Canadian Design and Construction Report staff writer
Canada could generate about $146 billion in additional export growth outside the United States by 2035 through investments in the infrastructure, processing capacity and trade corridors needed to reach new markets, according to a new report from PwC Canada.
The report, New markets, new routes for Canadian logistics, says Canada is well positioned to benefit from shifting global trade patterns as governments and businesses look to diversify supply chains and reduce reliance on established trading relationships.
The full report is available at: https://www.pwc.com/ca/en/industries/transportation-logistics/canadian-logistics.html.
Energy, metals, minerals and agri-food are identified as the sectors with the strongest potential to drive non-U.S. export growth over the next decade.
PwC says those sectors have access to broader global markets and are generally less dependent on integrated North American production networks than many manufactured goods.
But the report cautions that demand alone will not be enough to capture the opportunity.
Canada will need greater investment in transportation infrastructure, logistics networks, processing capacity and export corridors, as well as stronger commercial relationships with buyers in new markets, it says.
“Canada has the products the world is looking for, but demand alone will not create growth,” said Michael English, transportation and logistics leader at PwC Canada.
“The next decade will be defined by whether Canada can move quickly enough to build the infrastructure, processing capacity, export corridors and commercial relationships needed to reach new markets.”
The report says the changing global trade environment is creating an opportunity for Canada to strengthen east-west trade routes and expand connections between ports, inland gateways and intermodal transportation networks.
As governments increasingly use industrial policy to reshape trade flows and companies place greater emphasis on supply-chain resilience, Canada could benefit from expanding its ability to move goods to markets beyond the U.S., PwC says.
The report argues that capturing the potential growth will require co-ordination among governments, private investors and international buyers to develop projects that expand transportation, logistics and processing capacity in sectors with the greatest export potential.
The findings come as Canada faces increased pressure to reduce its dependence on the U.S. market and broaden its international trade relationships.
PwC says the $146-billion opportunity represents growth beyond the baseline trajectory for key Canadian sectors, rather than a forecast of total exports.
Whether Canada captures that potential will depend on how quickly it can address infrastructure and investment constraints and establish the transportation and commercial networks required to serve new customers around the world.
