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F.11 Report Canadian Inland Ports Conference 2016

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F.11 Report Canadian Inland Ports Conference 2016 The Corporation of Delta F.11 COUNCIL REPORT Regular Meeting To: Mayor and Council From: Human Resources and Corporate Planning Department Date: September 23, 2016 Canadian Inland Ports Conference 2016 The following report has been reviewed and endorsed by the Chief Administrative Officer. • RECOMMENDATION: THAT this report be received for information. • PURPOSE: The purpose of this report is to provide an overview of the 2016 Canadian Inland Ports Conference. • BACKGROUND: The 2016 Inland Ports Conference was held in Winnipeg from September 20-21, 2016 and was attended by Councillor Bruce McDonald, Sean McGill, Director of Human Resources & Corporate Planning and Bernita Iversen, Senior Policy Analyst. The Corporate Planning group has been involved in inland port issues for several years, including the Mayor's Inland Port Working Group and the inland port study that was commissioned by Delta in 2014. Delta continues to promote the use of inland ports to mitigate the impacts of port growth on the local community, to reduce truck traffic congestion and reduce pressure to develop agricultural land near the port. • DISCUSSION: Inland ports are broadly defined as major transportation hubs where cargo is routed from seaports and broken down into smaller batches for further distribution by road, rail or air, to consumer markets. Inland ports can also act as collection centres where natural resources, such as forest products or grains, are aggregated into containers for shipment back to the seaport for export. The inland ports conference was well attended and had many excellent speakers from various countries covering a variety of issues relating to inland ports, including presentations from inland port operators, BC port authorities, airport authorities, rail companies, government agencies, shippers, producers and academia. A copy of the conference program is provided as Attachment 'A'. The conference was hosted by the Van Horne Institute (affiliated with Calgary Page 2 of 4 2016 Canadian Inland Ports Conference September 23, 2016 University) which is a leading institute of public policy and research in transportation, supply chain and logistics. Some key takeaways from the conference are summarized below: Western Canada Inland Ports: In recent years, a string of inland ports has been created across western Canada to move international shipments more efficiently from maritime ports for distribution inland to the retail market. These multi-modal hubs include road, rail and air transportation networks to enhance trade gateway efficiencies and promote real estate development, job growth and educational training. Inland ports are no longer simply transportation hubs - they are increasingly being developed as economic clusters providing a range of services and accommodating the housing, educational and recreational needs of its workforce. • CentrePort Canada - located in Winnipeg, this is the largest inland port in North America with 20,000 acres of industrial land, three Class 1 railways, a 24/7 international air cargo airport, and an international trucking hub. It is a private sector, non-profit agency created by Provincial legislation and located in two municipalities. Integrated long-term transportation and land-use planning includes 700 acres railpark, 600 acres residential, and 300 acres airpark. • Global Transportation Hub - Canada's only autonomous inland port authority is located.on 1,800 acres in Regina. It is a designated foreign trade zone and, with private investment, is growing as a significant transportation hub for agrifoods products. No government support - funded from land sales. • Port Alberta - the Edmonton inland port started in 2014 as a joint venture between Edmonton Economic Development Corporation and Edmonton International Airport. It is a designated foreign trade zone and is a key connection to Northern Canada as well as to the US. Page 3 of 4 2016 Canadian Inland Ports Conference September 23, 2016 • Calgary Region Inland Port - container traffic from Vancouver and Prince Rupert converges at two large intermodal facilities for distribution by road, rail and air to Canadian and US markets (crossroads of TransCanada Highway and Canamax Corridor). Fifty major distribution centres already established. It became a foreign trade zone in 2015 and is a voluntary collaboration across municipalities and partners. • Ashcroft Terminal - this is the closest trans-loading terminal to the Vancouver Lower mainland and is 320 acres of industrial land serviced by CP and CN mainlines. It serves 18 customers in natural resource industries transporting forestry, mining, and agricultural products to export in Vancouver. • Prince Rupert Fairview Terminal - opened in 2007 with 100% of cargo going directly from ships to inland ports via CN rail. Capacity 1.4 million TEUs with expansion plans up to 2.5 million TEUs. Container dwell times (on terminal) are the lowest on the west coast of North America (2.5 days) and transportation times to the US interior (Chicago) are 1-2 days faster than from Californian ports. The main imports are high value consumer goods going to urban centres (70% to US, 30% to Canada). To ensure efficiencies, must export natural resources. Containers are filled at inland ports (not urban centres). Government Collaboration: • New West Partnership Trade Agreement - in 2015, a single economic region encompassing British Columbia, Alberta, and Saskatchewan was created to promote economic growth in all three provinces through streamlined regulations, labour mobility and open procurement policies. • North American Strategy for Competitiveness (NASCO) - tri-national network of North American governments, businesses and educational institutions focused on improving the supply chain, logistics systems and transportation network. Future Trends: • E-Commerce is changing the face of the retail sector (the 'Amazon effect'). Speed to market · is critical with same-day delivery becoming the norm. This puts huge pressure on logistics supply - trend towards smaller distribution centres located close to centres of population. High volumes of products are moved at high speeds (in storage for 2-3 days). • Warehousing looks different - building structures are much taller, highly automated, designed for fast, efficient movement of goods. • The last mile is most important in terms of cost. There is a trend away from shopping in big box stores to online ordering and delivery to nearby stores or pick-up kiosks located in malls. Staff believe that the continued pressure to maximize the use of inland ports is important. For the marine terminal community, it means less congestion on roads, fewer environmental impacts and reduced demand to develop agricultural land close to the port, and for the inland port community, it means investment in otherwise underutilized land, jobs and economic prosperity. It is important that, as part of the Roberts Bank Terminal 2 review process, a proper business case is developed that takes into account opportunities for inland ports. Prince Rupert, Page 4 of 4 2016 Canadian Inland Ports Conference September 23, 2016 for example, takes almost 100% of its cargo directly inland by rail and has proven to be an effective business model. The potential use of inland ports such as Ashcroft Terminal, Calgary Region Inland Port and Port Alberta, must be considered as part of the Roberts Bank Terminal 2 review and decision-making process. Implications: Financial Implications - the total cost for three people to attend the conference, including registration, flights and hotel accommodation, was approximately $6,500. • CONCLUSION: The conference was an excellent opportunity to hear first-hand how rapidly inland ports are growing not just in Canada, but across North America and globally, in response to congested urban areas around seaports, and to the rapid growth in e-commerce which is fueling the development of distribution centres within easy access to main areas of population. As Delta, and other Lower Mainland municipalities, face issues of port growth, traffic congestion, and diminishing land supply, there is great potential for inland ports, and other transportation alternatives (short sea shipping) to provide solutions to address some of those problems. As the environmental assessment process for the Roberts Bank Terminal 2 project proceeds, Delta will continue to advocate for the enhanced role of inland ports in the ,movement of goods through British Columbia. ~Sean McGill Director of Human Resources and Corporate Planning Department submission prepared by: Bernita Iversen, Senior Policy Analyst F:\Bernita\Ashcroft\Winnipeg Inland Ports Conference\CR.docx • ATTACHMENT: A. Inland Ports Conference Program ATTACHMENT 'A' Page 1 of 4 ITU 2016 Canadian Inland Ports Conference fort (.(1(1)' Hilt I Wltlrllp<'q. Mn itobn Sl~fltemhl!r 20 ') I, _ 01 b Welcome to the 2016 Canadian Inland Ports Conference! Across the world, Inland Ports are being developed as an integral component of the national port system. Global trading patterns continue to evolve through the development of new and innovative strategic transportation infrastructure, such as Inland Ports, designed to create efficient and cost-effective national and international trade corridors. With seaports growing in size and capacity, an inland port provides an extremely efficient counterbalance that connects the seaport with the inland port through a dedicated rail line and/or road network that carries containers from the ships directly to the inland port to
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