB 66 PETITE-RIVIERE-DE- 51 556 L'ILE/MISCOU/MISCOU CENTRE/SAVOY LANDING 118 PEI 85 VICTORIA 351 499 119 PEI 86 PINETTE 84 452 120 PEI 86 EAST RIVER 118 333 121 NB 76 ALDOUANE/STE.ANNE DE 34 324 KENT/BIG COVE/ RIVIERE RICHIBUCTOU 122 NB 70 TABUSINTAC 137 285 123 PEI 86 CHARLOTTETOWN/ORWELL 99 210 BAY 124 PEI 85 WEST 121 185 RIRVER/HILLSBOROUGH BAY/NORTH RIVER/CORNWALL 125 PEI 88 BASIN 45 178 HEAD/BAYFIELD/BOUGHTO N BAY/HOWE BAY/MORELL/ROLLO BAY/DINGWELL'S MILLS/SOUTH LAKE/ST.PETER'S BAY/SOURIS RIVER/DILIGENT POND 126 NB 67 POKEMOUCHE/POKEMOUC 22 157 HE RIVER/ST. SIMON 127 NS 13 ANTIGONISH/EAST 10 153 TRACADIE/LINWOOD/TRAC ADIE/SOUTH RIVER/WILLIAMS POINT 128 NB 73 MIRAMICHI 181 150 129 NS 12 BIG ISLAND/NEW 14 133 GLASCOW/CHANCE HARBOUR/BLACK POINT 130 PEI 87 ST. MARY'S BAY 40 107 131 NB 73 BAY DU VIN RIVER/BLACK 69 105 RIVER/HARDWICKE/BRANS FIELD/FOX ISLAND 132 NB 77 22 98 133 PEI 93 GRAND RIVER 32 80 134 PEI 88 BOUGHTON RIVER 17 76 135 PEI 86 BELLE RIVER 39 69 136 NB 77 COCAGNE/CORMIERVILLE/ 31 61 GRAND DIGUE/STE.MARIE/COCAGN E RIVER 137 PEI 87 MURRAY HARBOUR 16 55 (Table continued..)

Gardner Pinfold Economic Impact Study of Independent Marine Ports in Atlantic Canada 57

Rank Prov Stat Section Location Quantity (MT) Value ($000s) 138 NS 13 ANTIGONISH HARBOUR 10 52 139 PEI 92 TIGNISH 18 51 140 NS 12 MERIGOMISH 10 39 141 PEI 87 MURRAY RIVER 7 32 142 PEI 95 RUSTICO BAY 9 27 143 NS 3 CREIGNISH/INVERSIDE/JUD 8 27 IQUE/MABOU MINES/MARYVILLE/PORT HOOD 144 PEI 87 CARDIGAN BAY 7 26 145 PEI 93 HARDY'S CHANNEL 12 26 146 NS 10 BRULE/BRULE 7 23 POINT/TATAMAGOUCHE 147 NB 71 LOGGIEVILLE/NAPAN/NEW 29 23 CASTLE/OAK POINT 148 PEI 83 BEDEQUE BAY 7 17 149 NB 73 BAIE STE. ANNE 3 17 150 PEI 86 POWNAL BAY 4 12 151 NB 70 BRANTVILLE/BAS 1 7 NEGUAG/MIRAMICHI BAY Source: Fisheries and Oceans Canada custom tabulation.

B.1.3 Newfoundland and Labrador Region

The combined value of landings for this region was $759 million in 2017. The ports are reported by statistical section in the following table and can be referenced to the stat section numbers shown in the map below. The table is arranged from highest to lowest landings value. The port of Long Pond (Feather Point to Topsail head) ranks 2nd and is the highest ranking among the study ports in this region.

Table B.3: Newfoundland and Labrador Region Landings by Stat Section (MT, $000s) Rank Stat Section Location Quantity (MT) Value ($000s) 1 21 Western Bay Head to Feather Point 45,802 178,345 2 22 Feather Point to Topsail Head (Long 23,762 109,034 Pond) 3 24 Cape St. Francis to 7,377 59,415 4 2 to Lobster Point 8,317 40,119 5 26 Cape Broyle to Cape Race 2,985 27,301 6 20 Grates Point to Western Bay Head 3,299 26,088 7 28 Cape Pine to Cape St. Mary’s 3,240 22,951 8 25 Cape Spear to Cape Broyle Cape 2,391 17,352 9 9 Farewell Head to Cape Freels 3,258 16,897 10 14 Cape Bonavista to South Head 2,073 15,080 11 19 Salvage Point to Grates Point 2,251 14,059 12 47 Daniel’s Harbour to Point Riche 5,040 13,153 13 53 Northern Head to Comfort Bight 4,306 12,475 14 33 Point Crewe to Point Rosie 4,755 12,059 (Table continued..)

Gardner Pinfold 58 Economic Impact Study of Independent Marine Ports in Atlantic Canada

Rank Stat Section Location Quantity (MT) Value ($000s) 15 7 New Bay Head to Farewell Head 5,646 11,826 16 5 Partridge Point to Cape St. John 3,506 11,786 17 8 Change Islands to Fogo Island 2,784 10,783 18 44 Broad Cove Point to Cape St. 11,079 10,718 Gregory 19 48 Point Riche to Ferrole Point 3,132 10,664 20 41 Harbour Point to Cape St. George 3,011 9,844 Cape (Stephenville) 21 52 Double Island to Northern Head 1,116 9,601 22 10 Cape Freels to Shoe Cove Point 2,625 8,496 23 32 Jean de Baie Head to Point Crewe 3,227 8,483 24 55, 57, 59 Cape St. Nicholas to Cape Mugford 1,099 7,974 25 6 Cape St. John to New Bay Head 3,882 7,434 26 37-39 Cape La Hune Cape to 1,461 6,685 Cape 27 34 Point Rosie to Boxey Point 906 6,632 28 13 Western Head to Cape Bonavista 1,164 6,276 29 35 Boxey Point to Pass Island Point 887 6,209 30 45 Cape St. Gregory to Martins Point 3,957 5,749 31 4 Cape Fox to Partridge Point 2,155 5,061 32 29 Cape St. Mary's to Bauld Head 1,801 4,816 (Argentia) 33 40 Cape Ray to Harbour Point 644 4,681 34 11 Shoe Cove Point to Southern Head 3,026 4,430 35 16 Bonaventure Head to West Random 4,071 4,014 Head 36 49 Ferrole Point to Cape Norman 1,672 3,765 37 12 Southern Head to Western Head 3,193 3,684 38 43 Long Point to Broad Cove Point 302 2,818 39 46 Martins Point to Daniel's Harbour 306 2,792 40 30 Bauld Head to Grandy Point 2,358 2,646 41 18 Hopeall Head to Salvage Point 549 2,615 42 27 Cape Race to Cape Pine 368 2,478 43 31 Grandy Point to Jean de Baie Head 661 2,006 44 36 Pass Island Point to Cape La Hune 457 2,003 Cape 45 17 West Random Head to Hopeall 2,955 1,654 Head 46 1 Cape Norman to Cape Bauld 1,328 1,502 47 42 Cape St. George to Long Point 92 1,321 48 50 Point St. Charles to Wiseman Head 868 1,301 49 23 Topsail Head to Cape St. Francis 152 877 50 15 South Head to Bonaventure Head 136 480 51 54 Comfort Bight to Cape St. Nicholas 86 123 52 3 Lobster Point to Cape Fox x x 53 51 Wiseman Head to Double Island x x Source: Fisheries and Oceans Canada custom tabulation.

Gardner Pinfold Economic Impact Study of Independent Marine Ports in Atlantic Canada 59

Figure B.2: Map of Newfoundland and Labrador Region statistical areas 1

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Source: Fisheries and Oceans Canada

Gardner Pinfold