canada’s gateways: supply chain...

CANADA’S GATEWAYS: SUPPLY CHAIN

PERFORMANCE MONITORING INITIATIVES

1

Leipzig, May 2, 2012

http://www.scl.gatech.edu/index.php

http://www.internationaltransportforum.org/

Canada’s Gateways and Trade Corridors:

System-wide Approach

Asia-Pacific

Gateway and

Corridor Initiative

Ontario-Quebec

Continental Gateway

and Trade Corridor

Atlantic

Gateway

Need objective fact-based metrics to: • Transparency

• Respond to anecdotal claims of (un)reliability

• Provide reliable and objective benchmarks for industry

• Market and promote Canada’s gateways efficiently

2 Transport Canada - Economic Analysis

3

Canada8.5%

U.S. 87.5%

Mexico 4%

Canada 10%

U.S. 85%

Mexico 5%

Canada 7%

U.S. 90%

Mexico 3%

Canada 9%

U.S.83%

Mexico 7 %

Canada 8.3%

U.S. 86.4%

Mexico 5.3%

2000

2010

All Ports

2000 2010

East Coast

2000

West Coast

Canada 10%

U.S. 81%

Mexico 9%

2010

Source: American Association of Port Authorities and Canada Port Authorities

• Mexico’s share of North American port traffic grew from 4% in 2000 to 7% in 2010.

•Canada’s share remained constant at around 9% during the same period.

• However, where Canadian ports have gained most in North American market share is on the West Coast.

North American Container Port Traffic Market Share

(TEU) by Country, 2000 vs. 2010

North American West Coast Container

Ports 2011

Rank Country Port TEUs 2011 % growth over 2010

1 Los Angeles 7,9935,430 1.3%

2 Long Beach 6,061,085 -3.2%

3 Vancouver 2,507,032 -0.3%

4 Oakland 2,342,504 0.5%

5 Seattle 2,033,535 -4.7%

6 Tacoma 1,488,795 2.3%

7 Manzanillo N/A N/A

8 Làzaro Càrdenas 953,497 19.8%

9 Prince Rupert 410,469 19.5%

10 Portland 197,446 9.0%

Phase 1: 500, 000 TEU Phase 2: 1.5M TEU

Port of Prince Rupert

Port Metro Vancouver

Deltaport Berth 3 600,000 TEU capacity

(Jan 2010)

Source: port authorities

Transport Canada - Economic Analysis

http://www.cca.edu/library/exhibits/MexicoF.gif

http://www.cca.edu/library/exhibits/MexicoF.gif

Original Policy Question

Fluidity Indicator Supply Chain Resilience

$$$

Port

Utilization

Indicators

Are Canadian Supply Chains Reliable?

Air Cargo

Economic Analysis Directorate 5

Import

Vessel

Forecast

Integrated Approach


PORT UTILIZATION

INDICATORS

Economic Analysis Directorate 6 Transport Canada - Economic Analysis

PORT UTILIZATION INDICATORS (PUI)

Intermodal Indicators (4 partner ports): 1. Average Vessel Turnaround Time (1) [sec./TEU]

2. Average Vessel Turnaround Time (2) [Hours]

3. Berth Utilization [TEU /m]

4. Average Truck Turnaround Time [Min.]

5. Gate Congestion Indicator [Index]

6. Average Container Dwell Time [Days]

7. Average vessel (un)load [TEU/vessel]

8. Gross Port Productivity [TEU/Gross Ha]

9. Crane Productivity [TEU/STS crane]

Bulk Indicators (7 partner ports): 1. Berth Occupancy Rate [%]

2. Gross Berth Productivity [T / berth-hr]

3. Average Vessel Turnaround Time [Hours]

4. Average vessel (un)load [T / vessel]

5. Vessel Queuing (new in 2012) [Time at berth/Time in port]


B.C. CONTAINER PORTS SCORECARD 2011


Source: Transport Canada

Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 AVG YTD 2011 AVG YTD 2010 % ∆

1 Gate Fluidity Index1 100 99 78 78 88 83 97 102 95 92 110 93 N/A N/A

2 Avg. Truck Turnaround Time - Minutes 25.9 26.8 28.6 29.6 26.5 26.0 25.2 24.5 26.4 27.0 27.0 27.2 26.7 23.9 12%

3 Berth Utilization - TEU/Meter2 65.6 60.8 61.1 69.1 72.4 73.8 80.2 78.9 82.4 75.6 75.8 76.4 72.7 69.7 4%

4 Vessel Turnaround Time - Sec/TEU 36 34 45 39 38 39 37 35 35 33 39 39 37.4 37.3 0%

5 Vessel Turnaround Time - Hours/Vessel Call 33.1 28.1 36.5 32.4 31.9 33.0 31.7 30.4 34.0 30.9 35.0 34.5 32.6 38.6 -15%

6 Avg. Container Dwell - Days3 2.56 3.17 2.63 2.45 2.29 2.38 1.93 2.25 2.48 2.29 1.97 2.47 2.41 3.06 -21%

7 Port Productivity - TEU/gross ha 1,359 1,268 1,251 1,437 1,482 1,488 1,563 1,550 1,619 1,486 1,500 1,502 1,459 1,426 2%

8 Crane Productivity - TEU/STS crane 7,508 6,950 6,970 7,900 8,291 8,462 9,257 9,077 9,482 8,696 8,706 8,789 8,341 7,989 4%

9 Number of vessel calls 69 71 77 78 89 83 82 81 76 77 78 79 78 64 22%

10 Average TEU/vessel call 3,264 2,933 2,710 3,038 2,783 3,011 3,169 3,200 3,561 3,228 3,224 3,178 3,108 3,721 -16%

Container Throughput (BC Total) - TEU 225,231 208,220 208,641 236,944 247,731 249,951 259,851 259,183 270,634 248,563 251,470 251,092 243,126 238,126 2%

2,917,511 2%

2,857,510

Indicator

Total 2011 YTD TEU

Total 2010 YTD TEU

Container Dwell Time vs. Port Throughput at

B.C. Ports, 2009-YTD 2012

9



3.2

2.7

2.3

3.0

1.8

2.5

2.8

2.0

2.5 2.5 2.3

2.9

3.7

3.3 3.5

3.1

3.4 3.2 3.2

2.7

3.0 3.1

2.2

2.7 2.6

3.2

2.6 2.5

2.3 2.4

1.9

2.3 2.5

2.3

2.0

2.5

3.3 3.2

0

50,000

100,000

150,000

200,000

250,000

300,000

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

4.0

Jan

-09

Feb

-09

Mar

-09

Ap

r-0

9

May

-09

Jun

-09

Jul-

09

Au

g-0

9

Sep

-09

Oct

-09

No

v-0

9

Dec

-09

Jan

-10

Feb

-10

Mar

-10

Ap

r-1

0

May

-10

Jun

-10

Jul-

10

Au

g-1

0

Sep

-10

Oct

-10

No

v-1

0

Dec

-10

Jan

-11

Feb

-11

Mar

-11

Ap

r-1

1

May

-11

Jun

-11

Jul-

11

Au

g-1

1

Sep

-11

Oct

-11

No

v-1

1

Dec

-11

Jan

-12

Feb

-12

TEU

Day

s

Throughput AVG Dwell

FLUIDITY INDICATOR SUPPLY

CHAIN ARCHITECTURE


Calgary

Toronto

Montreal

Chicago

PHASE 1 CORRIDORS: ASIA-PACIFIC

PRINCE RUPERT

VANCOUVER

• Hong Kong

• Shanghai

Calgary

Toronto

Montreal

Chicago

Economic Analysis Directorate Transport Canada - Economic Analysis

11

http://www.hsse.nie.edu.sg/webquest/SS/Tourism and Our Environment/WebQuest Graphics/ch.gif

http://www.sunfffd.hk/wp-content/uploads/hong-kong-flag.gif

A CONTAINER JOURNEY THROUGH THE PACIFIC GATEWAY [MODEL BELOW EXCLUDES TRANSLOAD]

Shanghai Hong Kong

Vancouver

Prince Rupert

Deltaport

Inner-harbour CTs

MTD

MTD

Toronto MTD

Rail transit

Rail Dwell :

Drayage to rail yard

RTD

MTD: marine terminal dwell RTD: rail terminal dwell

DC

: trucking : rail : marine

Chicago

RTD DC Rail Transit Drayage

Drayage

: gateway/ inland hub

All truck transit

12


GREATER VANCOUVER TRANSLOAD ACTIVITIES

Marine Terminals

63% By rail (marine containers)

37% leaving by truck

Lower Mainland Intermodal yards

Direct U.S. <1%

Direct Western Can.

9%

Import transload facilities

to import transloads 26% to intermodal

yards 2%

Back to intermodal yards 20%

53’

Source: Transload Mapping Study 2011. Proportions Based on 2009 volumes

to B.C. customers. 2%

to other Can destinations 4%

Additional volumes via intermodal yards 22%

Total Rail to Eastern Canada and U.S. 85%

15.8% via intermodal

yards

TOTAL 100%

90% Can

10% U.S.

47.3% direct rail

13

SUPPLY CHAIN TIME COMPONENTS MEASURED

Ocean & Port

Ocean transit [1]

Rail Trucking Logistics and Warehousing

Truck from marine terminal to origin rail yard [1]

Marine Terminal Dwell [2]

Dwell at dest. rail yard [4]

Rail transit time (intra-urban) [2]

Dwell at origin rail yard [1]

Dwell at transload facility

Rail transit time (inter-urban) [3]

Air

Air transit [2]

Dwell at origin airport [1]

Dwell at destination airport [3]

Truck from marine terminal to end customer [2]

Truck from marine terminal to transload facility [3]

Truck from transload facility to origin rail yard [4]

Truck from transload facility to end customer [5]

Truck from shipper warehouse to origin airport [6]

Truck from destination airport to DC/warehouse [8]

Dwell at secondary destination airport[4]

Truck from primary destination airport to secondary destination

airport[7]

14

SUPPLY CHAINS – VARIOUS MODELS (B.C. PORTS)

SUPPLY CHAIN 1

+ +

+ + + +

+ + + + + +

+

+ + + +

+

+

+

+

+ + + + +

Direct rail

Pure Rail via intermodal yard

Rail via intermodal yard- Drayage

Transload - Rail

All-Truck

Transload - Truck

SUPPLY CHAIN 2

SUPPLY CHAIN 3

SUPPLY CHAIN 4

SUPPLY CHAIN 5

SUPPLY CHAIN 6

Economic Analysis Directorate 15

1 2 3 4

1 2

1 2

1 2

1 2

1 2

3 4 1 1

1 2 3 4

3 4 3 4 1

2

3 5

SUPPLY CHAIN 7

SUPPLY CHAIN 8

+ + + +

+ + + + + +

6

6

8

8

1

1 2

2

3

3

7 4

Direct air

Dual airport

53%

2%

14%

18%

8%

5%

N/A

N/A

Supply Chain 1:

Direct Rail

Ocean transit

Port dwell

Inter-urban rail transit

Dwell at destination

railyard

Time components included


FLUIDITY INDICATOR DATA & METHODOLOGY


DATA SOURCES

Ocean & Port

Ocean transit:

• Lloyd’s List Intelligence Seasearcher

Marine terminal dwell:

•Canada Port Authorities

Rail

Railyard dwell :

• CN Rail & CP Rail

Rail transit :

• CN Rail & CP Rail

Trucking

Truck transit times :

•Third party GPS and satellite providera

Transloading

Transload dwell:

• Lower Mainland Transload Mapping Study 2010 (Culham Business Solutions)


DATA REPRESENTATIVENESS • Ocean transit

– 98% of vessel movements covered

• Port dwell – 100% of universe covered

• Rail transit – 100% of universe covered

• Rail terminal dwell – 100% of universe covered

• Trucking – Inter-urban: ≈ 40% sample – 90 major O-D pairs – Drayage: ≈ 5% sample

• Transload – ≈50% of universe covered

19


EXAMPLE: APL IRIS PACIFIC SOUTH 1 SERVICE EASTBOUND – NOVEMBER 2010

Example Calculation HONG KONG-VANCOUVER: Laem Chabang-Singapore = 2.26 days Dwell @ Singapore = 1.22 days Singapore-Yantian = 4.89 days Dwell @ Yantian = 0.55 days Yantian-Hong Kong = 0.25 days Dwell @ Hong Kong = 0.65 days Hong Kong-Shanghai = 2.11 days Dwell @ Shanghai = 0.51 days Shanghai-Seattle = 11.01 days Dwell @ Seattle = 2.65 days Seattle-Vancouver = 0.39 days

TOTAL TRANSIT TIME HONG KONG TO VANCOUVER= 16.7 days (TOTAL TRANSIT TIME OF EASTBOUND SERVICE = 26.5 days)

ARR: Nov 24 / 1:00

DEP: Nov 24 / 13:00

ARR: Nov 20 / 10:45

DEP: Nov 21 / 00:10

ARR: Nov 21 / 6:16

DEP: Nov 21 / 22:04

ARR: Nov 14 / 9:30 DEP: Nov 15 / 14:55

ARR: Dec 8 / 15:16

Shanghai

Hong Kong

Yantian

Laem Chabang

Vancouver

DEP: Nov 12 / 3:00

Seattle

Port Rotation: Laem Chabang Singapore Yantian Hong Kong Seattle Vancouver

Singapore

2

1

3

4

5

6

7

ARR: Dec 5 / 13:44

DEP: Dec 8 / 5:40

HK-Vancouver Transit Segment


http://www.google.ca/imgres?imgurl=http://www.mickeyfaysraces.com/checkered_20flag_20gh.gif&imgrefurl=http://www.mickeyfaysraces.com/&usg=__ZTiS7T28xtfvqh4Apsxai1UAw1w=&h=272&w=415&sz=11&hl=en&start=1&zoom=1&itbs=1&tbnid=k7udMVh2YIA3fM:&tbnh=82&tbnw=125&prev=/images?q=start+flag&hl=en&sa=N&gbv=2&ndsp=20&tbs=isch:1&ei=SvFjTe-3JoaKlwe99KH2Cw

http://image.shutterstock.com/display_pic_with_logo/183982/183982,1237132953,42/stock-vector-start-flag-illustration-26697331.jpg

FLUIDITY INDICATOR

Results 2010-2011


0.00

5.00

10.00

15.00

20.00

25.00

30.00

Jan

-10

Feb

-10

Mar

-10

Ap

r-1

0

May

-10

Jun

-10

Jul-

10

Au

g-1

0

Sep

-10

Oct

-10

No

v-1

0

Dec

-10

Jan

-11

Feb

-11

Mar

-11

Ap

r-1

1

May

-11

Jun

-11

Jul-

11

Au

g-1

1

Sep

-11

Oct

-11

No

v-1

1

Dec

-11

Jan

-12

Feb

-12

Ave

rage

To

tal T

ran

sit

(Day

s)

Toronto

Calgary

Montreal

Chicago

Total Transit Time from Shanghai to Various

Destinations via B.C. Ports, 2010-2012 YTD

22



Supply Chain 1 – direct rail

2012 2011 2010

Total Transit Time from Hong Kong to Toronto

via B.C. Ports (direct rail)

23 Source: Transport Canada


0.0

5.0

10.0

15.0

20.0

25.0

30.0

Jan Feb Mar Apr May June July Aug Sept Oct Nev Dec

Day

s

2010

2011 2012

Month 2010 2011 2012% change

2010/11

% change

2011/12

Jan 24.5 25.3 26.8 3% 6%

Feb 22.9 25.5 26.2 11% 3%

Mar 22.2 26.1 17%

Apr 22.5 24.9 11%

May 22.4 25.3 13%

June 23.7 24.9 5%

July 22.6 24.6 9%

Aug 21.9 25.1 15%

Sept 23.1 25.9 12%

Oct 23.6 25.3 8%

Nev 24.5 24.7 1%

Dec 25.3 25.8 2%

Average 23.5 25.3 26.5 8% 5%

Breakdown by Segment of Hong Kong to

Toronto Transit (direct rail)


64% 36%

Waterside

Landside 69%

31% Waterside

Landside

2010 2011

Waterside = ocean transit Landside = port dwell + rail transit

While average total transit time from HK-TOR deteriorated from 2010 to 2011, landside performance actually improved over that period. Gains on the landside were offset by longer ocean transits.

Container Import Vessel

Forecast


G2B Approach

• Objective: – Consolidate and streamline data sharing process – Increase visibility of inbound container volumes – Relay Advance Cargo Information (ACI) data to key gateway

operators to establish more accurate inbound container forecasting

• Advanced planning and allocation of rail and marine terminal resources

• Dissemination approach: – TC custodian of raw data (protected) – Daily aggregated level reports to gateway operators


Results of Inbound Container Forecasting

Pilot Test – March 2012


CONCLUSION

• Canada’s Supply Chain Performance Monitoring Initiatives provide evidence-based quantification of the reliability of Canadian gateways and supply chains

• Greater accountability and transparency in the supply chain will benefit all gateway users

• Partnership approach in a win-win context

• Next steps: air cargo and containerized export movements

Thank you / Merci


canada’s gateways: supply chain...

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