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Opinion: How the St. Lawrence Seaway will continue to grow in importance to the Quebec economy

Approximately 8,000 merchant vessels operate annually in the St. Lawrence system.

A boat sails up the entrance to the St. Lawrence Seaway toward the St. Lambert locks in this aerial view in Montreal in 2018.
Boats up the entrance to the St. Lawrence Seaway in 2018 Photo of St Lambert taken in Montreal. Photo by Allen McInnis /Montreal Gazette File

The St. Lawrence Seaway is an interconnected infrastructure. consists of an extensive network of Waterways, canals, harbor facilities, and ships represent the link between transportation equipment, industrial production, and the man-made man-made environment.

This valuable infrastructure represents a significant capital investment that has already been written off. The maintenance, modernization and adaptation of sea and river networks will enable them to meet the capacity, liquidity and reliability demands imposed by the transportation industry.

Supply From its position as a node in the chain, the port of St. Lawrence is a catalyst connecting trade, development and industrial innovation. The river's importance to all aspects of the Quebec economy is enormous and is expected to increase further in the coming years.

I am Emeritus Professor of Geography at the University of Montreal and Academic Advisor to the Port of Montreal Authority. I have been interested in shipping issues for 30 years.

Vessels and Cargo

The St. Lawrence River has 20 commercial ports and 14 other port infrastructure elements (marine terminals, wharves, fishing ports). In 2021, these 34 installed “St. Lawrence systems” handled nearly 150 million tonnes of cargo.

The most important ports are Montreal (34 Mt), Septile (30.7 Mt), Quebec City (28.5 Mt) and Port Quartier (25 Mt).

Approximately 8,000 merchant vessels a year operate the St. Lawrence system, including dry bulkers, oil tankers, general cargo, container ships and roll-on/roll-off vessels.

Raw material delivery is essential. The St. Lawrence port handles approximately 70 Mt of minerals, primarily for export. Between 25 and 32 million tonnes of hydrocarbons circulate through rivers each year.

The grain trade is about 18 Mt. Grain from the Prairie is first transported by rail to Thunder Bay and then to the ports of Montreal, Quebec City, Sorel and Trois-Rivières. First, Baie-Comeau, and Port-Cartier are shipped to European and African markets via the St. Lawrence Seaway.

Approximately 15% of exports come from Quebec's agricultural land, including soybean and corn growers in the Monterégie area, who ship part of their harvest from the port of Montreal. The St. Lawrence river and sea system is in high demand to meet the demand for supply and distribution of containerized goods.

Montreal is the only container port on the St. Lawrence River. Its estimated turnover of 15 million tons consists mainly of industrial products, forestry products, pulp and paper, cereals and agrifood, machinery and metal products.

Montreal's weight in handling container traffic is expected to grow.

Trade Roots

Quebec's economy depends on foreign trade. Its prosperity basically depends on its ability to succeed in the international market.

The port of St. Lawrence therefore plays a key role in supporting the state's economy and trade, both for imports and exports. They continue to grow and are projected to grow at a steady pace in the coming years.

The economic importance of the St. Lawrence System is evident on several levels.

Ships calling at the Port of St. Lawrence are getting larger and larger, requiring investment in upgrading and expanding existing port infrastructure.

Moreover, tonne-kilometers related to seaborne trade are growing faster than tonnage, indicating that the industry is moving to increasingly distant ocean markets.

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In fact, the St. Lawrence port system is firmly entrenched in East-West trade. The St. Lawrence System's economic response to the global process was to strengthen trade with European markets and coordinate with the economies of the Pacific Basin, especially China.

Another aspect is the continuation of North-South relations with the African economy (particularly natural resources) and the development of trade with Middle East markets.

Intercontinental trade accounts for more than half of the maritime activity in the Port of St. Lawrence. The continental market accounts for about 15%. This commerce includes ports along the Atlantic and Gulf coasts of the United States. The St. Lawrence port also benefits from the Latin American economic market.

The Importance of Regional Trade

Regional trade, that is, trade between ports in the St. Lawrence System and ports on the Great Lakes, is also important. It accounts for one-third of the total traffic on the river port.

Traffic between the Port of Quebec and the Ontario market is relatively balanced in terms of imports and exports. However, due to the decline of traditional industrial sectors, iron and coal are on the decline. Over 60% of this traffic consists of exports from Quebec to the US Midwest. On the other hand, trade with the Atlantic region consists mainly of imports from the latter.

It is also worth noting the moderate increase in trade with the Canadian Arctic.

An analysis of maritime transport within the St. Lawrence system shows considerable short-haul transport. Domestic trade between Quebec ports is driven by the transportation of minerals and fuels.

Investment Needs

St. Lawrence's ports provide reliable, efficient and environmentally friendly logistics, linking ocean and road freight forwarders.

Given the importance of Quebec's ports sector, it requires continued infrastructure development, replacement of existing port assets, and investment in new shipping, land and intermodal transport projects. These are estimated to reach $6 billion by 2025, according to the Canadian Association of Port Authorities.

Quebec's continued economic growth and trade activity depend on the adequate capacity of its ports. These are important to ensure Quebec's competitiveness in international trade and seize new market opportunities.

Claude Comtois received funding from several federal and state ministries, the Social Sciences and Humanities Research Council (SSHRC), the Fonds de recherche du Québec — Nature et technologie (FRQNT), and the Réseau Quebec Maritime. I am receiving an offer. (RQM).

This article is reprinted from his The Conversation under a Creative Commons license. Disclosure information is available attheconversation.com.

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