Michel Boucher
The Newly Commercialized Transport Infrastructure Providers: Analysis of Principles of 
Governance, Accountability and Performance 

Transport Canada's commercializations of airports, ports, the air navigation system and the St. Lawrence Seaway are examined. Governance processes are considered using a formal analysis of principal/agent relationships. In the case of airports, the study concludes that lack of controls has permitted some excessive managerial discretion and excessive costs. Delegation of air navigation to NAV Canada is judged effective, though air traffic controllers can appropriate quasi-rents. The latest delegations, to independent port and the St. Lawrence Seaway authorities are judged successful because of controls imposed by the government. The operational performance and price structure of the agencies are also examined to assess their ability to recover costs and finance investments. The study concludes that NAV Canada, the ports, and St. Lawrence Seaway Management Corporation can meet their financing needs, but there are doubts about the ability of some of the smaller airport authorities to do so.