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CANADIAN
Transportation
MARCH 2009
& Logistics Published Since 1898
HUMAN RESOURCES
Supply chain professionals
debate the industry’s major issues
AIR FREIGHT
Get inside Air Canada as it
redefines its cargo operations
TRANSPORTATION
Armour Transport thumbs its
nose at the faltering economy
BRIDGING THE GAP
on infrastructure spending
See if industry ambitions match political
reality with our coast-to-coast look at the
status of major infrastructure projects
MAR CTL COVER2.indd 1 3/10/09 10:30:32 AM
Relationships
Relationships
Successful businessesa are
Successful businesses built on
re built on
strong customer relationships, which
strong customer relationships, which is
is something
something thatwe
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you entrust
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.H. Robinson
Robinson wwith your
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transportation, we combine
transportation, we our diverse
combine our diverse
range of customer relationships into a
range of customer relationships into a
powerhouse
powerhouse of of knowledge that we
knowledge that we apply
apply
directly to your business. With that
directly to your business. With that kind
kind of service,
of service, you’ll
youÕllf eelfeel likeour
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or the thousands ofof relationships chrobinson.com | 800.323.7587
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©2009 C.H.C.H. Robinson
Robinson Worldwide,
Worldwide, Inc.
Inc. All Rights All Rights
Reserved. Reserved.
Logistics_Management_Ad_SimpleBlueJan09.indd 1 2/4/09 2:09:39 PM
MAR CTL COVER2.indd 2 3/10/09 10:33:01 AM
Features
22 . . . RAISING THE BAR
In these times of economic turbulence and business
uncertainly, supply chain leaders are being challenged to
raise the bar at the annual Transpo 2009 conference.
Look inside to find a list of speakers, seminars and Published Since 1898
exhibitors at this key networking event.
VOLUME 112 ISSUE NO. 3 MARCH 2009
26 . . . IT’S ALL ABOUT YOU
Supply chain professionals discuss the good, the bad,
and the highly resourceful in our first Human Resources cover
Issues Roundtable.
34 . . . AIR CANADA: REDEFINED
Having stepped away from freighters and under new
leadership, Air Canada Cargo wants to be a premium carrier.
Departments
4 VIEWPOINT
Have global supply chain responsibilities?
Don’t plan that golf vacation just yet.
6 IN THE NEWS
The St. Lawrence Seaway is pursuing infrastructure improvements
BRIDGING THE GAP P.16
in its 50th year; the BCTA is looking for a freeze on the carbon tax
in light of economic declines; Ryder System unveils a new used
vehicle facility in Quebec; and Trans-Lucent launches the newest
version of its ARM freight rate manager.
12 NEWS FOCUS
Armour Transportation Systems invests in a multi-purpose facility
near the Port of Halifax, which could play a pivotal role in the
development of the Atlantic Gateway.
14 THE LEADING EDGE
An inside look at how Purolator is working to enhance
the Web shipping experience.
36 INSIDE THE NUMBERS
How many transportation and industry mergers were recorded
in the third quarter? Plus, a look at the winners and losers in
overseas freight in Central Canada, and how various surcharges
Are we bridging the gap on infrastructure spending?
are penetrating the market.
Find out if industry ambitions match political reality
38 THE BIGGER PICTURE
with our coast-to-coast look at the status of major
The impact of transportation on total costs is
worthy of constant monitoring. infrastructure projects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .pg.16
Let your voice be heard!
Our Annual Shipper’s Choice Awards Survey rating the
performance of carriers in all modes is out.
Your response will make it a success!
www.ctl.ca CT&L MARCH 2009 3
MAR CONTENTS.indd 3 3/10/09 1:58:05 PM
view point
VOLUME 112 ISSUE NO. 3 MARCH 2009
Global supply chain responsibilities? EDITORIAL DIRECTOR
Lou Smyrlis (416) 510-6881
Don’t plan the golf vacation just yet Lou@TransportationMedia.ca
G
MANAGING EDITOR
lobalization had much to contribute to the managers with global responsibilities will be sitting Adam Ledlow (416) 510-6890
elevation of the supply chain profession from idle while the economy remains mired in its current Adam@TransportationMedia.ca
the backroom to the boardroom. economic slump? Is it time to break out the golf FEATURES EDITOR
When supply chains become so extended that clubs or worse, worry about job security? Julia Kuzeljevich (416) 510-6880
Julia@TransportationMedia.ca
they cross continents and must contend with a Perhaps yes, perhaps no.
PUBLISHER
multitude of customs regulations, currencies and The EDC study found that concerns about Nick Krukowski (416) 510-5108
modal options, it’s almost impossible to ignore the the domestic economy also hit a new high, with nick@ctl.ca
importance of supply chain managers in ensuring 57% of respondents expecting domestic condi- ACCOUNT MANAGER
Joelle Glasroth (416) 510-5104
everything falls into place as it should. The deci- tions to worsen, a 15% leap in just six months.
joelle@ctl.ca
sions supply chain managers make can be the dif- About 80% of our trade is with the US and about ART DIRECTOR
ference between having a hot product produced three-quarters of Canadian supply chain managers Mary Peligra
at a competitive price, landing in the stores just in have US trade responsibilities. But, from this side mpeligra@bizinfogroup.ca
time for a specific season or sales promotion, and the of the fence, Uncle Sam’s backyard is not looking CONTRIBUTING EDITORS
Carroll McCormick, Leo Ryan, James Menzies,
product having to be marked down because it has quite so inviting these days. A third of Canadian John G. Smith, Ian Putzger, Ken Mark
arrived too late or having unexpected costs cut into exporters now consider the US to be their riskiest MARKET PRODUCTION MANAGER
its profit margins. market. With the North American economy still John Desroche (416) 510-6756
Canadian companies are highly reliant on ex- in meltdown mode, Canadian companies will have jdesroche@bizinfogroup.ca
ports and our research shows more than a third to look at the world’s developing markets to boost VIDEO PRODUCTION MANAGER
Brad Ling
of supply chain managers have global responsibili- their sales.
RESEARCH MANAGER
ties. That figure goes up to 40% if you consider In fact, the EDC found that when it comes to Laura Moffatt
just the manufacturing sector. And it’s not like the trade opportunities, Canadian exporters are more CIRCULATION MANAGER
remaining two-thirds of supply chain managers polarized than ever before. While respondents who Diane Rakoff (416) 510-5216
drakoff@bizinfogroup.ca
just have shipping within Canada to worry about. believed that international trade opportunities will
VICE-PRESIDENT PUBLISHING
Almost 40% have responsibility for shipping within worsen grew from 23% to 38% compared to six
Alex Papanou
NAFTA. That figure goes up to 53% when we months ago, the number of respondents who be- PRESIDENT
isolate the manufacturing sector. lieved they would improve also grew to 33% from Bruce Creighton
Even as early as five years ago, up to 15% of 28% in the same period.
HEAD OFFICE: 12 Concorde Place,
North American companies were As EDC points out, these results may suggest Suite 800, Toronto, ON M3C 4J2
reporting they no longer had produc- that the growing number of Canadian exporters that
CANADIAN TRANSPORTATION & LOGISTICS is
tion on the continent, choosing instead have expanded into non-traditional markets in the written for Canadian transportation and logistics
to rely on supply chains that sourced past two years think that those opportunities will professionals who manage product flow from
manufacturer to point-of-sale. Editorial is focused
products from factories overseas. help to shore up near-term activity. With corporate on reporting, analysis and interpretation of
But the global ambitions of many revenues under considerable pressure, there is sim- Canadian logistics trends and issues.
It is published 11 times a year by
exporters have been distinctly ply more incentive to look further afield in search of BIG Magazines LP.
clipped of late. Consider the new opportunities. It’s either that or layoffs. SUBSCRIPTIONS:
latest survey of exporters con- And when the global economy does resume its Contact us at: drakoff@businessinformationgroup.ca
TEL: 416 442 5600. FAX: 416 510 6875.
ducted by Export Development stride, the problems that plagued our global supply Website: ctl.ca (click on subscription button)
Canada earlier this year. When chains before will resurface. We will still have a con-
SUBSCRIPTION RATES: Canada: $58.95 + applica-
it surveyed exporters in January, siderable gap with our US competitors when it comes ble taxes, per year; $94.95 + applicable taxes, for two
it found exporter confidence to such key indicators as total logistics costs, inventory years. U.S.A.: US$62.95 per year. All other foreign:
US$95.95 per year. Single copies $5.89 except for the
had fallen to a third consecu- turns, and penetration from outsourcing. Renewed annual Logistics Buyers’ Guide (July) $53.95 + applica-
ble taxes, (not including GST) plus $2.00 for postage.
tive all-time low over the past upward pressure on fuel pricing will force companies USA: US$64.95, Foreign: US$95.95 ISSN 1187-4295.
18 months. to seriously consider their global sourcing strategies. (Canadian Transportation & Logistics.) Indexed by
Canadian Business Periodicals Index. Printed in
The share of respondents Before the North American economic crash, we were Canada. All rights reserved. The contents of this
indicating that the global econ- already hearing of companies reconsidering whether publication may not be reproduced either in part or
in full without the consent of the copyright owner.
omy would get worse surged it would be best to continue to manufacture and POSTMASTER: Please forward forms 29B and 67B
Lou Smyrlis, MCILT to 64% from 51% in the spring to: 12 Concorde Place, Suite 800, Toronto, ON. M3C
source products from Asia or to move at least some of 4J2 Second Class Mail Registration Number 0721.
WORTH REPEATING of 2008, and 30% in the fall of that production to Mexico. Innovative supply chain U.S. Office of Publication, 2424 Niagara Falls Blvd.,
Niagara Falls, NY 14304-0357. U.S. postmaster: Send
“These days, if you’re 2007. The percentage of export- management thinking will have a large role to play in address changes to Canadian Transportation & Logistics,
not full in both directions, ers expecting their international such decisions. PO Box 1118, Niagara Falls, NY 14304. USPS 769-370.
you can’t make it.” PUBLICATIONS MAIL AGREEMENT 40069240
sales to remain the same or And all that combined indicates to me that We acknowledge the financial support of the Government
– Tom Kirk, worsen jumped to 62% in the supply chain managers with global responsibilities
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director of cargo PAP Registration No.11023
development, Calgary fall, the highest level ever. shouldn’t be planning that long-hoped for golf vaca-
International Airport Does this mean supply chain tion just yet. Sorry. CT&L MEMBER CANADIAN BUSINESS PRESS
@ARTICLECATEGORY:129 CANADIAN CIRCULATIONS AUDIT BOARD
4 CT&L MARCH 2009
Audit Bureau of Circulations
CITT09E
MAR VIEWPOINT .indd 4 3/10/09 10:35:01 AM
CITT09E-PA01-bringiton APRIL - O1 1 2/25/2009 4:08:43 PM MAR NEWS P. 6,8.indd 5 3/10/09 10:36:42 AM
in thenews
50th Anniversary Year
St. Lawrence Seaway pursues infrastructure improvements
By Leo Ryan
W
hile pursuing infrastructure improvements and busi- million tonnes in 2007. Grain cargo totalled 7.5 million tonnes
ness incentives to stop a steady decline in traffic, the versus the 10.4 million tonnes a year earlier. General cargo was
St. Lawrence Seaway will launch a new navigation sea- down as well, as steel imports from Europe continued to be weak.
son March 3 that will have a historic dimension. It will coincide Holding their own were iron ore, coal and other bulk. At 4,267,
with the waterway’s 50th anniversary and the Seaway’s Canadian there were nearly 200 fewer vessel transits.
section’s second decade under private sector management. The grain traffic problem was exacerbated by the decrease in
The Seaway is one of the world’s great engineering marvels to ocean-going vessels entering the Seaway due to higher financial
the benefit of commercial shipping along with the Suez and Pan- returns available from purely ocean voyages at current freight
ama canals, allowing vessels trading on the Atlantic Ocean and on rates. These vessels could usually be counted upon to load grain
the Great Lakes to penetrate deep into the industrial heartland of from ports like Toledo and Duluth as backhaul.
North America. April 25 will mark the day of the first freighter Initially, when the 2008 navigation season opened, Richard Cor-
transit in 1959. And June 26 will be the golden anniversary of the fe, president of the St. Lawrence Seaway Management Corporation
Seaway’s official opening at the St. Lambert Lock in Montreal by (SLSMC), had cautiously predicted a 3% growth in volume.
Queen Elizabeth and US President Eisenhower. It was hoped that the Seaway, thanks to additional cargo in-
Between 1959 and today, more than two billion tonnes of centives, would gain up to one million tonnes of new business.
cargo valued at approximately $300 billion have moved to and Here, expectations were only partly met, although there was a
from Canada, the US and some 50 nations. The leading com- bright spot in the first trial shipment by barge from Hamilton
modities have traditionally been grain, coal and iron ore. Almost to Montreal of 68 containers of recycled metals destined for In-
one quarter of Seaway traffic travels to and from overseas ports, dia and Pakistan. Today, another cargo slide appears inevitable in
especially in Europe, the Middle East and Africa. 2009 amidst the current global recession.
The Seaway system of locks and channels remains a crucial Within such a challenging context, the Seaway authorities
waterway on the continent. But historical statistics offer a so- are resolutely maintaining an innovative approach to expand the
bering message. In 1959, the Seaway handled about 25 million waterway’s potential as a continental trade corridor. New tech-
tonnes. By the late 1970’s this had soared to 66 million tonnes. nology such as a hands-free mooring system through the locks
But ever since, there has been a constant decline amidst chang- should attract a wider range of vessels.
ing world trade and transportation trends. In its heyday, the Sea- In 2007/2008, more than $38 million was spent on asset
way handled substantial volumes of grain, with Russia and Europe renewal. During the 2008 winter, substantial projects were
as large customers. This has not been the case for several decades completed to upgrade the condition of the waterway’s infrastruc-
as European markets declined and Canadian grain exports shifted ture – including development of a vessel self-spotting system,
to China. At the same time, ocean-bound ships got bigger and the hydraulic conversion of locks, changing locking mechanisms
bigger (unable to pass through Seaway locks), and competition and concrete repairs to lock walls and chambers. For the next
grew from railways, coastal ports and the Mississippi system. five years, the SLMSC has earmarked $270 million in asset
In 2008, total traffic slipped to 40.7 million tonnes from 43 renewal expenditures.
As economy declines, BCTA asks has experienced a 23% decline in employ- “While fuel prices have fallen from their
for freeze on carbon tax ment between December and January. He record highs, contrary to historic experi-
As the economy continues to decline, the added that B.C.’s transportation industry ence, diesel prices continue to be ‘sticky’
B.C. Trucking Association’s president and itself suffered a 27% job loss rate – most of and remain higher than gasoline prices,” he
CEO is asking B.C. Premier Gordon Camp- which involved full-time jobs held by men said in the letter.
bell to freeze the province’s carbon tax. between the ages of 25 and 54. Landry also “The trucking industry, largely com-
In a recent letter to the provincial gov- referenced the Canadian Trucking Human prised of small businesses (almost 90% op-
ernment, BCTA president Paul Landry ref- Resources Council, which states that “truck erate only one or two trucks) already faced
erenced Statistics Canada, which states that driver” is the second most commonly held with low margins, will be particularly hard
the transportation and warehousing sector job by adult males in this country. hit,” he added. “Under these circumstances,
66 ct&l march 2009 www.ctl.ca
MAR NEWS P. 6,8.indd 6 3/10/09 10:36:44 AM
285-4008 Spitzenwerte EN 206x276:285-4008 Spitzenwerte EN 206x276 RZ 15.12.2008 10:34 Uhr Seite 1
Peak performance.
We invest in the security of your freight – day by day,
route by route, station by station. As the first cargo airline
to have obtained IOSA Security Certification we are also
the first carrier that has upgraded its major stations to
security hubs. www.lufthansa-cargo.com
Jobnr: 285-4008 · Kunde: LH Cargo · MASTER A4 HOCH • Spitzenwerte Engl • Medium Canadian Transportation & Logistic:
MAR NEWS P. 6,8.indd 7 3/10/09 10:36:46 AM
Farben: 4 fb. (4c Euroskala) · Anlageformat = Endformat: B 210 mm x H 297 mm (1/1 + 3mm Beschnitt)
in thenews
it would seem reasonable to freeze the car- in the trucking industry are already in low mains committed to reducing greenhouse
bon tax at the July 1, 2008 rate, and not in- income tax brackets, and that fuel costs are gases, through the work of the BCTA’s own
crease it in 2009. While we recognized that often the highest or second highest operat- initiatives on climate action.
the carbon tax was not intended to be rev- ing cost for these companies, the carbon tax “However, the carbon tax dollars that
enue neutral for each industry sector, given is particularly punishing for our sector.” our industry would be forced to give up,
that most companies and owner/operators Landry indicated that the industry re- would otherwise help many of our small
businesses to stay afloat, and in some cases,
make investment choices that would ben-
efit the economy and the environment.”
Ryder unveils new used
vehicle facility in Quebec
Ryder System has announced the grand
opening of its new retail used vehicle facil-
ity located in Vaudreuil-Dorion, Que. The
facility is located at 2399 rue Henry Ford
at the intersection of highways A540, A20,
and L’autoroute du Souvenir A542.
“Quebec is an important market for us and
we are proud to establish this retail location
to serve the growing needs of the Canadian
marketplace,” said Tony Tegnelia, president
of fleet management solutions for Ryder.
The facility is located on four acres and
showcases more than 250 vehicles, includ-
ing panel vans, light- and heavy-duty straight
trucks, and tractors. Officials say the facility
will support Ryder’s existing commercial
rental business as well as other “prospects”
in the Western Montreal market.
“This centralized location was built to
Working to earn your business. better serve the needs of our valued cus-
tomers and accommodate the increasing
Port Metro Vancouver is Canada’s largest and most demand for our quality Ryder Road Ready
diversified port. Maintaining relationships to respond vehicles and commercial rental needs in this
to your needs, developing supply chain improvements expanding market,” said Gregg Nierenberg,
with our partners and ensuring port capacity, now Ryder’s group director of vehicle sales. “This
and in the future, are just some of the contributions reaffirms Ryder’s commitment to providing
you can expect from Port Metro Vancouver. For more alternative solutions to support the trans-
information, visit portmetrovancouver.com portation needs of Canada.”
To view Ryder’s complete used vehicle
sales inventory at the Vaudreuil facility,
visit www.ryderusedtrucks.ca or call 1-800-
USED-TRK.
Trans-Lucent launches new version
of its ARM Freight Rate Manager
Trans-Lucent Markets has launched the lat-
est version of its AccuFreight Rate Manager
(ARM). The upgraded ARM 3 includes en-
hanced features and the new Load Tender
ct&l march 2009 www.ctl.ca
!PMV693_Various.indd 1 3/2/09 3:44:15 PM
SCL Ra
MAR NEWS P. 6,8.indd 8 3/10/09 10:36:50 AM
Wasserman & Partners Inc. Prepared by Traction Creative Communications
CMYK
SCL Canada & CITA present the 42nd Annual Conference
Supply Chain Leadership - Raising the Bar
Featuring the Exhibition
April 28 - 29, 2009
Paramount Conference & Event Venue
Toronto, Ontario
This year’s conference theme encompasses the challenges of achieving
organizational success in an unprecedented business environment.
The need for strong leadership at all levels of the supply chain is
integral to overcoming these challenges and thriving despite
them. The conference is an opportunity for delegates to learn,
first-hand, about innovative strategies to “raise the bar” on
supply chain performance.
In planning for the 2009 event, SCL has diligently
explored new ways to address the ever-changing
demands of the profession. The need for you and
your organization to invest in acquiring the
Randall Craig
knowledge and expertise to meet the challenges President
Pinetree Advisors Inc.
ahead couldn’t be greater.
Catriona Le May Doan
Two-time Olympic Champion
For more information and to register to attend,
please visit: www.sclcanada.org or call us toll free at
Paul Ferley
Assistant Chief Economist
RBC Royal Bank
1 866 456 1231
SENIOR NATIONAL PARTNER
ANNUAL CONFERENCE PARTNERS MEDIA PARTNER
SCL Raising the bar ad CT&L.indd 1 2/13/09 10:37:16 AM
MAR NEWS P. 6,8.indd 9 3/10/09 10:36:51 AM
in thenews
news
function which was designed to allow ship- entered for the freight rate look-up, ARM time and generates a report that can help
pers to submit a pick-up request without is designed to generate a load tender that is users identify the best choice for their ship-
leaving the ARM Web site. e-mailed to the carrier; no login is required ment by adjusting the carrier’s rating.
“This is the next step for us in full logis- by the carrier and the carrier is sent a unique Trans-Lucent officials say other new
tics support for our customers,” says Shelina URL (link) that they can access to view the features include fully redesigned rate load-
Lalani, president of Trans-Lucent. “Our information from the tender. ing and management, carrier rating system,
clients no longer have to use multiple Web If accepted by the carrier, the client will support for loading and searching courier
sites, or wait on hold while they are trying be notified, if not accepted ARM 3 will then rates, improved reporting on loaded rate
to book a pick-up for their shipment. ARM send a request to the next carrier on the list batches, improved look-ups for location
3 will do it for them.” and so on until a pick-up has been sched- names, improved user administration and
The AccuFreight Rate Manager (ARM) uled, Trans-Lucent officials say. a new system for managing and calculating
is an online, freight rate management system “This function will save our clients a lot accessorial rates.
designed for shippers to access and manage of time, and ultimately money,” says Lalani With 24/7 online access, ARM is designed
their current rate information and help com- “And that is the goal of our entire system.” to allows users to load their own carrier rates
panies determine their most cost-effective Also new to ARM3 is the capability into the system easily, identifies the best
carriers and easiest shipping methods. to produce Carrier Performance Reports. shipping options, can query fuel and other
With the new Load Tender function, ARM 3 is designed to gather information extra charges by lane and carrier as well as
clients can choose their top carriers from related to the reliability of carrier (ie. how conduct internal audits on contracted carrier
the list returned by ‘Find the Best Rate’ many times they have accepted a pick-up, rates. The system can be queried to return
and automatically schedule a pick-up re- number of early or late pick-ups etc.) and results on specific types of shipments, lanes,
quest. Using the shipment details that were on how each carrier has performed over and modes, the company announced.
10 ct&l march 2009 www.ctl.ca
MAR NEWS P. 6,8.indd 10 3/10/09 10:36:53 AMThe BROOKS Name on the Seal:
Your Insurance of Compliance
And we can prove it.
How can you visually determine whether the seals you’re using are in compliance with ISO 17712?
The fact is that you can’t. No one can. That’s why you need to ask your supplier for three things:
1. ISO Test Results
2. ISO Accreditation of their Independent Laboratory
3. Best Practices Assessment as outlined in Annex A of ISO 17712 Standard
If your supplier fails to provide these documents, you need to ask why? After all, if there is ever a
Customs audit, that’s what they may ask. At Brooks, we not only provide this information upon
request, we clearly post test results on our web site for your review at any time. Go ahead, look it up.
Whether or not you’re C-TPAT certified, you owe it to your customers to comply with ISO 17712
standards in order to protect their cargo from theft and terrorism.
Concerned about the cost of compliance? You may want to review the results of a recent
cost/benefits study conducted for the US Customs and Border Protection by the University of
Virginia. The study determined that a majority of participants feel that C-TPAT benefits outweigh
the cost, and more than 91% have never considered opting out of the program. To see a copy of
this report, visit our web site and link to the study.
BROOKS MEANS COMPLIANCE®
For more information on how C-TPAT rulings will affect your company, as well as complete
information on our product lines, please visit our web site at
www.brookseals.com.
SECURITY PRODUCTS GROUP
BROOKS U.S.A/Mexico 800-458-7325
BROOKS CANADA 800-663-4292 More Choices. More Solutions.™
BROOKS EUROPE +44 (0) 1886-812-427
BROOKS ASIA +65 6276 3478
MAR P.11 ad.indd 11 3/10/09 11:08:35 AMnews focus
Armour opens new multi-purpose
facility near Port of Halifax
Transportation giant continues to invest despite weak economy
By Adam Ledlow
A
rmour Transportation Armour also took the
Systems, one of the opportunity to plug an-
largest and most rec- other new source of an-
ognizable transportation com- ticipation for businesses
panies in Atlantic Canada, has in the region: the creation
thumbed its nose at the falter- of the Atlantic Gateway
ing world economy with the Council. Armour, who will
creation of a new multi-purpose serve as interim chair of the
facility in Dartmouth, N.S. Atlantic Gateway Council,
A crowd of 500 strong said the council will “pro-
were in attendance Feb. 5 vide regional and global
for the grand opening of the terminal, located on 25 acres in the perspectives to support the ongoing development of Atlantic Gateway
Atlantic-Gateway Halifax Logistics Park. The $15-million project initiatives. Our interests are to support Canada’s international trade
was completed in January. competitiveness, and to ensure the greatest possible long-term benefits
President and CEO Wes Armour thanked the company’s em- to the entire Atlantic region.”
ployees, customers, suppliers, the Halifax Regional Municipality, and The group consists of 13 individuals from the private sector from a
contractors, whom he credited as making the construction of the new wide range of industries. In addition to Armour, the following individu-
facility possible. als have committed to being part of the council: Joseph Randell of
“The new Darmouth terminal will allow us to meet new growth and Jazz Air; Doug Rose of Halterm Container Terminal; Henry Demone
continued demand into the future,” Armour said. “By including capacity of High Liner Foods; Joseph Shannon of Atlantic Corporation; David
to handle container traffic as part of this complex, Armour is showing its Ganong of Ganong Bros; James Irving of Irving Pulp and Paper Limited;
commitment to the Atlantic Gateway and encouraging exporters and Derek Oland of Moosehead Breweries; Captain Sidney Hynes of
importers to make the Port of Halifax their port of choice.” Oceanex; Tanny (Bernard) Collins of P.F. Collins; Wade MacLauchlan
The facility features more than 100,000 sq. ft. of logistics ware- of the University of Prince Edward Island; Francois Hebert of Canadian
housing space featuring 22 loading doors, and cross-dock capacity with National Railway; and Patrick Sinnott of Canadian Tire Corporation.
60 doors. A three-bay, state-of-the-art maintenance depot is designed Armour said the council will provide a strong business voice to
to service Armour’s fleet of more than 3,400 pieces of equipment. inform the development of the Atlantic Gateway, and will comple-
Boasting twice the dock space of Armour’s previous terminal, the ment existing Gateway Councils in Atlantic Canada.
terminal has also implemented an innovative cross-dock scanning sys- The Honourable Peter MacKay, minister of National Defence
tem, designed to effectively manage freight movement. Officials say and minister for the Atlantic Gateway, provided a pre-recorded
a potential second phase could offer an additional 90,000 sq. ft. of video message for the event, congratulating Armour Transportation
warehousing space. Systems for their new facility and also singing praises of the new
Armour officials are calling the new facility a “total transportation so- Atlantic Gateway Council.
lution under one roof” for warehousing, LTL and courier service needs. “I am very impressed with the calibre of the business leaders on the
“This investment in our Halifax facility demonstrates our commit- council – it speaks volumes about the private sector’s belief in the poten-
ment to providing our existing and future customers with specialized tial of the Atlantic Gateway. I look forward to a collaborative relationship
services, including those specifically designed to service the Port of with them over the coming months,” MacKay said in the message.
Halifax and beyond,” Armour said. “With the increasing growth in the To see clips of the grand opening ceremony and for a tour of the facility,
Burnside Industrial Park as well as close proximity to the bridge for visit our WebTV show, Transportation Matters, at www.ctl.ca/video/list.
servicing downtown Halifax and freight arriving through the Port, easy asp. To hear Wes Armour’s thoughts on the challenges of operating in an
access to the highway and routes in all directions outside of the city, we economic downturn, watch part 1 of our Decisions 2009 roundtable at
are situated in the perfect location to meet this growth.” www.trucknews.com/Video/transportationmatters39.asp. CT&L
12 ct&l march 2009 www.ctl.ca
MAR NEWSFOCUS P.12.indd 12 3/10/09 10:39:55 AMMAR NEWSFOCUS P.12.indd 13 3/10/09 10:39:56 AM
the leading edge by ken mark
more choice, fewer complications
An inside look at how Purolator is working to enhance the Web shipping experience
T
o help customers optimize their warehouse management systems (WMS) etc. more strategic pricing policies.
shipping needs during the current – so they can communicate easily with each Tighter connectivity delivers automated,
economic meltdown, Purolator has other. Web-based EDI (electronic data interchange)
been actively introducing new services. Purolator’s legacy billing system had thou- that eliminates manual, paper-based transac-
“Our new E-Ship Online system, available sands of different applications that included tions such as purchase orders, invoices and
at our retail centres, offers our customers Cobol and other museum-quality program- advanced shipment notices (ASNs). More
more choices, more quickly,” says Jim Mc- ming languages. Now with BizTalk in place, important, it replaces older one-to-one,
Dade, Purolator’s Mississauga-based senior Purolator has cut the number of different busi- hard-wired, value-added networks (VANs)
vice-president and CIO. ness application systems to three from 40. that were complicated, hard-to-use and ex-
“Our Web shipping now offers both In this way, Biztalk integrated Purolator’s pensive since messages were sent over long-
new products and improved service deliv- existing IT infrastructure’s “spaghetti” code distance phone lines.
ery precision. We’re also able to help larger into a single interoperable system. Internally, The changeover was a business – not a
customers who have E-Ship Server systems all Purolator users and departments now technology – initiative. “Our older infra-
onsite spend their money more wisely by work together as a cohesive whole. Exter- structure was adequate 10 years ago when
providing greater detail on their shipping nally, partners, customers and suppliers can annual revenues were about $500 million,”
through enhanced reporting, searching, and collaborate more easily by simply connecting says McDade. “Now, it has almost tripled to
visibility of information.” into Purolator’s IT infrastructure. $1.5 billion so we had to renew and revital-
Such timely line-up additions are the re- BizTalk became a game changer when it ize the system.
sult of Purolator’s newfound agility and flex- enabled Purolator to scan the proprietary sym- “That’s important because as the larg-
ibility from its continuing Microsoft BizTalk bologies or barcodes of a new global partner est courier company in Canada, we handle
server implementation. It offers a new enter- within three months. “Before, it would have 1.1 million packages a day. We deal with
prise integration application (EIA) platform required at least 12 months of lead time,” says 230,000 identified business customers across
that seamlessly links together Purolator’s ex- McDade. “We had to link up their unique different channels such as Web-based and re-
isting tangle of business application systems. barcode configurations throughout our inter- tail. Customers wanted us to offer new prod-
Previously, most of them could not talk to nal, end-to-end operations. ucts and services across different modes.”
each other because they were based on dif- “BizTalk simplified and accelerated the The introduction of Purolator’s new E-
ferent operating languages. integration because we only needed to make Ship Online system has been in the works
And the implementation has made a dif- changes to three core systems, not 40.” since 2005 when Purolator introduced a
ference. Since September 2007, the business By delivering better market intelligence, multi-million dollar, company-wide invest-
volume on Purolator’s online channel has the new approach also enables executives ment program focused on introducing mar-
increased 20% resulting from new and differ- and planners to look at operations in new ket-driven new services, accelerated technol-
ent service offerings. ways. For example, before, Purolator based ogy solutions, flexible pricing, more efficient
“We saw the project as an opportunity its pricing on zone-to-zone rather than point- freight movements, streamlined internal pro-
to reposition the company through greater to-point movements. The new system now cesses and enhanced infrastructure.
business agility that would enable us to con- incorporates postal code data so on the cus- It has been a massive undertaking involv-
tinue enhancing our products and services,” tomer side, Purolator can be more precise ing more than 300 contributors including
says McDade. about estimating delivery times and pricing. staff from Innovapost (a shared corporate IT
The key to IT system interoperabil- And on the management side, armed with a service with its parent, Canada Post) as well
ity comes from Microsoft’s .NET technology clearer picture of traffic within specific post- as external consultants from CGI, Microsoft,
that creates adapters that knit together vari- al code areas, Purolator can use assets more Kewill, SAP, Accenture and Avande. About
ous business applications – data warehousing, productively by “flooding the zone” with ve- 40 cross-functional Purolator employees also
customer relationship management (CRM), hicles for high-volume areas and introducing participated.
14 ct&l march 2009 www.ctl.ca
MAR LEADING P.14.15.indd 14 3/10/09 10:40:46 AMThe dedicated 40-person in-house con- 1,000 packages per day can enjoy capacity transportation management systems (TMS)
tingent from core operations worked along- levels of 200 to 300 labels per hour while us- and ERP backbones and take them into its
side the IT department for more than a ing up to 10 different shipping systems. Biz- own back-end system to create labels.
year to ensure the new system would meet Talk facilitates the integration of more third- If Purolator can continue to roll out such in-
Purolator’s business needs. In fact, the vice- party (i.e. non-Purolator) shipping systems. novative products and services, both the com-
president of marketing was charged with de- For example, BizTalk can pull data from pany and its customers should come through
signing the new line of products and services Pitney Bowes or other applications such as the economic troubles in fine shape. CT&L
while the billing manager supervised the
redevelopment of the back-end system.
Such upfront participation all but elimi-
nated any later pushback from front-line staff iV >ÀÊÞÕÀÊvÀi} ÌÊÀ>ÌiÃ
by making their jobs easier. Since the technol-
ogy is submerged in the business processes,
ÜÌ ÊVVÕÀi} ÌÊ`iÝÊ ®°
employees recognized it as an enabler rather
than a constraint. Business users can now
deploy applications to generate their own re-
ports and fulfill other tasks without calling on
the IT department.
Still, the IT side enjoys its share of BizTalk
benefits. “As a result of new tools such as a
visual composer as well as BizTalk’s simpli-
fied operation and standardized processes, it
is easier to find and keep talent,” says Laura
Dobson, Mississauga-based architectural ad-
visor for Innovapost.
“IT staff spend less time on maintenance
and have more time to work on other more
interesting and productive activities. And
since the .NET platform is new and excit-
ing, all programmers want to learn more
about it.”
Moreover, the implementation group
solicited feedback from internal users and
external customers in developing the new
system. For example, their suggestions led to
changing screen sequences and word defini-
tions as well as repositioning screen objects to
make using it more intuitive.
Such an outreach initiative was key to Pu- 7ITH THE LAUNCH OF #ANADAS FIRST WEB BASED BENCHMARKING TOOL THE
rolator’s “no customer left behind” strategy.
!CCU&REIGHT )NDEX !&) SUBSCRIBERS CAN NOW BENCHMARK FREIGHT RATES
“We did not lose a single customer because of
FOR SHIPPING LANES WITHIN #ANADA AND BETWEEN #ANADA AND THE 53
the new technology,” says McDade.
The BizTalk implementation led to 18 AGAINST CURRENT MARKET RATES /NLINE INSTANTLY RIGHT AT YOUR OWN DESKTOP
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since existing pick-up, estimating and mani- #ALL TODAY TO BOOK YOUR FREE ONLINE DEMO
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at same time and through innovation make -ANA GEMENT 3OLUTIONS 4%-3 0ROVIDER
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Large customers handling more than
www.ctl.ca ct&l march 2009 15
4RANS ,UCENT !&) !D #ANADIAN ,OGISTICS -AGAZINE
(ALF )SLAND !D v 8 v
MAR LEADING P.14.15.indd 15 3/10/09 10:40:47 AMcover story
BRIDGING THE GAP
on infrastructure spending
See if industry ambitions match political
reality with our coast-to-coast look at the
status of major infrastructure projects
By Julia Kuzeljevich
16 ct&l march 2009 www.ctl.ca
MAR C.STORY P.16.20.indd 16 3/10/09 10:45:45 AMcover story
I
n every cloud, a silver lining, or so the saying goes. And if a Water Bridge in Sarnia and the Peace Bridge in Fort Erie; $42 million
recession can offer any benefit, perhaps it’s that it forces one for rehabilitation of several bridges in the National Capital Region; the
to plan ahead, and not to repeat the errors of the past. Burlington Lift and the LaSalle Causeway in Kingston; and funding to
Recessions can also mean more monies for spending as a way modernize and expand border service facilities in Prescott, Ont.
to kick start the economy. The recent federal budget is no excep- At the West Toronto Diamond in downtown Toronto, meanwhile, a
tion: it has allocated some $12 billion in new money for roads, bridges, $227-million grade separation is underway that will separate GO train
railways, and other infrastructure in Canada over the next two years. commuter rail lines and Canadian Pacific Railway’s freight trains. The
Key to this budget stimulus, though, will be the speed at which CN tracks along the Georgetown line will be lowered to run below
projects can feasibly get off the ground and how successfully they will CP’s North Toronto line rather than across it. The new underpass is
act to counter the current obstacles to trade flow across the country. aimed at eliminating scheduling conflicts between CP freight trains
In June 2007, the provinces of Ontario and Quebec signed an and GO trains, with completion expected by spring 2011.
MOU with the federal government on the development of an Ontario- More such grade separations would be welcomed by the rail indus-
Quebec continental trade corridor. try. Peter Ladouceur, assistant vice-president of marketing with CN,
A comprehensive strategy on this corridor is expected this fall, with speaking at the recent Ontario-Quebec Gateway conference, said that
input from all the modal stakeholders, said growth in trade is constrained by lagging
Christine Burr, assistant deputy minister for investments in road/rail grade separations.
Transport Canada. Early in 2009, deputy
“The problem is that “These improve safety and create ca-
ministers from the respective provinces many of these projects, pacity,” he said. The separations would
and the federal government were due to also facilitate yard switching away from
present briefs on the input gathered so far given the money today, city cores.
from the private sector advisory committee, Ladouceur said that CN has built over
shippers, carriers, the Ontario and Quebec
wouldn’t be able to get ready 100 new 10,000-ft. sidings since 2000 in
chambers of commerce, and from the St. until next year. Small projects are high density areas, and has moved inter-
Lawrence Seaway. mediate signals to 15 miles apart from
Many of the stakeholders already know ready to go, but they just don’t 30, to keep a better flow of traffic. The
the direction they need to take and the company will also add more DP locomo-
challenges ahead.
have the cash. A lot falls under tives to its fleet in 2009. These locomo-
“In my view (infrastructure) is taking municipal purview. To the extent tives, placed in the middle of the train,
much too long. We need appropriate envi- make it easier to run longer lengths during
ronmental assessments under a compressed that the governments can transfer winter months, he said.
timeframe,” said Bob Ballantyne, president The province of Quebec has embarked
of the Canadian Industrial Transportation
money, we can get going on on a four-year plan, begun in 2007 and
Association (CITA), commenting at a re- smaller, important projects budgeted at $11 billion, to improve its
cent conference that examined challenges bridges and overpasses, with an indepen-
for the Ontario-Quebec Continental more quickly.” dent agency that will oversee the 4,400
Gateway and Trade Corridor. bridges and overpasses in the province.
While a federal infrastructure stimulus The January budget also allocated an
package is by no means guaranteed to improve the country’s economic additional $212 million for rehabilitation of the Champlain Bridge
woes, even before the budget package, there was positive evidence that in Montreal, as well as funding to complete the twinning of Highway
many levels of government were starting to put their money where 185, and road upgrades in the Quebec City area.
their mouths were on trade and infrastructure needs. Another important development in the progress of strategy-
At a Jan. 1 Ministers’ meeting, Ontario Premier Dalton McGuinty building on the Ontario-Quebec corridor is the St. Lawrence and
asked prime minister Stephen Harper to consider the possibility of Great Lakes (SLGL) Trade Corridor Study, which was produced for
having only one environmental assessment per project for both levels the St. Lawrence-Great Lakes Trade Corridor Leadership Council
of government, to speed projects along. by the IBI Group.
And the Building Canada plan, introduced in 2007, has already al- The study, released in September, recommended consolidating the
located $17.6 billion over seven years through the Gas Tax Fund and Port of Montreal as the hub for container traffic in the SLGL system
the GST Rebate, with a total of $33 billion planned for infrastructure. and improving rail links and highways to better serve the hinterland
The Gateways and Border Crossings Fund as well as the Public Private and the US market.
Partnerships Fund also fall under this plan. The same study recommended developing the Port of Quebec’s
So how far have gateway strategies progressed? Actions, of course, deepwater transhipment capacity to consolidate it as the hub for dry
speak louder than words. bulk and liquid bulk traffic, and increasing the deepwater capacity of
Ontario will get funding for targeted twinning improvements to a Sept-Îles to meet the North Shore mining industry’s growing needs.
number of segments of Highways 11 and 17; $15 million for the Blue “We should capitalize on each port’s strength and this is why we
www.ctl.ca ct&l march 2009 17
MAR C.STORY P.16.20.indd 17 3/11/09 1:54:21 PMcover story
agree with these recommendations. We believe they are moving in and Detroit, and make the necessary adjustments to meet the clear-
the right direction for increasing the competitiveness of the transpor- ance capacity for double-stacked high-cube containers,” said Pelletier.
tation network in Eastern Canada,” said Port of Montreal president The St. Lawrence Trade Corridor Working Groups also reached
Patrice Pelletier. “strategic consensus” on a number of other obstacles to trade, many
Pelletier said that the Montreal Port Authority is looking for part- of them regulatory.
ners this year to build and operate a $592-million container facility They are seeking the abolishment of the 25% tariff on the importa-
that will help the port expand into US markets. tion of foreign-built vessels and on foreign modifications to Canadian
“The location of this new container facility will be decided towards flag vessels.
the end of this year. The choice for the new terminal is between Arcelor Mittal Dofasco executive and chair of the Chamber of
Montreal East and Contrecoeur. Once the decision is taken, we plan Marine Commerce, Michael Kennedy, said that the tariff was “detri-
to issue a request for proposals in 2010, with construction beginning mental to the competitiveness of Canadian companies depending on
in 2011. This new terminal, which is part of Phase III of the Port’s marine transport”, “detrimental to the St. Lawrence Seaway as a gate-
expansion program Vision 2020, will bring additional capacity of way initiative”, and an “obstacle to the short-sea shipping initiative.”
1 million TEUs by 2014 -2016,” Pelletier told CT&L. The study also called for harmonization between the provinces on
In the meantime, he said the port has started transforming the trucking regulations, because of conflicting size and weight clearances
existing Hochela-Viau bulk terminal into a new container terminal in different provinces.
which will bring the port’s capacity to 2.5 million TEUs. “It is easier to ship oversized freight by road into or through the US
A plan to introduce a main trucking gate that would accelerate than across Canada,” noted the study.
the flow of traffic is also still in the works, with 2011 as a possible “The ports along the St. Lawrence work together to find ways of
timeframe. increasing their efficiency and competitiveness. We don’t see ourselves
“We support any move that would directly benefit our clients, such as competing on each others’ territory or for investment. On the con-
as improving freight capacity and speeding delivery in Canada and trary, we all agree that we should take a holistic approach to the St.
the US, especially from Montreal to Chicago. One such improvement Lawrence and Great Lakes trade corridor by promoting a system that
would be to move ahead with the long-proposed tunnel expansion for is well defined, well organized and which favours the interdependence
Canadian Pacific Railway under the Detroit River between Windsor of the various actors,” said Pelletier.
T H E G R E A T L A K E S S T . L A W R E N C E S E A W A Y S Y S T E M
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18 ct&l march 2009 www.ctl.ca
MAR C.STORY P.16.20.indd 18 3/10/09 10:45:49 AMcover story
Atlantic Canada weight, success comes from the private sector. will complement existing Gateway Councils
In this region, there is a really strong sense that in Atlantic Canada.”
In Atlantic Canada, a number of regional people need to work together. Support for the Armour, of Armour Transportation
gateway councils are working together to gateway is bigger than any one stakeholder Systems, has also just opened a new trans-
develop strategies for the greater Atlantic interest,” said Chris Brooks of the Atlantic load facility in the Atlantic Gateway Halifax
Gateway initiative. Collaboration amongst Canada Opportunities Agency. Logistics Park, which itself opened in June to
these councils will be instrumental in deliver- Wes Armour will act as interim chair of serve the logistics industry.
ing on concrete goals for the area. the private sector council, which aims to pro- Across the Atlantic region, the federal
“We see it in three phases. The first wave vide “a strong business voice to inform the budget has also injected funding for several
tends to be government funding. The sec- development of the Atlantic Gateway, and infrastructure-related works, including funding
ond is the modes coming together to plan
priorities through Atlantic Gateway, and
the third wave is regional collaboration,”
said Stephen Dempsey, chair of the Halifax
Gateway Council.
Priorities for the region include monies Are you moving at HaliMAX?
for the Halifax logistics and distribution park
with an expressway to link the 100 series
highway, and expansion of the waterfront
in Saint John, but also ones that go beyond
physical infrastructure to encompass security
and access at the border, policies that review
cabotage issues, a review of rail service, and
funds to market the gateway.
“All the modes need to connect very tight-
ly. When you get down to the links, if they are
not working, the system in its entirety doesn’t.
We need to understand this is a long term
process,” said Dempsey.
In a combined editorial recently published
in the Halifax Chronicle, Dempsey and Alwyn
Soppitt, chair of the Southern New Brunswick
Gateway Council, said that any infrastructure
spending for the gateway should be focused
on “the four ‘C’s: cost, capacity, competitive-
ness and communities.
“Spending and investment must first be
targeted at cutting our overall supply-chain
costs, to ensure containers, bulk and air cargo
as well as passengers can move as cheaply
as possible through the region and beyond.
It should increase our capacity to do more Reliability. Speed. Efficiency. Connectivity.
business with our gateway assets regionally,
Is your freight moving at its max?
nationally and internationally,” they said.
Dempsey said Saint John and Halifax are Are you moving at HaliMAX?
taking the lead on Atlantic Gateway initia-
Get the HaliMAX advantage.
tives, with Saint John as the marine centre of
Phone: Patrick Bohan 1-866-611-0841
an emerging energy hub and Halifax as the
only Eastern Canadian post-Panamax con- Email: patrick@portofhalifax.ca
tainer port and naval hub. Visit: www.portofhalifax.com
In February, the new Atlantic Gateway
Council came together to represent the pri-
vate sector, with 13 individuals represent-
ing companies from across the four Atlantic
Provinces and Canada.
“While governments do lend a lot of
www.ctl.ca ct&l march 2009 19
MAR C.STORY P.16.20.indd 19 3/10/09 10:45:51 AMVitran
cover story
for the completion of Highway 104 Antigonish Bypass, major bridge re- 2007-2008, including funds earmarked for the shipbuilding sector,
habilitation on the National Highway System in Nova Scotia, and Trans- and 40% of available funds, or $22.7 million, for the Canada-Ontario
Canada Highway improvements in Newfoundland and Labrador. Infrastructure Program.
In New Brunswick, meanwhile, the Ministry of Transportation has Dr. Warren Jestin, senior vice-president and chief economist at
received praise for committing to a multimodal policy in the region. Scotiabank, said that infrastructure is “the one top tier solution to
“We’re dealing with unprecedented high levels of provincial road economic difficulties.
building budgets, which is welcome news. I’m very optimistic that “The problem is that many of these projects, given the money
this wll create opportunities of collaboration,” said Pierre Cadieux, today, wouldn’t be able to get ready until next year. Small projects
the new CEO of the New Brunswick Road Builders and Heavy are ready to go, but they just don’t have the cash. A lot falls under
Construction Association. municipal purview. To the extent that the governments can transfer
The recently announced capital budget for 2009 in the prov- money, we can get going on smaller, important projects more quickly,”
ince will see investments in transportation totalling $385.8 million, he said.
said Cadieux. But infrastructure alone can’t do it all, and neither can the government.
The province is also undertaking a public private partnership to “Accelerated depreciation, beyond the manufacturing and process-
accelerate the completion of Route 1 by 2014 from the US border at ing industries, could be used in a regional sense. It could be extended
St. Stephen to Route 2. to services. You need SMEs to do something in terms of productivity
Another major priority is a $124-million Route 8 Nashwaak- enhancement, and encourage it now rather than later,” said Jestin. CT&L
Marysville Bypass, and a $63-million Route 7 bypass between Welsford NEXT ISSUE: We take a look at
and Nerepis. Western Canada infrastructure developments.
Time will tell just how many – and how fast – these proposed
infrastructure projects can get “shovel-ready,” to use that ubiq- Features editor Julia Kuzeljevich has been writing about
uitous term. transportation issues for almost a decade. Her meticulously
And as CT&L was going to press, an Industry Canada performance researched articles have garnered transportation writing
report revealed that its departments had yet to spend some $50 mil- awards and several Canadian Business Press Award nomi-
lion in transfers related to business activities and infrastructure for nations.
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With over 50 years experience and a comprehensive Atlantic-Gateway Halifax Logistics Park
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Over 100,000 sq. ft. of logistics warehousing
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space featuring 22 doors
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Cross-dock capacity with 60 doors
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Extensive fleet of over 3,400 company-owned
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A total transportation solution under one roof
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1 800 561-7987 www.armour.ca
20 ct&l march 2009 www.ctl.ca
MAR C.STORY P.16.20.indd 20 3/10/09 10:45:54 AMYou can also read
