Building the Container Transload Sector in Halifax - Halifax Gateway

More documents

Recommendations

Info

Building the Container Transload Sector in Halifax 17The company would need a huge increase in volumeNeed for long-term commitments from one or more customers with sufficient volume tosupport a facilityIf customers’ requirements dictated having a facility in Halifax, company would open one,since 3PLs “follow the cargo”A company’s customers’ demand for a service in HalifaxOne company already operates two facilities in the Burnside Industrial area and is lookingat one site on HPA propertyCompetitive costsCost of the buildingSince 3PLs want to have a cost advantage over their competitors, having the governmentprovide incentives would be a factorPublic opinion would have to change. One company’s customers would have to acceptHalifax as being close enough to major markets to company could sell its customers onusing the PortGeneral conditions in Halifax would need to improve, particularly relating to railinfrastructure, which is seen as antiquated and limited compared to the rail system inWestern CanadaBoth CN and CP would need to serve HalifaxCP would need to offer service to provide an alternative to CNLocation (port location and access to highways connecting to major Canadian locationsand US border crossings)Good availability of domestic rail and truck equipment for transloadingThe problem of having many low bridges along the rail line would need to be addressed tospeed velocityIt would be great if transloading could occur, but the cargo moved onto lake ships so thatcontainers could be moved to Toronto or Hamilton in a more cost-effective manner thanrailFigure 7: Conditions/Perceptions Affecting Location of 3PLs in HalifaxThe most commonly cited key conditions relate to having customer commitments forvolume, competitive costs, and improvements to rail infrastructure and service.When asked whether having a rail siding adjacent to a warehouse they mightoperate in Halifax was essential, five believed it was; one said no; two said it was notessential, but would be an asset; and three said no, but having easy access tohighway and rail is critical.3PLs identified the following impediments that might prevent their customers fromusing a transload warehouse in Halifax:May 2007
Building the Container Transload Sector in Halifax 18Not enough carriers calling the PortOcean transport cost differential between East and West Coast Canadian ports fromChina and North AsiaOcean freight costsLimitation of getting containers off ships quicklyPoor service at the PortShallow draftCostsHow much risk are customers willing to tolerate to use an East Coast port?Lack of facilitiesLack of proper yard space for container marshalling and other container requirementsCountry of originLand transportation delivery costs to TorontoCN rail congestionLimited and antiquated rail infrastructureThe Port is served by only one railroad, which some customers consider a monopoly.CN is too strong and arrogant and needs to have a more competitive attitude.Poor trucking and rail serviceTrucking capacitySmall population baseIt would be a challenge to deliver small lots of cargo to customers in the U.S. Midwest andCentral Canada from Halifax due to the distance.Geographic proximity to customers’ markets/retail outletsLack of vehicle availability with company’s pick-up and delivery agentWeatherFigure 8: Perceived Impediments to Transloading in Halifax3.5 Recommended Marketing Strategies1. Because the study proponents cannot control such shortcomings as thesmall regional population base, limited number of retailers and small storeconcentration, the Partnership should work on things they can control andinfluence to make the environment more hospitable for importers and 3PLsto do business in Halifax. These relate to ocean carrier, terminal, rail andhighway issues.2. There seem to be some misperceptions about Halifax that could be clearedup through advertising and educational outreach. These include that the Portis congested and that Halifax is too far from key Asian manufacturing centresand major destination markets.3. In light of comments from importers relating to the conditions that would haveto be in place before they would consider Halifax as a transloading location,May 2007
Page 1 and 2: Building the Container TransloadSec
Page 3: Building the Container Transload Se
Page 6 and 7: Building the Container Transload Se
Page 76 and 77:
Building the Container Transload Se
Page 78 and 79:
Page 80 and 81:
Page 82 and 83:
Page 84 and 85:
Page 86 and 87:
Page 88 and 89:
Page 90 and 91:
Page 92 and 93:
Page 94 and 95:
Page 96 and 97:
Page 98 and 99:
Page 100 and 101:
Page 102 and 103:
Page 104:
show all

Building the Container Transload Sector in Halifax - Halifax Gateway

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?