Toronto Port Authority

Toronto Port Authority (TPA) is a Port Authority responsible for all activities in the Port of Toronto, located in Toronto, Ontario, Canada, including the Toronto City Centre Airport. The Port of Toronto was formerly managed by the Toronto Harbour Commission.

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.

Creation

The Toronto Port Authority was established on June 8, 1999, under the "Canada Marine Act." The "Act" was enacted to create port authorities to govern Canada's important commercial ports. The act, as originally introduced, did not include establishing an 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, which managed the port and waterfront lands in Toronto. The Toronto Harbour Commission had a mandate over lands across the then City of Toronto beyond the harbour area, including the Sunnyside waterfront area, east of the Humber River for many years.

Governance

The Toronto Port Authority is a public corporation. As such, it has a board of directors, appointed under regulations of the "Canada Marine Act" and the "Letters Patent" of the TPA. Executives of the corporation report to a seven-member board of directors. The board is comprised of one person appointed by the city of Toronto, and another two selected (one each) 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". Board members are paid between $8,000 and $10,000 a year for their services. An annual meeting of the board of directors is held.

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. Like all port authorities created from harbour commissions, the aim of was to update port operations so that it worked more like a business than a government agency. [cite web|url=http://www.tc.gc.ca/pol/en/acf/cma/menu_e.htm|title=History of the Canada Marine Act|date=2006-10-10 |publisher=Transport Canada|accessdate=2006-10-26] The new setup was championed by the former local Liberal Member of Parliament Dennis Mills.

A common criticism of this model of organization is that this definition excludes persons or organizations that utilize the services in a non-commercial manner. The Port Authority has defended the choice and composition of the board of directors. Lisa Raitt, TPA CEO has stated: "It's a community-based board of directors".cite web|url=http://www.eye.net/eye/issue/issue_09.22.05/city/portauthority.php|title=A growing chorus asks why we don't just close the Toronto Port Authority and take our harbour back|last=Duncan|first=Dale|date=September 22, 2006|publisher=Eye Weekly|accessdate=2006-08-02]

enior management

The current Chief Executive Officer (CEO) of TPA is Alan Paul, who is also the Chief Financial Officer(CFO).cite web |url=http://www.torontoport.com/PortAuthority/corporate_senior.asp?id=35 |accessdate=2008-09-12 |title=Senior Management of Toronto Port Authority] He is an interim replacement for Lisa Raitt who is temporarily on leave while she competes in the 2008 federal election. [Port Authority refuses to rule out new ferry. The Globe and Mail. September 12 2008. [http://www.theglobeandmail.com/servlet/story/LAC.20080912.PORT11/TPStory/TPNational/Ontario/] ] She is the Conservative party candidate for Halton. [Toronto Port Authority CEO Lisa Raitt taking leave of absence to seek public office. CNW Group. September 12 2008. [http://www.newswire.ca/en/releases/archive/September2008/09/c2933.html] ] Raitt 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. Raitt became the first female Harbour Master in Canadian ports history. The current Harbour Master is Angus Armstrong, who has held the post since 2004. Ken Lundy has been the Director of Toronto City Centre Airport since April 2007.

Board of directors

Current members of the board: [cite web|url=http://www.tc.gc.ca/mediaroom/releases/nat/2006/06-h098e.htm|title=Appointments to Toronto Port Authority|last=Sarafian|first=Natalie|date=2006-08-25|publisher=Transport Canada|accessdate=2006-08-27]
* Christopher M. Henley - appointed chairman of the board of the Toronto Port Authority in September 2008. President of Henley Capital Corp. and has previously served as CEO of British Petroleum Canada
* Mark McQueen appointed March 2008. Mark McQueen is President & CEO of Wellington Financial LP, a Toronto-based specialty finance firm. In 1993 he joined a Canadian chartered bank, serving in both corporate and investment banking roles until 2000. He was managing director and head of technology investment banking of an independent investment bank from January 2000 until December 2004 when he joined Wellington Financial on a full-time basis. He serves on the boards of the Canadian Venture Capital & Private Equity Association, and Nexient Learning Inc. He is also a past member of the board of governors of the University of Western Ontario and the board of directors of EnGlobe Corp., Intrinsyc Software and Top Aces Inc.;
* Craig Rix a partner with the law firm of Hicks Morley where he works out of their Toronto offices. Mr. Rix's professional and community affiliations include the boards of directors of the Canadian Association of Counsel to Employers and the Ontario Chamber of Commerce. He is also on the advisory board of The Dominion Institute and a member of the Ontario Economic Summit Steering Council.;
* Michele McCarthy a lawyer at McCarthy Law, appointed 2004;
* 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.
* 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)".

Past members of the board have included:
* Cameron J. Turner; - currently the Canadian partner of "Corporate Development International" and a member of the Toronto Board of Trade
* Krista L. Scaldwell; - Serves as director of consumer healthcare at Pfizer
* 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

Financial losses

Like other port authorities in Canada, the TPA is expected to be self-sufficient. 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.

For 2007, the TPA reported a loss on operations of $1.877 million. After payments in lieu of taxes, other income and non-operating revenue, the TPA had a 'comprehensive loss' of $1.096 million on operations. This compared to an operating loss of $6.098 million, and a comprehensive loss of $4.610 million in 2006. The largest change was an increase in revenues from $1.182 million to $5.119 million from the Airport's operations. The TPA introduced a $15 Airport Improvement Fee in October 2006 on passengers on scheduled flight from the Airport, which generated $1.983 million in 2007. The lower 'comprehensive' losses include monies being withheld by the City of Toronto, which the TPA considers as 'account receivables', but also an estimate for payment in lieu of tax of $666 thousand. The TPA 2007 Financial Statements list $7 million dollars as being owed to the TPA at the end of December 2007 by the City.cite web|url=http://www.torontoport.com/PortAuthority/REPORTS/Finance_2007_ENG.PDF | title= Financial Reports for 2007|accessdate=2008-09-12|format=PDF]

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 (a 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".cite web|url=http://www.tc.gc.ca/pol/en/report/torontoPortAuthority/tpa.pdf|title=Review of The Toronto Port Authority|date=November 2, 2006|publisher=Transport Canada|accessdate=2006-11-03|format=PDF]

The report made four recommendations:
* (on transparency and accountability) - That the TPA adopt changes to its organization, produce an annual report and fulfill its reporting in a timely manner.
* (on community relations) - That the TPA be more pro-active in its approach to community consultations.
* (on board of directors vacancies) - That the agreement be amended to allow the continuation of Board membership past expiry.
* (on federal interest in the Toronto Port and Airport) - That the federal government, in particular, elected members, participate in discussions as to the federal interest.

Source: cite web|url=http://www.tc.gc.ca/pol/en/Report/torontoPortAuthority/7-e.htm#1._Transparency_and_Accountability_ |title=Review of the Toronto Port Authority Report, General Observations and Recommendations |accessdate=2008-09-12

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". [cite web|url=http://www.theglobeandmail.com/servlet/story/LAC.20061103.TASSE03/TPStory/TPNational/Ontario/|title=Critics blast port authority 'whitewash'|date=November 3, 2006|publisher=Globe and Mail|accessdate=2006-11-07] In responding to the criticism, Mr. Tassé defended the report and questioned whether critics such as Miller and Chow had even read it.cite web|url=http://www.thestar.com/NASApp/cs/ContentServer?pagename=thestar/Layout/Article_Type1&call_pageid=971358637177&c=Article&cid=1162507817264|title=Federal Report Backs Island Airport|date=November 3, 2006|publisher=Toronto Star|accessdate=2006-11-07]

Operations

Port of Toronto

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.

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. [cite web|url=http://www.tc.gc.ca/programs/Ports/annualreport0405.htm|title=2004-2005 Annual Report on Port Divestiture and Operations|month=January | year=2006|publisher=Transport Canada|accessdate=2006-08-02] Statistics Canada ranks the port, 15th in shipping activity in Ontario. [cite web|url=http://dsp-psd.pwgsc.gc.ca/Collection-R/Statcan/54-205-XIB/0000354-205-XIE.pdf|title=Shipping in Canada, 2003|month=May | year=2005|publisher=Statistics Canada|accessdate=2006-08-02|format=PDF]

Toronto City Centre Airport (TCCA)

Toronto City Centre Airport is located at the western end of Toronto Islands. Its three runways can accommodate most regional scheduled airlines and general aviation aircraft. Jet airplanes are prohibited except in emergencies. The current number of landings and take-offs at TCCA is 120,000 annually. Because of its location near the downtown waterfront residential area, air traffic into and out of the airport is controlled with approaches and departures routed over the lake. A seaplane base is also located just east of the main apron.

One regional airline operates out of the airport currently. On October 23, 2006, REGCO Holdings Inc. started operation of Porter Airlines from the airport using turbo-prop airplanes. The airline currently flies to Ottawa, Montreal, Mont Tremblant(seasonal), Halifax, Quebec City and Newark and plans to expand service to other cities in Canada and the United States. Extensive terminal and ferry dock renovations were done to accommodate the new airline. Formerly, Air Canada operated its "Jazz" regional airline out of the airport until it was forced out on March 1, 2006.

Access to the airport is by ferry services operated by the Port Authority. 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.

Operation of the airport is governed by a tri-partite agreement between the Toronto Port Authority, the Federal Government and the City of Toronto.

Other facilities

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, Canadian American Transportation Systems (CATS) had started the ferry service using a temporary terminal. Due to unexpected costs and undercapitalization, CATS was not able to survive. [cite web|url=http://www.osc.state.ny.us/localgov/audits/2006/cities/rochesterff.pdf|title=City of Rochester Involvement With The Fast Ferry Operations|month=July | year=2006|publisher=Office of The New York State Comptroller|accessdate=2006-10-27|format=PDF] In 2005, the city of Rochester purchased the ferry and hired Bay Ferries Great Lakes to run the service. Ferry service was halted in January 2006 when a newly elected city council in Rochester canceled funding. The terminal continues to be used as a docking station for Great Lakes cruise ships, and occasionally as a film set.Fact|date=February 2008

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 facilities for ships), special cargo handling, dredging, topographic and hydrographic surveys, port security and many others.

The management offices are located in the historicFact|date=October 2007 Toronto Harbour Commission Building, located downtown Toronto, just south of the Air Canada Centre.

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.

Lobbying efforts

In the August 31, 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 speech 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)".

Political positions on the Port Authority

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

Mayor David MillerThe current mayor of Toronto, David Miller won his 2003 election partly on the campaign pledge to prevent "airport expansion" - 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." 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 February 19, 2006).

Liberal Party of Canada — Federal Party positionThe 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 positionToronto 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) positionThe 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 Centre Airport.cite web|url=http://www.tc.gc.ca/mediaroom/releases/nat/2006/06-h131e.htm#principal|title=Principal finding of the review|date=November 2, 2006|publisher=Transport Canada|accessdate=2006-11-03]

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 municipal election.

The bridge would only be about 100 metres in length, but was fought intensely by local community groups who claimed 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.

Groups supporting the bridge feel that it would have been the best way to provide better service by allowing for easier connections from the island terminal to the city. Opponents of the bridge claimed that the most environmentally economical way to provide passenger service to and from regional destinations would be to institute a high speed rail network such as Europe's TGV, Thalys, and Eurostar trains.

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 February 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 agency.

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. TEDCO focused on getting title to the land free and clear so that waterfront revitalization could begin without uncertainty. The City's objective was to change the agreement affecting the island airport. 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 and TEDCO settled with the Port Authority in the dispute, agreeing to pay the Federal Agency $48 million over a 10 year period, and to amend the governing Tripartite Agreement to permit a fixed link. In return, the city and TEDCO get 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 settled.
* 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. [cite web|url=http://www.torontosun.com/News/TorontoAndGTA/2006/06/21/1644714-sun.html|title=Citizens group sued: Port Authority claims defamation|last=Granatstein|first=Rob|date=June 21, 2006|publisher=Toronto Sun|accessdate=2006-08-02] "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. [cite web|url=http://www.cbc.ca/toronto/story/to-lawsuit20060621.html|title=Toronto Port Authority sues group for defamation|date=June 21, 2006|publisher=CBC News|accessdate=2006-08-02] In May, 2007, the lawsuit was settled out of court. Community Air agreed to retract their statements and apologize. A spokesperson for Community Air said that it hopes this will foster a better relationship with the TPA. [cite web|url=http://www.theglobeandmail.com/servlet/story/LAC.20070503.TORBRIEFS03-3/TPStory/TPNational/Ontario/|title=Port agency settles suit against Community Air|last=Gray|first=Jeff|date=May 3, 2007|publisher=Globe and Mail|accessdate=2007-05-03]
* 2008 - Launched a lawsuit against the City of Toronto to prevent a 'no-stopping' bylaw for the roadway in front of the ferry dock. The City intends to build a sidewalk for a nearby school, according to Councillor Adam Vaughan. The Port Authority and Porter Airlines lawyer claims the bylaws are 'guerilla tactics' to disrupt the Airport's operations. [cite news |work=National Post |title=Airline claims 'guerrilla' tactics by city |last=Hanes |first=Allison |page=A11 |date=September 18, 2008]

Lease terminated

On February 15, 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 27, 2006, Air Canada lost a court appeal and will no longer be able to use ground-side facilities belonging to REGCO. As of the end of December 2007, Air Canada and its Jazz subsidiary have two lawsuits pending against the TPA for its role in Jazz being ousted from the airport and seeks damages of $10.5 million.

Alleged tax debt to the City of Toronto

The City claims the port authority owes $32 million in unpaid payments in lieu of 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.

ee also

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

References

External links

* [http://www.torontoport.com Toronto Port Authority]
* [http://www.communityair.org Community Air] Community group opposed to TPA
* [http://www.transport2000.ca Transport 2000 Canada] Sustainable Transport advocacy group
* [http://www.infosource.gc.ca/inst/tor/fedtb_e.asp Infosource.gc.ca] - About the organization and mandate of the TPA (Official Federal Government website)
* [http://www.acpa-ports.net/index.html Association of Canadian Port Authorities]
* [http://www.tedco.ca Toronto Economic Development Corporation (TEDCO)]