CentrePort Canada Inc. – Business Plan 2012-2013
Transcription
CentrePort Canada Inc. – Business Plan 2012-2013
2012-2013 CentrePort Canada Inc. – Business Plan TABLE OF CONTENTS Executive Summary …4 CentrePort Canada: A Unique Partnership …5 The CentrePort Advantage …6 Tri-Modal Transportation …7 Abundant Land and Opportunity …8 CentrePort: At the Hub of Global Trade …9 Milestones in 2011-12 … 10 The Business Plan Overview … 11 The Five-Year Outlook …12 Strategic Priorities 2012-13 …13 Strategic Priority #1 – Land Development …14 Strategic Priority #2 – New Rail Services …15 Strategic Priority #3 – Business Development …16 Strategic Priority #4 – Cargo Security …18 Strategic Priority #5 – Targeted Marketing …19 Infrastructure Priorities …20 Financial Outlook 2012-13 …21 Conclusion …22 2 CENTREPORT CANADA INC. Diane Gray, President and CEO (204) 784-1303 [email protected] Alberto Velasco, Executive Director Business Development (204) 784-1305 [email protected] Riva Harrison, Executive Director Marketing and Communications (204) 784-1304 [email protected] General Office Inquiries (204) 784-1300 [email protected] 3 EXECUTIVE SUMMARY CENTREPORT CANADA INC. began and has continued to prosper as a unique partnership involving governments, business, labour and the broader community. Since the beginning, CentrePort Canada Inc. has worked with its key partners on initiatives aimed at attracting new business, increasing trade, and solidifying the inland port as a key logistics hub. In particular, the corporation has formed partnerships around activities consistent with its mandate, including attracting businesses from industries one would expect to find in an inland port and focusing on strategic markets linked to the Asia-Pacific Gateway and Mid-Continent Trade and Transportation Corridor. Taxes, utility rates and business costs that are the lowest in midwestern Canada and U.S. (KPMG, 2012). There are many significant initiatives currently underway at the inland port, including: CentrePort Canada Way; 1,100 acres of serviced land planned; Single-window access to Foreign Trade Zone benefits; CentrePort’s one-stop shop for business; Brookside Business Park (CB Richard Ellis); Brookside Industrial Park West (DTZ Barnicke); For business locating in the footprint, CentrePort Canada Inc. is a differentiator. By providing excellent infrastructure and ease of access to multiple modes of transportation, business can ultimately manage their supply chains more efficiently and ideally at a reduced cost, while reaching global markets. The strategic advantages of CentrePort Canada are many-fold, including: On-site access to tri-modal transportation (three class one railways, international trucking firms and multiple air cargo carriers); A central North American location only one hour north of the United States border and at the hub of key trade gateways and corridors (extending west, east, north and south); Affordable and abundant skilled labour; and An agricultural containerization project with inland and western China; A common-use rail facility; and A Red River College Steering Committee aimed at meeting increasing labour needs. To ensure the momentum behind CentrePort Canada continues into the future, the corporation has decided to focus its efforts on five broad strategic priorities for the 2012-13 fiscal year: (i) Preparing CentrePort Canada lands for development, investment and revenue generation. (ii) Increasing rail services with the development of a common-use rail facility. (iii) Working directly with companies on plans for new and expanded operations. (iv) Moving forward on new measures to improve the security and efficiency of crossborder cargo shipments. (v) Developing targeted marketing for investors, tenants and site selectors. Canadian Prime Minister Stephen Harper and CentrePort Canada Inc. President & CEO Diane Gray at announcement marking the arrival of inaugural shipment of Manitoba pork in Chongqing (February 2012). (photo: Office of the Prime Minister) 4 CENTREPORT CANADA: A UNIQUE PARTNERSHIP CENTREPORT CANADA is a tri-modal inland port and Foreign Trade Zone (FTZ) located in Winnipeg, Manitoba, Canada – the heart of North America. The CentrePort footprint is 20,000 acres of prime industrial land, adjacent to a major urban centre and only one hour from the Canada-United States border, with on-site access to a well-established transportation network of national and international rail, trucking and air cargo operations. Development on the footprint is facilitated by CentrePort Canada Inc., a private sector-led corporation that was created in 2008 by provincial legislation, The CentrePort Canada Act. The corporation is entering its third full year of operation with a mandate to: manage development of the inland port; market the inland port; and act as a “one-stop shop” for investment activity (appendix A). The corporation works to facilitate and promote business investment in Canada’s first inland port, as well as within the province, western Canada and the country as a whole. CentrePort Canada Inc. is governed by a 15-member Board of Directors, which includes nominees from the Business Council of Manitoba, Economic Development Winnipeg, the Manitoba Chambers of Commerce, the Manitoba Federation of Labour, the Manitoba Trucking Association, the Winnipeg Airports Authority (WAA), the Winnipeg Chamber of Commerce, the City of Winnipeg, the Rural Municipality of Rosser, the Province of Manitoba, and the Government of Canada, as well as four Directors at large (appendix B). CentrePort Canada Inc. continues to operate as a unique and dynamic partnership of the private and public sector. This is a reflection of the organization’s community-based beginnings – as a shared vision of government, business and labour leaders in the City of Winnipeg and the RM of Rosser as well as within the Province of Manitoba and Government of Canada. The corporation and its partners have celebrated several important benchmarks in the first two years of operations including opening the “one-stop shop” for Foreign FTZ benefits, moving full-steam ahead on the construction of the $212.4 million expressway, CentrePort Canada Way, and the sale and development of more than 100 acres to 21 new companies located within the CentrePort footprint. CENTREPORT CANADA WAY is one of the reasons CentrePort Canada was ranked among North America’s top 100 strategic infrastructure projects in 2011 & 2010 by CG/ LA Infrastructure; and as one of Canada’s top projects by ReNew Canada in 2012, 2011 & 2010. (photos: John Woods, Globe & Mail) 5 THE CENTREPORT ADVANTAGE LOCATING ON THE CENTREPORT FOOTPRINT provides many important strategic advantages: Affordable, abundant land and space Low business taxes Tri-modal transportation– rail, road & air Strategic central location Major infrastructure in place On major rail & road corridors Labor force adjacent to development Direct, easy & proximate access to U.S. Low electricity & utility rates Near key international cities Strong business-government relations Foreign trade zone benefits (one-stop shop) Tax increment financing zone Rapid land-development approvals 24/7 international cargo airport Rail links to North American seaports BENEFITS OF USING AN INLAND PORT 6 TRI-MODAL TRANSPORTATION CENTREPORT CANADA’S footprint is uniquely served by three Class One railways – Canadian Pacific Railway, Canadian National Railway and Burlington Northern Santa Fe. Plans are already underway to enhance rail access through the development of a common-use rail facility on site. In addition, the CentrePort footprint includes several existing rail-served facilities such as the cross-dock warehouse operated by Bison Transport and the NutraGro Foods loop track and facility operated by Paterson GlobalFoods. CentrePort is already a significant trucking hub within Canada and the construction of CentrePort Canada Way (CCW) is expected to make it easier for transportation-related operations to conduct business on the footprint. A cost-benefit analysis of the new expressway estimates that efficiencies created by CCW could save truckers and motorists at least $220 million and as much as $450 million over the next 25 years by reducing fuel costs, cutting time lost due to congestion and other issues, and decreasing traffic accidents. CentrePort is also located adjacent to Winnipeg’s James Armstrong Richardson International Airport, which offers 24/7 operations, worldwide freight forwarding and is ranked number one in Canada for dedicated freighter aircraft movements. The airport is operated by the Winnipeg Airports Authority (WAA), which successfully opened its new LEED-certified passenger terminal in 2011. The WAA also manages the development of airport campus lands, which are home to several major cargo carriers including Canada Post, Fed Ex, Purolator, UPS, Air Canada Cargo and Cargo Jet Canada. To date, more than 150 businesses have been identified as operating within the CentrePort footprint, including more than 20 companies that have invested since CentrePort Canada Inc. opened its doors in November 2009. Many of the businesses are in the transportation, logistics, warehousing and manufacturing sectors. To complement existing development, the corporation is focused on attracting business in the areas of manufacturing and assembly, distribution and warehousing, food processing and commodities, and transportation servicing. CENTREPORT CANADA: • • 350,000 sq ft of industrial space available now for sale or lease • More than 2,000 acres available for initial development • Easy access to James Armstrong Richardson International Airport; TransCanada and international highways; and 3 Class One railways (BNSF, CN and CP) • One-hour from CanadaU.S. border TRI-MODAL TRANSPORTATION: Global Air Cargo Major Trucking Hub 3 Class One Rail Carriers 7 ABUNDANT LAND AND OPPORTUNITY CENTREPORT CANADA INC. provides access to high-quality industrial land at competitive prices. Winnipeg has some of the lowest taxes, utility rates and business costs, including affordable land and space, in midwestern North America (KPMG 2012). New infrastructure, including water and wastewater servicing and a 10-kilometre expressway, CentrePort Canada Way, will further open up lands for development. Industrial development is now underway at Brookside Business Park, Brookside Industrial Park West and on the WAA’s campus (pictured below). Brookside Business Park 1,100 acres – first phase servicing Potential site of commonuse rail facility New expressway now under construction Brookside Industrial Park West Red River College training Winnipeg’s 24-hour international airport, cargo hub & campus 8 CENTREPORT: AT THE HUB OF GLOBAL TRADE GATEWAY TO THE WEST Asia-Pacific Gateway Port Metro Vancouver & Port of Prince Rupert Access to China & Pacific Rim GATEWAY TO THE SOUTH Mid-Continent Trade & Transportation Corridor Access to United States & Mexico Ports of Houston & New Orleans Ports of Manzanillo & Lazaro Cardenas GATEWAY TO THE NORTH Via Port of Churchill Staging area for northern Canada Future Arctic Gateway to Asia, Europe & India GATEWAY TO THE EAST Ports of Thunder Bay, Montreal & Halifax Atlantic Gateway Access to Europe, the Middle East & Asia FOREIGN TRADE ZONE BENEFITS CENTREPORT CANADA INC. provides investors with a unique opportunity to access Foreign Trade Zone (FTZ) benefits such as custom bonded warehouse facilities and duty and sales tax relief. CentrePort Canada is the first and only inland port in the country to offer single-window access CENTREPORTFOREIGNTRADEZONE: to federal FTZ benefits, which can help companies better manage imported inventories by providing cash-flow benefits. Duty deferral – duties are waived up front or rebated later. The advantage of CentrePort Canada Inc.’s “one-stop shop” for investment decisions is the corporation can help companies Sales tax relief – exemption from determine how FTZ benefits would work for them. The corporation is federal and provincial sales tax. supported by a dedicated task force of federal, provincial and Customs bonded warehouse – municipal officials. The one-stop shop has been processing FTZ designated sales tax and duty-free inquires since 2010, resulting in the successful establishment of a storage/ distribution facilities. new custom-bonded warehouse in 2011. 9 MILESTONES IN 2011-12 NEW CARGO SECURITY SYSTEM launched at CentrePort Canada using Radio Frequency Identification Technology (RFID) to ensure the quality, integrity, origin and safety of Manitoba and Canadian agriculture products being exported from central Canada to consumer markets in inland and western China. MORE THAN 100 ACRES SOLD to 21 new companies that are in various stages of development in Brookside Business Park (CBRE) and Brookside Industrial Park West (DTZ Barnicke), both located within the CentrePort footprint. CentrePort Canada Inc. is working with CBRE and DTZ to jointly market the two parks to NEW AT CENTREPORT investors. Fort Garry Fire Trucks $17-MILLION AGREEMENT TO EXTEND WATER and wastewater Rosedale Transport servicing to 1,100 acres within the CentrePort footprint. The Kaycan Ltd. funding agreement was reached by the Province of Manitoba, City of Winnipeg and RM of Rosser, and is for the first phase of Trailer Wizards servicing for CentrePort lands (in-service estimated for late 2013). Oil Mart PLANNING FOR COMMON-USE RAIL FACILITY moving forward Meyers Bros. Trucking with the development of a business case that includes traffic flow Sheller Metal Fabricators and market analysis. The proposed facility will enhance CentrePort’s tri-modal transportation advantage of on-site access JEH Windows and Doors to rail, trucking and air cargo carriers. Cassidy Manufacturing CROSS-BORDER SECURITY STUDY by Civitas Group to examine how to implement new technologies at Canada’s inland port to increase the efficiency and security of cargo shipments moving across international borders and provide business with a new incentive to invest in the province. CONSTRUCTION CONTINUING ON CENTREPORT CANADA WAY, a four-lane divided expressway that will better connect businesses within the inland port to national and international highways. The $212.4-million project, funded by the governments of Canada and Manitoba, is the largest highway capital project in Manitoba history and is now more than 60 per cent complete. Construction on the expressway is expected to be complete in 2013. Shipment of Manitoba pork arrives in Chongqing (February 2012) using CentrePort’s new RFID tracking system, developed in partnership with Invent IOT Technology. 10 THE BUSINESS PLAN OVERVIEW CENTREPORT CANADA INC. is a private-sector led corporation that is working to attract new business investment and implement the legislative mandate set out in The CentrePort Canada Act (Appendix A). To facilitate long-term development and operation of the inland port; To facilitate and encourage investment in the inland port; and, To promote the inland port. These objectives are reflected in the corporation’s mission statement: CentrePort Canada Inc. is a trade-related business, logistics and development facilitator, and an investment promotion and marketing agency. Now entering its third full year of operations, CentrePort Canada Inc.’s 2012-13 business plan builds on the strategies outlined and implemented in its 2010-11 and 2011-12 business plans and provides a blueprint for moving forward with the corporation’s strategic priorities. As previously outlined, CentrePort Canada Inc. is laying the foundation for growth. Establishing a strong foundation is essential to the success of CentrePort Canada as the development of inland ports tends to be measured in decades and on a long-term basis. Activities include: Increasing access to tri-modal transportation; Working with land developers and owners; Refining and promoting the business case required to generate investment; and Ensuring the continuation of strong community relations and political support. CENTREPORT CANADA INC. is continuing to work to attract trade-oriented businesses in the areas of manufacturing and assembly, distribution and warehousing, food processing and agricultural commodities, and related service industries. This includes developing plans to: Maximize the use of back-haul shipments to Asia and Mexico to take advantage of empty containers; Increase the import of manufacturing inputs for finishing, assembly and export to western Canada or the midwestern United States; Enhance the distribution of fresh and frozen food and other agricultural products on a regional basis; Provide a staging area for goods and equipment moving to northern Canada and its growing economies; and Create new opportunities by using CentrePort Canada Inc.’s Foreign Trade Zone status and links to multiple transportation partners. PORT OF CHURCHILL CentrePort Canada Inc. is working with other stakeholders to develop new business opportunities for the Port of Churchill. The northern Manitoba port is the only deep sea port in central Canada. CentrePort Canada Inc. supports the development of an Arctic Gateway that would increase cargo exports by marine, rail and air to markets in Russia, Asia, India, and Europe. The Port of Churchill has the potential to generate new trade opportunities and be an important differentiator for Canada. 11 THE FIVE-YEAR OUTLOOK CENTREPORT CANADA INC’S 2012-13 business plan outlines the corporation’s activities for the fiscal year, including further steps towards achieving its five-year goals, first established in 2010. The five-year goals are consistent with the corporation’s vision statement: CentrePort Canada is recognized within North America and globally as an inland logistics hub offering businesses a competitive cost model for implementing global supply chain activities and an integrated, one-stop shop for investment decisions. The corporation’s five-year goals have been updated to reflect recent growth, emerging opportunities and changing circumstances. KEY FIVE YEAR GOALS (2012-2017) CentrePort Canada Inc. is striving to integrate leading-edge transportation, trade and logistics services for the benefit of our tenants and the region. CentrePort Canada Inc. will have: Aggressive marketing to ensure a strong presence and profile within key global trade, transportation and logistics communities, including recognition as a one-stop shop for business investment decisions; Comprehensive business processes and marketing plans in place to attract investment by companies whose business activities are served by tri-modal transportation of rail, trucking and air cargo; A minimum of five anchor tenants that will have invested in CentrePort Canada lands or have made a commitment to invest, and a total of 250 acres of land development following the implementation of water and wastewater servicing. Anchor tenants are transportation, warehousing, manufacturing and distribution companies typically located at inland ports; Expanded access to multi-modal transportation available on the footprint, including rail activity, air cargo and trucking operations; Serviced and zoned land available for development within an industrial park adjacent to rail activity; as well as partnerships with private sector land-owners, developers and industrial brokers for investment in other areas of serviced lands within CentrePort’s footprint; A plan to be financially self-sustaining within five years; Strategic relationships with key partners in logistics development including the WAA, CN, CP and BNSF, trucking companies, and all levels of government; ANCHORTENANTS StandardAero Bristol Aerospace Boeing Canada Safeway Paterson GlobalFoods Peak of the Market North West Company Conviron Winpak MacDon Payne Transportation Bison Transport Gardewine North TransX Partnerships with landowners, industrial real estate brokers, site selectors and related transportation industry players; and agreements with key FTZs / inland ports / port authorities in Asia, Europe and North America for the purposes of facilitating business opportunities; Processes to support the ongoing engagement of stakeholders to add value to the business and strategic plans of CentrePort Canada Inc., to test assumptions, and to be ambassadors for the project; Relationships with post-secondary institutions to ensure there is an educated and skilled workforce to meet employment opportunities generated within CentrePort Canada; Unique soft infrastructure offerings that link the global supply chain to specific intermodal activities, including working with partners on measures to enhance the safe and secure flow of goods across borders; and Specific strategies for helping companies meet their business and environmental objectives by locating within CentrePort Canada’s footprint. 12 STRATEGIC PRIORITIES 2012-13 CENTREPORT CANADA INC.’S 2012-13 business plan builds on work that is well underway while moving forward with specific strategic priorities that have come to the forefront during the past two years. Action items that were initiated in 2010-11 and 2011-12 are either complete or continuing as part of ongoing development. Internal processes have been established and are regularly reviewed and refined to ensure the successful continuation of those initiatives that are part of the corporation’s daily operations. Ongoing activities include: Implementing an investment attraction strategy and building and refining the business case for commercial activities. Enhancing the “one-stop shop” to provide business with single-window access to Foreign Trade Zone (FTZ) savings and other cost-saving benefits such as streamlined land-development approvals. Working with land developers to attract new industrial development and maintain/ update an inventory of available land and space within the CentrePort footprint. Continuing with activities that build and maintain customer and investor relations and local stakeholder support; continuing strategic partnerships with business, industry, government and other key participants; and establishing and maintaining national and international networks. Working with all levels of government on: a CentrePort Canada land-use plan; a phased-in provision of water and wastewater servicing and the development of a municipal services agreement; and the creation of a streamlined landdevelopment approvals process. Implementing a marketing and communications strategy that is updated annually and includes developing new marketing materials in multiple languages, engaging in joint promotions with strategic partners and improving the internet presence. Working with private sector and government partners on new technologies and efficiency measures that support better supply chain integration and ensure the safe, secure and effective movement of cargo across international borders. Supporting the inclusion of active transportation within the CentrePort footprint wherever feasible and consistent with the corporation’s legislative mandate which includes promoting “inland port policies and operations that are environmentally sustainable.” CENTREPORT CANADA INC.’S one-stop shop for Foreign Trade Zone benefits is open for business. A new customs bonded warehouse is now available on the footprint. CENTREPORT CANADA INC. is continuing to work on these core functions while also focusing on five key strategic priorities for 2012-13. FIVE KEY PRIORITIES FOR 2012-13 Preparing CentrePort Canada lands for development, investment and revenue generation; Increasing rail services with the development – with government and private sector partners – of a common-use rail facility; Working directly with companies on plans for new and expanded operations; Moving forward on new measures to improve the security and efficiency of cross-border cargo shipments; and, Developing targeted marketing for investors, tenants and site selectors. 13 STRATEGIC PRIORITY # 1 – LAND DEVELOPMENT Preparing CentrePort Canada lands for development, investment and revenue generation Work with partners to move Phase 1, Stage 1A of water and wastewater servicing to tender. Launch a new streamlined land-development approvals process. Move forward with own-source revenue generation plans. INCREASING THE AVAILABILITY of serviced land within the CentrePort Canada footprint has been a top priority of the corporation since its inception. In June 2011, the City of Winnipeg, Province of Manitoba and RM of Rosser announced a $17-million funding agreement to extend water and wastewater servicing to 1,100 acres within the footprint (pictured right). The area, known as Phase 1, Stage 1A, is experiencing early industrial growth, with more than 100 acres sold to date and under development within the two industrial parks located west of Brookside Boulevard and north and south of Inkster Boulevard. Despite this growth, serviced land is required for CentrePort Canada Inc. to reach its full potential in attracting major anchor tenants. Investors require serviced land when making business location and expansion decisions. Furthermore, building on un-serviced land restricts the size and scope of new and expanded operations. A delay in servicing would result in lost and/ or deferred municipal and school tax revenues of approximately $15 million over 10 years. This projection is based on a development rate of 50 acres/ year for the first five years following servicing, rising to 75 acres/ year for the next five years (using rates for vacant serviced industrial land for the 2011 tax roll year). SERVICING plans for 1,100-acres (in red) which includes CBRE’s Brookside Business Park and DTZ Barnicke’s Brookside Industrial Park West. CentrePort Canada Inc. is supporting the completion of a municipal services agreement between the City of Winnipeg and the RM of Rosser, which would allow the water and wastewater servicing of Phase 1, Stage 1A to move to tender for an in-service date in late 2013. CentrePort Canada Inc. is also working with governments to finalize the land-use plan for the 20,000-acre footprint. A draft land use plan has been developed with extensive public input. The plan is in its later stages of refinement with consideration underway on the final routing of CentrePort Canada Way, as well as on the accommodation of new residential and mixed-use development into the footprint. CentrePort Canada Inc. supports the inclusion of residential and mixed-use development and active transportation where it does not impede the 24/7 operations of the James Armstrong Richardson International Airport; trade transportation, logistics, industrial, and related activities in support of CentrePort’s operations; or the further development of rail services, including a common-use rail facility. A drainage study is also underway for the City of Winnipeg lands west of the airport campus. 14 ANOTHER KEY PRIORITY is the establishment of a Special Planning Area to create a streamlined process for land-development approvals. The Special Planning Area is currently under development by a steering committee and working group that includes municipal and provincial officials as well as representatives from CentrePort Canada Inc. and the WAA. Recommendations around governance, implementation, approvals process and financing are now under review, with the goal of launching the Special Planning Area in 2012. The Special Planning Area would be the first of its kind in Canada and would strengthen the platform of “onestop shop” services that CentrePort Canada Inc. is providing investors. The ability to offer streamlined development approvals will give the corporation a competitive edge in attracting new and early investment decisions, will allow for quicker investment and development on site, will provide business with better planning certainty, and will provide an accountable and transparent planning process. The Special Planning Area is also expected to provide CentrePort Canada Inc. with a vehicle for generating own-source revenues. STRATEGIC PRIORITY # 2 – NEW RAIL SERVICES Increasing rail services with the development of a common-use rail facility Develop the business case for the establishment of a common-use rail facility. Work with the rail industry and other partners on a comprehensive plan to support a common-use rail facility. Complete the transfer of provincial lands purchased to support CentrePort Canada’s trimodal and industrial development. CENTREPORT CANADA INC. is the only tri-modal inland port in Canada with on-site access to air, truck and rail services. The corporation will continue to promote Manitoba’s successful air cargo, trucking and rail industries and explore ways to leverage this unique collection of transportation assets into new business opportunities. This includes working with the Port of Churchill and its partners on identifying and developing new opportunities for the northern Manitoba deep-sea port. The corporation is leading initiatives that expand all transportation options for businesses located within its footprint. Increasing rail services is one action item that has been prioritized by the corporation as crucial component in building a competitive, fully-functional inland port. Enhanced rail services would complement the high-level of trucking activity already occurring on and around CentrePort Canada lands and the global air cargo services available at Winnipeg’s James Armstrong Richardson International Airport. Winnipeg is the only major city on the Prairies that is served by three Class One rail carriers – CN, CP and BNSF. To capitalize and build on this existing rail advantage, CentrePort Canada Inc. is advancing its plans to develop a common-use rail facility on its footprint. The facility will be accessible by all three Class One carriers – providing CentrePort Canada Inc. with a unique advantage among North American inland ports. The corporation is also working with the Province of Manitoba to finalize the transfer of lands purchased for the inland port. This land transfer poses an excellent opportunity for CentrePort Canada Inc. to partner with the private sector in a development that will provide revenue potential to help sustain the corporation in the future. One potential site for the rail facility will be a location within these lands. The next steps in developing a common-use rail facility include reviewing the results of work commissioned by CentrePort Canada Inc. on a business plan and traffic flow study with rail carriers, governments and private sector stakeholders. In addition to identifying potential users for a new facility, this work will also confirm the best location for a new facility that will offer a platform of access to all three Class One rail carriers. In addition, the corporation is implementing cargo security and efficiency measures that have the potential to increase rail and container activity in and out of Manitoba. 15 STRATEGIC PRIORITY # 3 – BUSINESS DEVELOPMENT Working directly with companies on plans for new and expanded operations Work one-on-one with 30-35 businesses on new and expanded operations and in partnership with other economic development organizations. Continue to develop, refine and promote the business case for commercial activities on the CentrePort footprint. Build the “one-stop shop” to provide business with more advantages and incentives. A MAIN FOCUS FOR CENTREPORT CANADA INC. is business development. It is one of the core activities of the corporation’s legislative mandate and is at the foundation of all priorities and initiatives. Ongoing business development efforts include setting specific targets with respect to the number of new companies approached about the advantages of locating within the CentrePort footprint. In 2011-12, the corporation surpassed its target of pitching to 25-30 companies and is working towards achieving a greater rate of contact in 2012-13. This initiative includes providing investment location data that is tailored to industries and sectors that would realize the greatest benefits of being located within Manitoba’s inland port. Manitoba and its capital city Winnipeg are known for their competitive business costs including affordable land and building space, and low taxation, fuel costs and utility rates. In 2011-12, CentrePort Canada Inc. and Yes! Winnipeg (a private-sector based business development team) conducted a detailed cost-comparison analysis that concluded CENTREPORTDCCOSTCOMPARISON Winnipeg is the most cost-effective location to establish and operate #1 INCANADA: a distribution centre of the major cities in Canada using three critical Land costs criteria – land costs, operating costs and labour rates. Continuing to Operating Expenses build, refine and promote this business case is an essential part of the corporation’s investment attraction and marketing strategies. Labour Rates Many of CentrePort Canada Inc.’s business attraction and marketing activities are done in partnership with others including Yes! Winnipeg, Economic Development Winnipeg, Manitoba Trade and Investment, ANIM (Manitoba’s bilingual trade agency) and Western Economic Diversification as well as with the private sector, most notably global real estate firms such as DTZ Barnicke, CBRE, Cushman & Wakefield, and Colliers International. The corporation is also working with international partners including inland ports and seaports in China, the United States and Mexico and members of North America’s Corridor Coalition, Inc. (NASCO). CentrePort Canada Inc. is committed to continuing this approach as partnerships allow the corporation to reach new clients and markets and take a coordinated approach to business development. CENTREPORT CANADA INC. IS ABOUT MAKING IT EASIER FOR BUSINESSES TO DO BUSINESS. This encompasses a wide range of “one-stop shop” activities including connecting investors, landowners and real estate brokers to one another; connecting business to global market opportunities; assisting businesses in finding transportation and CENTREPORT’S ONE-STOPSHOP logistics solutions; helping companies access FTZ benefits; Foreign Trade Zone benefits increasing access to and usage of tri-modal transportation; working Land & space inventory toward expedited land-development approvals; providing marketing Business-to-business connections support and joint promotional opportunities for partner companies and organizations; and working with all governments to identify RFID tracking for cargo opportunities for strategic infrastructure investments. Marketing support Liaison with governments Logistics, transportation & global trade referrals Links to international markets CentrePort Canada Inc. will continue to build the one-stop shop with new offerings such as expedited land-development approvals, new measures to improve cargo security and efficiency, and other incentives to make the inland port a unique, attractive and competitive business investment destination. 16 CENTREPORT CANADA INC. is also continuing to work to expand multi-modal transportation options. As noted, work is underway on the development of a common-use rail facility within the CentrePort footprint and the construction of CentrePort Canada Way will provide business with improved truck transportation options. The corporation also actively promotes the country-leading cargo operations at the James Armstrong Richardson International Airport and is committed to working with Winnipeg Airports Authority on new opportunities to increase cargo shipments. CentrePort Canada Inc. is active in a number of initiatives aimed at increasing trade to and from Manitoba and western Canada by improving existing transportation networks and gateways. Some of these initiatives include the development of a new trade and logistics platform connecting China to Canada’s heartland, the ManitobaKrasnoyarsk Cross Polar Initiative, the Winnipeg Chamber of Commerce’s Trade and Transportation Committee, the Manitoba Council on International Trade, Red River College’s Transportation/ Distribution Steering Committee, as well as several activities relating to the establishment of a northern, Arctic Gateway via the Port of Churchill. INCREASING SUSTAINABLE TRANSPORTATION IN MANITOBA Building modern, efficient transportation infrastructure can also provide environmental benefits. Enhanced Rail – Increasing rail transportation has spin-off benefits as rail is considered the “greenest” form of ground transportation. On average, freight trains are four times more fuel efficient than trucks and each ton-mile of freight moved by rail rather than highway reduces greenhouse gas emissions (GHGs) by 75 per cent, according to the Association of American Railroads. Effective Roadways – Improving Manitoba’s highway network can also help make transportation more sustainable. CentrePort Canada Way (CCW), now under construction, will move truck traffic more effectively in and out of Winnipeg. CCW is expected to reduce GHGs by 582,000 tonnes and carbon monoxide by 1.5 million tonnes over 25 years due to greater efficiencies such as reduced idling, better traffic flows and reduced fuel consumption (provincial cost-benefit analysis). Efficient Airport – Winnipeg Airports Authority opened its new terminal in 2011 at the James Armstrong Richardson International Airport. The new terminal has been publicly recognized as one of the most energy efficient airports in North America and is a recipient of a 2011 Airports Going Green Award for its LEED building standards. 17 STRATEGIC PRIORITY # 4 – CARGO SECURITY Moving forward on new measures to improve the security and efficiency of crossborder cargo shipments Ramp up secure and verified export shipments to China using new RFID technology implemented by CentrePort Canada Inc. Explore opportunities to increase exports using the new trade and logistics platform that connects Canada’s heartland to China via CentrePort Canada Inc. Develop a pilot project to improve the security and efficiency of cargo shipments travelling across the Canada-United States border. CENTREPORT CANADA INC. is moving forward on several initiatives to improve the security and efficiency of cargo shipments. The projects are part of the corporation’s “one-stop shop” offerings – a differentiator for CentrePort Canada Inc. that provides business with a unique incentive and cost advantage when considering investment in the CentrePort footprint. The first project is underway, launched in early 2012 by CentrePort Canada Inc. and its partner, Invent IOT Technology, and involves the utilization of Radio Frequency Identification technology (RFID) to safeguard and track cargo being shipped from Manitoba and central Canada to growing consumer markets in inland and western China, including the Chongqing region. The project required the corporation to build a new supply platform for exporting goods to inland and western China and install an efficient, cost-effective RFID system to ensure the quality, integrity, origin and safety of agricultural exports. Food safety and security is a serious issue in China, and CentrePort Canada Inc.’s new system will help address these concerns by providing assurances that the products are high-quality, authentically Canadian and safe. The new tracking system uses RFID tags and labels, developed by Invent IOT Technology, that are placed on a container and/ or the product to ensure the integrity of the cargo as it travels along the supply chain. The RFID tags and labels, which contain essential information about the cargo, are read at origin with the captured information sent to a back-office system. The tag is read again at the final destination, and the data retrieved must match the originating information in order to be verified. The RFID tracking system can be accessed by users and consumers through a new portal on CentrePort Canada Inc.’s website, www.CentrePortCanada.ca. The system was successfully demonstrated with Canadian Prime Minister Stephen Harper in China in February 2012 using a shipment of Manitoba pork by HyLife to Chongqing. In March 2012, CentrePort Canada Inc. launched a successful pilot project to export 250 tonnes of soybeans from Manitoba to China by container utilizing the new RFID security system and trading platform. The soybeans were provided by Delmar Commodities and shipped from CN’s Symington Yards. New RFID tag (pictured above) being used by CentrePort Canada Inc. to increase the security of cargo shipments to China from Canada. Now that the supply chain platform and RFID-tracking system have been established, tested and implemented, CentrePort Canada Inc. is ramping up its work with Manitoba and Canadian agricultural producers to identify additional food products that can be exported to China using the new export tracking system. In addition, the corporation is also exploring the possibilities of shipping other products from Manitoba, western and central Canada, and the surrounding region to China using the new platform and RFID security system. The corporation will work with exporters to show how the various RFID technologies can be use to protect their supply chains and brand integrity in an efficient, cost-effective manner. 18 CENTREPORT CANADA INC.’S work on the RFID project and trading platform to Chongqing began in early 2010 with the signing of a Collaboration Agreement with the Chongqing-Lianglu Free Trade Zone Area (Chongqing's inland port). The agreement led to a formal partnership in May 2011 between CentrePort Canada Inc., Minsheng International Freight Co., Ltd., a branch of Minsheng Shipping Co., Ltd. (the largest private shipping and logistics company in China), Invent IOT Technology (formerly Shanghai Invent Logistic & Technology), CN Worldwide, and Canadian Pacific Logistics Solutions. The partnership led directly to the soybeans export initiative and is Media announcement at CN Rail’s Symington Yard for the launch of a new pilot continuing to explore project to export 250 tonnes of soybeans from Manitoba to China by container other export using RFID technology. (March 2012) opportunities. As part of CentrePort Canada Inc.’s efforts to increase shipping options for Manitoba and Canadian exporters, the corporation has also signed an agreement with Qingdao Port in China to install overhead RFID readers to track Canadian cargo as it enters the country. Cargo security and efficiency is also the focus of a second project that is in the early stages of development by CentrePort Canada Inc. This project involves using new technology to improve the movement of cargo across the Canada-United States border, specifically the border crossing at Emerson-Pembina which is one of the busiest on the prairies and a key port of entry along the Mid-Continent Trade and Transportation Corridor that stretches from northern Manitoba into the United States and Mexico. In 2011, CentrePort Canada Inc. contracted Civitas Group, a Washington-based firm that specializes in matters of homeland security, to conduct a study with recommendations on how to move cargo faster without compromising security. Part of the study, funded by the Province of Manitoba, Government of Canada and CentrePort Canada Inc., is a review of available technologies that could be employed to create a best-in-class inland port. Next steps include a review of the recommendations and moving forward with a proposal to governments to create a CentrePort-based pilot project aimed at improving cargo movements and reducing border congestion. STRATEGIC PRIORITY # 5 – TARGETED MARKETING Developing targeted marketing for investors, tenants and site selectors Continue to increase awareness of CentrePort Canada locally, nationally and internationally via updated marketing materials, pitches, joint initiatives and website revisions. Prepare and update targeted marketing materials that support specific pitches to companies. Build and enhance relationships with site selectors and other senior executives making investment location decisions. 19 CENTREPORT CANADA INC. is continuing to follow through on its legislated mandate to promote the inland port through domestic and international marketing efforts and “by participating in organizations formed to develop or promote inland ports, transportation gateways and trade corridors with links to the inland port area.” The corporation produces an annual marketing and communications strategy that identifies activities in each of these areas, and an updated strategy will be produced and implemented in 2012-13. The corporation is undertaking specific marketing and communications activities that complement business attraction efforts. These include creating and refining marketing materials that support specific pitches to individual companies; participating in national and international partnerships and networks that increase awareness of Manitoba’s inland port; promoting the “one-stop shop” to investors; participating in broader advocacy to ensure CentrePort Canada Inc.’s competitive edge is maintained and enhanced; and engaging in public and media events that promote business investment and continue to build momentum for the ongoing development of the inland port. The corporation is also planning to continue its outreach to site selectors and senior executives making investment location decisions. In 2011, CentrePort Canada Inc. joined forces with Initiatives Prince George (IPG) and undertook a successful joint marketing mission to three U.S.-based conferences that are considered key events for American site selectors. The goal of the mission was to raise awareness about the cost benefits and strategic advantages of doing business in Canada, along Canada’s Asia-Pacific Gateway, and at CentrePort Canada and Prince George specifically. Targeted marketing materials were produced (some of which are pictured right) and outcomes included building a data base of executives, gaining new insight into the criteria used in the site selection process, and engaging in one-on-one discussions with individual site selectors on the merits of doing business at CentrePort Canada. The corporation is also working with Yes! Winnipeg on an outreach campaign targeting site selectors and global real estate executives. This project began in 2011 and is designed to bolster related activities such as the mission with IPG by establishing a process for deeper relationship building and information sharing. Data and intelligence gathered in this process, which is ongoing, is being used to refine the marketing and promotional materials that are being prepared in support of business attraction efforts. Additionally, CentrePort Canada Inc. is continuing to work closely with municipal governments and its global real estate partners – DTZ Barnicke, CBRE, Cushman & Wakefield, Colliers International, and the Winnipeg Airports Authority – to jointly market land that is available for development, as well as the 350,000 square feet of industrial space available for sale or lease. It is expected that these marketing efforts will increase as serviced land becomes available. In 2011, CentrePort Canada Inc. launched its redesigned website and added a new “one-stop shop” feature – the RFID cargo-tracking system that can be accessed from the home page. Updating and revising the website to support business development and marketing activities is an ongoing, continuious priority for the corporation. INFRASTRUCTURE PRIORITIES Building New Competitive Advantages TO ENSURE CENTREPORT CANADA Inc. maintains its competitive edge, it will be imperative for the corporation to work with its partners to build on existing and create new competitive advantages. A key component of this will involve working with governments and other key stakeholders to identify the next major infrastructure project connected to CentrePort Canada. Potential projects include: flood-proofing Highway 75; a Headingley By-pass; a St. Norbert By-pass; and completing the north Winnipeg inner ring road (Chief Peguis extension). 20 FINANCIAL OUTLOOK 2012-13 CentrePort Canada Inc. Budget CENTREPORT CANADA INC. is continuing to work on initiatives that provide opportunities for own-source revenue generation, as mandated by The CentrePort Canada Act. Some of these initiatives include the establishment of an expedited land-development approvals process for companies locating within CentrePort Canada’s footprint; the development of a common-use rail facility; the development of lands acquired for CentrePort Canada Inc. by the Province of Manitoba in partnership with the private sector; and the increased utilization of the new RFID cargo-security system implemented by CentrePort Canada Inc. and Invent IOT Technology. The corporation is planning to be self sufficient within five years. (1) 2012/13 967,400 154,460 153,640 1,275,500 717,060 15,000 100,000 168,854 1,000,914 Salaries and Benefits Total Salaries, Benefits, Director Fees 737,600 642,500 Operating Business Investment Advertising and Marketing Other Total Operating 95,200 41,500 376,200 512,900 60,000 25,500 195,100 280,600 25,000 75,000 1,275,500 998,100 0 2,814 2011/2012 Revenue Economic Partnership Agreement Funding Other Government Support Land Development Fees Deferred Revenue Total Revenue Rail Development Project Total Rail Development Project Total Expenditures Excess Revenue over Expenditure (1) Projected as at January 31, 2012 * Based on March 31 year end; CentrePort Canada Inc. has applied for renewed operational funding including an increase for 2012/13. This request is under review by governments. The corporation’s financial outlook is generally positive. However, there are continuing concerns about global economic uncertainty and the slow recovery in the United States, Canada’s largest trading partner. Diminished economic activity across the globe and among key trading partners means both the private and public sectors have fewer resources available for investment and expansion. CentrePort Canada Inc.’s plan to increase export trade with China will help increase market diversity for producers of Manitoba and Canadian goods. As noted in CentrePort Canada Inc.’s 2011-12 business plan, governments at all levels have returned to running budget deficits and these deficits are continuing into 2012-13 and beyond. There continues to be a risk that governments will attempt to manage these economic pressures by reducing capital expenditures in transportation gateways and corridors, and by implementing measures such as tax increases that diminish Canada’s competitive standing. 21 CANADA’S COMBINED CORPORATE TAX rate is currently 33 per cent lower than the United States, one factor that prompted Forbes Magazine to choose Canada as the best country for business to invest in 2011. These competitive advantages must be maintained and enhanced. Global economic instability has also resulted in a move towards increasingly protectionist policies, most notably in the United States, which has a serious impact on Manitoba and Canadian companies that rely on crossborder trade. CentrePort Canada Inc. is continuing to work with its partners to advocate for policies and programs that promote trade growth and ease the movement of cargo across international borders. CentrePort Canada Inc. is anxious to see water and wastewater servicing extended to CentrePort Canada lands in 2012-13. These and other infrastructure investments are required to leverage increased industrial development and ensure Manitoba’s inland port reaches its full potential. The corporation remains committed to meeting its legislated requirements as set out in The CentrePort Canada Act including developing an annual business plan, budget and annual report, and reporting publicly on each. CONCLUSION CENTREPORT CANADA MOVING FORWARD CENTREPORT CANADA is not a local initiative – CentrePort is Canada’s first inland port, focused on supporting economic growth, enhancing trade flows, and providing value-added competitive advantages for the entire country. CentrePort’s strategic location puts it at the heart of the Canadian and North American supply chain and at the hub of key international gateways – north to Canada’s Arctic and over the pole to Europe, Russia, Asia and India; south to the U.S., Mexico and Latin America; east to the U.S., Europe, Middle East and India; and west to Asia and the Pacific Rim. In addition to its strategic global location, CentrePort Canada also provides investors with other business and cost advantages including on-site access to tri-modal transportation; an abundance of affordable industrial land and space; overall low business costs, and “one-stop shop” benefits for investors including single-window access to FTZ programs. Governments are also investing in new transportation and related infrastructure such as CentrePort Canada Way to help support business expansion within the inland port area. The development of an inland port by CentrePort Canada Inc. is a tremendous opportunity for the City of Winnipeg, RM of Rosser, Winnipeg Capital Region, Province of Manitoba and Government of Canada. CENTREPORT A KEY TO GROWTH CENTREPORT CANADA has been cited by the Conference Board of Canada as a key driver of Winnipeg’s economy. “The transportation and warehousing sector is slated Inland ports have grown in stature in recent years to do particularly well, growing 2.6 per cent in 2012 as businesses look for new and more efficient and even faster the following two years, partly thanks ways to access global markets. The relative to the new CentrePort Canada in Winnipeg… it is economic strength of Manitoba and Canada has poised to play a significant role in the distribution of helped fuel strong, early economic growth within goods across North America.” the CentrePort footprint, both in terms of private sector investment in new business operations and in public sector funding for additional infrastructure projects. This foundation of regional economic strength and stability, combined with new infrastructure investments and the business and cost advantages of locating with the CentrePort footprint is serving the corporation well as it moves forward with its 2012-13 business plan. New opportunities are emerging in the global economy and the corporation is in a prime position to harness these opportunities, leading to new business development and the creation of jobs in Manitoba, western Canada and throughout the country. 22 Appendix A The CentrePort Canada Act The legislative mandate of the corporation is as follows: (a) (b) (c) to facilitate the long-term development and operation of the inland port as follows: (i) by participating in the transportation, infrastructure and land use planning process, (ii) by coordinating land development and business investment in the inland port area to maximize economic development in keeping with the transportation, infrastructure and land use plan, (iii) by participating — in cooperation with governments and private sector trade corridor organizations — in identifying and implementing security measures to maximize the safe flow of goods in the inland port and to and from gateways, trade corridors and borders, (iv) by promoting inland port policies and operations that are environmentally sustainable, (v) by consulting with community stakeholders and inland port users about development and investment in the inland port area; to facilitate and encourage investment in the inland port as follows: (i) by acting as the primary point of contact for potential investors in the inland port area, in order to expedite their investment decisions, (ii) by attracting new investment and economic development in the inland port area, (iii) by collaborating with governments in the design of investment incentives; to promote the inland port as follows: (i) by marketing the inland port domestically and internationally, (ii) by participating in organizations formed to develop or promote inland ports, transportation gateways and trade corridors with links to the inland port area. 23 Appendix B CentrePort Canada Inc. Board of Directors CentrePort Canada Inc. Board of Directors & Nominating Entities Name Office Held Nominating Organization Don Streuber (President & CEO, Bison Transport) Chair Manitoba Trucking Association Joan Hardy (Assistant VP-Transportation, Richardson International) Vice Chair CentrePort Board of Directors Kerry Hawkins (Corporate Director) Past-chair Business Council of Manitoba Arthur Mauro (Corporate Director; Chair Emeritus WAA) Director City of Winnipeg David Barnard (President & Vice-Chancellor, University of Manitoba) Director CentrePort Board of Directors David Fung (Chairman & CEO, ACDEG Group) Director CentrePort Board of Directors Eugene Kostyra (Corporate Director) Director Province of Manitoba Chris Lorenc (President, Manitoba Heavy Construction Association) Director Winnipeg Chamber of Commerce Tom Payne Jr. (President, Payne Transportation) Director Rural Municipality of Rosser Maureen Prendiville (President & CEO, Prendiville Industries) Director CentrePort Board of Directors Barry Rempel (President & CEO, Winnipeg Airports Authority) Director Winnipeg Airports Authority Bob Silver (President & Partner, Western Glove Works) Director Economic Development Winnipeg Frank Sottana (District Vice President, CIBC Manitoba) Director Manitoba Chambers of Commerce Gord Steeves (Associate lawyer, D’Arcy & Deacon LLP) Director Government of Canada Robert Ziegler (President, UFCW Local 832) Director Manitoba Federation of Labour 24