Québec Marine Transportation Policy - Transport - Gouvernement ...

In recent years, Europe has started exporting rather than
importing grain. Instead of buying grain from Canada,
European countries have increased their production to such
an extent that France now exports more grain than Canada.
This grain is often exported to Africa and the Middle East,
markets that traditionally used the Saint-Laurent.
Grain shipping on the
Saint-Laurent has fallen
significantly during the
past few years.
The North American Free Trade Agreement (NAFTA) has
also contributed to changes in the final destinations for
Canadian grain. Exports from the Prairies to the United States and Mexico have increased and are
now mainly transported by land. Falling wheat prices, the increase in land transportation costs
and government programs for the diversification of Western agriculture are other factors which
have spurred a trend to ship grain to destinations which are closer to the production sites.
Federal government policy on the transport of
western grain has also had a negative impact on the
Saint-Laurent. The Canadian government subsidized
transport of western grain by rail until 1995. Every
year the government gave $750 million to railroad
operators, based on distance travelled, and thus
promoted transportation toward Pacific ports.
Massive federal government investments for railway
construction in western Canada also meant that
transportation towards the Pacific was an attractive
option.
In addition, the Canadian Wheat Board, with its
mission to distribute farmers’ production, favours
transportation toward the West Coast. Wheat from
Pacific ports is mainly exported to Asia and the
south-west coast of the United States, whereas in
the east the shipment of wheat to South America
has strong competition from American markets
which can take advantage of the Mississippi system.
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