The Chartered Institute of Logistics and Transport (CILT) International Convention in 2022 was held in Perth, WA, in October, hosting more than 300 delegates from around the world and featuring more than 15 high profile speakers.
Chartered Institute of Logistics and Transport (North America) president Bob Armstrong could not help but pull in the audience when he began his presentation by claiming that the Canadian logistics industry “was in a mess”.
Addressing delegates at the CILT conference, he drew many parallels between his country’s problems and those experienced in Australia.
Emphasising the need for greater resilience in the network, he says Canada’s transportation supply chain was nearing its breaking point.
“The major disruptions seen over the last two years have brought to light longstanding and newly emerging issues that must be addressed now — before our country’s reputation as a reliable trading partner is further tarnished,” he says.
“Wild swings in supply and demand due to the COVID pandemic, as well as climate shocks (such as wildfires, floods) and growing geopolitical uncertainty, have put trade norms and flows at risk.
“These challenges come at a time when Canada’s natural resources, such as critical minerals, potash, energy and grains, are in high demand globally. But the only way to capitalise on that opportunity is to act now to ensure we can transport them to market competitively, efficiently and reliably.
“The impacts of the last two years have also exposed the system’s limited redundancy and resiliency, making it essential to take action immediately. Investment and planning at a national level are required to ensure Canada’s transportation supply chain can withstand shocks and adjust to fluctuating demands and global trade dynamics.”
Armstrong says the transformation required unprecedented collaboration and enhanced cooperation between the public and private sectors, as well as within the private sector itself.
“All players must mobilise, innovate and address gaps, and prioritise the building of efficiencies into the national transportation supply chain so it operates successfully for everyone.
“Canada’s transportation supply chain is a key cornerstone of our economy that directly and indirectly impacts our prosperity and quality of life.”
Armstrong says that like many sectors, transportation had undergone many changes since the beginning of the 21st century, with the digital revolution transforming the traditional drivers of growth in the global economy.
RELATED ARTICLE: NSW Ports releases freight rail expansion plan
The sector has also faced several unique challenges related to congestion, traffic growth and shifts resulting from changing global trade patterns, and investment and financial pressures.
“With the acceleration of these shifts in the last two years, our transportation supply chain has been operating in an increasingly uncertain and volatile environment,” he says.
“While the burden has eased since the height of the pandemic-induced congestion, bottlenecks remain prevalent and continue to affect our reputation as a preferred and trusted trading partner.”
Armstrong was part of Canada’s National Supply Chain Task Force, formed to make suggestions to address the supply chain crisis.
In finalising its report, the group carried out extensive consultations and engagements with a broad range of transportation organisations, stakeholders and industry experts across the country.
Armstrong said the remedy was encapsulated in three words: Action. Collaboration. Transformation.
“These three words embody both the spirit of the recommendations contained in this report and our call to action to government, transportation supply chain stakeholders and all Canadians to address the transportation supply chain crisis,” he says.
Action
- Immediately undertake actions to “unstick” the transportation supply chain. These include addressing congestion at port container terminals and prioritizing government attention on regulations, policies and procedures that are impeding the effective operation of a reliable supply chain.
- Immediately address Canada’s significant transportation supply chain labour shortage.
- Protect corridors, border crossings and gateways from disruption and interruption to ensure unfettered access for commercial transportation modes and continuity of supply chain movement.
Collaboration
- Digitalise and create end-to-end transportation supply chain visibility for efficiency, accountability, planning, investment and security.
- Engage Indigenous groups (especially those in Northern and remote communities) to address their significant transportation supply chain challenges.
- Engage the U.S. and the provinces/territories to achieve reciprocal recognition of regulations, policies and processes to enhance transportation supply chain competitiveness and productivity.
Transformation
- Establish a Supply Chain Office to unify the federal government’s responsibility/authority over transportation supply chain management across federal departments.
- Develop, implement and regularly renew a long-term, future-proof (30- to 50-year) transportation supply chain strategy.
- Revise the mandate of the Canadian Transportation Agency and provide it with the independence, sufficient authority and commensurate funding needed to deliver on that mandate.
“Of course, creating a connected, resilient and efficient system is not a simple proposition,” Armstrong says.
“It goes beyond the practicalities of establishing critical gateways and corridors, identifying pinch points, and planning for and financing physical infrastructure for surge capacity or redundancy. It requires all stakeholders to work collectively and singularly toward the goal of organizing and adapting a transportation supply chain that functions in the national public interest: one that is operated for the common good of the country to ensure the general welfare, safety and security of the industry.”