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Commercial / Industrial Development Strategy for the R. Elmer Ruddick Nakina Airport

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Commercial / Industrial Development Strategy for the R. Elmer Ruddick Nakina Airport Commercial / Industrial Development Strategy for The R. Elmer Ruddick Nakina Airport Commercial / Industrial Development Strategy for The R. Elmer Ruddick Nakina Airport Prepared for: Vicki Blanchard, Economic Development Officer Municipality of Greenstone 1800 Main Street, P.O. Box 70 Geraldton, ON P0T 1M0 Date April 22, 2013 Submitted by: LPS Aviation Inc. One Antares Drive, Suite 250 Ottawa, Ontario CANADA K2E 8C4 Tel: (613) 226-6050 Fax: (613) 226-5236 e-mail: [email protected] Web site: www.lpsaviation.ca Executive Summary The Municipality of Greenstone commissioned LPS AVIA Consulting to prepare a Commercial / Industrial Development Strategy for Nakina Airport in 2012. The Municipality’s two airports, the R. Elmer Ruddick Nakina Airport and Greenstone Regional Airport (Geraldton) provide the closest air access points from the provincial highway system to the Ring of Fire region of Northern Ontario. Based on research, consultations and preliminary findings, the study outcomes were broadened to identify new economic and long-term sustainability opportunities for Greenstone and neighboring First Nations communities. The Commercial / Industrial Development Plan first focused on Nakina Airport. Tasks included: data collection and facilities inventory; aeronautical forecasts and demand / capacity assessments; airfield operational requirements; facility requirements; preparation of an Airport Development Plan; identification of environmental and economic impacts; a community involvement program; and an airport financial analysis. Air services development tasks included: catchment area research; opportunities identification; destinations analyses; assessment of competing airports; a strategic planning workshop and consideration of a marketing strategy. Nakina Airport currently generates 30 full-time equivalent employment positions with revenues of $7.4 million yearly in the community. The airport generates a further 29 full-time equivalent jobs through indirect and induced expenses for a total employment stimulus of 59 full-time equivalent positions. The airport’s financial performance is relatively good; however annual losses have escalated recently. The Municipality currently collects all fees typically charged by other airports albeit on a small scale. Research and consultations revealed the relative attractions of various airports and incumbent air carriers in Northern Ontario. Key findings are that: Most existing mines are located relatively close to roads or airports in northern Ontario; Ring of Fire exploration and development is the dominant economic focus for industry and government for the future; Ring of Fire mining opportunities are located on First Nations’ traditional lands; Few First Nations communities are served by year round or all season roads in the area affected by the Ring of Fire; Most First Nations communities have airports supported by the Government of Ontario, Remote Airport Program; First Nations may construct new aerodromes to support Ring of Fire activities (e.g. Aroland in the south and at other northern locations); New exploration and development projects will be supported by the lowest cost combination of ground and air transportation services; Resource company logistics plans recommend use of Pickle Lake, or Greenstone’s two airports. Nakina Airport cannot be expanded for large aircraft to support mine construction and operations. Commercial/Industrial Development Strategy i R. Elmer Ruddick Nakina Airport Given the limitations of Nakina Airport and a potentially uncompetitive environment, it is unlikely to attract a major share of new air transportation services. It will attract increased activity if a local mining or processing operation were developed. Construction of a road or railroad to the Ring of Fire will provide increased airport use as regional exploration activities expand. It is well-suited for smaller aircraft types typically filling the exploration role, including helicopters. Based on mining logistics strategies, Geraldton Airport has the necessary runway size and development capability, as well as commercial lands availability to support large-scale industrial activity. At Nakina Airport, it is recommended that small developments be triggered by demand. Phase 1 projects should include development of commercial lots north of Apron I, relocating the fuel storage and staging lots, and providing access and municipal services. Phase 2 projects could include expansion of Apron I, construction of a second taxiway, and development and servicing of additional airside commercial lots. Phase 3 could include construction of a secondary apron to access commercial lands east of Apron I. In the short term it is recommended that an Automated Weather Observation System be installed and that a Non-Precision WAAS approach be developed to improve airport availability and safety. Nakina Airport’s financial performance is relatively good; however, in recent years annual losses have increased. Based on the airport’s operating revenue and expenditures, capital projects associated with airport development will require outside funding. Commercial/Industrial Development Strategy ii R. Elmer Ruddick Nakina Airport Table of Contents 1 Introduction ..................................................................................................................................................... 1-1 1.1 Approach .................................................................................................................................................. 1-1 1.1.1 Commercial/Industrial Development Plan ........................................................................................ 1-1 1.1.2 Air Services Development Plan ....................................................................................................... 1-2 1.2 Community Consultations ......................................................................................................................... 1-3 1.2.1 Airport Physical Development .......................................................................................................... 1-3 1.2.2 Air Carrier Service ............................................................................................................................ 1-3 1.2.3 Airport Operations ............................................................................................................................ 1-3 1.2.4 New Aerodrome Development ......................................................................................................... 1-4 1.2.5 Mine Road ....................................................................................................................................... 1-4 1.2.6 Stakeholders .................................................................................................................................... 1-4 2 Air Services Development ............................................................................................................................. 2-1 2.1 Catchment Area Research ....................................................................................................................... 2-1 2.2 Destinations Analysis ............................................................................................................................... 2-3 2.1.1 Nakina – Thunder Bay ..................................................................................................................... 2-3 2.1.2 Nakina – Remote Communities ....................................................................................................... 2-3 2.1.3 Nakina – Mine Sites ......................................................................................................................... 2-3 2.1 Airport Opportunities ................................................................................................................................. 2-3 2.3 Strategic Assessment ............................................................................................................................... 2-4 2.3.1 Nakina Airport .................................................................................................................................. 2-4 2.3.2 Geraldton Airport.............................................................................................................................. 2-6 2.3 New First Nations Airport .......................................................................................................................... 2-7 2.4 Area Airports Analysis .............................................................................................................................. 2-8 2.4 Air Services Development Plan .............................................................................................................. 2-10 3 Aeronautical Activity Forecast ...................................................................................................................... 3-1 3.1 Airport Role ............................................................................................................................................... 3-1 3.2 Forecast Assumptions .............................................................................................................................. 3-1 3.2.1 Mineral Development ....................................................................................................................... 3-1 3.2.2 Regional Airport Development
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