CANADA’S GATEWAY TO THE WEST 1. The Seaway’s Role as a Supply Chain to Western

2. The Port of : Current Activities

3. Opportunities for the Future – ST. LAWRENCE SEAWAY CANADA’S ORIGINAL GATEWAY

The Great Lakes – St. Lawrence Seaway is Canada’s original Gateway, built to provide direct access to European Markets for Western Canadian Grain. COST-COMPETITIVE ROUTE

Rail

Laker

Rail Vessel Logistics/Tonne Single Car to TBay Laker to Montreal $68.42 Single Car to Montreal - $75.29 Unit Train to TBay Laker to Montreal $62.92 Unit Train to Montreal - $63.23 PORT OF THUNDER BAY

• Western Canada’s Gateway to the Seaway

• 2nd largest Western Canadian Grain Port

• Largest export port on the Seaway

• Largest Grain Storage Capacity in NA

• Fastest Ship Turnaround of all Western Canadian Grain Ports THUNDER BAY • Only potash load point on the Seaway

PORT OF THUNDER BAY

Storage Facility Capacity (tonnes) 5-Year Average: Canada Malting Co. 62,800 7.8 million tonnes Cargill Ltd. 176,000 Mission Terminals 130,000

Parrish & Heimbecker 40,000 Liquid Bulk Dry Bulk 1% General Cargo 2% Richardson 208,500 Potash 5% 1% Viterra A & B 362,600 Coal 15% Viterra C (idled) 231,000 Western 10 40,000 1,250,900 Grain 75% Largest Available Grain Storage Capacity in Canada

PROVINCIAL MAKE-UP OF SEAWAY GRAIN SEAWAY SHARE BY PROVINCE

Thunder Bay

Other Western Canada Ports

*excludes grain railed directly to the U.S. and Mexico PORT OF THUNDER BAY PORT OF THUNDER BAY

PORT OF THUNDER BAY THUNDER BAY PORT AUTHORITY STRATEGIC INITIATIVES

Increase & Diversify Marine Cargo

Increase Port Profile

Pursue Strategic Investments TWO-WAY CARGO

PROJECT CARGO

GRAIN THUNDER BAY PROJECT CARGO

*1 Freight Ton = 40 cubic feet. Where weight in metric tonnes is greater than volume in freight tons, weight in metric tonnes is used. PROJECT CARGO WIND TURBINES STEEL COILS & CONTAINERS COMPETITIVE ADVANTAGE • Direct connections to rail

• Largest export port on Seaway

• Single customs clearance

• No harbour maintenance tax

• Project cargo gateway to the Oilsands

• Liebherr LHM 320 Mobile Harbour Crane

$7.3 MILLION INVESTMENTS

• Intercity Property • Laydown Area Expansion • Intermodal Yard • 45-ton Toplifter • Shore Crane • Shed #4 OPPORTUNITIES

 Oilsands Investment 2010-2035: $2.1 trillion, 800,000+ new jobs

 World Grain Consumption Middle East & African Demand: 30% growth

 European Trade with Canada Canada’s Second Largest Trading Partner OPPORTUNITIES

 Growth in Western Canada AB, SK, & MB will outgrow Canada in 2011 GDP

 West Coast Congestion Increasing Coal & Potash Demand in Asia

 Ocean Vessel Freight Rates

SEAWAY INITIATIVES

Lower Cost of the System • Streamline and reduce Regulatory Costs • Innovate to reduce labour Costs

Diversify Cargo • Regular Scheduled European Service • Ease of Access for Ocean Vessels

Strategic Recognition • Ensure the Seaway’s rightful status in National and Provincial Transportation Strategies NEW LAKE VESSELS

• $500 million investment

• 12 new Lake Vessels

• More speed with less power for superior fuel efficiency

• Air emissions reduced 40% compared to existing vessels

• Maximized cargo hold capacity

• Increased manoeuvrability and safety

• Space for ballast water treatment END OF CWB MONOPOLY

• The Port of Thunder Bay has the largest grain storage capacity in North America

• The Port of Thunder Bay’s grain facilities are broadly owned

• The Seaway is a revitalized, competitive supply chain

THANK YOU