Federal transportation divestiture of remote ports and airports in Atlantic Canada: An introductory analysis

The governance framework of the national transportation system in Canada shifted dramatically in recent years with divestiture of many federally funded transportation services to stakeholders such as the provinces and territories, local governments, not-for-profit corporations and the private sector. Although the academic literature declared divestiture a success with the creation of port and airport authorities for urban centers, it largely overlooked the management consequences for remote ports and airports of the transition from dependence on federal subsidies to owning, operating and funding remote transportation infrastructures. This paper examines the divestiture impact on remote sites and demonstrates that the outcome of the federal devolution process has varied based on the ability of each remote site to attract investment from other levels of government and/or the private sector. An introductory case study of remote ports and airports in the provinces of Newfoundland and Labrador, Nova Scotia and New Brunswick is presented. The research assesses issues relating to the divestiture process, post-devolution structure, individual site performance, and locally desired changes to the present system. The paper concludes that governance frameworks for remote regions will continue to evolve into a myriad of approaches based on each community's political, economic and social circumstances.