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2019 Annual Report Message from the Chair

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2019 Annual Report Message from the Chair THUNDER BAY PORT AUTHORITY 2019 ANNUAL REPORT MESSAGE FROM THE CHAIR The Port of Thunder Bay experienced a significant surge in cargo volume in 2019, reaching 9.3 million metric tonnes by year end. This was the best result since 2014 and was 7% higher than volumes in 2018. Higher grain and coal shipments contributed to the totals and it was the first year in port history that the largest share of grain shipments from Western Canada originated in the Province of Manitoba. Structural steel volumes through Keefer Terminal were weaker due to reduced construction activity in Western Canada. This was partially offset by higher shipments of rail imported from Europe. We anticipate growth in project cargo in 2020 with the resumption of wind turbine shipments to Western Canada. The Keefer Terminal reconfiguration project progressed according to plan with the completion of the new rail yard. The 50,000 square-foot heated storage building was 40% complete by year end. Total capital investment of $6.4 million was made in 2019 including $2.4 million investment by the Government of Canada and Province of Ontario, partnerships which are key to the success of this project. The project represents the largest investment in the Port’s general cargo facility in over 50 years. We are encouraged by the increased volumes through the Port and we will continue our efforts to attract cargo and new business to Thunder Bay and reinforce our ties to Western Canada. We look forward to the completion of the reconfiguration project at Keefer Terminal in 2020 which will increase cargo handling efficiency and capacity. It is our firm belief that the Port of Thunder Bay and the Seaway route provide a sustainable, safe and efficient transportation gateway with the available capacity to handle much of the projected growth in Western Canadian exports. The Port is a key driver of the economy of Northwestern Ontario and a major employer in our municipality. On behalf of the Board I would like to express our sincere appreciation and extend our thanks to each member of the staff for their dedication and hard work throughout 2019 and we look forward to working together to chart a successful 2020 for the Port of Thunder Bay. Bonny Skene Chair of the Board BOARD OF DIRECTORS The ongoing success of the Port of The Port plays a strategic role MANAGEMENT Thunder Bay benefits Thunder Bay and as Western Canada’s second Timothy V. Heney the region. Industry leaders bring decades largest grain port. Thunder Bay Chief Executive Officer of experience to the Thunder Bay Port Port Authority provides harbour Authority Board of Directors. Each level administration and supports Melvin H. Parker of government—federal, provincial and economic development through Comptroller & Corporate Secretary municipal —names a director for a term of promotion of the Port and its Guy P. Jarvis three years. The federal Transport Minister, capabilities, advocating for key Director of Engineering & Harbour Master on the recommendation of port users, issues and investing in port names the remaining four directors. infrastructure. PORT USER DIRECTORS Bonny Skene Greg Arason Tracy Buckler Charla Robinson Chair Concluded Service in 2019 FEDERAL DIRECTOR PROVINCIAL DIRECTOR MUNICIPAL DIRECTOR Dianne Miller Wade Robertson John Aiken Patrick Bushby Commenced Service in 2019 Concluded Service in 2019 Annual Report 2019 1 STRATEGY MISSION STATEMENT To promote and invest in the efficient integration of marine, rail, and road transportation systems and improve competitiveness of the Thunder Bay marine route, to advance economic growth. VISION STATEMENT The Port of Thunder Bay and the Seaway is the preferred gateway for European trade with Western Canada, and Thunder Bay Port Authority is an important facilitator of this commerce. The Port of Thunder Bay is situated on the western There has been considerable success in this initiative, and terminus of the Great Lakes – St. Lawrence Seaway TBPA has garnered a strong reputation and customer System. As Canada’s gateway to the western provinces, base. Shippers value capability and reliability when the Port is ideally positioned to handle cargo destined shipping their high-value cargoes; relationship-building for Western Canada and for movements from the is a critical component in the process of earning shipper west into the Seaway system and through to Europe. trust and securing cargo. Thunder Bay Port Authority (TBPA) is an important TBPA also promotes its strategic waterfront property, facilitator of commerce in Northwestern Ontario and Intercity Site, and advances initiatives to increase bulk administers the only major port in the region. cargo volumes through other port terminals. TBPA has aligned its business plan with its strategic A multi-modal terminal reconfiguration project at Keefer objectives which are broadly defined as follows: Terminal will be complete in 2020. This significant • Diversify and increase marine cargo; Northern Ontario transportation asset will be enhanced to the economic benefit of: • Invest in strategic infrastructure; • the Canadian transportation sector, • Promote partnerships and public • shippers in Western Canada using the East-West trade engagement. corridor, and TBPA satisfies its mandate largely through the operation • the local economy in Thunder Bay, which will experience of a premier multi-modal facility, Keefer Terminal, which job creation and a net inflow of spending in the region. has become a hub for Western-Canadian bound project The Port’s profile is maintained locally, nationally, and general cargo shipments. Ongoing initiatives and internationally through public relations and for expanding the volume and variety of marine partnerships. A strong marketing budget indicates cargo in the Port of Thunder Bay include growth and TBPA’s commitment to further enhance stakeholder and diversification of shipments via Keefer. customer relationships to achieve overall objectives. 2 Thunder Bay Port Authority PROJECT CARGO GATEWAY The Port of Thunder Bay is a seamless intermodal hub for dimensional cargo. Thunder Bay connects directly to the West with superior cargo clearance through CN and CP railways and the TransCanada Highway. The Port regularly handles wind turbines, mining equipment, structural steel, and electrical infrastructure, among other diverse cargoes. Discharge of a reactor in August 2019 TERMINAL RECONFIGURATION TBPA is reconfiguring its General Cargo Terminal to accommodate growing demand, improve cargo handling efficiency, and expand staging and storage options for shippers. Rail upgrades, expanded laydown, and an additional 50,000 square feet of clear-span heated space are New, heavy-gauge rail track nearing completion. The project will result in improvements to safety as well as reduced greenhouse gas (GHG) emissions in the Canadian transportation network. TBPA is proud to partner on this $15 million dollar project with the National Trade Corridors Fund and the Northern Ontario Heritage Fund Corporation. The project complements previous investments in the terminal including a Liebherr Mobile Harbour Crane and adjacent intermodal yard and toplifter. Construction of new facility Annual Report 2019 3 CANADA’S GRAIN PORT The 2019 season featured notably higher cargo WHERE IS GRAIN HANDLED shipments than the past several years. Detailed IN THUNDER BAY GROWN? statistics can be found on page 6. Strong shipments Thunder Bay is the primary port shipping to Eastern of prairie-grown grain buoyed the Port’s cargo volume markets for grain grown in the Canadian Prairies. to its highest level since 2014. But did you know the provincial origins of the grain transiting the Port of Thunder Bay and the Seaway Grain volumes increased by 500,000 MT over 2018 as have changed over time? Thunder Bay elevators funneled larger quantities of canola to markets in Europe and South America. Historically, Saskatchewan has been the #1 source of Seaway-moving grain, followed by Manitoba. Alberta YEAR CANOLA WHEAT OTHER TOTAL is a distant third. In recent years as crop output has 2015 1,325,277 6,113,198 580,163 8,018,638 increased in both Manitoba and Saskatchewan, Thunder Bay elevators have been receiving higher volumes of 2016 1,806,859 5,007,852 650,088 7,464,799 the closer-proximity grain from Manitoba. 2017 1,724,008 4,990,671 560,813 7,275,492 In 2019, for the first time, Manitoba was the #1 source of 2018 1,183,157 5,602,661 614,869 7,400,687 grain being shipped through the Thunder Bay - Seaway 2019 1,828,302 5,519,420 552,643 7,900,365 route. GRAIN ORIGIN TREND, 2010–2019 PERCENTAGE BY PROVINCE 80 70 60 50 40 30 Percent of total Percent 20 10 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Province of Origin Manitoba Saskatchewan Alberta 4 Thunder Bay Port Authority PORT FACTS # # # WESTERN CANADA’S MOST EFFICIENT $ 1 1 2 370 EXPORT GRAIN CANADIAN 900 PORT STORAGE PORT GRAIN PORT DIRECT JOBS MILLION ON THE CAPACITY ON THE ANNUAL ECONOMIC SEAWAY IN CANADA SEAWAY CONTRIBUTION PORT COMMODITIES SERVICE OFFERINGS CN & CP Railways Grain (Wheat, canola, oats, Trucking Companies pulse crops & seed crops) Shortest Tug Operators Railcar Cycle Time Dry Bulk Vessel Agents (to and from the (Coal, potash, stone, sand, salt) Prairies) Stevedoring Grain Inspection Liquid Bulk Fabrication Fastest (Petroleum, liquid chemicals) Vessel Turnaround Shipyard: Ship Repair Time & Shipbuilding General Cargo (Steel, rail, wind Diving Services turbines, machinery & equipment, electrical infrastructure) …and more Largest Industrial Tax Base in Thunder Bay
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