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Economic Impact Study of Independent Marine Ports in Atlantic Canada

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Economic Impact Study of Independent Marine Ports in Atlantic Canada Economic Impact Study of Independent Marine Ports in Atlantic Canada FINAL REPORT Prepared for: Independent Marine Ports of Atlantic Canada Prepared by: Gardner Pinfold October 2018 Canada Atlantic Canada Independent Marine Ports USA 163 Atlantic Canada Ports Shipping Value $$ 574,000 29% cruise visitors spend $105 million 18% every year 25% 18% 28% of ferry 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. NOVA SCOTIA 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 Gardner Pinfold Economic Impact Study of Independent Marine Ports in Atlantic Canada IV. NEW BRUNSWICK 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. PRINCE EDWARD ISLAND 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. NEWFOUNDLAND AND LABRADOR 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 Gardner Pinfold EXECUTIVE SUMMARY 1. STUDY FOCUS This study focuses on marine activities tied to fourteen (14) port complexes located in Atlantic Canada, all of which include members of the Independent Marine Ports of Atlantic Canada (IMPAC). While the major ports in the region tend to dominate public attention, the region’s independent ports are integral to the economic health of key businesses and the Atlantic Provinces’ broader economic fabric. The first aim of this study is to convey the role of these ports and the impact they have in the Atlantic Provinces’ economy. The second aim is to address key issues with a view to improving the sustainability of ports over the long-term. 2. CRITICAL PORT INFRASTRUCTURE Marine shipping, more than any other form of transportation, provides linkages to overseas markets for a vast array of goods. It represents the least cost and lowest environmental impact mode of shipping, especially for many importers and exporters of large items and bulk goods. Ports are strategically located in favourable harbours near large exporters to help bring their products to global markets. q Greatest share of freight - Over $2.7 billion worth of general freight shipping is provided by companies in Atlantic Canada and the greatest share (29%) is the $803 million in marine shipping, followed closely by air (28%), then truck (25%), and rail (17%). q Export focused – Nearly half of all marine transport is export-oriented and improves the balance of trade for each province in Atlantic Canada. Exports (interprovincial and international) represent 46% of demand for marine transport. q Large scale - There are 353 marine port-related businesses in Atlantic Canada with employees, including 163 ports and harbours.
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