State of the Industry from a Canadian perspective March, 2009

Transcription

1 State of the Industry from a Canadian perspective March, 2009

2 Transportation and Trade Canada is a small, open economy Gross National Product: Billions of dollars G8 Nations Total G8 = $28,785 Billions of US dollars Total G8 = $29 trillion US $13,446 UK $2,201 Russia $766 France $2,106 Canada: US $1.1 trillion Canada $1,130 Source: IMF Japan $4,571 Italy $1,766 Germany $2,797

3 Transportation and Trade reliant on trade 1 Percent of GDP Canada has 2 nd highest reliance on international trade % 37.7% % 26.1% 26.1% % 10.2% 0 Germany Canada Italy France UK Japan US Source: DFAIT

4 Manufacturing in Canada Two-thirds of Canada s goods & services are exported 55% of total manufacturing output is exported over 50% is sold into or through the United States Nearly 45% of all manufactured goods purchased in Canada are imported from the U.S. Foreign investment accounted for half of all capital investment in Canadian manufacturing in 2006.

5 Manufacturing in Canada Canada: Manufacturing Shipments Billions of Dollars Source: Canadian Manufacturers & Exporters, 2008

6 Canada s Economy in Recession GDP is expected to decline in 2009 The global financial crisis is reflected in declines in commodity prices, stock prices, and house prices Exports and investment are falling, while consumer and government spending are rising.

7 Ontario and Toronto market

8 Greater Toronto Area Greater Toronto Area is 5th largest urban region in North America Name of City Los Angeles New York Chicago Washington Toronto Philadelphia Atlanta Population 9.6 million 9.1 million 8.3 million 5.8 million 5.3 million 5.0 million 4.3 million (Source: Greater Toronto Marketing Alliance, 2006)

9 Ontario s Economy Ontario s Gross Regional Product (GRP) is comparable to the Gross Domestic Products (GDP) of notable countries Toronto GRP/GDP (millions of USD dollars) Source: Ministry of Finance and the World Bank, 2006

10 Greater Toronto Area GTA generates 20% of Canada s GDP 15.5 % of Canada s businesses are located in the GTA 40% of Canadian business head offices are located in the GTA Toronto provides employment to 2.8 million people or 18.2% of all employed Canadians

11 Toronto s Key Industries Biomedical & Biotechnology Canada's largest biotech cluster, the fourth largest in North America and among the top 10 in the world. Advanced Manufacturing generates $20 billion of annual output. Aerospace Industry Automotive Manufacturing Chemical Manufacturing

12 Supply Chain Challenges

13 Global Outsourcing Location of LCCS (current, as % of total sourcing) Firms China India Asia (excluding China and India) Mexico South and Central America Eastern Europe 1-10% 10-20% 20-50% >50% Source: Canada. Industry Canada. Low Cost Country Sourcing: A Canadian Pharmaceutical Perspective. Supply Chain & Logistics Association Canada, September 2007

14 On-time Delivery of Shipments Firm s Canadian Products US Products Products from LCCS Source: Canada. Industry Canada. Low Cost Country Sourcing: A Canadian Pharmaceutical Perspective. Supply Chain & Logistics Association Canada, September 2007

15 Air Cargo at Pearson

16 Five runways High efficiency dual taxiway system State-of-the-art deicing facility 24/7 operations CAT IIIA capability Strategic location along major highways

17 World Class Air Cargo Facilities 1. Cargo East (Vista): 318,000 sq. ft. of warehouse Dedicated cargo apron Multi-user complex 2. Cargo West (Infield): 566,000 sq. ft. of warehouse Dedicated cargo apron Multi-user complex 3. Cargo North (FedEx): 345,000 sq. ft. of warehouse Dedicated cargo apron space

18 Freighter Platform State of the art cargo handling facilities Live animal centre 24/7 Canada Customs Dedicated cargo apron

19 Current Freighter Airlift at Pearson

20 Air Cargo Activity in Canada Air Cargo Volumes in Canada , , ,000 Metric Tonnes 300, , ,000 0 Ottawa Moncton Halifax Edmonton Hamilton Calgary Winnipeg Vancouver Montreal Toronto Source: Airport data

21 Air Cargo Activity in North America Toronto (YYZ) Chicago (ORD) New York (JFK) Los Angeles (LAX) Miami (MIA) Pearson Airport is the leading airport in Canada for air cargo throughput but is far behind the leading North American Gateways

22 Gateway Benchmark

23 Infrastructure and Facilities Airport 2007 Total Freight (metric tonnes) Number of commercial length runways Air Cargo Facilities Warehouse (sq. ft) Air Cargo Facilities Ramp (sq. ft) Aggregate cargo building utilization (tons per sq. ft) YYZ 512, ,229,000 2,502, JFK 1,595, ,100,000 3,100, ORD 1,524, ,615,000 2,900, (a) Includes passenger airlines destination, all-cargo freighter capacity, and integrated carrier activity (b) Includes total available warehouse space and utilization ratios (c) Includes access to customs agents, average clearance time, overall activity levels, split facilities, on-site FTZ (d) Includes airport landing fees, incentive programs, warehouse rental rates (where applicable)

24 Connectivity and Agency Services Airport Distance to connecting transport (a) On-site customs & agriculture inspections FTZ Access Average clearance time required (Inspection) Average customs clearance time required YYZ 2, 8, 16, 16 Yes No Variable 1 hour JFK 2, 2, 16, 16 Yes Yes 1 hour 1 hour ORD 3, *, 3, 5 Yes Yes 1 hour 1 hour * - Indicates that facilities are on airport property. (a) Numbers, in order, are distance, in km, to major highway, truck terminal, major water port (inland), intermodal centre. Source : Jacobs Consulting

25 Comparison of competing gateways Airport Existing service by air carriers (a) Runways (composite of number and length) Existing facilities capacity (b) Land availability Intermodal access Customs and operating environme nt (c) Cost (d) YYZ JFK ORD (a) Includes passenger carrier, all-cargo carrier and integrated carrier activity (b) Includes total available warehouse space and utilization ratios (c) Includes access to customs agents, average clearance time, overall activity levels, split facilities, (d) Includes airport landing fees, warehouse rental rates and other associated costs to air cargo Rankings with 1=Best, 2=Second Best, etc. Source : Jacobs Consulting

26 Comparison of competing gateways Landing Fees - B F $15, Cost (USD) $10, $5, $0.00 New York - JFK Chicago - O'Hare Toronto Pearson January 2008

27 Reduced Landing Fees Landing Fee Comparison $15, $12, Cost $9, $6, $3, $0.00 Toronto Pearson Toronto Pearson % reduction in landing fees for all-cargo aircraft exceeding 50,000kgs of MTOW

28 The Canadian Loonie After soaring 60% from late 2002 to late 2007, the Canadian dollar has retreated 20% (U.S. cents per Canadian dollar, quarterly averages)

29 For more information, please contact: Mark Ruel Senior Manager, Cargo & Aviation Support Greater Toronto Airports Authority Toronto Pearson International Airport PO Box 6031, 3111 Convair Drive Toronto AMF, Ontario, Canada L5P 1B2 Tel: Fax: