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John Dolbec President & CEO moving the world through southern Ontario Wednesday, January 18, 2012. Modes of Transportation. moving the world through southern Ontario. GOODS HAVE TO MOVE! PRODUCTION OF A CAR SEAT. Specialization in manufacturing = Multiple locations Multiple suppliers.

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john dolbec president ceo moving the world through southern ontario wednesday january 18 2012
John Dolbec

President & CEO

moving the world through southern Ontario

Wednesday, January 18, 2012

slide2

Modes of Transportation

moving the world through southern Ontario

goods have to move production of a car seat
GOODS HAVE TO MOVE! PRODUCTION OF A CAR SEAT

Specialization in manufacturing =

Multiple locations

Multiple suppliers

goods have to move production of a car seat1
GOODS HAVE TO MOVE!PRODUCTION OF A CAR SEAT

95suppliers ship parts to manufacturer- 23 in Ontario, rest offshore or U.S.

Manufacturer ships 4,000seats every day to one car assembly facility

goods have to move production of a car seat2
GOODS HAVE TO MOVE!PRODUCTION OF A CAR SEAT

1,000 finished vehicles are shipped every day by rail, truck and sea

Purchase a new car?

You’ll have it within days

goods have to move that humble head of lettuce
GOODS HAVE TO MOVE!THAT HUMBLE HEAD OF LETTUCE

Grocery store example –

● grown at a farm

● packed

● shipped

● stored

● transferred to local store - still at peak

freshness

Every step requires transportation and logistics!

so what is transhub ontario
SO, WHAT ISTRANSHUB ONTARIO?

Promoting Hamilton-Burlington/Niagara and surrounding area as a Hub for the movement of goods

Economic development organization

(for the goods movement sector)

so what is transhub ontario1
SO, WHAT ISTRANSHUB ONTARIO?

Attract businesses that rely on,

or provide, transportation and logistics, create jobs

We’re already a natural transportation gateway

TransHub Ontario will leverage these assets

why are we a natural hub
WHY ARE WE ANATURALHUB?

Close to the American border

- 3 busiest border crossings

Most densely populated consumer market in Canada

- 11 million within 2-hour drive

Bustling sea port

- Busiest on the Great Lakes, including Chicago

why are we a natural hub1
WHY ARE WE ANATURAL HUB?

Busiest courier cargo airport in Canada

Multiple rail lines

Good highways in all directions

Not gridlocked – easy access,

reasonable land prices

are there other gateways hubs
ARE THERE OTHERGATEWAYS/HUBS?

Canada has three major gateways:

● CentrePort - Winnipeg

● Asia Pacific Gateway - Vancouver

● Atlantic Gateway - Halifax

New ones emerging all the time:

● Canada, U.S., Mexico

are there other hubs
ARE THERE OTHERHUBS?

Our model:

KC SmartPort in Kansas City, Missouri:

● builds on its central, Midwest location

● 8 years in operation: 60+ members

● one-million sq. foot Coleman distribution center just located there

potential impact
POTENTIAL IMPACT

Projected job increase:

  • Up to35,000direct,
  • 24,500indirect
  • Source MITL
impact of being known as a hub
IMPACT OF BEING KNOWNAS A HUB

Where will jobs come from?

  • Warehousing/distribution – from steel to pharmaceuticals
  • Manufacturing

– incentive to create goods here; transport nearby – e.g. Maple Leaf/Canada Bread

impact of being known as a hub1
IMPACT OF BEING KNOWNAS A HUB

Where will jobs come from (cont’d)?

  • Importing and exporting
  • Logistics – increasingly high-tech field transportation companies: airlines, trains, trucking and shipping
definition of logistics
DEFINITION OFLOGISTICS

“Logistics means having the rightthing, at the right place, at the right time”

logistics a growing field
LOGISTICS:A GROWING FIELD

Recent Hamilton CMA stats:

● 18,000 people already work in logistics/supply chain management!

● number has grown >8% since 2001

(25,000 including Niagara, 43,000 with K/W)

In Vancouver, logistics field grew by 10,000 jobs, or 25% since 2004 (launch of Asia Pacific Gateway)

how did transhub ontario get started
HOW DID TRANSHUB ONTARIOGET STARTED?

Impetus: McMaster University’s Institute of Transportation and Logistics (MITL)

MITL research study looked at Hamilton’s opportunity to be a gateway city

Said Hamilton shouldn’t waste time on whether it wants to be a gateway

how did transhub ontario get started1
HOW DID TRANSHUB ONTARIOGET STARTED?

“By virtue of its considerable assets, this city is already a gateway. The question is, will Hamilton be a strong gateway or an underachieving one?”

mitl study also projected
MITL STUDY ALSOPROJECTED

Fully developed Hamilton-Niagara-Burlington Hub can boost regional GDP by $4.8 billion – National $10.2 Billion

Creation of industry “clusters”

Attraction of skills and talent builds knowledge economy

Creates a more sustainable community

birth of transhub ontario
BIRTH OFTRANSHUB ONTARIO

Needed structure to capture opportunities described in MITL study

Founding organizations (Hamilton Port Authority, Hamilton International Airport, CareGo Innovative Solutions) created TransHub Ontario

Not-for-profit, membership based, Corporation

birth of transhub ontario1
BIRTH OFTRANSHUB ONTARIO

CEO and sole employee (report to board of 7 paying directors)

Companies pay annual membership fee to belong – now 32 members

Emphasis is on private sector buy-in

what s in it for transhub ontario members
WHAT’S IN IT FOR TRANSHUB ONTARIOMEMBERS?
  • Strength in numbers: Transportation/logistics industry grows overall: “The pie is bigger for everyone”
  • Benefit from collective marketing process
what s in it for transhub ontario members1
WHAT’S IN IT FOR TRANSHUB ONTARIOMEMBERS?
  • Entire sector becomes more integrated, successful, high-profile
  • TransHub acts as broker, links members with new business opportunities
slide31
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Affiliations

is city of hamilton involved
IS CITY OF HAMILTONINVOLVED?

City of Hamilton is a TransHub member (plus, Region Niagara & BEDC)

Already identified goods movement as

growth area

2 Designated persons in Ec. Dev. Dept. for transportation and logistics promotion

transhub ontario in summary
TRANSHUB ONTARIOIN SUMMARY

Building on existing strengths and assets

Promoting Hamilton and area nationally and internationally

Potential for significant economic benefits

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