How does a region compete in today’s global economy? How do they create an image of understanding and overcoming obstacles to today’s global commerce and supply chain management issues?
These questions are being answered in the Canadian province of Manitoba which is creating a 20,000 acre foreign trade zone development that will help them develop an inland port. Their initiative to build an international inland port that maximizes integrated logistical support for global access to the North American continent via multi-modal transportation selections (rail, air and highway) from the adjoining airport has already begun.
This initiative is being funded by both the Canadian and Manitoba provincial governments with about $460 Million in initial support which includes land acquisition.
This is part of Canada’s Asia-Pacific Gateway and Corridor Initiative (APGCI) and has gotten a high priority as trade between Manitoba and China has steadily increased from $693 million in 2005 to $1.24 billion in 2009. They intend to expand on this by providing access to both the United States and Mexico from this central location via railroad and highway access.
Creating a supportive infrastructure
As I stated in my 2009 white paper on Intelligent Infrastructure: Securing Regional Sustainability written for the US Department of Homeland Security:
Proclaiming a place is “great for business and commerce” is not the same as preparing it for business and commerce. Corporate site selection committees are getting more discerning. Whether they are looking at a self-contained campus or a site within a shared campus environment, corporations are getting more selective in what properties they will consider to build facilities on.
When it comes to creating a business-friendly infrastructure that will be used as a regional platform for commerce, the Canadian CentrePort initiative is a very positive project. Taking a huge piece of land and carving it into a 20,000-acre regional and continental distribution center that can support diverse logistical operations next to a major airport is no small feat.
Many ideas must be developed and partnerships forged in order to get this project off-the-ground. The strategic focus on making sure that all the logistical links within a global supply chain are working in tandem is critical. Each participating trade organization may need to have a variation of what the logistics center delivers for their supply chain strategies.
Logistics centre
As Chart 1 depicts, new and traditional elements must be considered and integrated into this logistics center so it can support a dynamic and diverse set of supply chain requirements from many organizations. This chart depicts some of many issues that must be reviewed and implemented by both government and private organizations if a logistics center is to be successful.
The SMART© approach (Seamless Management of All Regional Transportation) is something we will see more of as organizations try to cut time and costs from transportation. Whether it is going a different route on the oceans to cut one or two days off of a shipment, finding a new rail route into a region or better coordination of trucking and warehouse shipments, shaving time and expenses off of transportation will continue to provide a competitive edge to those who continuously review their infrastructure options.
CARLINI-ISM: Regional viability is dependent on the current and developing infrastructure. That infrastructure must be able to support dynamic and diverse supply chain management strategies.
Email the writer:
j.carlini@alrroya.com
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