location and manufacturing

1

Location and Manufacturing

2

Location Factors

Availability of Raw Materials Location of Markets Availability of Fresh Water and Power Labour Supply Transportation Political Factors Circumstance

3

Availability of Raw Materials A food company should process fruit and

vegetables as soon as possible, so it is extremely important for most Food Companies to locate near raw materials.

4

Location of Markets A company should be located near their

customers/market, so the delivery costs are minimized.

5

Availability of Fresh Water and Power Many companies like steel makers and oil

refiners use a lot of water for cooling, cleaning purpose, and for electricity. Therefore it is important to locate near lakes and rivers.

6

Labour Supply

A lot of companies in Canada need workers with advanced skills.

So its better for companies to locate in parts of the country that have the universities and colleges.

7

Transportation Its important for every company to have fast

and efficient transportation. Transportation is very important for most

companies.

8

Political Factors The government can make decisions that will

attract new business. If they are not careful they can drive

businesses away. One example is they can offer a company

reduced taxes for a couple of years or provide the land for a new factory.

9

Circumstance Your company will best be located in the

area where its needed.

10

Questions2. Which of these is not a Location Factor?

a. a. Transportationb. b. Availability of Financial Resourcesc. c. Location of Marketsd. d. Circumstance

11

Providing Services

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BASIC SERVICESBASIC SERVICES

Basic industries provides services to people Basic industries provides services to people and businesses from outside the community and businesses from outside the community

Communities could not survive without these Communities could not survive without these services, because they bring money into their services, because they bring money into their respective communities from outside.respective communities from outside.

1313

BASIC SERVICES BASIC SERVICES

EXAMPLE EXAMPLE

The federal The federal government in government in Ottawa provides Ottawa provides services for services for Canadians Canadians throughout the throughout the country.country.

1414

NON-BASIC SERVICESNON-BASIC SERVICES

Non-basic services provide services for Non-basic services provide services for people and business located within the people and business located within the community.community.

These services do not generate money These services do not generate money from outside sources.from outside sources.

These services get paid either directly or These services get paid either directly or through your taxes and the money stays through your taxes and the money stays within the community.within the community.

1515

NON-BASIC SERVICESNON-BASIC SERVICES

EXAMPLEEXAMPLE

TransportationTransportation

Schools Schools

Doctors/ DentistsDoctors/ Dentists

Local movie theatreLocal movie theatre

1616

Types of IndustriesTypes of Industries

There are four types of industry:•Primary•Secondary•TertiaryTertiary•QuaternaryQuaternary

1717

Tertiary Industries Tertiary Industries

Tertiary industries are industries that Tertiary industries are industries that provide services and goods.provide services and goods.

They are concerned with trade.They are concerned with trade.

1818

Trade Trade Trade is divided into two categories:Trade is divided into two categories:

- Wholesale- Wholesale

- Retail- Retail

1919

TradeTrade

Wholesale - selling goods and services to Wholesale - selling goods and services to businesses or stores, but businesses or stores, but notnot to the public to the public

2020

TradeTrade

Retail - selling products directly to the public Retail - selling products directly to the public - in stores, vending machines, over the - in stores, vending machines, over the telephone, through mail order, door-to-telephone, through mail order, door-to-door sale, or over the internet.door sale, or over the internet.

2121

Quaternary IndustriesQuaternary Industries

Quaternary industries are highly Quaternary industries are highly specialized (and usually expensive), specialized (and usually expensive), knowledge-based, technological and knowledge-based, technological and supportive.supportive.

2222

QuestionQuestion

1.1. An example of Basic Service isAn example of Basic Service is

a)a) SchoolsSchools

b)b) The Federal GovernmentThe Federal Government

c)c) Doctors / DentistsDoctors / Dentists

d)d) All of the aboveAll of the above

2323

Questions Questions

2. Quaternary industries are 2. Quaternary industries are specialized specialized

a)a) NotNot

b)b) LowlyLowly

c)c) HighlyHighly

d)d) None of the aboveNone of the above

24Economic Connections

26

Offshore Oil – Hibernia• Hibernia is the largest of two oil rigs off the coast of Newfoundland & Labrador.

• It is situated on the Grand Banks.• Specially designed to withstand 160 mph winds and waves of 30 meters.• Located about 315 km southeast of St. John’s.• Drilling takes place in about 80 meters of water.

27

• Hibernia consists of two parts–Topsides Production Facilities–Gravity Base Structure.

• Topsides consists of five super modules containing the crews living quarters and the drilling and production equipment.

• In addition, there are seven other structures including cranes, lifeboat stations, and a heliport.

28

• 1979 - Chevron Canada Resources drilled a discovery well into the northeastern portion of the Grand Banks.

• 1984 - They had drilled nine more wells into the area.

• 1985 - Findings were presented to a federal-provincial environmental assessment panel to promote the development of an oil project on the Grand Banks.

• 1990 - Project approved and a 25 year lease was given to the Hibernia Management and Development Company to construct and operate the facilities.

• 1997 - Oil and gas production begins.

29

• Provides nearly 2500 Newfoundlanders with work and transferable skills.

• Strict measures taken to prevent oil spillage from contaminating the water.

• An “Iceberg Management Program” detects and tracks icebergs to reduce the probability of a collision with the GBS.

• The Rig has 16 concrete teeth protruding from its circumference – they are designed to absorb the impact of a 1 million tonne iceberg without damage.

30

Canada’s Circulatory System

31

• After WW II - travel by trains decreased drastically.

• People were traveling by cars and buses which had become more reliable.

• This was caused by improvements to highways and lower costs for flights.

• This decline resulted in annual Railway losses into the millions of dollars.

• Railway companies could no longer afford maintenance and repair.

• Passenger travel decreased as a result.

• The federal government created Via Rail to run the few passenger services.

Rail Travel

33

Road Travel• Roads are our most common means of transportation.

• Government spends more than $7 B annually on construction/maintenance of more than 900 000 kilometers of Canadian roads.

34

• Roads are used by about 19 M vehicles.

• Road travel plays a vital role in Canada’s economy because the government builds and repairs roads while drivers pay to fix, buy, and insure their vehicles.

35

• More people travel by cars/trucks because of their flexibility.

• Motorists operate vehicles independently and may drive at their own pace, in relative comfort and privacy.

Automobiles

36

• Buses are a major method for traveling between cities and distances below 1000 km.

• They are used by over 1 B individuals because of their inherent advantages…

• Relatively inexpensive, comfortable, convenient, avoid traffic, and reduced vehicle emissions.

Buses

37

Air Travel

• Few countries depend on air travel as much as Canada because of the great distances between our cities.

• By 2004, Air Canada fell under bankruptcy protection due to deregulation.

• Our government promptly sole Air Canada to private investors.

• Deregulation and the sale of Air Canada proved to be a “mixed blessing” for the air travel industry and consumers.

38

• Increased Competition.

• More airlines allowed to operate flights into and out of Canada.

• Often, new airlines offered more frills to their customers, such as catered meals on board, business-class seating, frequent-flyer programs, and movies.

• Most competitors offered ticket prices that were much cheaper.

• As a result, Air Canada was forced to lower ticket prices.

• However, this proved difficult because of Air Canada’s higher operational expenses.

Impact of Deregulation on the Industry

39

• Those living in large cities benefited greatly from deregulation.

• Competition forced airlines to lower their prices and offer more incentives.

• Customers were also provided with greater flight selections, options, and choices.

Impact of Deregulation on the Public

40

• Some smaller communities are only serviced by Air Canada.

• This means that Air Canada’s prices and offers no longer have to compete with that of other airlines.

• There is also the fear that if Air Canada shuts down these small communities will not be served by any airline because other airlines may not see enough profit in serving them.

41

• Employees agreed to wage concessions to make the airline more competitive.

• Attempts have been made to obtain additional funding for operations.

• However, the effects to the terrorist attacks on the United States in 2001 are still present.

• People seem more reluctant to fly and also are inconvenienced by the cost and delays resulting from tighter security measures.

• Nevertheless, because of the expanse of our country, air travel will remain a vitally important component of Canada’s transportation system.

Future of Air Travel in Canada

42

Travel by Ship• Although travel by ship is not very common in Canada, it is still very

important I regions like Newfoundland and Vancouver Island.

• It is less convenient than other ways of travel due to operating expenses and the dependence on weather.

43

Movement of Goods

• Trains are a cost effective way to move freight.

• One way to move cargo very cheaply is to use unit trains.

• They carry only one type of cargo along fixed routes.

• These trains use special cars designed to carry particular cargo and make for easier loading and unloading.

• In the 1950’s and 1960’s trains faced stiff competition from trucks.

• Trucks have an advantage because they are not constricted by tracks.

• They are also able to take shorter routes and do not have the added burden of having to transfer shipments from one vehicle to another.

Moving Cargo by Rail

44

• To compete with the trucking industry, railways developed the Piggyback System which combines the advantage of trucks with rail. The system runs as follows:

• A truck trailer is loaded.

• It is pulled by a truck to a nearby rail yard and loaded onto flatcars

• The train moves the trailer to a distant rail yard near its destination where it is unloaded.

• The trailer is then trucked to its final destination.

45

• Another solution involves the use of shipping containers.

• Freight is shipped in large metal boxes of standard size and shape which can be moved efficiently by trains, trucks, ships, and/or planes.

• This system offers less risk of theft, reduces damage to goods, and consumes less time.

46

• Trucking has many advantages over rail transport:

• Trucks cost less to buy and maintain than railway cars and engines

• Truck terminals are less expensive to build than train terminals

• Trucks are not restricted to fixed routes

• Trucks are better suited to carry lighter, less bulky cargoes

• Efficient intercity trucking is a fairly recent development.

• Before WWII, trucks were not used often because they were small, less reliable, and roads were not dependable.

• A significant improvement in all of these categories has made trucking more convenient and common.

Moving Cargo by Road

47

• Transportation of goods by plane is more expensive than other means.

• It is usually used to ship goods of high value or those that need to reach their destinations quickly.

• Examples are: non-perishable foods, machinery parts, and/or major pieces of construction or manufacturing equipment in need of repair.

• Float planes provide an additional option for remote travel/delivery needs.

Moving Cargo by Air

48

• Pipelines can be used to move gases, liquids, and solids that have been crushed and mixed with water.

• In Canada, they are used to move crude oil and natural gas.

• Pipelines are expensive to build, and are used when there is material of large quantity that is anticipated to last for many years – or, if it is inopportune to transport by other means.

• There are plans to build more pipelines provided they make economic sense.

• This may occur over the next 5 - 50 years, or not at all.

Moving Cargo via Pipeline

49

Some Questions…

Where is the Hibernia located?a. Coast of Labrador and Newfoundland

b. Grand Banks

c. Arctic Ocean

d. Hudson Bay

50

How many barrels of oil can the Gravity Base Structure hold?

a. 2 Million

b. 500,000

c. 1.3 Million

d. 1.9 Million

51

How many vehicles use Canadian roads each day?

a. 10 Million

b. 14 Million

c. 17 Million

d. 19 Million

52

Moving cargo by ___ is the most expensive.

a. Air

b. Boats

c. Pipeline

d. Trucks

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Canadian IndustriesCanadian Industries

5454

Offshore OilOffshore Oil

• Several oil companies discovered oil Several oil companies discovered oil and natural gas off the shores of and natural gas off the shores of Newfoundland and Nova Scotia in the Newfoundland and Nova Scotia in the 60s.60s.

• Chevron Canada had a discovery well Chevron Canada had a discovery well in Grand Banks.in Grand Banks.

• Mobil Canada drilled additional wells. Mobil Canada drilled additional wells.

• Hibernia began producing oil in 1997.Hibernia began producing oil in 1997.

5757

Location Factors for Location Factors for ManufacturersManufacturers• Availability of Raw MaterialsAvailability of Raw MaterialsManufacturers need reliable sources of raw materials.Manufacturers need reliable sources of raw materials.

• Location of MarketsLocation of MarketsCompanies may establish themselves near their Companies may establish themselves near their

customers/markets.customers/markets.

• Availability of Fresh Water and PowerAvailability of Fresh Water and PowerA basic need of manufacturing is an ample supply of water A basic need of manufacturing is an ample supply of water

and power.and power.

• Labour SupplyLabour SupplyCompanies must consider the availability and cost of its labour Companies must consider the availability and cost of its labour

force.force.

5858

Location Factors for Location Factors for ManufacturersManufacturers• TransportationTransportationAll companies require efficient modes of transportation.All companies require efficient modes of transportation.

• Political FactorsPolitical FactorsGovernments can attract industries by encouraging a good Governments can attract industries by encouraging a good

business climate through prudent business climate through prudent political decision-political decision-makingmaking..

• CircumstanceCircumstanceBusinesses can only be successful is their leaders possess and Businesses can only be successful is their leaders possess and

entrepreneurial spirit and vision, entrepreneurial spirit and vision, and can project a and can project a potential for business and then act on their vision.potential for business and then act on their vision.

5959

Transportation: Canada’s Transportation: Canada’s Circulatory SystemCirculatory System

• If Canada was compared to a human If Canada was compared to a human body, body, transportation transportation would be its would be its Circulatory System.Circulatory System.

6060

Rail TravelRail Travel

• At one time, rail travel was most popular.At one time, rail travel was most popular.• The sudden drop in rail passengers injured The sudden drop in rail passengers injured

the Canadian National Railways (CNR) and the Canadian National Railways (CNR) and the Canadian Pacific Railways (CPR).the Canadian Pacific Railways (CPR).

• In response, the federal govt. created Via In response, the federal govt. created Via Rail as a Crown corp. to run the passenger Rail as a Crown corp. to run the passenger services. services.

• There is one exception to the sad state of There is one exception to the sad state of passenger service in Canada - Some cities passenger service in Canada - Some cities have have commuter railscommuter rails, like Toronto’s “GO” , like Toronto’s “GO” Transit that are effective and keep their Transit that are effective and keep their ridership.ridership.

6161

Air TravelAir Travel

• We tend to drive or take the bus/train We tend to drive or take the bus/train for short trips but, we fly for longer trips for short trips but, we fly for longer trips – occasionally even for short ones.– occasionally even for short ones.

• For more than 60 years, Canadian air For more than 60 years, Canadian air travel was synonymous with Air travel was synonymous with Air Canada (orig. Trans-Canada Airlines).Canada (orig. Trans-Canada Airlines).

• Many airlines suffered from Many airlines suffered from deregulation. deregulation.

6262

Travel by ShipTravel by Ship

• Travel by ship is Travel by ship is important in some important in some parts of Canada.parts of Canada.

• Ferries are mostly Ferries are mostly used to carry tourists used to carry tourists or people who live on or people who live on islands to the islands to the mainland or vice mainland or vice versa.versa.

6363

Availability of Raw Availability of Raw MaterialsMaterials It is important for companies to It is important for companies to

be close to raw materialsbe close to raw materials

Fruits/vegetables should be Fruits/vegetables should be processed as soon as possible processed as soon as possible after pickedafter picked

6464

Company’s LocationCompany’s Location

Most companies choose to be Most companies choose to be close to the majority of their close to the majority of their customerscustomers

But sometimes they may not But sometimes they may not choose this because their choose this because their customers are all over the worldcustomers are all over the world

6565

Fresh water and powerFresh water and power

Basic need for manufacturing is a Basic need for manufacturing is a reliant supply of fresh water and reliant supply of fresh water and powerpower

Most significant power source for Most significant power source for determining industrial location is determining industrial location is cheap hydro-electricitycheap hydro-electricity

6666

Labour SupplyLabour Supply

In the past many companies needed In the past many companies needed a large - low-cost labour forcea large - low-cost labour force

Canada has difficulty competing Canada has difficulty competing with Mexico and the U.S. due to with Mexico and the U.S. due to their low-cost sources of labourtheir low-cost sources of labour

Companies in Canada are more Companies in Canada are more likely to need workers with likely to need workers with advanced skillsadvanced skills

6767

TransportationTransportation

Every company needs fast and Every company needs fast and efficient transportationefficient transportation

Some companies use air freight, Some companies use air freight, while others use shipswhile others use ships

6868

Political FactorsPolitical Factors

Governments offer companies Governments offer companies incentives if they locate in certain incentives if they locate in certain areasareas

Some things they might offer: Some things they might offer: reduced taxes for reduced taxes for XX no. of years, no. of years, makes certain to provide a makes certain to provide a location adjoining their necessary location adjoining their necessary raw materialsraw materials

6969

CircumstanceCircumstance

An entrepreneur is someone who An entrepreneur is someone who sees the sales potential for a new sees the sales potential for a new business and takes actionbusiness and takes action

7070

Auto IndustryAuto Industry

Auto parts are our most important Auto parts are our most important manufactured products and exportsmanufactured products and exports

The “Auto Pact” was signed with the U.S. in the The “Auto Pact” was signed with the U.S. in the 60s requiring Canada to build a min. number 60s requiring Canada to build a min. number of carsof cars

Canada must remain competitive to build carsCanada must remain competitive to build cars

The Auto Pact is gone now and under the The Auto Pact is gone now and under the NAFTA, cars built in Mexico, can be sold across NAFTA, cars built in Mexico, can be sold across North America, where labour costs are low.North America, where labour costs are low.

7171

Providing ServicesProviding Services

The number of service jobs has The number of service jobs has increased as business and increased as business and governments have becomes more governments have becomes more complexcomplex

Today more than 75% of Today more than 75% of Canadians are employed in Canadians are employed in tertiary industriestertiary industries

7272


1901 - only 33% of Canadians 1901 - only 33% of Canadians employed in servicesemployed in services

Why has the number gotten larger…?Why has the number gotten larger…?

1900s – reliance on machinery for 1900s – reliance on machinery for farming, mining, and forestry farming, mining, and forestry increased productivity and revenuesincreased productivity and revenues

7373


Workers received more money Workers received more money and more free timeand more free time

Better standard of living Better standard of living increased service demandincreased service demand

Population growth also expands Population growth also expands servicesservices

7474

Basic ServicesBasic Services

Provide services to people and Provide services to people and business outside the communitybusiness outside the community

e.g. The federal government of e.g. The federal government of provides services for all Canadiansprovides services for all Canadians

Universities attract students from Universities attract students from outside their communitiesoutside their communities

7575

Non-Basic ServicesNon-Basic Services

Industries provide services for Industries provide services for people and businesses in the people and businesses in the communitycommunity

Do not generate money from Do not generate money from outside sourcesoutside sources

E.g. public transportation, dentist, E.g. public transportation, dentist, theaterstheaters

7676

Trade ServicesTrade Services

Selling goods is called Selling goods is called trade.trade.

Wholesale – selling goods and services Wholesale – selling goods and services to businesses, not to the publicto businesses, not to the public

Retail – selling goods and services to Retail – selling goods and services to the public in stores, vending the public in stores, vending machines, over the phone, or via the machines, over the phone, or via the InternetInternet

7777

Finance, Insurance, Finance, Insurance, Real Estate ServicesReal Estate Services Services provided by banks, trust Services provided by banks, trust

companies, credit unions, stock companies, credit unions, stock exchanges, insurance companies exchanges, insurance companies and real estate companiesand real estate companies

These companies range in size These companies range in size from local business to large from local business to large corporations doing business all corporations doing business all across Canadaacross Canada

7878

Business and Personal Business and Personal ServicesServices Largest category of tertiary Largest category of tertiary

industryindustry

Fastest growing employment area Fastest growing employment area in the economyin the economy

e.g. Hair salon, law firm, personal e.g. Hair salon, law firm, personal fitness trainer.fitness trainer.

7979

Transportation and Transportation and Communication Communication ServicesServices Involves the movement of goods, Involves the movement of goods,

people and informationpeople and information

e.g. truck driver, railway e.g. truck driver, railway engineer, cable television engineer, cable television installer.installer.

8080

Government ServicesGovernment Services

Federal: Postal Service, National Federal: Postal Service, National Defense, Native AffairsDefense, Native Affairs

Provincial: Health and Social Services, Provincial: Health and Social Services, Education, Natural ResourcesEducation, Natural Resources

Municipal: Police and Fire protection, Municipal: Police and Fire protection, Water and Sewage Services, Parks and Water and Sewage Services, Parks and RecreationRecreation

8181

Health Care and Social Health Care and Social ServicesServices

Health Care Services includes Health Care Services includes dental care, medical care and dental care, medical care and researchresearch

Social Services include Day-Care Social Services include Day-Care Centers and Shelters for the Centers and Shelters for the HomelessHomeless

8282

Education ServicesEducation Services

Includes elementary and Includes elementary and secondary schools, post-secondary schools, post-secondary education, vocational secondary education, vocational training, religious trainingtraining, religious training

8383


Quaternary Industries: highly Quaternary Industries: highly specialized, knowledge-based, or specialized, knowledge-based, or technological servicestechnological services

National Microbiology Laboratory National Microbiology Laboratory (NML) in Winnipeg(NML) in Winnipeg

Advanced health facility designed Advanced health facility designed to promote public health, conduct to promote public health, conduct research, and provide trainingresearch, and provide training

8484


NML has done work to fight NML has done work to fight problems like SARS, West Nile problems like SARS, West Nile disease and “Mad Cow” diseasedisease and “Mad Cow” disease

China, India and other countries China, India and other countries have advantage of cheap labourhave advantage of cheap labour

Canada must find an advantage Canada must find an advantage somewhere elsesomewhere else

One thing in our One thing in our favourfavour is that we is that we have a large, skilled labour forcehave a large, skilled labour force

8585

Future TrendsFuture Trends

Rapid changes are occuring in the Rapid changes are occuring in the workplace due to globalization of the workplace due to globalization of the economy, free trade, and technological economy, free trade, and technological advances. advances.

Changes may eliminate jobs that we Changes may eliminate jobs that we now take for granted, or they may now take for granted, or they may provide new employment opportunities.provide new employment opportunities.

Many people now find employment in Many people now find employment in jobs that did not exist 30 years ago.jobs that did not exist 30 years ago.

e.g. Internet-related jobs and personal e.g. Internet-related jobs and personal trainerstrainers

8686

Movement of GoodsMovement of Goods

Every day, Canada’s transportation Every day, Canada’s transportation system handles cargo that ranges from system handles cargo that ranges from 50 000 tonnes of coal to 100 kg of live 50 000 tonnes of coal to 100 kg of live lobsters.lobsters.

Some cargo must be moved quickly, Some cargo must be moved quickly, without concern for transportation costs.without concern for transportation costs.

Other shipments can be left to travel Other shipments can be left to travel slowly to keep costs as low as possible. slowly to keep costs as low as possible.

Some cargo can be easily damaged and Some cargo can be easily damaged and needs special protection.needs special protection.

8787

Moving Cargo by RailMoving Cargo by Rail

Canada’s railways are the backbone of Canada’s railways are the backbone of our freight-carrying systemour freight-carrying system

Railways carry many varieties of Railways carry many varieties of freight and are particularly good for freight and are particularly good for moving moving bulk cargo bulk cargo such assuch as coal, coal, grain, wood, and oilgrain, wood, and oil

Bulk cargoes have large volume and Bulk cargoes have large volume and relatively low valuerelatively low value

They often need to be moved as They often need to be moved as cheaply as possiblecheaply as possible

8888


One way to move cargo cheaply is One way to move cargo cheaply is to use a to use a unit trainunit train

They are limited to carrying only They are limited to carrying only one type of cargo along fixed routesone type of cargo along fixed routes

These trains use special cars that These trains use special cars that are designed to carry specific cargo are designed to carry specific cargo and they are devised to be loaded and they are devised to be loaded and unloaded quickly and cheaply. and unloaded quickly and cheaply.

8989


The 50s and 60s found railways in stiff The 50s and 60s found railways in stiff competition with the trucking industry.competition with the trucking industry.

Trucks have distinct advantages Trucks have distinct advantages because they are not confined to because they are not confined to tracks.tracks.

Railways were compelled to find better Railways were compelled to find better ways to compete.ways to compete.

9090

Piggyback SystemPiggyback System

Combines the advantages of trucks with Combines the advantages of trucks with rail.rail.

Truck trailer is loaded at factoryTruck trailer is loaded at factory Is pulled by a truck to a nearby rail yard Is pulled by a truck to a nearby rail yard Loaded onto flatcarsLoaded onto flatcars Train moves the trailer to a distant rail Train moves the trailer to a distant rail

yard near its destinationyard near its destination It is then unloadedIt is then unloaded Trailer is trucked to its final destinationTrailer is trucked to its final destination

9191

Shipping ContainersShipping Containers

Even more flexible than the Even more flexible than the Piggyback Piggyback SystemSystem

Shipping containers can be moved by rail, Shipping containers can be moved by rail, truck, ship or airtruck, ship or air

Freight is shipped in large metal boxes of Freight is shipped in large metal boxes of standard size and shapestandard size and shape

Container is loaded by the shipper and can be Container is loaded by the shipper and can be moved by any combination of trains, trucks, moved by any combination of trains, trucks, ships and planesships and planes

Before development of containers, freight had Before development of containers, freight had to be loaded and unloaded piece by pieceto be loaded and unloaded piece by piece

This proved time-consuming and costlyThis proved time-consuming and costly

9292

Moving Cargo by RoadMoving Cargo by Road

Trucking has some advantages over rail Trucking has some advantages over rail transport:transport:

Trucks cost less to buy and maintainTrucks cost less to buy and maintain Truck terminals are less expensive to Truck terminals are less expensive to

buildbuild Trucks are not restricted to fixed routesTrucks are not restricted to fixed routes Trucks are better suited to carry Trucks are better suited to carry

lighter, less bulky cargoeslighter, less bulky cargoes

9393

Moving Cargo by ShipMoving Cargo by Ship Ships are best suited for moving Ships are best suited for moving

bulky and low value cargobulky and low value cargo e.g. grains, iron ores, coal, e.g. grains, iron ores, coal,

petroleum, lumber, cement, sand, petroleum, lumber, cement, sand, and graveland gravel

We can better understand Canada’s We can better understand Canada’s water-borne freight system by water-borne freight system by dividing it into 4 parts:dividing it into 4 parts:– West CoastWest Coast– East CoastEast Coast– St. Lawrence SeawaySt. Lawrence Seaway– Canada’s Far NorthCanada’s Far North

9494

The West CoastThe West Coast

Enormous amounts of cargo are shipped Enormous amounts of cargo are shipped through West Coast ports (especially through West Coast ports (especially Vancouver) and usually to the Pacific RimVancouver) and usually to the Pacific Rim

Pacific Rim: countries that border the Pacific Rim: countries that border the Pacific Ocean in the Americas, Asia, and Pacific Ocean in the Americas, Asia, and OceaniaOceania

Much of Canada’s export trade in Much of Canada’s export trade in lumber, coal, potash, wheat and other lumber, coal, potash, wheat and other bulk cargoes goes therebulk cargoes goes there

9595

The East CoastThe East Coast

East Coast ports like Halifax, Saint East Coast ports like Halifax, Saint John and Montreal are used for a John and Montreal are used for a wide variety of cargo with more wide variety of cargo with more container freight and less bulk container freight and less bulk cargocargo

9696

The St. Lawrence The St. Lawrence SeawaySeaway Is a system of canals and locks that link Is a system of canals and locks that link

the St. Lawrence and the Great Lakes the St. Lawrence and the Great Lakes Allows ships from the Atlantic Ocean to Allows ships from the Atlantic Ocean to

reach 3800 km inlandreach 3800 km inland Of vital importance for the movement of Of vital importance for the movement of

bulk cargo from one part of the Great bulk cargo from one part of the Great Lakes to anotherLakes to another

9797

Canada’s Far NorthCanada’s Far North

Presents special transportation problemsPresents special transportation problems Distances are great and climate is harshDistances are great and climate is harsh Freight must be moved by air or waterFreight must be moved by air or water Expensive to ship freight by airExpensive to ship freight by air Shipped by water whenever possibleShipped by water whenever possible Ships are used to move bulky cargoes like oil Ships are used to move bulky cargoes like oil

products, building materials, and machineryproducts, building materials, and machinery Also brings residents many of the groceries Also brings residents many of the groceries

they needthey need

9898

Moving Cargo by AirMoving Cargo by Air

Amount of freight carried is small compared Amount of freight carried is small compared to that moved by rail, road, or shipto that moved by rail, road, or ship

Freight can be moved very quickly, delivery Freight can be moved very quickly, delivery available the next day in some casesavailable the next day in some cases

Goods that are shipped have these Goods that are shipped have these characteristics:characteristics:

Light in weight and small in size, e.g., jewelryLight in weight and small in size, e.g., jewelry Of high value, e.g., electronic equipmentOf high value, e.g., electronic equipment Perishable, e.g., flowersPerishable, e.g., flowers Needed quickly, e.g., machinery parts that are Needed quickly, e.g., machinery parts that are

need to repair a major piece of construction need to repair a major piece of construction

9999

Moving Cargo by Moving Cargo by PipelinePipeline Can be used to move gases, liquids Can be used to move gases, liquids

and even solids that have been and even solids that have been crushed and mixed with watercrushed and mixed with water

Can be built only when two specific Can be built only when two specific conditions exist:conditions exist:– Supply of suitable material is to be moved Supply of suitable material is to be moved

and that is of significant quantity to last and that is of significant quantity to last for many yearsfor many years

– An inability to transport by ship - which is An inability to transport by ship - which is usually cheaperusually cheaper

location and manufacturing

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