Here is a look at infrastructure spending. The information will help people ask tough questions of their politicians in terms of funding, especially oversight.

1. Infrastructure Investment –
Canada
PAUL YOUNG CPA CGA
JULY 5, 2020

2. Paul Young - Bio
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – Risk Management
• SME – Close, Consolidate and
Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. Agenda
 Introduction
 Pipeline (Lack of capacity)
 LNG / Production
 Metals / Chromite
 Metals / Mining
 Farming/AG Sector
 Forestry Sector
 Asphalt/Paving
 Technology
 Summary

4. Introduction
 This presentation will look at the following aspects of infrastructure
 Getting goods to market
 Infrastructure (Roads, Bridges, Transit, Water Treatment, etc.)

5. Pipeline constraints
 Pipeline shortage cost the Canadian economy $15.6B/year -
https://business.financialpost.com/commodities/energy/a-self-inflicted-wound-pipeline-delays-to-cost-
canadian-economy-15-6b-in-2018-says-scotiabank
 Pipeline constraints costs oil producers over $20B/year - https://www.cbc.ca/news/politics/pipeline-
constraints-cost-20-billion-canadian-oil-report-1.5116790
 Oil sands could help lead the transformation of oil -
https://www.corporateknights.com/channels/energy/canada-oil-sands-lead-energy-transformation-15909912/
 Canada’s oil is very ethically and environmentally sound - https://www.slideshare.net/paulyoungcga/whats-
next-for-oil-energy-market-june-2020

6. LNG Production
 Natural gas power plans are required to support the power grid -
https://www.eia.gov/todayinenergy/detail.php?id=42497
 Canada is one of the world leaders in terms of natural gas production -
https://www.worldometers.info/gas/canada-natural-gas/ (Canada is ranked 18th)
 Previous federal and provincial govts work together on policy changes, i.e. approval process, tax polices,
etc. - https://www.slideshare.net/paulyoungcga/policy-liquefied-natural-gas-lng-cananda-november-19-
2016
 LNG plant construction have led to economic benefits - https://www.cbc.ca/news/canada/british-
columbia/lng-canada-terrace-kitimat-growth-budget-1.5403351

7. Metals / Chromite
 Access to Chromite - https://www.northernontariobusiness.com/regional-news/far-north-ring-of-
fire/ontario-first-nations-agree-on-missing-link-road-to-the-ring-of-fire-2132065
 Production plant (Proposal) - http://www.canadianminingjournal.com/news/chromite-noront-choses-
algoma-steel-hatch-for-ring-of-fire-projects/

8. Metals / Mining
 All levels government need to work together on a mining strategy - https://www.newswire.ca/news-
releases/addressing-canada-s-declining-mining-competitiveness-828346997.html
 Canada mining is both ethical and environmentally sound -
https://www.northernontariobusiness.com/industry-news/mining/canada-is-the-mineral-grocery-store-to-
the-world-2350625
 Canada natural resources account for about 10% of GDP -
https://www.slideshare.net/paulyoungcga/canada-needs-to-development-natural-resources-and-
agricultural-strategy

9. AG Sector
 Farmers have struggle for years with getting their product to market
 Farmers have been hammered by bad government policies, i.e. small business tax reforms, carbon
taxation
 Source - https://www.slideshare.net/paulyoungcga/canada-how-are-farmers-doing-in-financial-in-canada

10. Forestry sector
 Canada does one of the best jobs when it comes to managing their forests -
https://www.slideshare.net/paulyoungcga/what-is-next-for-canadas-forestry-sector
 Bad policies have hurt the forestry sector
 Stumpage fees
 Lack of softwood lumber agreement
 Carbon Taxation
 Lack of skill labor

11. Asphalt Paving/Blog
 https://ca.news.yahoo.com/assessment-covid-19s-effect-asphalt-160000643.html
 Technavio has been monitoring the asphalt market and it is poised to grow by 30.31 million tones during
2020-2024, progressing at a CAGR of over 4% during the forecast period. The report offers an up-to-date
analysis regarding the current market scenario, latest trends and drivers, and the overall market environment.
 Canada is ranked highly with bitumen production - https://blog.asphaltkingdom.com/top-asphalt-producers
 Iran is one of top exporters of asphalt related bitumen - https://saharabizz.com/1327-2/
 Innovation / https://www.roadsbridges.com/how-technological-innovations-are-disrupting-asphalt-mixing-
plants-demand
 Can you show me where oil has been replaced, i.e. roofing products, road work, plastics, etc.?
 https://www.slideshare.net/paulyoungcga/what-is-going-on-with-oil

12. What’s next
 Canada needs to emphasize the expansion of ports - https://prosertek.com/blog/expansion-projects-canadian-ports/. Other
ports should also be considered like Thunder Bay, Churchill, Sault Ste Marie, Sarnia, Sydney, Nova Scotia, etc.
 Canada’s exports should be 20% higher or about $110B more annually. For each $1B exports there are 550K jobs. Canada has
been struggling with job quality issue. A pro export strategy could support better paying jobs -
https://www.slideshare.net/paulyoungcga/job-quality-canada-235057299
 Privatization of ports could lead to increase revenue and better management of capacity -
https://www.cbc.ca/news/canada/british-columbia/new-report-says-privatizing-canada-s-ports-could-generate-significant-
revenue-1.4168873
 Canada needs an infrastructure that supports its export growth - https://www2.deloitte.com/ca/en/pages/energy-and-
resources/articles/what-canada-can-do-now-to-secure-its-energy-export-future.html
 CN Capital Expansion - https://www.cn.ca/en/about-cn/capital-investments-plan/
 CP Capital Expansion - https://www.cpr.ca/en/media/cp-reports-record-fourth-quarter-and-full-year-results
 Canada is world leader when it comes to their environmental practices - https://www.slideshare.net/paulyoungcga/canada-
clean-technolgy-and-the-green-economy
 Post-Covid will require all levels of government to focus on the goods producing sector -
https://www.slideshare.net/paulyoungcga/how-best-to-reshore-supply-chains

13. Technology
 Predictable Analytics and shipping - https://www.proshipinc.com/about/news/how-predictive-analytics-
changes-shipping
 Real-time tracking - https://arviem.com/
 Data and AI - https://www.ship-technology.com/features/ai-in-shipping/
 Supply Chain Management - https://www.youtube.com/watch?v=yiD2YmL8sKs&t=7s

14. Public/Private Sector Infrastructure Investment
 Global government infrastructure spending
 Many governments are looking at debt financing when it comes to infrastructure - https://www.fitchsolutions.com/infrastructure-
project-finance
 China will play a key role in terms of infrastructure spending - https://www.globalconstructionreview.com/markets/infrastructure-
spending-keep-chinese-construction-/
 USA is looking at $1 trillion infrastructure fund to help stimulate the economy - https://www.bloomberg.com/news/articles/2020-06-
16/trump-team-weighs-1-trillion-for-infrastructure-to-spur-economy
 Canada construction market is also to see growth - https://www.contractormag.com/management/article/20883968/canadas-
construction-industry-to-reach-us3046b-in-2023. The growth has been slowed due to many factors like delays with funds coming
from the gas tax and build Canada fund
 Belt Road
 Belt Road projects continue to expand, i.e. Sri Lanka, Vietnam, Middle East, Pakistan, etc.
 China / https://www.reuters.com/article/us-health-coronavirus-china-silkroad/china-says-one-fifth-of-belt-and-road-projects-seriously-affected-by-
pandemic-idUSKBN23Q0I1 or https://www.invesco.com/invest-china/en/institutional/insights/chinas-belt-and-road-initiative-in-a-post-pandemic-
world.html
 Urban Planning / https://www.npr.org/2019/12/13/784084567/in-sri-lanka-chinas-building-spree-is-raising-questions-about-sovereignty or
https://www.slideshare.net/paulyoungcga/urban-and-rural-planning-whats-next-236315321

15. Canada and Infrastructure spending
• CPC set up the gas tax fund as part of having dedicated funding for infrastructure -
https://www.infrastructure.gc.ca/plan/gtf-fte-eng.html
• Municipalities continue to say funding for infrastructure is too low - https://cupe.ca/public-infrastructure-
builds-sustainable-equitable-future
• Local governments also need to innovated with how they support their infrastructure -
https://www.slideshare.net/paulyoungcga/how-to-reform-local-and-municipal-government
• Liberals set up the infrastructure bank to help leverage private sector financing of projects - https://cib-
bic.ca/en/projects/. Based on the F/S there are only $550M in terms of loans receivables - $550,914
• There has been many feasibility studies, but very few projects have been started -
https://nationalpost.com/news/canada-infrastructure-bank-notches-first-project-in-alberta-with-deal-to-
study-calgary-banff-rail-line

16. Infrastructure / Catherine McKenna
 Blackrock
 https://www.blacklocks.ca/cannot-find-20000-projects/
 “Parliament’s Budget Office can find no evidence of 20,000 projects subsidized with billions in
federal tax dollars. Infrastructure Minister Catherine McKenna’s department would not
document where funds were spent, the Commons government operations committee was told:
“I don’t have proof that they exist.””
 I cover issues with audits with my presentation:
 https://www.slideshare.net/paulyoungcga/the-importance-of-value-for-money-and-
perfomance-based-audits or https://www.slideshare.net/paulyoungcga/what-is-going-on-with-
building-permits-in-canada-january-2020

17. Summary
 More needs to be done to support infrastructure, especially closing the infrastructure gap
 More performance audit of key funds dedicated to infrastructure
 https://www.slideshare.net/paulyoungcga/the-role-of-operational-and-performancebased-auditing-on-government-and-
the-private-sector
 Re-looking at how best to operate/expand ports - https://globalnews.ca/news/5251564/halifax-container-
terminal-sold-singapore/
 Canada will need to re-focus on supply chain management Post-Covid19 -
https://www.slideshare.net/paulyoungcga/how-best-to-reshore-supply-chains
 Private sector can play a bigger role by supporting infrastructure spending as part of supporting getting goods
to market
 Chromite - https://www.thesudburystar.com/news/local-news/province-first-nations-sign-critical-road-agreement
 North / Roads - https://canada.constructconnect.com/dcn/news/infrastructure/2020/03/new-all-season-gravel-road-in-
canadas-north-a-game-changer-for-region
 Port Development / CN - https://www.theglobeandmail.com/business/article-cn-rail-expects-port-development-and-
supply-chain-diversity-to-revive/

18. Training and Development
 If you like to learn more
about trade and/or other
subjects as part of your
professional learning and
development then feel free
to review my material on
https://www.udemy.com/
(search Paul Young CPA
CGA)
 These subjects address
how to fixed issues with
housing and/or systemic
issues related to economy
including government
policies