Measuring Supply Chain Performance The Pacific Gateway Experience WESTAC-GIL Transportation Summit 2011 March 2011

1. Measuring Supply Chain Performance The Pacific Gateway Experience WESTAC-GIL Transportation Summit 2011March 2011 As part of the Action Plan for the Canada-China MOU on Gateway Cooperation, a commitment was made to conduct a policy dialogue on value-added services within the context of gateways and corridors. The Government of Canada welcomes this opportunity to present our Value-added Gateway approach and to gain insights into China's approach to similar value-added issues. As part of the Action Plan for the Canada-China MOU on Gateway Cooperation, a commitment was made to conduct a policy dialogue on value-added services within the context of gateways and corridors. The Government of Canada welcomes this opportunity to present our Value-added Gateway approach and to gain insights into China's approach to similar value-added issues.

2. What Is Efficient Transportation? Need objective fact-based metrics to: Build an empirical case about Canada’s supply chain competitiveness respond to anecdotal claims of (un)reliability enforce principles of government accountability and good governance (e.g. ROI) market Canada’s gateways efficiently

4. Fluidity ProjectThe Vancouver Gateway

5. Fluidity Conceptare Canadian supply chains competitive?

6. Project Rationale Policy challenge: providing evidence-based information on reliability and efficiency of Canadian supply chains to support national gateways policy and address common misperceptions on reliability of Canadian system. Objective: measure total end-to-end transit times of containers on strategic origin-destination markets, from overseas ports of loading to North American inland markets. Phased approach (start date Feb 2009): Phase 1: inbound Asia-Pacific gateways and corridors Phase 2: inbound Continental and Atlantic gateways and corridors Phase 3: inbound North American gateways and corridors (Canada, US & Mexico) Phase 4: outbound selected bulk commodities Project outcomes: Time series data on transit times on major corridors Measure the reliability of Canadian gateways Sound empirical evidence supporting policy decisions Ability to benchmark Canadian supply chains at continental scale

7. Phase 1 Corridors: Asia-Pacific

8. A Container Journey through the Pacific Gateway (model below excludes transload)

9. Lower Mainland Transload Activities

10. Supply Chain Time Components Measured

11. Supply Chains – Various Models

12. Vancouver Gateway FluidityModel 1: Direct-rail

13. Vancouver Gateway FluidityModel 2: Rail Inner-Harbour without transload

14. Vancouver Gateway FluidityModel 3: Rail Inner-Harbour with Transload

15. Vancouver Gateway FluidityModel 4: All-truck movement

16. Example of Transit Times by Model ( May 2010)

17. Breakdown by Segment

19. Port Utilization Indicators

20. Project Rationale Policy challenge: providing evidence-based information on reliability and efficiency of Canadian supply chains to support national gateways policy and address common misperceptions on reliability of Canadian system. Objective: assist Canadian ports to monitor port utilization and performance over time. Phased approach (start date Nov 2008): Phase 1: Intermodal indicators Phase 2: bulk indicators Phase 3: Harmonization and benchmarking Process: Voluntary approach Partnerships: working groups Collective selection and definition of metrics Methodological transparency Importance of field visits

21. Port Utilization Indicators Intermodal Indicators (4 ports reporting): Average Vessel Turnaround Time (1) [sec./TEU] Average Vessel Turnaround Time (2) [Hours] Berth Utilization [TEU /m] Average Truck Turnaround Time [Min.] Gate Congestion Indicator [Min.] Average Container Dwell Time [Hr] Gross Port Productivity [TEU/Gross Ha] Crane Productivity [TEU/STS crane] Bulk Indicators (7 ports reporting): Berth Occupancy Rate [%] Gross Berth Productivity [Tonnes / berth-hr] Average Vessel Turnaround Time [Hours]

22. Port Utilization Indicators for B.C. Container Ports, 2010

23. Conclusion

24. Conclusion Benefits Visibility: a top priority for supply chain managers Market intelligence and decision-supporting tools Set common performance goals for the gateway Leverage existing platforms: Gateway Performance Table Good governance and accountability principle (e.g. ROI) Marketing: deconstruct myths on reliability of Canadian gateways Etc… Challenges Multiple sources of data Multi-stakeholder project Data aggregation and protection ‘Politics of statistics’ Benchmarking limited comparability Methodological opacity of existing metrics

25. Thank You

26. ANNEX

27. Ocean Transit - Methodology Approach: measure total voyage time* of vessels leaving Asian ports to B.C. ports including: Vessel movement at sea Time spent at intermediate ports Database: Lloyd’s List Seasearcher, ocean carrier websites Completeness: over 95% of vessels covered Example: APL Iris from Yantian to Vancouver – Dec 2010 …

28. Example: APL Iris Pacific South 1 Service Eastbound – November 2010

29. North American West Coast Container Ports 2010 Canada represents less than 1% of global container market Canada represents 10% of North American container market, but shows highest growth in West Coast market share Canada represents less than 1% of global container market Canada represents 10% of North American container market, but shows highest growth in West Coast market share