Item - 2016.ED15.3

The Economic Development Committee recommends that:

1.  City Council direct the General Manager, Economic Development and Culture to support the current effort by the transportation industry and the Ontario Ministry of Agriculture, Food and Rural Affairs to move more food transportation vehicles off the roads of the Greater Toronto Area and on to appropriate rail transportation.

2.  City Council direct the General Manager, Economic Development and Culture to work with existing food and beverage associations in Ontario to address the issue of food transportation in the Greater Toronto Area.

This report responds to Agenda item ED13.3 of the June 22, 2016 Economic Development and Culture Committee meeting. Staff were requested to report back to the October 24, 2016 meeting of the Economic Development Committee on Toronto's food industry and the possibility of supporting the formation of a food service association. This motion was a result of a presentation to committee by a food industry stakeholder that was concerned with the transportation challenges that the food industry faces in Toronto.

There are currently over 1 million truckloads of food and consumer packaged goods that move to, from and through the Greater Toronto Area (GTA) each year (Ministry of Transportation of Ontario Freight Studies 2006 and 2012).  About one quarter of these trucks moving through the GTA neither originate nor end in the GTA but still add to the congestion of the city's roads. Upon further investigation staff have discovered that a number of papers, organizations and work by the provincial government has been undertaken to address the issue of the transportation of food products within the City of Toronto. By supporting the movement of some of these truckloads of food from road to rail transportation, the City will assist its food manufacturers to lower transportation costs, help lower carbon emissions and make roads less congested.

Currently Food and Beverage Ontario (FBO) is the leading association that represents small and medium sized food processors in Ontario. Through consultations with staff the association has agreed to set up a sub-committee to deal with transportation issues and address the logistical challenges that are facing the sector in its desire to lower food transportation costs and expedite delivery to and from the GTA.  Therefore there is no need to form a new association to address this issue.