DP World Canada & The Strategy to Realign Canadian Trade

To better understand how Canadian trade flows are evolving and how industry partners are stepping up to build supply chain resilience, we sat down with Doug Smith, CEO of DP World Canada.

An Interview with Doug Smith, CEO of DP World Canada

As trade dynamics and tariff shifts continue to reshape North American supply chains, Canadian logistics leaders are re-evaluating how goods move across our borders and through our domestic infrastructure. To better understand how Canadian trade flows are evolving and how industry partners are stepping up to build supply chain resilience, we sat down with Doug Smith, CEO of DP World Canada.

Uncovering the Import Blind Spot

The origin of DP World Canada’s current strategy traces back to trade tensions and tariff uncertainties well over a year ago. When U.S. transit cargo temporarily dipped at the Port of Prince Rupert, DP World observed an unexpected trend: despite losing a significant portion of U.S. transit volume for four months, the port’s total throughput run rate went up rather than down.

"We had the same reaction going, 'Okay, we've been trying to get this port to grow thinking it's U.S. transit,' and yet most of that went away because people were worried about tariffs," Doug noted. "What we saw was there's a lot more Canadian-bound cargo that we weren't aware of."

This realization prompted DP World to work closely with CBSA and combine open-source trade tracking with U.S. Customs data to analyze national freight flows. What they discovered was eye-opening: roughly one million TEUs, representing approximately 15% of Canada’s total import volume, routinely enters via U.S. ports before transiting into Canada. By contrast, only about 5% of cargo bound for the U.S. transits through Canadian gateways.

"We started to notice that there is a disproportionate amount of Canadian-bound cargo coming through the U.S. rather than through Canadian ports," says Doug. "That started to then raise the question: why does a Canadian importer or exporter not use Canadian infrastructure?"

Why Are Canadian Shippers Routing Through U.S. Ports?

When evaluating why Canadian importers and exporters bypass domestic gateways, DP World’s research identified three primary factors driving this detour:

1.  Brand Reliability & Past Disruptions: Recurring labor disputes alongside weather and rail delays eroded shipper confidence. "The reliability of the brand was suffering," Doug notes. "We did find Canadian customers who just refused to use Canadian ports because of that. One particular customer... refuses to use Vancouver because of the strikes and because of reliability. They bring everything in through LA.
   
   
2. Value-Added Processing: Some supply chains leverage established stops within the U.S. for specialized processing or fulfillment before routing final products north.
   
   
3. Regional Infrastructure Gaps: On the East Coast, over 140,000 TEUs of refrigerated cargo destined for central Canada entered through Baltimore or Philadelphia due to a lack of cold-chain options. That’s a gap DP World is actively closing through its partnership with Americold in Saint John.
   
   

The Inland Strategy: Connecting Ports to the Hinterland

While Canadian port terminals excel at rapid vessel discharge, downstream intermodal connectivity often creates localized bottlenecks. When inland rail transfers require full trainloads to run efficiently, lower-volume destinations can experience extended container dwell.

"The port has great capability to work large ships, work them fast, get them in and out, but it's not getting to destination as fast via Canadian port as it might through a U.S. port," Doug explained. "Right now, we know that the hinterland isn't matched to the capability of the ports. If at least we find those bottlenecks and replace that, that's going to naturally spur growth."

To address these imbalances, DP World launched an east-to-west inland strategy targeting 10 key Canadian cities. Moving beyond containerized freight alone, this initiative analyzes all regional commodity flows, including agriculture, mining, and manufacturing, to align hinterland intermodal capabilities directly with port throughput.

"Prince Rupert and Vancouver are not in competition. Neither is Montreal to Halifax to St. John," Doug emphasizes. "They all have a role to play for the entire country, and each one has a unique value proposition if they play to it. Same thing happens in the hinterland. Not every place should be a container depot. Some should be minerals, some manufacturing, some agriculture."

Canada’s Structural Challenges & Interprovincial Opportunities

Executing a national logistics realignment involves navigating several distinct challenges:

• High Infrastructure Costs: Building transport infrastructure in Canada is substantially more capital-intensive than in many other global markets. "It costs more to build in Canada than the rest of the world in many ways. And building a port here is disproportionately expensive." Doug notes. While major port expansions carry long time horizons, targeted inland intermodal enhancements can be deployed much faster and at a fraction of the cost to unlock trade quickly.
  
  
• Jurisdictional Alignment: Sustainable progress requires municipal and provincial entities to work in tandem rather than competing for individual pieces of existing volume. "If everyone is going to chase after the same piece, you're really not growing the pie," Doug observes.
  
  
• Unlocking Internal Trade: Streamlining interprovincial trade regulations for high-margin goods like domestic beef and beverages will serve as a catalyst for stronger east-west intermodal corridors across the country. "We need to get inter-provincial trade running. Whether BC wine can be sold in Ontario, or Alberta beef in New Brunswick, or Moosehead beer in Alberta. Those aren't moving today. Once they move, other commodities will start.
  
  

An Open-Source Framework for Industry Growth

DP World emphasizes that its role in this national strategy is that of an enabler and catalyst rather than a sole builder or monopolistic operator. The analytics, methodologies, and framework established through their regional symposiums are being shared openly across the logistics community.

"DP World is just a catalyst to this. We're not the ones planning to build everything," Doug stresses. "It's very important that this is a consortium and it's open source for everybody to see. We're trying to bring it to the point that we build a model that works, build that framework, and once that framework is there, we hand it off to everybody and go, 'Please copy it, repeat it, make it yours, make it work for you.'"

Ultimately, Doug sees this shift as an opportunity to build long-term sustainability and resilience across the sector: "Canada has what the world wants. The trick is you've got to get it to market. This isn't about just getting some great volume into the port this year. This is about creating that resilient, sustainable network. Rising tides raise all boats."

Key Takeaways for Logistics Professionals

• Re-examine Freight Routing with Data: Leverage transparent trade flow and dwell data to evaluate landed costs and transit reliability across domestic routes.
  
  
• Build Multi-Gateway Flexibility: Diversify routing options to cushion supply chains against international tariff shifts and sudden port or rail disruptions.
  
  
• Look Inland for Velocity: Recognize that overall supply chain speed relies as much on efficient inland intermodal hubs as it does on ocean terminal productivity.
  
  
• Engage in Regional Infrastructure Initiatives: Collaborate with local economic development groups and supply chain consortia to help prioritize critical regional transport projects.