John Dolbec President & CEO moving the world through southern Ontario Wednesday, January 18, 2012

1. John Dolbec President & CEO moving the world through southern Ontario Wednesday, January 18, 2012

2. Modes of Transportation moving the world through southern Ontario

3. GOODS HAVE TO MOVE! PRODUCTION OF A CAR SEAT Specialization in manufacturing = Multiple locations Multiple suppliers

4. GOODS HAVE TO MOVE!PRODUCTION OF A CAR SEAT 95suppliers ship parts to manufacturer- 23 in Ontario, rest offshore or U.S. Manufacturer ships 4,000seats every day to one car assembly facility

5. GOODS HAVE TO MOVE!PRODUCTION OF A CAR SEAT 1,000 finished vehicles are shipped every day by rail, truck and sea Purchase a new car? You’ll have it within days

6. GOODS HAVE TO MOVE!THAT HUMBLE HEAD OF LETTUCE Grocery store example – ● grown at a farm ● packed ● shipped ● stored ● transferred to local store - still at peak freshness Every step requires transportation and logistics!

7. SO, WHAT ISTRANSHUB ONTARIO? Promoting Hamilton-Burlington/Niagara and surrounding area as a Hub for the movement of goods Economic development organization (for the goods movement sector)

8. SO, WHAT ISTRANSHUB ONTARIO? Attract businesses that rely on, or provide, transportation and logistics, create jobs We’re already a natural transportation gateway TransHub Ontario will leverage these assets

9. WHY ARE WE ANATURALHUB? Close to the American border - 3 busiest border crossings Most densely populated consumer market in Canada - 11 million within 2-hour drive Bustling sea port - Busiest on the Great Lakes, including Chicago

10. WHY ARE WE ANATURAL HUB? Busiest courier cargo airport in Canada Multiple rail lines Good highways in all directions Not gridlocked – easy access, reasonable land prices

11. ARE THERE OTHERGATEWAYS/HUBS? Canada has three major gateways: ● CentrePort - Winnipeg ● Asia Pacific Gateway - Vancouver ● Atlantic Gateway - Halifax New ones emerging all the time: ● Canada, U.S., Mexico

12. ARE THERE OTHERHUBS? Our model: KC SmartPort in Kansas City, Missouri: ● builds on its central, Midwest location ● 8 years in operation: 60+ members ● one-million sq. foot Coleman distribution center just located there

13. POTENTIAL IMPACT Projected job increase: • Up to35,000direct, • 24,500indirect • Source MITL

14. Employment Potential Growth

15. IMPACT OF BEING KNOWNAS A HUB Where will jobs come from? • Warehousing/distribution – from steel to pharmaceuticals • Manufacturing – incentive to create goods here; transport nearby – e.g. Maple Leaf/Canada Bread

16. IMPACT OF BEING KNOWNAS A HUB Where will jobs come from (cont’d)? • Importing and exporting • Logistics – increasingly high-tech field transportation companies: airlines, trains, trucking and shipping

17. DEFINITION OFLOGISTICS “Logistics means having the rightthing, at the right place, at the right time”

18. LOGISTICS:A GROWING FIELD Recent Hamilton CMA stats: ● 18,000 people already work in logistics/supply chain management! ● number has grown >8% since 2001 (25,000 including Niagara, 43,000 with K/W) In Vancouver, logistics field grew by 10,000 jobs, or 25% since 2004 (launch of Asia Pacific Gateway)

19. HOW DID TRANSHUB ONTARIOGET STARTED? Impetus: McMaster University’s Institute of Transportation and Logistics (MITL) MITL research study looked at Hamilton’s opportunity to be a gateway city Said Hamilton shouldn’t waste time on whether it wants to be a gateway

20. HOW DID TRANSHUB ONTARIOGET STARTED? “By virtue of its considerable assets, this city is already a gateway. The question is, will Hamilton be a strong gateway or an underachieving one?”

21. MITL STUDY ALSOPROJECTED Fully developed Hamilton-Niagara-Burlington Hub can boost regional GDP by $4.8 billion – National $10.2 Billion Creation of industry “clusters” Attraction of skills and talent builds knowledge economy Creates a more sustainable community

22. GDP Potential Distribution

23. BIRTH OFTRANSHUB ONTARIO Needed structure to capture opportunities described in MITL study Founding organizations (Hamilton Port Authority, Hamilton International Airport, CareGo Innovative Solutions) created TransHub Ontario Not-for-profit, membership based, Corporation

24. BIRTH OFTRANSHUB ONTARIO CEO and sole employee (report to board of 7 paying directors) Companies pay annual membership fee to belong – now 32 members Emphasis is on private sector buy-in

25. WHAT’S IN IT FOR TRANSHUB ONTARIOMEMBERS? • Strength in numbers: Transportation/logistics industry grows overall: “The pie is bigger for everyone” • Benefit from collective marketing process

26. WHAT’S IN IT FOR TRANSHUB ONTARIOMEMBERS? • Entire sector becomes more integrated, successful, high-profile • TransHub acts as broker, links members with new business opportunities

27. Director Level Companies

28. Member Level Companies

29. Partner Level Companies

30. Ambassador Level Companies

31. - Affiliations

32. IS CITY OF HAMILTONINVOLVED? City of Hamilton is a TransHub member (plus, Region Niagara & BEDC) Already identified goods movement as growth area 2 Designated persons in Ec. Dev. Dept. for transportation and logistics promotion

33. TRANSHUB ONTARIOIN SUMMARY Building on existing strengths and assets Promoting Hamilton and area nationally and internationally Potential for significant economic benefits

34. www.transhub.ca