<strong>Build<strong>in</strong>g</strong> <strong>the</strong> <strong>Conta<strong>in</strong>er</strong> <strong>Transload</strong> <strong>Sector</strong> <strong>in</strong> <strong>Halifax</strong>iiExecutive SummaryIn 2004, <strong>the</strong> HPA and partners undertook a study of potential distribution centre (DC)activity that could take place from <strong>Halifax</strong>. The major piece of learn<strong>in</strong>g from <strong>the</strong> studywas that distribution centre activity was unlikely to take place <strong>in</strong> <strong>the</strong> short to mediumterm, but that a hybrid of DCs, conta<strong>in</strong>er transload activity, held some potential. In<strong>the</strong> past two years, an agreement was signed between CRSA and ArmourTransportation Group to move 4,000 TEUs through <strong>Halifax</strong> which would bedistributed from a facility <strong>in</strong> <strong>the</strong> Burnside Industrial Park. Ano<strong>the</strong>r company,Consolidated Fastfrate is build<strong>in</strong>g a new 90,000 sf transload facility <strong>in</strong> Burnsidewhich will open <strong>in</strong> 2007. There are several more major retailers <strong>in</strong>terested <strong>in</strong> mov<strong>in</strong>gadditional volumes through <strong>Halifax</strong> if <strong>the</strong>re was improved transportation distribution<strong>in</strong>frastructure available.In <strong>the</strong> months s<strong>in</strong>ce this study commenced, Maersk L<strong>in</strong>e announced it is withdraw<strong>in</strong>gfrom <strong>Halifax</strong> <strong>in</strong> favour of Savannah, which is 970 nautical miles fur<strong>the</strong>r away from <strong>the</strong>Straits of Gibraltar than <strong>Halifax</strong>. The reason this has happened is that Savannah has19 major Distribution Centres located with<strong>in</strong> 5 miles of <strong>the</strong> port. This type ofdevelopment makes it imperative that <strong>Halifax</strong> become larger than its own localmarket, <strong>in</strong> <strong>the</strong> way Savannah and o<strong>the</strong>r ports have. At 310,000 people, Savannah issmaller <strong>in</strong> population than <strong>Halifax</strong> but is able to serve a large population base <strong>in</strong> <strong>the</strong>South East. Develop<strong>in</strong>g <strong>the</strong> conta<strong>in</strong>er transload sector is <strong>the</strong> first step <strong>in</strong> <strong>the</strong> growthof <strong>the</strong> Port of <strong>Halifax</strong>.Market AssessmentThe market assessment clearly outl<strong>in</strong>ed several targets that should be pursued <strong>in</strong><strong>the</strong> short-medium term. The total estimated volume as of this writ<strong>in</strong>g is about 50,000TEUs.It is possible that one or more 3PLs could handle <strong>the</strong> volume of <strong>the</strong> various retailerslisted above, much <strong>in</strong> <strong>the</strong> same way that Fastfrate is provid<strong>in</strong>g this service forCanadian Tire and Armour is do<strong>in</strong>g for CRSA. Or, <strong>the</strong>se retailers could build <strong>the</strong>irown facilities, like one major retailer has done at Richmond Properties <strong>in</strong> Vancouver.S<strong>in</strong>ce <strong>the</strong> study commenced, <strong>the</strong> Nova Scotia Liquor Commission, along with <strong>the</strong>liquor commissions from <strong>the</strong> three o<strong>the</strong>r Atlantic Prov<strong>in</strong>ces, have issued a tender for<strong>the</strong> services of a freight forwarder. This contract will be for a 12 month durationcommenc<strong>in</strong>g June 2007. With<strong>in</strong> a few months, <strong>the</strong>y will also issue a tender for awarehouse operation, to handle cargo arriv<strong>in</strong>g by vessel and rail. The new NSLCfacility is expected to handle about 4,000 TEUs, of which 1,800 will arrive by waterand <strong>the</strong> rest by rail. The facility will need to provide 50,000 to 60,000 sf with about 30truck bays. It will need ample storage space and be able to turn product around <strong>in</strong> 48hours. The most logical location is <strong>Halifax</strong>, due to <strong>the</strong> proximity of <strong>the</strong> port, but <strong>the</strong>NSLC <strong>in</strong>dicates that <strong>the</strong> location of this facility will be <strong>the</strong> decision of <strong>the</strong> contractw<strong>in</strong>ner. This opportunity should be <strong>the</strong> first priority of <strong>the</strong> <strong>Gateway</strong> team.May 2007