Ottawa Tables Legislation To Improve Supply Chains

The federal government in Ottawa has introduced legislation to improve supply chains and transportation corridors across Canada.

Federal Transportation Minister Omar Alghabra tabled a bill in the House of Commons that aims to improve Canada's supply chain and make the national transportation system more efficient.

The minister said the legislation addresses the main cause of inflation by strengthening the country's supply chain through port competitiveness.

Specifically, the legislation establishes a regulatory framework that will require ports to collect more information and share it with railways, trucking companies, and shippers to bolster transparency.

Supply chain disruptions are widely viewed as one of the main contributing factors to inflation that is running at a 30-year high of 6.9% in Canada.

In 2021, freight prices swelled by 10 times over pre-pandemic levels due to high consumer demand and congestion at Canada’s seaports.

In October of this year, a National Supply Chain Task Force struck by the federal government made 21 recommendations to improve Canada's supply chain, including port modernization.

The legislation needs to pass a vote in both the House of Commons and Senate to become law.