DID-5-15 APPENDIX A Milton and CN A Partnership Milton and CN A Partnership March 2014 0
Milton and CN CN has been in Milton for more than 100 years Our rail line runs through the community, carrying a significant portion of the $250 billion worth of goods that CN handles each year, and that touch the lives of millions of people every day CN wants to grow with Milton, with a population of 117,000 today, to a projected 228,000 by 2031 1
CN Network Supporting the North American Economy Global Asia 26% Domestic Canada 20% Global Europe 3% Transborder 32% Well Diversified Portfolio 35,000 route-kilometers Automotive Unique 3 coast reach, accessing over 75% of NA s population Coal Grains Fertilizers Domestic U.S. 16% Metals & Minerals Forest Products Enabling over $250 billion worth of trade Food and Beverages Wholesale Petroleum & Chemicals Moving 20% of Canada s export traffic Global South 3% Specialty Crops 2
CN s Intermodal Network Prince Rupert Prince George 2 West Coast ports Vancouver Edmonton Canada 11 terminals Saskatoon Calgary 3 East Coast ports Moncton Winnipeg Montreal Halifax Auburn Chippewa Falls Minneapolis/St-Paul Arcadia Saint John Brampton Worcester Joliet Detroit Chicago U.S. 6 CN terminals 5 non- CN sites Indianapolis CN Intermodal Terminals Ports Served by CN Intermodal Memphis Jackson Gulf port New Orleans 3
Intermodal Nearly 25 million containers are moved throughout North America every year using intermodal it s growing faster than any other method of transportation because it combines the best of all modes to deliver service, savings and solutions Logistic hubs that grow from an intermodal terminal drive sustainable job creation while attracting many industries No crude oil is moved in containers 4
CN in Ontario Employees 4,000 in Ontario and 2,400 in the GTHA Up 11% since late 2009 Operations Over 4,150 route kilometers Over 8,000 track kilometers Investment $250M in capital investment in 2014 Over $1 Billion in last five years Corporate Social Responsibility - Community EcoConnexion 18 Municipal projects completed nearly 30,000 trees and shrubs in Ontario alone United Way - 11 Ontario communities RailRoader Some examples: Acclaim Health and Community Care Services, Dog Guides Canada/ Chiens-Guides Canada, Crime Stoppers of Halton Capital Expenditures ($ millions) Ontario is significant for CN 5
CN s Activity in Ontario Traffic Originating and/or Destined in Ontario Traffic Passing Through Ontario Over 1.25M carloads Over 650,000 carloads Major role in moving Ontario, Canadian and North American traffic 6
The Advantages of Intermodal Distribution Environmentally Friendly CN moves one ton of freight an average of 200 kilometers on a single liter of fuel Rail can mean reductions in both emissions and congestion by reducing truck traffic on highways In fact, up to 280 truck loads fit one single intermodal train Reliable Safe All parties in the supply chain use state-of-the-art technology to monitor shipments every step of the way At CN, nothing is more important to us than running a safe operation With real-time information, CN is keeping track of schedule changes and watching out for our customers shipments so they don t need to We work closely with federal, provincial and state agencies to meet and exceed safety standards and environmental regulations We also partner with municipalities and customers to integrate their safety procedures with ours Efficient Intermodal provides shippers with reliable, consistent service with cost savings compared to over-the-road transportation Relative to bulk, containers reduce transport costs considerably, about 20 times less The main factors behind cost reductions reside in the speed and flexibility of containerization 77
Logistics and Intermodal Infrastructure in the GTHA There are an estimated 300,000 logistics jobs in the GTHA, 75% outside the City of Toronto in the areas four suburban regions As the GTHA grows, so will the logistics sector and the number of well-paying jobs it provides GTHA Logistic hubs serve multiple industries and thus are less vulnerable to the fluctuations of any one sector Traffic congestion is a major issue in the GTHA by putting containers onto railroads, intermodal transportation helps to reduce the volume of truck traffic 8
A Surging Demand for Intermodal Intermodal is CN's fastestgrowing business segment, with demand up substantially 50% of CN s intermodal goods travel through Ontario Southern Ontario requires more Our Brampton Terminal, intermodal capacity for the Canada's busiest transportation of consumer, intermodal yard, handled household and manufactured more than 1 million goods anything in your containers in 2014 house 9
The Need for More Intermodal Capacity in the GTA The GTHA is expected to account for the majority of population, employment and real GDP growth in Ontario over the next several decades CN is dedicated to serving the GTHA with leading intermodal service, demonstrated by more than $50-million in investment in the Brampton Terminal over the last 10 years however, room for expansion at the facility is limited Given the growth in intermodal, a two-terminal concept for the GTHA is the best option for continuing to provide superior service and meet demand for years to come 10
New Logistics Hub CN in Milton MILTON: THE PLACE TO BE 11
Milton as a Logistics Hub Milton has a highly desirable location in the western GTHA Leading companies such as Whirlpool, Rona and Lowe s have established distribution centres in Milton "Logistics clusters offer a broad spectrum of employment opportunities: blue-collar, white-collar, and no-collar jobs. Moreover, these clusters provide social mobility because the logistics profession and the industry value deep operational experience "on the floor" even among its executives. Thus, many logistics firms promote from within the company and within the industry, while providing educational opportunities to their employees who wish to improve their skills, certifications, and degrees. Source: Strategic Projections for CN 12 12
CN s Property in Milton Municipal/Regional Roads/Highways/ Milton Upgrades/expansion and acceleration of Road Infrastructure Government Support will be needed for Transportation Infrastructure Velodrome Mississauga Britannia Road Waste Management Site Lower Base Line CN land CN track Highway Burlington Oakville Government Funding Potential -- $50M 13
Terminal Integrated in New Facility N 14
New Facility 15
Intermodal and Halton Region The CN facility will be a major step in fulfilling Halton Region's job growth goals, and driving economic development BIT CN investment will encourage the further development of a thriving logistics industry Brampton will remain CN's hub terminal in the Toronto region, with Milton accommodating the growth in intermodal traffic CN MILTON 16
The Economic Story An intermodal facility would have a positive effect on industrial land development in the municipality, by attracting warehousing and logistics firms, as well as manufacturing firms utilizing the facility for the transportation of supplies and finished goods It's projected that the facility would attract between 3 and 5 million square feet of industrial development An additional 3 to 5 million square feet of industrial space would generate new employment in Milton. The extent of the number of new jobs is dependent upon the types of industrial space built Between 1,000 and 2,500 jobs would be generated, assuming an approximate mix of jobs being one-third manufacturing and two-thirds warehousing and distribution in nature Source: Market Impacts in Milton Cushman & Wakefield report for CN The present value in taxes generated in 30 years would be between $128M and $213M 17
The Environmental Story Terminal to be developed on 400 of CN s 1,000 acres substantial acreage devoted to trees, berms and landscaping A leading environmentally-advanced facility Will reduce truck traffic on highways and contribute to reduction of greenhouse gas emissions Energy-efficient equipment LED lighting Solar panels Green roofing Rain water capture 18
Engaging the Community As we develop the Milton Logistics Hub, we ll ensure that we fully consider the interests of our community. We want to hear from you. Your views and insights are invaluable. They ll enable us to build the best, most environmentally responsive facility possible. We want to do this right. With your help, we will. 19 19
Our Commitment Establish a presence at, and support, the Milton Education Village Enhance our contribution to the Mattamy National Cycling Centre (Milton Velodrome) Serve as a major contributor to the Milton District Hospital Foundation Actively support the business and community programs of the Milton Chamber of Commerce Partnering with Wilfrid Laurier University for Supply Management Internship, summer jobs and annual conference. Along with partners, we will build a family bicycle trail. 20
Information Centre and Accessibility We ll make it convenient for the residents of Milton and Halton to communicate with us We ll monitor activity and respond to inquiries, comments and questions quickly and comprehensively www.cn.ca 1-800-number Dedicated page on CN website Ongoing updates Social media outreach 21
Proposed Timeline March 19, 2015 Public announcement March 23, 2015 Project Description submission to CEAA March 28, 2015 Opening of the Information Centre End of May 2015 Determination of EA requirement Early 2016 EA decision (if required) 2016 / 2017 Anticipated Construction 22
New Facility N QUESTIONS?