Ottawa announces nationwide program for greener supply chains

Federal Transport Minister Pablo Rodriguez announced a program to make shipping supply chains more environmentally sustainable in Halifax on Friday.

Rodriguez said that Ottawa will invest $165 million in the Green Shipping Corridors program, part of the federal government’s goal of net zero emissions by 2050.

A crowd of about 40 people attended the announcement.

The money will go into two streams: shore-side infrastructure and clean vessels. 

The program’s shore-side infrastructure would allow ships to shut down their diesel engines while at port. Instead, they can plug into the port’s shore power to have electricity while docked. 

Rodriguez said the program also supports buying zero-emission equipment, like electric cranes.

The clean vessel stream will help ships convert to zero emission or low carbon technology and marine fuels. Rodriguez said it applies to large-crane vessels and added the program would also support installation of batteries or solar or wind equipment on ships.

The Port of Halifax handled about 601,700 TEUs last year. A TEU is a 20-foot equivalent unit and is used as a standard measurement for cargo capacity.

The port says its total economic impact in the region was about $4.9 billion, according to its 2022 report.  

“These measures will help Canadians combat the rising cost of living and enjoy a greener future,” said Rodriguez.

He also announced $27 million for the launch of the National Supply Chain Office, which will help supply chains across the country work together efficiently.

Halifax MP Andy Fillmore says greener supply chains mean lower food prices and more materials for housing in Halifax. He says COVID-19 led to scarcity and drove prices up and the Green Shipping Corridors program will make supply chains more efficient.

“So, there is a big win here,” he says. “For driving prices down and for reducing carbon emissions across the supply chain.”

Port of Halifax CEO Allan Gray says he welcomes the announcement and looks forward for future collaboration.

Gray also announced a project for next year, which will involve retrofitting existing diesel-powered equipment to hydrogen fuel cell equipment.

He says the Port of Halifax wants to ensure it “is not just part of that energy transition. But we’re a leader and a trusted partner in that energy transition.”