CANADA’S GATEWAYS: SUPPLY CHAIN
PERFORMANCE MONITORING INITIATIVES
1
Leipzig, May 2, 2012
Canada’s Gateways and Trade Corridors:
System-wide Approach
Asia-Pacific
Gateway and
Corridor Initiative
Ontario-Quebec
Continental Gateway
and Trade Corridor
Atlantic
Gateway
Need objective fact-based metrics to: • Transparency
• Respond to anecdotal claims of (un)reliability
• Provide reliable and objective benchmarks for industry
• Market and promote Canada’s gateways efficiently
2 Transport Canada - Economic Analysis
3
Canada8.5%
U.S. 87.5%
Mexico 4%
Canada 10%
U.S. 85%
Mexico 5%
Canada 7%
U.S. 90%
Mexico 3%
Canada 9%
U.S.83%
Mexico 7 %
Canada 8.3%
U.S. 86.4%
Mexico 5.3%
2000
2010
All Ports
2000 2010
East Coast
2000
West Coast
Canada 10%
U.S. 81%
Mexico 9%
2010
Source: American Association of Port Authorities and Canada Port Authorities
• Mexico’s share of North American port traffic grew from 4% in 2000 to 7% in 2010.
•Canada’s share remained constant at around 9% during the same period.
• However, where Canadian ports have gained most in North American market share is on the West Coast.
North American Container Port Traffic Market Share
(TEU) by Country, 2000 vs. 2010
North American West Coast Container
Ports 2011
Rank Country Port TEUs 2011 % growth over 2010
1 Los Angeles 7,9935,430 1.3%
2 Long Beach 6,061,085 -3.2%
3 Vancouver 2,507,032 -0.3%
4 Oakland 2,342,504 0.5%
5 Seattle 2,033,535 -4.7%
6 Tacoma 1,488,795 2.3%
7 Manzanillo N/A N/A
8 Làzaro Càrdenas 953,497 19.8%
9 Prince Rupert 410,469 19.5%
10 Portland 197,446 9.0%
Phase 1: 500, 000 TEU Phase 2: 1.5M TEU
Port of Prince Rupert
Port Metro Vancouver
Deltaport Berth 3 600,000 TEU capacity
(Jan 2010)
Source: port authorities
Transport Canada - Economic Analysis
Original Policy Question
Fluidity Indicator Supply Chain Resilience
$$$
Port
Utilization
Indicators
Are Canadian Supply Chains Reliable?
Air Cargo
Economic Analysis Directorate 5
Import
Vessel
Forecast
Integrated Approach
Transport Canada - Economic Analysis
PORT UTILIZATION
INDICATORS
Economic Analysis Directorate 6 Transport Canada - Economic Analysis
PORT UTILIZATION INDICATORS (PUI)
Intermodal Indicators (4 partner ports): 1. Average Vessel Turnaround Time (1) [sec./TEU]
2. Average Vessel Turnaround Time (2) [Hours]
3. Berth Utilization [TEU /m]
4. Average Truck Turnaround Time [Min.]
5. Gate Congestion Indicator [Index]
6. Average Container Dwell Time [Days]
7. Average vessel (un)load [TEU/vessel]
8. Gross Port Productivity [TEU/Gross Ha]
9. Crane Productivity [TEU/STS crane]
Bulk Indicators (7 partner ports): 1. Berth Occupancy Rate [%]
2. Gross Berth Productivity [T / berth-hr]
3. Average Vessel Turnaround Time [Hours]
4. Average vessel (un)load [T / vessel]
5. Vessel Queuing (new in 2012) [Time at berth/Time in port]
7 Transport Canada - Economic Analysis
B.C. CONTAINER PORTS SCORECARD 2011
8 Transport Canada - Economic Analysis
Source: Transport Canada
Jan-11 Feb-11 Mar-11 Apr-11 May-11 Jun-11 Jul-11 Aug-11 Sep-11 Oct-11 Nov-11 Dec-11 AVG YTD 2011 AVG YTD 2010 % ∆
1 Gate Fluidity Index1 100 99 78 78 88 83 97 102 95 92 110 93 N/A N/A
2 Avg. Truck Turnaround Time - Minutes 25.9 26.8 28.6 29.6 26.5 26.0 25.2 24.5 26.4 27.0 27.0 27.2 26.7 23.9 12%
3 Berth Utilization - TEU/Meter2 65.6 60.8 61.1 69.1 72.4 73.8 80.2 78.9 82.4 75.6 75.8 76.4 72.7 69.7 4%
4 Vessel Turnaround Time - Sec/TEU 36 34 45 39 38 39 37 35 35 33 39 39 37.4 37.3 0%
5 Vessel Turnaround Time - Hours/Vessel Call 33.1 28.1 36.5 32.4 31.9 33.0 31.7 30.4 34.0 30.9 35.0 34.5 32.6 38.6 -15%
6 Avg. Container Dwell - Days3 2.56 3.17 2.63 2.45 2.29 2.38 1.93 2.25 2.48 2.29 1.97 2.47 2.41 3.06 -21%
7 Port Productivity - TEU/gross ha 1,359 1,268 1,251 1,437 1,482 1,488 1,563 1,550 1,619 1,486 1,500 1,502 1,459 1,426 2%
8 Crane Productivity - TEU/STS crane 7,508 6,950 6,970 7,900 8,291 8,462 9,257 9,077 9,482 8,696 8,706 8,789 8,341 7,989 4%
9 Number of vessel calls 69 71 77 78 89 83 82 81 76 77 78 79 78 64 22%
10 Average TEU/vessel call 3,264 2,933 2,710 3,038 2,783 3,011 3,169 3,200 3,561 3,228 3,224 3,178 3,108 3,721 -16%
Container Throughput (BC Total) - TEU 225,231 208,220 208,641 236,944 247,731 249,951 259,851 259,183 270,634 248,563 251,470 251,092 243,126 238,126 2%
2,917,511 2%
2,857,510
Indicator
Total 2011 YTD TEU
Total 2010 YTD TEU
Container Dwell Time vs. Port Throughput at
B.C. Ports, 2009-YTD 2012
9
Source: Transport Canada
Transport Canada - Economic Analysis
3.2
2.7
2.3
3.0
1.8
2.5
2.8
2.0
2.5 2.5 2.3
2.9
3.7
3.3 3.5
3.1
3.4 3.2 3.2
2.7
3.0 3.1
2.2
2.7 2.6
3.2
2.6 2.5
2.3 2.4
1.9
2.3 2.5
2.3
2.0
2.5
3.3 3.2
0
50,000
100,000
150,000
200,000
250,000
300,000
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
Jan
-09
Feb
-09
Mar
-09
Ap
r-0
9
May
-09
Jun
-09
Jul-
09
Au
g-0
9
Sep
-09
Oct
-09
No
v-0
9
Dec
-09
Jan
-10
Feb
-10
Mar
-10
Ap
r-1
0
May
-10
Jun
-10
Jul-
10
Au
g-1
0
Sep
-10
Oct
-10
No
v-1
0
Dec
-10
Jan
-11
Feb
-11
Mar
-11
Ap
r-1
1
May
-11
Jun
-11
Jul-
11
Au
g-1
1
Sep
-11
Oct
-11
No
v-1
1
Dec
-11
Jan
-12
Feb
-12
TEU
Day
s
Throughput AVG Dwell
FLUIDITY INDICATOR SUPPLY
CHAIN ARCHITECTURE
Economic Analysis Directorate 10 Transport Canada - Economic Analysis
Calgary
Toronto
Montreal
Chicago
PHASE 1 CORRIDORS: ASIA-PACIFIC
PRINCE RUPERT
VANCOUVER
• Hong Kong
• Shanghai
Calgary
Toronto
Montreal
Chicago
Economic Analysis Directorate Transport Canada - Economic Analysis
11
A CONTAINER JOURNEY THROUGH THE PACIFIC GATEWAY [MODEL BELOW EXCLUDES TRANSLOAD]
Shanghai Hong Kong
Vancouver
Prince Rupert
Deltaport
Inner-harbour CTs
MTD
MTD
Toronto MTD
Rail transit
Rail Dwell :
Drayage to rail yard
RTD
MTD: marine terminal dwell RTD: rail terminal dwell
DC
: trucking : rail : marine
Chicago
RTD DC Rail Transit Drayage
Drayage
: gateway/ inland hub
All truck transit
12
Transport Canada - Economic Analysis
GREATER VANCOUVER TRANSLOAD ACTIVITIES
Marine Terminals
63% By rail (marine containers)
37% leaving by truck
Lower Mainland Intermodal yards
Direct U.S. <1%
Direct Western Can.
9%
Import transload facilities
to import transloads 26% to intermodal
yards 2%
Back to intermodal yards 20%
53’
Source: Transload Mapping Study 2011. Proportions Based on 2009 volumes
to B.C. customers. 2%
to other Can destinations 4%
Additional volumes via intermodal yards 22%
Total Rail to Eastern Canada and U.S. 85%
15.8% via intermodal
yards
TOTAL 100%
90% Can
10% U.S.
47.3% direct rail
13
SUPPLY CHAIN TIME COMPONENTS MEASURED
Ocean & Port
Ocean transit [1]
Rail Trucking Logistics and Warehousing
Truck from marine terminal to origin rail yard [1]
Marine Terminal Dwell [2]
Dwell at dest. rail yard [4]
Rail transit time (intra-urban) [2]
Dwell at origin rail yard [1]
Dwell at transload facility
Rail transit time (inter-urban) [3]
Air
Air transit [2]
Dwell at origin airport [1]
Dwell at destination airport [3]
Truck from marine terminal to end customer [2]
Truck from marine terminal to transload facility [3]
Truck from transload facility to origin rail yard [4]
Truck from transload facility to end customer [5]
Truck from shipper warehouse to origin airport [6]
Truck from destination airport to DC/warehouse [8]
Dwell at secondary destination airport[4]
Truck from primary destination airport to secondary destination
airport[7]
14
SUPPLY CHAINS – VARIOUS MODELS (B.C. PORTS)
SUPPLY CHAIN 1
+ +
+ + + +
+ + + + + +
+
+ + + +
+
+
+
+
+ + + + +
Direct rail
Pure Rail via intermodal yard
Rail via intermodal yard- Drayage
Transload - Rail
All-Truck
Transload - Truck
SUPPLY CHAIN 2
SUPPLY CHAIN 3
SUPPLY CHAIN 4
SUPPLY CHAIN 5
SUPPLY CHAIN 6
Economic Analysis Directorate 15
1 2 3 4
1 2
1 2
1 2
1 2
1 2
3 4 1 1
1 2 3 4
3 4 3 4 1
2
3 5
SUPPLY CHAIN 7
SUPPLY CHAIN 8
+ + + +
+ + + + + +
6
6
8
8
1
1 2
2
3
3
7 4
Direct air
Dual airport
53%
2%
14%
18%
8%
5%
N/A
N/A
Supply Chain 1:
Direct Rail
Ocean transit
Port dwell
Inter-urban rail transit
Dwell at destination
railyard
Time components included
16 Transport Canada - Economic Analysis
FLUIDITY INDICATOR DATA & METHODOLOGY
Economic Analysis Directorate 17 Transport Canada - Economic Analysis
DATA SOURCES
Ocean & Port
Ocean transit:
• Lloyd’s List Intelligence Seasearcher
Marine terminal dwell:
•Canada Port Authorities
Rail
Railyard dwell :
• CN Rail & CP Rail
Rail transit :
• CN Rail & CP Rail
Trucking
Truck transit times :
•Third party GPS and satellite providera
Transloading
Transload dwell:
• Lower Mainland Transload Mapping Study 2010 (Culham Business Solutions)
18 Transport Canada - Economic Analysis
DATA REPRESENTATIVENESS • Ocean transit
– 98% of vessel movements covered
• Port dwell – 100% of universe covered
• Rail transit – 100% of universe covered
• Rail terminal dwell – 100% of universe covered
• Trucking – Inter-urban: ≈ 40% sample – 90 major O-D pairs – Drayage: ≈ 5% sample
• Transload – ≈50% of universe covered
19
Transport Canada - Economic Analysis
EXAMPLE: APL IRIS PACIFIC SOUTH 1 SERVICE EASTBOUND – NOVEMBER 2010
Example Calculation HONG KONG-VANCOUVER: Laem Chabang-Singapore = 2.26 days Dwell @ Singapore = 1.22 days Singapore-Yantian = 4.89 days Dwell @ Yantian = 0.55 days Yantian-Hong Kong = 0.25 days Dwell @ Hong Kong = 0.65 days Hong Kong-Shanghai = 2.11 days Dwell @ Shanghai = 0.51 days Shanghai-Seattle = 11.01 days Dwell @ Seattle = 2.65 days Seattle-Vancouver = 0.39 days
TOTAL TRANSIT TIME HONG KONG TO VANCOUVER= 16.7 days (TOTAL TRANSIT TIME OF EASTBOUND SERVICE = 26.5 days)
ARR: Nov 24 / 1:00
DEP: Nov 24 / 13:00
ARR: Nov 20 / 10:45
DEP: Nov 21 / 00:10
ARR: Nov 21 / 6:16
DEP: Nov 21 / 22:04
ARR: Nov 14 / 9:30 DEP: Nov 15 / 14:55
ARR: Dec 8 / 15:16
Shanghai
Hong Kong
Yantian
Laem Chabang
Vancouver
DEP: Nov 12 / 3:00
Seattle
Port Rotation: Laem Chabang Singapore Yantian Hong Kong Seattle Vancouver
Singapore
2
1
3
4
5
6
7
ARR: Dec 5 / 13:44
DEP: Dec 8 / 5:40
HK-Vancouver Transit Segment
20 Transport Canada - Economic Analysis
FLUIDITY INDICATOR
Results 2010-2011
Economic Analysis Directorate 21 Transport Canada - Economic Analysis
0.00
5.00
10.00
15.00
20.00
25.00
30.00
Jan
-10
Feb
-10
Mar
-10
Ap
r-1
0
May
-10
Jun
-10
Jul-
10
Au
g-1
0
Sep
-10
Oct
-10
No
v-1
0
Dec
-10
Jan
-11
Feb
-11
Mar
-11
Ap
r-1
1
May
-11
Jun
-11
Jul-
11
Au
g-1
1
Sep
-11
Oct
-11
No
v-1
1
Dec
-11
Jan
-12
Feb
-12
Ave
rage
To
tal T
ran
sit
(Day
s)
Toronto
Calgary
Montreal
Chicago
Total Transit Time from Shanghai to Various
Destinations via B.C. Ports, 2010-2012 YTD
22
Source: Transport Canada
Transport Canada - Economic Analysis
Supply Chain 1 – direct rail
2012 2011 2010
Total Transit Time from Hong Kong to Toronto
via B.C. Ports (direct rail)
23 Source: Transport Canada
Transport Canada - Economic Analysis
0.0
5.0
10.0
15.0
20.0
25.0
30.0
Jan Feb Mar Apr May June July Aug Sept Oct Nev Dec
Day
s
2010
2011 2012
Month 2010 2011 2012% change
2010/11
% change
2011/12
Jan 24.5 25.3 26.8 3% 6%
Feb 22.9 25.5 26.2 11% 3%
Mar 22.2 26.1 17%
Apr 22.5 24.9 11%
May 22.4 25.3 13%
June 23.7 24.9 5%
July 22.6 24.6 9%
Aug 21.9 25.1 15%
Sept 23.1 25.9 12%
Oct 23.6 25.3 8%
Nev 24.5 24.7 1%
Dec 25.3 25.8 2%
Average 23.5 25.3 26.5 8% 5%
Breakdown by Segment of Hong Kong to
Toronto Transit (direct rail)
Economic Analysis Directorate 24 Transport Canada - Economic Analysis
64% 36%
Waterside
Landside 69%
31% Waterside
Landside
2010 2011
Waterside = ocean transit Landside = port dwell + rail transit
While average total transit time from HK-TOR deteriorated from 2010 to 2011, landside performance actually improved over that period. Gains on the landside were offset by longer ocean transits.
Container Import Vessel
Forecast
Economic Analysis Directorate 25 Transport Canada - Economic Analysis
G2B Approach
• Objective: – Consolidate and streamline data sharing process – Increase visibility of inbound container volumes – Relay Advance Cargo Information (ACI) data to key gateway
operators to establish more accurate inbound container forecasting
• Advanced planning and allocation of rail and marine terminal resources
• Dissemination approach: – TC custodian of raw data (protected) – Daily aggregated level reports to gateway operators
26 Transport Canada - Economic Analysis
Results of Inbound Container Forecasting
Pilot Test – March 2012
27 Transport Canada - Economic Analysis
CONCLUSION
• Canada’s Supply Chain Performance Monitoring Initiatives provide evidence-based quantification of the reliability of Canadian gateways and supply chains
• Greater accountability and transparency in the supply chain will benefit all gateway users
• Partnership approach in a win-win context
• Next steps: air cargo and containerized export movements
Thank you / Merci
28 Transport Canada - Economic Analysis