PRO LOG CANADA THE GREAT PROVINCIAL OBSTACLE COURSE · OVER-DIMENSIONAL, INTERPROVINCIAL TRUCKING...

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THE GREAT PROVINCIAL OBSTACLE COURSE “GOODS AND SERVICES WE CAN’T SELL TO OURSELVES” A CLOSE LOOK AT THE ENERGY AND TRANSPORTATION SECTORS PRO LOG CANADA

Transcript of PRO LOG CANADA THE GREAT PROVINCIAL OBSTACLE COURSE · OVER-DIMENSIONAL, INTERPROVINCIAL TRUCKING...

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THEGREATPROVINCIALOBSTACLECOURSE

“GOODSANDSERVICESWECAN’TSELLTOOURSELVES”

ACLOSELOOKATTHEENERGYANDTRANSPORTATIONSECTORS

PROLOG

CANADA

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THEGREATPROVINCIALOBSTACLECOURSETheBNAActandtheCanadianInternalTradeAgreementstatesthat“ThereshallbeafreeflowingofgoodsandservicesbetweenProvinces,”but:WhenCertainIndustryPowersandAuthoritieswereGrantedtoProvinces-ProvincialJurisdictionsresultinProtectionismin:•ENERGY*•BOOZE•SECURITIESREGULATION•DAIRYPRODUCTS• INTER-PROVINCIALTRUCKING*

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TRANSPORTIONREGULATIONINCANADA

• FEDERAL– forInter-provincialCommerceq AirTransportq RailTransportq Pipelines• PROVINCIALq Trucking

TheCanadianTransportationAgencyhasNO authorityoverinter-provincialtrucking

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OVER-DIMENSIONAL,INTERPROVINCIALTRUCKINGPROBLEM:OilSandsProjectModulesFabricatedinOntario&Quebec– destinedforFt.McMurray–“Youcan’tgettherefromhere– byroad!”

CARRIERSandOntario,QuebecFABRICATORS:q “noestablishedO-DCorridors”q “Multiplepermitsrequired– Prov.,County,Munies”q “Approvalsreq’d fromUtilities,Railways,PowerCos”q “Coststoomuchif/whenyougetapermit”q “Everythingchangesattheprovincialborders”q “Toomuchredtape”GreatArticle:TheEconomist– July23,2016

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TheUofC’sVanHorneInstitutesawanOpportunity:“LET’STAKEALOOKATTHEREASONSWHYEASTERNCANADIANMANUFACTURINGSHOPSDON’TPARTICIPATEINMAJORPROJECTCARGOINWESTERNCANADA”PROPOSAL:

VHIPROLOGCTARTRANSPORTSECRETARIAT CANADA

OURWORK:TheProblemsWereIdentified.SolutionswereProposed

RESULT:TCPUBLISHEDTHESCOPINGSTUDYREPORT,FURTHERACTIONPENDING

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RESEARCHSurveyFormsCirculatedto:q TruckingCompaniesq OntarioandQuebecSteelFabricatingCompanies

InterviewsWereConductedWith:q ProvincialHighwayPermitDep’ts andRegulatorsq RegionalandCountyEconomicDevelopmentAgenciesq ProvincialEconomicDevelopmentAgencies

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MAJORFINDINGS:q Thereisacompleteabsenceofcommon,harmonizedsizeandweightregulationsbetweenprovinces.

q Alberta’sHighLoadCorridoristheO-D“Gold”standardtomeetq Therearenoestablished andmodified O-DtruckroutesinOntarioandQuebec,asexistsintheHLCinAlberta,andpartsofSK

q Redtapeinpermits,feesandtripdelaysinEasternCanada,particularlyOntario“Superload”Regulations,virtuallydisqualifiesitsfabricatorsfromWesternO-DProjectCargoBusiness

q OftenthecostoftransportationinmovinganO-Dloadout,orevenwithinOntario– ismorethanthevalueoftheshipmentitself

q Ittakes27weekstowinaSuperload permitinON.30daystoactuallytransportanoilsandsmodulefromKoreatoFt.Mac!

q SomefactoriesareusingtheSt.LawrenceSeawaytobarge loads– toDuluth,MNNOTThunderBay,ON

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MODULETRANSPORTRESTRICTIONS PayloadDimensions&Weights

Alberta Saskatchewan•OntarioTransportEnvelope

16Wheel(1)Group 16Wheel(1)Group BasedonPracticalLongHaulT/ATrailer 9.0m T/ATrailer 9.0m Dimensions

28-37tonnes 26-36tonnes •AxleLoadingandConfigurations7.32m 7.32m DifferSignificantlyBetween

ProvincesManitoba Ontario

•PermitProcedures,Times12Wheel(2)Tridem AnySingle andCostsDifferBetweenProvinces,Trailer(only) 4.57m Trailer 3.66m Counties,andMunicipalities

27tonnes(max.)7.32m 4.88m

Courtesy:MammoetTransport

Note:(1)Eachaxleintandemaxlegrouphas8tires(seebelow)(2)Eachaxleintridemgrouphas6tires

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MAJORRECOMMENDATIONSTOCTARq Identify,ineachjurisdiction’smajorindustrialareas,O-Dtruckroutestoadjacentborders,thatfeaturepre-determined,on-linepermittingproceduresandfees,andlow-costpermanentclearances

q EstablishaNationalTaskForcemodeledafterthecurrentTACCommitteeseekingTAC-legalsizeandweighharmonization,alsotobeledbyTC.Sameobjectivesplusdevelopmentof“through”O-Dcorridors,withsystemupgrades- includingfromwestcoastports.

q ThesourceprovincetoprocessandissueasingleO-Dpermitrighttotheprojectsite,basedongraduallyincreasingsizeandweightallowances,astheroutesareupgradedtoAlbertaHLC“Gold”Std.

q Initialmarinefocusonde-bottleneckingtheinter-modalrouteoverThunderBaythroughtoAlberta,recognizinglowerbargingcostsontheSeawayfromON&PQ

q EncourageEasternCanadianfabricatorsto“dialin”toresourceprojectsasearlyaspossibleinprojectplanning– topromoteitsproductdesignsandservices.Buildrelationships!

q Allstakeholderstorecognizetheplan’sCanadian “value-added”impact,injobsandconstructionmaterials

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ONBEHALFOF:

q TheVanHorneInstitutewww.vanhorneinstitute.comq PROLOGCanadaInc.www.prologcanada.com

THANKYOU!

PROLOG

CANADA