Port Of Thunder Bay Having A Year Similar to Last Year
by Scott A. Sumner
Thunder Bay Business
The Ontario Marine Transportation Forum was formed in December of 2004 and is dedicated to raising awareness and promote the benefits of the Province’s marine transportation industry. They held a meeting October 25th in Thunder Bay to discuss important issues in the industry.
How does the future of the Port of Thunder Bay look?
“ There has been a lot of money spent at Churchill over the years and it is nothing new. The question we have to ask all levels of government is do they really want a Port in Thunder Bay as well as the Seaway in the future. You have to look at the issues that would make that flourish. Right now the ways things look for the customer it looks cheaper to go through Churchill than Thunder Bay. That is a result of a lot of factors many of them such as pilotage, ice breakage or two way tolls none of which are applicable in Churchill. We need a level playing field to make the seaway flourish. It is one of the wonders of the world.” said Tim Heney, CEO Thunder Bay Port Authority. “ We are hamstrung because a lot of these cost structures are basically fixed,
such as tolls from this side down. We need a more unified transportation policy in Canada. If you go out it ad hoc as has been done recently you will negatively affect other areas. Grain will flow based on pennies per ton so you have to be very careful with what you do in terms of changing that cost structure.”
Are containers a way of the future for the Port?
“ The only containers we have done in Thunder Bay so far are the Windmill projects. There is some grain movement in containers now and we see that as a potential in the future. As you have empty containers going back to Asia that potential will be realized. It could be big.
You need the cooperation of the railways to utilize Thunder Bay.We don’t have imports in Thunder Bay as we are an export port. There is not a lot of material coming here so the containers come to Toronto or Montreal and go back to Vancouver empty. We need them to stay here.”
How is the Port Of Thunder Bay doing in 2007?
“ We are slightly below last year, about 4% down. By the end of the year it could virtually equal last year with coal and potash but the grain is down right now. The Port is not in immediate jeopardy but as you look into the future if the trend continues we need to make sure the elements that make you flourish are looked at. We are looking at losing an elevator at the Port which is one of our major strengths -the storage ability. There are some threats”
Mr Rick Steinke, Director of Logistics for the Canadian Wheat Board gave a presentation at the meeting. “ Rain makes grain and we feel there will be a strong grain market next year because of the moisture we have had this year. We have a lot of storage capacity and rail
availability in Canada but much of our competition has way more storage built by their governments,” stated Steinke. “ The distance to water is 1500 km from the west to Thunder Bay or to Churchill is 1450 km. You need rail capacity with grain and there isn’t tons of competitive
pressure there. That is an impact on how we do as well. Containers have opportunities but long term they won’t replace grain because of the volumes involved.”
