CILTNA 11th Annual Transportation

Situation & Outlook Conference

April 30, 2012

Gateways & Corridors Development

“The Challenge for the North American Transportation & Logistics Industry in a Slow Growth Economy”

Presentation overview:

• What is the Atlantic Gateway & Trade Corridor?

• Atlantic Gateway via Port of Halifax

• Perspectives

– Present & Future

What is the Atlantic Gateway?

Entry and exit points

• Container terminals • Cruise ports • Airports • Border crossings

Corridors

• Rail • Highways • Short sea shipping

Multimodal

• Transload centres • Warehousing • Distribution centres • Inland terminals

Transportation system for the movement of international trade to/from North American marketplace.

Deepest Berths on the East Coast

Container Terminals

Level of Service Agreement

• Halifax Port Authority

• Ceres

• Halterm

• CN

Transloading Facilities

Port of Halifax – Imports

•China

•United Kingdom

•Italy

•Germany

•India

•Jamaica

•Bangladesh

•Belgium

•Israel

•Sweden

Port of Halifax – Exports

•China

•United Kingdom

•Japan

•India

•Thailand

•Belgium

•Hong Kong

•Netherlands

•Indonesia

•Turkey

Provincial Governments

Federal Governments

Stakeholders

Atlantic Gateway

Federal/Provincial

Officials Committee

Airports

Ports

Railroads

Transportation Companies

System Users (Customers)

System Providers

Others – RDAs,

Municipalities, Chambers,

Associations

Gateway Councils

Halifax Gateway Council

Transport Canada

ACOA

DFAIT

CBSA

Newfoundland &

Labrador

New Brunswick

Prince Edward Island

Nova Scotia Gateway

Secretariat

(NL, NB, PE, NS, ACOA,

TC,CBSA, AGAC)

Atlantic Gateway Strategy

Marketing

Infrastructure

Policy/Regulatory

Atlantic Gateway Federal/Provincial Officials Committee

Atlantic Gateway

Advisory Council

Minister for the

Atlantic Gateway

Atlantic Gateway & Trade Corridor Strategy

13

•Released March 2011

•$5m million committed from

GBCF to market Atlantic

Gateway

• 9 core strategic components

which include:

• International marketing &

trade promotion

• Skills & knowledge

• Policy & regulatory issues

Atlantic Gateway Infrastructure Investments

Current Perspective

• Halifax TEU volumes

– Grew in 2010 by 26.3%

– Decline in 2011 -6%%

• American Feeder Lines service suspended

• Slow growth in USA & Global having impact on exporters & importers

– NewPage, Bowater, lumber & building materials exports

Halifax Container TEU Volumes

Labour Negotiations

• Halifax has had labour stability for 30+ years.

• 3 waterfront labour unions, 500+ workers.

• Tentative collective 2 year agreement.

• Short term contact due to slow growth in global economy.

Slow Steaming–How slow can slow go!

USA – Slow Growth Economy

• Appreciation/depreciation of the US dollar

• Trade protectionism

• Consumer demand for Canadian & foreign imports

• USA Ports could get $1 billion in federal dredging aid

• Federal Marine Commission

Future Perspective

• Economy will recover! When & to what level uncertain!

• TEU volume for 2102 appears to be down

• Long term has room for optimism

• However, a lot of changes coming!

– EU Free Trade

Via USWC

15-24 Days

Via Panama

22-31 Days

Via Suez

Min 24 Days

Mileage Via

Panama

Via Suez Difference

HK/NY 11,301 11,632 +331

Laem Chabang/NY 12,645 11,002 -1,643

Suez Canal vs Panama Canal

The Break-

Even Line

Panama Canal Expansion

A large number of post-Panamax & super post-Panamax vessels under

construction.

Liner companies will attempt to deploy their new ships in a way that will not

destabilize demand/supply

Halifax’s existing port/rail infrastructure enables it to develop incremental, air

draft-unrestricted terminal capacity more cost effectively than other ports

Big Ship Rollout

Halifax

Looking Into The Future

HalifaxGetsItThere.com – Transit Time Calculator

Mega projects

• National shipbuilding contract

• Deep Punake natural gas

• Maritime power transmission - Lower Churchill

• Wind turbine & blade manufacturing

Atlantic Gateway–Halifax Logistics Park

Thank you

29

Annex 1 - Atlantic Gateway Investments The Strategy

Atlantic Transportation Infrastructure Projects Funded under the Gateways and Border Crossings Fund

Federal Share

($ million)

Project Total

($ million)

New Brunswick (NB)

Route 1 Twinning (inclusive of funds transferred from the Building Canada Fund) 93.00 210.00

Port of Belledune expansion and improvements (total federal contribution $26.4M) 6.00 61.20

Saint John Harbour Bridge Rehabilitation 17.50 36.17

Fredericton International Airport runway and lighting upgrade 5.2 10.40

Port of Saint John cruise gateway project 4.50 14.00

Greater Moncton International Airport runway extension 4.00 24.00

Port of Belledune modular fabrication and multimodal transshipment facility 1.50 13.20

Nova Scotia (NS)

Port of Halifax: South End Container Terminal Extension 17.50 35.00

Port of Halifax: Richmond Terminals Multipurpose Gateway Extension 36.50 73.00

Burnside Connector - Phase 1: connecting Hwys 102 and 107 17.50 35.00

Truro High-Speed Interchange: junction of Hwys 102 and 104 4.50 9.00

Rte 344: Upgrade of the access road to the proposed Melford Container Terminal 7.50 15.00

Halifax Stanfield International Airport runway extension 9.00 28.00

Halifax Rail Cut Study 0.14 0.28

Prince Edward Island (PEI)

Charlottetown Airport terminal expansion 1.20 3.50

Confederation Bridge Intelligent Transportation Systems project 1.34 2.68

Route 1 realignment of 2.2 km on Trans-Canada Highway (TCH) between Charlottetown and Confederation Bridge (subject to public consultation)

3.50 7.00

Route 1 realignment of 3 km and installation of two 4-way intersections on TCH (subject to public consultation)

4.50 9.00

Newfoundland and Labrador (NL)

Port of Argentia: Roll-on/Roll-off Ramp to complement shortsea shipping operations 1.25 2.50

Gander International Airport runway upgrade and rehabilitation 3.33 10.00

St. John’s International Airport: Category III Instrument Landing System 8.60 25.80

Marine Institute SmartBay Project Expansion: installation of additional buoys and sensors 2.50 5.00

Projected Totals 250.56 629.73