By TOM PETERS
March 22, 2009
Prairie grain may have a new route to market and a major southern distribution centre may have found a new port on the Atlantic as a result of agreements with the Halifax Gateway Council.
The council has signed memorandums of understanding with Churchill, Man., and Memphis, Tenn., that will basically focus on building business relationships and opportunities for the regions involved.
Stephen Dempsey, chair of the Halifax Gateway Council, said the deal with Memphis gives Halifax a connection to the southern Midwest heartland and that Halifax could potentially be the gateway for that cargo. In return, Memphis gets “a partner on the Atlantic” that will help it with its strategy of developing inland terminals and support its focus of being major distribution centre.
A Memphis delegation visited Halifax last year and was impressed with the port and its deepwater capabilities, proximity to the Suez Canal, lack of congestion and land connection to the Memphis region via CN.
CN’s recent purchase of the Elgin, Joliet & Eastern Railway Co. around Chicago will reduce travel time to the Memphis region.
“We will work on the business case to find the customers that we can develop and the products and cargo we can develop to deepen this route,” Mr. Dempsey said.
Arnold Perl, chairman of the Memphis Regional Logistics Council, said, “Memphis is literally connected by CN Rail to both coasts of Canada through Prince Rupert on the West and Halifax on the East. These trading relationships will only enhance our competitive positioning.”
Tom Ruth, president and CEO of the Halifax International Airport Authority, also is keen on the Memphis connection. “It is the largest air cargo hub in North America and is home to the air cargo giant FedEx, a key customer at Halifax Stanfield International Airport,” he said. “Our key strategic relationship with Memphis will benefit our gateway in many ways.”
With the Churchill agreement, Halifax could see more grain vessels, a common sight in the port many years ago.
Mr. Dempsey said the Canadian Wheat Board is very interested in the Halifax agreement as it will provide another gateway to international markets.
“Prairie farmers face enormous challenges in moving their grain vast distances to market,” said Ian White, president and CEO of the Canadian Wheat Board. “The more flexibility we can build into our transportation systems, the better for grain producers.
“This is why we have always strongly supported the ongoing viability of Churchill.”
Mr. Dempsey said a Churchill-Halifax network could also provide an alternate route for product going to northern regions of the country or even to the West.
“By working collaboratively, the ports of Churchill and Halifax will assist in further developing Canada’s national gateway infrastructure,” said Lloyd Axworthy, chairman of the Churchill Gateway Development Corporation. “This joint effort will work to ensure the long-term success of the Port of Churchill.”