Toronto Port Authority

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Toronto Port Authority (TPA) is a Port Authority responsible for all activities in the Port of Toronto, including the Toronto City Centre Airport. The TPA replaced the Toronto Harbour Commissioners, which had similar duties.

The TPA owns and operates the Toronto City Centre Airport, Marine Terminals 51 and 52, and the Outer Harbour Marina. It also provides regulatory controls and public works for marine and air navigation in the port and harbour of Toronto. The TPA grants operator's permits to recreational boaters in the harbour of Toronto, oversees land development, engages in trade development for its terminals, and appoints the Harbour Master. The Port Authority has a staff of 110 full-time employees and approximately 25 seasonal and part-time workers.

The Port Authority has been the subject of controversy and some citizen's groups and politicians have campaigned for its disbanding and its powers to be given to the city.

Contents 1 Creation 2 Governance 3 Operations 4 Facts and Figures 5 Controversy surrounding the Port Authority 5.1 Financial Losses 5.2 Political Positions on the Port Authority 5.3 Island Airport Bridge 5.4 Lawsuits 5.5 Lease Terminated 5.6 Alleged Tax Debt to The City of Toronto 6 See also 7 References 8 External links

[edit] Creation

The Toronto Port Authority was established on June 8, 1999, under the Canada Marine Act, with a seven-member Board of Directors. The Canada Marine Act was enacted to create Port Authorities to govern Canada's important commercial ports. The act, as originally introduced, did not include a Port Authority for Toronto. However, during final reading of the bill a motion to create the TPA was introduced by Liberal MP Dennis Mills.

The TPA replaced the Toronto Harbour Commission, created by a federal act in 1911, to manage the port lands in Toronto.

[edit] Governance

The Port Authority is controlled by a seven member board, comprised of one person appointed by the city of Toronto. Another two appointees are selected by the Provincial Government and the Federal Government. The remaining four positions are chosen by a select group of port based organizations. Under Federal law the only people who can have a seat on the board are "persons that make commercial use of, or provide services at the port". This definition excludes people that utilize the services in a non-commercial manner. Lisa Raitt, TPA CEO has stated: "It's a community-based board of directors".^[1] The current structure replaces the older Toronto Harbour Commission that had a five member board including three City of Toronto councillors. With the new management model, no City of Toronto employee nor city councillor can have a seat on the board. Board members are paid between $8,000 and $10,000 a year for their services.

The aim of the reorganization of the Port Authority was to update port operations so that it worked more like a business than a government agency.^[2] The new setup was championed by the former local Liberal Member of Parliament Dennis Mills.

The current CEO of the Port Authority is Lisa Raitt, who was appointed by the Board of Directors in 2003 after holding positions including Corporate Secretary/In-House Counsel 1999-2001 and Harbour Master 2001-2003; at the time Ms. Raitt held the distinction of first female Harbour Master in Canadian ports history.

Current members of the board:^[3]

• Michele McCarthy a lawyer at McCarthy Law, appointed 2004 until 2007;

Three Year Term:

• Christopher M. Henley - President of Henley Capital Corp. and has previously served as CEO of British Petroleum Canada
• Douglas Reid - Teacher in business strategy at Queen's School of Business, recently concluded a 6 year job working for an Alberta-based energy firm.

Two Year Term:

• Krista L. Scaldwell - Serves as director of consumer healthcare at Pfizer
• Colin D. Watson - Director of Rogers Cable, previously was the CEO of Spar Aerospace Limited, and President & CEO of Vector Aerospace Corp. (a firm that also has had Robert Deluce - CEO of Porter Airlines as a director from 2003 to 2005).

One Year Term:

• Cameron J. Turner - currently the Canadian partner of Corporate Development International. The company provides international strategic 'acquisition and divestiture' advice. And is also a current member of the Toronto Board of Trade (a group that has been an active supporter of the Island Airport).

Past members of the board have included:

• Paul Hayes - President of AeroCan Aviation Specialists Inc.
• Henry Pankratz - President of CavanCore Capital
• Steve Mirkopoulos - Current President of Cinespace Film Studios

Previous CEOs/GMs include:

• John Morand

Lobbying Efforts In the August 31st, 2006 edition of the National Post newspaper, Lisa Raitt states that the Port Authority spends around CDN $50,000 a year on lobbyists. And confirmed that their lobbyists are: Peter Naglik (a former speach writer for Prime Minister Stephen Harper), Vic Gupta (Ontario PC Party treasurer, former deputy campaign manager for John Tory's 2003 failed bid for Toronto Mayor, and until June 2006 on Jane Pitfield's election team) and Bill Hearn (lawyer).

Federal Review On May 1, 2006 the Federal Government's Transport Minister Lawrence Cannon announced that a review of the agency would be conducted. The review was carried out by Roger Tassé (former deputy Minister of Justice). The review looked into the history and operations of the government agency, including the contracts it signed for the Island Airport Bridge. The report was completed in October 2006. The review found that "the TPA has in all respects complied with due diligence requirements and the generally respected principles of good governance". ^[4] Critics of the airport were less than enthused with the report. NDP MP Olivia Chow called it a "total whitewash" while Toronto Mayor David Miller said the document is "not worth the paper it's written on".^[5] In responding to the criticism, Mr. Tassé defended the report and questioned whether critics such as Miller and Chow had even read it.^[6]

[edit] Operations

In physical terms, the Port of Toronto is one of the largest city and inland ports in Canada. The protected harbour is roughly two miles long and one mile wide and is sheltered by a string of offshore islands. There are 3.8 km (3 miles) of deep-water wharfage for the loading and unloading of bulk products. Marine terminals include inside and outside storage, and some 1828.8 metres (6,000 feet) of berthing space for ships carrying general cargo. The tonnage of cargo passing through the port is made up mostly of sugar and aggregate. The port is connected to the Atlantic Ocean via the St. Lawrence Seaway. Shipping traffic declined in recent decades as more goods were transported via rail and road. Port tonnage has increased by 28% since 1999 as fuel cost increases and highway traffic congestion have added significantly to the costs of road transportation.

Toronto City Centre Airport (TCCA) is located at the western end of Toronto Islands. The Island Airport is now linked across the Western Gap by ferry services. The passenger and vehicle ferry makes the round trip across the 121 metre-wide (400 feet) Western Channel every 15 minutes during airport operating hours. The three runways can accommodate most regional scheduled airlines and general aviation aircraft. A seaplane base is also located just east of the main apron. Jet traffic is prohibited except in emergencies. Operation of the airport is governed by a Tri-partite agreement between the Toronto Port Authority, the Federal Government and the City of Toronto. The current number of landings and take-offs at TCCA is 120,000 annually. Air traffic into and out of the TCCA is controlled with approaches and departures routed over the lake away from residential areas.

On October 23, 2006, REGCO Holdings Inc. started operation of Porter Airlines from the Toronto City Centre Airport. Porter Airlines will serve a number of regional markets in Canada and the United States. Extensive terminal and ferry dock renovations were completed in October 2006 to provide updated facilites to accommodate the new airline.

Other facilities operated by the Toronto Port Authority include:

International Marine Passenger terminal In 2005 the Port Authority completed a passenger terminal for the highspeed Toronto to Rochester ferry, Spirit of Ontario I. Part of the terminal is a Canada Customs station, the first new border crossing between Canada and the United States in over 40 years. In 2004 CATS (Canadian American Transportation System, LLC )started the ferry service using a temporary terminal. Due to undercapitalization, CATS was not able to survive higher than expected operational costs, mechanical breakdowns, unforseen events and deviations from their business plan.^[7]In 2005 the city of Rochester resumed service but the service continued to be unprofitable. Ferry service was cancelled in January 2006 when Rochester cancelled any further subsidies. The terminal will continue to be used as a docking station for Great Lakes cruise ships.

Outer Harbour Marina is located on the Leslie Street Spit in a protected channel with access to Lake Ontario and Toronto's Inner Harbour with 636 slips.

The Port Authority also offers a variety of services which include harbour maintenance, engineering services, lakefilling, shoreline protection, facility maintenance, marine services (power, water and dry dock facilites for ships), special cargo handling, dredging, topographic and hydrographic surveys, port security and many others.

The management offices are operated out of the historic Toronto Harbour Commission Building, located downtown Toronto, just south of the Air Canada Centre.

[edit] Facts and Figures

Major shipping cargos handled by the Port (2004 figures):

• The port handled 2.5 million tonnes of cargo, up 21.3 per cent over 2003, with general cargo up 266.5 per cent to 100,615 tonnes. Intermodal and warehousing tonnage showed a 66.4 per cent increase from 367,173 tonnes to 610,916 tonnes. Domestic bulk volumes were up 8.1 per cent to 1.2 million tonnes, while overseas bulk sugar increased 6.6 per cent to 669,571 tonnes.

• In total tonnage shipped Toronto ranks 39th out of 313 ports in all of Canada.^[8] Statistics Canada ranks the port, 15th in shipping activity in Ontario.^[9]

[edit] Controversy surrounding the Port Authority

In recent years the Toronto Port Authority has been embroiled in various battles with both the City of Toronto and local community groups. These concern the future of the regional airport.

[edit] Financial Losses

Since its inception, the Toronto Port Authority has failed to turn a profit. Self-sufficiency tests conducted on behalf of Transport Canada in both 2003 and 2004 looked at the TPA's business plan for the future, allowing them to maintain their port authority status as long as they could project a profit.^[1] In 2005 the Toronto Port Authority reported an operating loss of $3.3 million CAD^[10]

[edit] Political Positions on the Port Authority

The various political positions on the future of the Port Authority:

Mayor David Miller The current mayor of Toronto, David Miller won his 2003 election on the campaign pledge to prevent the construction of a bridge connecting the airport to the mainland. Miller has stated publicly that he wants Toronto to regain control over the Port Authority: "I've never believed we needed a port authority," and "It doesn't really perform any function. Shipping is not at a level that it needs it."^[1] When discussing the creation of a new airline the mayor was quoted as saying: "This is a federal agency that is under federal control that has never respected the wishes of the people of the City of Toronto, and it's the federal government that will have to bring it to heel." (National Post Feb 19 2006).

Liberal Party of Canada - Federal Party Position The TPA was created while the Liberal Party was in power (1999). Several Toronto Liberal MPs were strong supporters of the TPA including Dennis Mills, Tony Ianno, and David Collenette.

New Democratic Party Position Toronto Member of Parliament Olivia Chow has called the Port Authority a "rogue agency", and wants control passed over to the city. The NDP wants the agency shut down. The federal party leader Jack Layton has stated that he wants the Auditor-General to investigate the settlement surrounding the failed airport bridge.

Canadian Auto Workers Union (CAW) Position The labour union has given its support to the rejuvenation of the Island Airport and the new airline service. The union represents employees of the Toronto Bombardier aircraft factory, which will build the new Q400 planes for the newly formed Porter Airlines.

Conservative Party of Canada - Federal Party Position Conservative Party of Canada The party fully supports the role of the Toronto Port Authority and the Toronto City Center Airport.^[4]

[edit] Island Airport Bridge

In 2002 Toronto City Council, while Mel Lastman was Mayor of Toronto, amended the tripartite agreement to permit a fixed link and approved the construction of a lift bridge to the Toronto City Centre Airport. The current mayor of Toronto, David Miller won his election, at least in part, on a high profile promise to prevent the bridge being built. Miller's stand made this one of the major election issues in the 2003 mayoralty election.

The bridge would only be about 100 metres in length, but was fought intensely by local community groups who claimed that that a bridge would increase traffic to the airport. It was also strongly opposed by many recreational sailors who argue that it would have been a significant safety hazard to sailboats using the Western channel.

Supporters of the airport feel that it should be expanded as to enhance commercial activitiy in the downtown Toronto business core. Groups supporting the bridge feel it's the best way to help provide better service by allowing for easier connections from the terminal to the city. It is claimed that improving regional connectivity will enhance the desirablity to organizations of establishing offices in central Toronto. The commute times to the much larger Pearson International Airport are considered drawbacks and the island airport caters to much smaller aircraft which allows more travel flexibilty for users seeking to travel to local destinations.

The Federal Government of Canada cancelled the construction of the bridge and compensated the Port Authority with a payment of $35 million CAD. The Port Authority kept $7.8 million, the rest went to still undisclosed third parties. It's rumoured that some of the money went to REGCO Holdings (Globe and Mail Feb 3rd 2006). The terms of settlement are still secret. Critics have claimed that the settlement was a way for the Federal Government to prop-up the money losing agency.

[edit] Lawsuits

• 2001 - The Toronto Port Authority filed a lawsuit demanding that 250 hectares (2.5 square kilometres) of land that was transferred to the Toronto Economic Development Corporation (TEDCO) by the older Toronto Harbour Commission's five member board, that included three City of Toronto councillors, be returned. The suit was against the city for $1 billion CAD. The disputed land constituted around 85% of the THC's land assets as of the early 1990s. In 2002, former mayor of Toronto Mel Lastman claimed that a proposed $1 billion settlement was a 'good deal' for the city. Critics of the Port Authority have wanted the Federal Government to change the law as to prevent a Crown agency from suing other levels of Government. In 2003, the city settled with the Port Authority in the dispute, agreeing to pay the Federal Agency $48 million a year for 10 years [?], and to amend the governing Tripartite Agreement to permit a fixed link. In return, the city gets to keep most of the crown land.
• 2004 - Robert Deluce (now CEO of REGCO Holdings Inc.) sued the city of Toronto for $500 million CAD for their decision to prevent construction of the Toronto City Centre Airport bridge. The lawsuit was dropped.
• 2006 - The Toronto Port Authority launched a lawsuit against Community Air for $3.4 million CAD. The lawsuit claims that the group and its directors are "zealous and unbalanced" in their waterfront advocacy. TPA CEO Lisa Raitt stated in the media that: "We are not going to allow untruths and personal attacks to go unchallenged". The suit demands that each pay $500,000 in damages for defamation, $250,000 in aggravated damages and another $100,000 in punitive damages to the port authority, its president Lisa Raitt and two others.^[11] "We really view this as being a 'SLAPP suit' and that's a type of lawsuit that is carried out against community groups and individuals to prevent them from speaking their minds about issues of public importance," said Community Air's lawyer Louis Sokolov in conversation with CBC reporters.^[12]

[edit] Lease Terminated

On February 15th 2006 Air Canada announced that their lease for use of space controlled by City Centre Aviation (CCAL) at the Toronto City Centre Airport was terminated by CCAL. Air Canada was leasing a terminal now owned by REGCO Holdings which started a new airline operating out of the same terminal. On February 27th, 2006 Air Canada lost a court appeal and will no longer be able to use ground-side facilities belonging to REGCO.

[edit] Alleged Tax Debt to The City of Toronto

The city claims the port authority owes $32 million in unpaid property tax. The City of Toronto and the Toronto Port Authority are currently presenting their case before a federal dispute resolution process. No decision has yet been reached. According to the Tasse report, federal agencies such as the TPA never pay property taxes per se, but instead some negotiated amount to account for municipal services. The amount of this "in lieu" payment is what is in question.

[edit] See also

• Toronto waterfront
• Toronto Islands
• Canadian American Transportation Systems
• Toronto City Centre Airport
• Outer Harbour East Headland
• Community Air

[edit] References

[edit] External links

• Toronto Port Authority
• Community Air Community group opposed to TPA

Some people have problems using the previous link. If you are redirected use the following link to bypass the redirection http://www.communityair.org/home.htm

• Canada Free Press Article criticising detractors of the TPA, this article and Wikipedia generally
• Infosource.gc.ca - About the organization and mandate of the TPA (Official Federal Government website)
• Association of Canadian Port Authorities