PORT OF WINDSOR FEATURE
June 28, 2010
The Windsor Port Authority is a developer of port facilities and not a port operator. That makes the Port of Windsor an ideal place for investment.
The port consists of 12 terminals – five totally or partially owned by the port authority and seven owned by the private sector.
The port is continuously seeking out new opportunities and is prepared to partner with the private sector on appropriate development of port lands. The authority currently has about 24 hectares of waterfront property available; of particular significance is a 12-hectare parcel that is immediately adjacent to the proposed new Detroit River International Crossing.
“Our normal practice is to enter into long-term leases or management agreements for port authority properties with the private sector,” said David Cree, president and CEO of the Windsor Port Authority. “This has two advantages. First, it allows the private sector to operate competitively, as our agreements are at fair market value with innovative financing options. Second, this type of arrangement ‘frees up’ capital that would be required if we were operators and allows us to dedicate as much of our reserves as possible to future port development.”
Of the 17 ports run by Canadian Port Authorities, Windsor traditionally ranks about 12th in terms of total tonnage handled. Of the four Canadian Port Authorities on the Great Lakes, Windsor has by far the lowest port fees. In fact, fees are generally less than one-third of those at the other Canadian Port Authorities on the Great Lakes, the port says.
“(The fee structure) assists our terminals in being exceptionally competitive and is one of the reasons we have seen such steady growth over the past two decades,” said Charles Pingle, chairman of the Windsor Port Authority.
Despite that steady growth, the Port of Windsor recorded a modest decline in total traffic in 2009, with overall volumes decreasing from the previous year by 6.4 per cent to 4.89 million tonnes.
“The decrease is relatively modest in comparison to the decline of 25 per cent experienced by the St. Lawrence Seaway in total and given current worldwide economic conditions,” Mr. Cree said. “Furthermore, even with this decline, port tonnages in 2009 were still at the approximate average of the past 10 years.”
Construction products including stone, sand and aggregates have decreased marginally since 2008 and experienced an even greater decline in 2009, which was anticipated with the slowdown in local construction. These materials represent nearly 40 per cent of port throughput on an annual basis and are handled by St. Mary’s Cement Group-Canada Building Materials (CBM), Coco Aggregates, Dunn Paving Limited, Essroc Italcementi Group, Lafarge North America and Southwestern Sales Corporation Limited.
Despite the decline, the port authority CEO is optimistic. “The construction of the new Detroit River crossing and the approach roads will undoubtedly make this sector stronger and assist in sustaining and increasing throughput well into the next decade,” Mr. Cree said.
Other dry bulk volumes continued at near-record levels in 2009 with significant increases in almost all commodities in this sector. Salt shipments continued to experience gains with above-average movement to cities around the Great Lakes late into the season, assisted by Canadian and U.S. icebreakers. The upward momentum of grain-related products was maintained in 2009. General cargo overall was down, however, due to decreased steel demand locally and throughout the Great Lakes basin.
“2009 was obviously an extremely difficult year for Windsor and the surrounding communities but we are cautiously optimistic that the port will post gains in 2010 and continue to benefit the local economy with the cost effectiveness and environmental advantages of marine transportation,” Mr. Cree said.
The third advantage offered in Windsor is exceptionally reasonable property values. The port’s lease rates for comparable properties in the ports of Hamilton and Toronto are lower.
“These are the three pillars of our success and the reason that the Port of Windsor ranks very highly in site selection criteria for new business – very efficient and competitive terminals, by far the lowest port charges in the Great Lakes, and land costs significantly below those of our competitors,” Mr. Pingle said.
Windsor has the geographic advantage of being in the centre of North America’s population and industrial heartland. And the marine mode provides two additional advantages. First, Windsor is at the approximate midpoint of the Great Lakes-St. Lawrence Seaway system, providing maximum efficiency for both eastbound and westbound cargoes. Second, Windsor is the most southerly major port in Canada; the resulting minimal ice cover experienced in an average year gives the Port of Windsor the potential for year-round navigation north to Sarnia and south into Lake Erie to such major U.S. ports as Toledo and Cleveland.
The port is also exceptionally well served by road and rail. The local road system connects efficiently to the major highway networks of both the United States and Canada, with access to the U.S. via the Ambassador Bridge, the busiest border crossing in North America. International truck capacity will be significantly increased with the proposed new Detroit River International Crossing, which is scheduled to be complete within four to five years of the start of construction.
Rail connections are also efficient and competitive, with the port being served by a local short-line rail operator, Essex Terminal Railway. The ETR provides connections to all the major carriers in both the U.S. and Canada.
Moreover, the port is only minutes away from Windsor International Airport and Detroit’s Metro Airport.
The Port of Windsor is a major economic player providing critical infrastructure within the multimodal framework of the Windsor-Detroit gateway to North American markets. Shipping to or locating in the Port of Windsor “ensures that business will have sustainable and efficient access to the entire North American marketplace by all modes – road, rail, air and marine,” Mr. Cree said.