The Government of Canada has launched a 100 million Canadian dollar support programme for raw material sectors. The initiative provides a 50 percent reimbursement for domestic rail and maritime steel shipments and will run until 2027. This was reported by Minprom, according to the portal PromPolitInform.
The Government of Canada has introduced a new financial assistance mechanism to reduce domestic shipping costs for steel products. The total funding allocated for this initiative amounts to 100 million Canadian dollars, which is equivalent to 71.7 million US dollars.
The programme was launched on 10 August and provides a 50 percent reimbursement of freight shippers’ expenses for eligible logistics services. Deliveries are carried out via rail or maritime transport between various provinces and territories of the country.
The new initiative will remain active until the summer of 2027 or until the allocated funds are exhausted. Discounts are available exclusively for metal products dispatched from within Canada with a domestic destination.
Conditions and restrictions for metal product transportation
Rail preferences apply to inter-provincial carload shipments, whereas maritime provisions cover solely non-containerised cargo. Support encompasses primary metals, pig iron, semi-finished goods, scrap, ferroalloys, direct reduced iron, and a wide range of other steel items.
At the same time, limitations apply to specific logistics hubs. Specifically, the discount does not cover rail shipments originating from the ports of Vancouver, Prince Rupert, and Montreal, although deliveries terminating at these ports may qualify.
Transport Canada holds the authority to update the list of eligible commodities and prohibited ports of origin. The department also conducts audits and inspections to verify compliance with programme regulations.
Illustrative photo: Train Photos / CC BY-SA 2.0
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