September 08, 2010

PORT STANLEY, ONTARIO — Joe Preston, Member of Parliament for Elgin—Middlesex—London on behalf of the Honourable Chuck Strahl, Minister of Transport, Infrastructure and Communities, announced today the transfer of ownership of the Port Stanley Port Facility from the Government of Canada to the Municipality of Central Elgin, as part of Transport Canada’s Port Divestiture Program.

“This transfer arrangement will put control of the port directly into the hands of the municipality, to benefit the community and contribute to the local economy of Port Stanley for years to come,” said Minister Strahl.
 
“I am pleased that the Municipality of Central Elgin will be able to reclaim the waterfront,” said MP Preston. “It is an important part of our community's assets and I look forward to its future development.”

The port facility includes approximately 64.5 hectares, 52.8 of which are part of the harbour bed. The property also includes two breakwaters, two piers and a building. In addition, the transfer agreement includes a contribution of $13.6 million from the Government of Canada to be used exclusively to cover operational costs and maintain the port’s infrastructure.

“Today, Central Elgin is truly the master of its own destiny. As the new owner and operator of the Port Stanley Harbour we can make and encourage new investments that strengthen our economy while enhancing the vision for our community,” said Tom Marks, Mayor of the Municipality of Central Elgin. “Port Stanley has a storied past. With the guidance of local hands and local hearts, we will build a great new story for our future.”

Transport Canada’s Port Divestiture Program, which falls under the National Marine Policy, was established to transfer regional or local port sites to other interests. The Program was introduced in 1996 and is currently scheduled to end March 31, 2012.



PORT DIVESTITURE PROGRAM

The 1995 National Marine Policy outlines the Government of Canada’s plan to modernize Canada’s marine transportation system.

Under its Port Divestiture Program, Transport Canada transfers the ownership and operation of regional or local ports and harbour beds. This transfer puts the ports in the hands of those who can make good decisions based on local needs, and results in a more effective and efficient port system with local accountability. The new owners have the same rights and obligations as any property owner and must obey all laws that apply to them.

Since the creation of the Port Divestiture Program in 1996, Transport Canada has divested its interest in 85 per cent of sites identified for divestiture. In Budget 2007, the Government of Canada extended the program until March 31, 2012.

Under the Port Divestiture Program, regional or local ports and harbour beds owned by Transport Canada are offered first to other Government of Canada departments and then to the provinces. Transport Canada then looks to local stakeholders, including municipalities, for expressions of interest. A public tender may be used if no expressions of interest are received. The Port Divestiture Fund makes the transfer process easier for new owners by providing funds for local interests to become owners and operate in local business conditions.

Under the National Marine Policy, most of Canada’s ports were classified as regional or local. However, the policy also includes two other categories not covered by the Port Divestiture Program:

Canada Port Authorities (CPAs): These ports are vital to domestic and international trade, financially self-sufficient and independently managed by boards of directors nominated by user groups and various orders of government. CPAs are governed by the Canada Marine Act, which enables them to operate in a more commercial, efficient and timely way.

Remote ports: These ports serve the basic transportation needs of isolated communities and rely on the presence of an existing Transport Canada wharf structure. The department will continue to operate remote ports unless local groups wish to acquire them.

Even though Transport Canada is transferring its property interests in regional or local ports, the Government of Canada still controls marine traffic. This means that no matter who owns the port, ships must obey all federal laws such as the Navigable Waters Protection Act and the Canada Shipping Act, 2001.