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Global Logistics Focus Sept.19, 2016

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SPECIAL REPORT THE JOURNAL OF COMMERCE GLOBAL LOGISTICS FOCUS 2016 32A THE JOURNAL OF COMMERCE www.joc.com SEPTEMBER 19.2016 In the United States, the Alliance Global Logistics Hub, near Fort Worth, Texas, is considered the foremost exam- ple of a multifaceted inland port. Served by Fort Worth Alliance Airport — the world's first dedicated industrial avia- tion facility — and the FedEx Southwest Regional Sort Hub, it's the United States' largest Foreign Trade Zone, in terms of foreign goods admitted. The 18,000-acre Alliance development, which encom- passes nearly 37 million square feet, has attracted more than 425 corporations, and 44,000 employees. Among other US cities widely rec- ognized as providing full-fledged inland ports are Houston; Chicago; Kansas City; St. Louis; Atlanta; Memphis; Columbia, South Carolina; Charlotte, North Carolina; and Southern California's Inland Empire. THE STATE OF CANADIAN INLAND PORTS CentrePort Canada in Winnipeg is North America's largest inland port, offering 20,000 acres of industrial land, accessible to tri-modal transportation, including three Class I railways through inter-switching (Canadian Pacific Railway, Canadian National Railway and BNSF Railway), a 24/7 global air cargo airport, and an international trucking hub. CentrePort also offers highway con- nections to all major networks, including Trans-Canada, as well as to Minneapo- lis/St. Paul, Chicago and points south and west, including Mexico. Also on site providing air cargo access is the 24/7 Winnipeg James Armstrong Rich- ardson International Airport. With its designated Foreign Trade Zone, Cen- trePort also offers greenfield investment opportunities for a variety of business operations including distribution, ware- housing and manufacturing. Based in Regina, Saskatchewan, the Global Transportation Hub Author- ity is Canada's only autonomous and self-governing inland port authority, responsible for marketing, financing, planning, and attracting investments for an intermodal transfer and logis - tics facility in Regina. With more than 1,800 acres of service-land ready for further development, GTH is pursuing the broader goal of becoming an engine of economic development in the region. Port Alberta is a logistics hub and economic development platform based in the Edmonton Metro Region in Alberta. It provides transportation, logistics and supply chain solutions to connect Alber- ta's economy to global markets via access to CN and CP rail lines, Highway 16 and Highway 2 (the CanaMex Trade Cor- ridor, south to Mexico), and Edmonton International Airport. The Calgary Region Inland Port's role as a distribution center for west- ern Canada has evolved over the past 20 years. The region is located at the axis of the TransCanada Highway and the CanaMex Corridor and centrally situated within the western provinces. Container traffic from the Port of Van- couver (by CP) and the Port of Prince Rupert (by CN) converges at two large intermodal facilities in the Calgary region, is transferred to many distri- bution centers, and trucked to western Canadian markets. Situated at the critical start of CN-CP co-production through Canada's irre- placeable Trade Corridor, the Ashcroft Terminal is 340 kilometers (215 miles) east of Vancouver. Ashcroft Terminal has 320 acres of industrial land, with another 350 acres of agricultural buffer land. Because both CP and CN mainlines are on the Ashcroft Terminal site, every piece of cargo that passes through any of the Vancouver marine terminals must pass through the Ashcroft Terminal to get into or out of North America. SHIPPERS' INLAND PORT ATTRACTION "Although seaports and inland ports advertise that their relationship is collab- orative, this is not always the case," says Arènso Bakker, a partner at Netherlands- based StigConsult. From one perspective, seaports and inland ports are competitors; from another, they need each other. "The land in inland ports is often cheaper, and there are fewer traffic jams and (other) problems," because of the lower level of congestion, Bakker said. So for some companies, "it is very attractive not to settle near a seaport, but to settle near an inland port, especially if that inland port has strong transporta- tion connections to several seaports. The seaports need inland ports, otherwise they don't function and may inevitably find their growth constrained by land supply and/or congestion." Inland ports are believed to be important facilities and gateways for strengthening export trade corridors and supporting the continued diversification of the provincial economy. The Calgary Regional Partnership and Calgary Eco- nomic Development, for example, this year engaged with southern Alberta agricultural producers, transportation, and logistics operators, the Port of Prince Rupert and ocean container companies in a very focused conversation. What would it take to realize a greater diversity of value-added agri- cultural products from across southern Alberta being shipped in containers from intermodal facilities in the Calgary region, through Prince Rupert, to foreign markets? The presence of two inter- modal facilities in the Calgary Region Inland Port increasingly is seen as an asset that has yet to be fully leveraged on the export side, taking advantage of returning containers and competitive backhaul rates. In Canada, the United States and elsewhere, each inla nd por t must address its own unique characteristics, depending on the peculiarities of its geographical locations, the transporta- tion patterns, and infrastructure in its region, the nature of the cargoes it handles, and the economic strengths and weaknesses of its surrounding com- munities. JOC Continued from Page 27A "Although seaports and inland ports advertise that their relationship is collaborative, this is not always the case."

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