REGIONAL FREIGHT PERSPECTIVES: QUESTIONS ABOUT THE FUTURE OF VOLUMES Bill Anderson...

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REGIONAL FREIGHT PERSPECTIVES: QUESTIONS ABOUT THE FUTURE OF VOLUMES Bill Anderson ([email protected]) Ontario Research Chair in Cross-Border Transportation Policy, University of Windsor, www.uwindsor.ca/crossborder/ Transportation Border Working Group Dearborn, MI, April 24, 2013

Transcript of REGIONAL FREIGHT PERSPECTIVES: QUESTIONS ABOUT THE FUTURE OF VOLUMES Bill Anderson...

Page 1: REGIONAL FREIGHT PERSPECTIVES: QUESTIONS ABOUT THE FUTURE OF VOLUMES Bill Anderson (bander@uwindsor.ca) Ontario Research Chair in Cross-Border Transportation.

REGIONAL FREIGHT PERSPECTIVES:QUESTIONS ABOUT THE FUTURE OF VOLUMES

Bill Anderson ([email protected])Ontario Research Chair in Cross-Border Transportation Policy, University of Windsor, www.uwindsor.ca/crossborder/

Transportation Border Working Group

Dearborn, MI, April 24, 2013

Page 2: REGIONAL FREIGHT PERSPECTIVES: QUESTIONS ABOUT THE FUTURE OF VOLUMES Bill Anderson (bander@uwindsor.ca) Ontario Research Chair in Cross-Border Transportation.

Background

Ontario has a trade dependent economy 80% of trade with the US US trade greater than interprovincial

trade 75% by truck 90% of trucks at four crossings

Google: The Border and the Ontario Economy

Page 3: REGIONAL FREIGHT PERSPECTIVES: QUESTIONS ABOUT THE FUTURE OF VOLUMES Bill Anderson (bander@uwindsor.ca) Ontario Research Chair in Cross-Border Transportation.

Highway distance (km) from Toronto

Buffal

oSy

racu

seDet

roit

Clev

elan

dPi

ttsb

urgh

Mon

trea

lAt

lant

aW

inni

peg

New

Orlea

ns

0

500

1000

1500

2000

2500

Page 4: REGIONAL FREIGHT PERSPECTIVES: QUESTIONS ABOUT THE FUTURE OF VOLUMES Bill Anderson (bander@uwindsor.ca) Ontario Research Chair in Cross-Border Transportation.

Traffic projections for new bridge (million vehicles per year)

year

Wilbur Smith(MDOT)

Halcrow(Amb. Bridge)

cars trucks cars trucks

2015 2.92 1.89

2016 3.07 2.74

2025 4.42 3.92 2.46 2.16

2035 6.00 4.87 2.47 2.35

Page 5: REGIONAL FREIGHT PERSPECTIVES: QUESTIONS ABOUT THE FUTURE OF VOLUMES Bill Anderson (bander@uwindsor.ca) Ontario Research Chair in Cross-Border Transportation.

Some key question on the future of freight volumes

Will the downward trend in non-oil Canada-US trade continue?

Will the average value of truckloads increase?

Will cross-border automotive supply chains expand or contract?

Will global trade across Ontario-US borders increase?

Page 6: REGIONAL FREIGHT PERSPECTIVES: QUESTIONS ABOUT THE FUTURE OF VOLUMES Bill Anderson (bander@uwindsor.ca) Ontario Research Chair in Cross-Border Transportation.

Canadian exports to the US: Total and Oil and Gas

19921994

19961998

20002002

20042006

20082010

-

50

100

150

200

250

300

350

400

Oil and Gas All others

Page 7: REGIONAL FREIGHT PERSPECTIVES: QUESTIONS ABOUT THE FUTURE OF VOLUMES Bill Anderson (bander@uwindsor.ca) Ontario Research Chair in Cross-Border Transportation.

Value per truckload

If value per increases, truck movements won’t keep pace with trade trends

Limited evidence of increase Factors

Industry mix Value of goods within industries (shift to

high value goods with global competition)

Page 8: REGIONAL FREIGHT PERSPECTIVES: QUESTIONS ABOUT THE FUTURE OF VOLUMES Bill Anderson (bander@uwindsor.ca) Ontario Research Chair in Cross-Border Transportation.

Cross-border automotive supply chains

Automotive industry is in a post-recession growth cycle

Canada’s share of North American automotive investment is down (Globe and Mail, April 12)

“New domestics” more likely to source locally than across the border.

Page 9: REGIONAL FREIGHT PERSPECTIVES: QUESTIONS ABOUT THE FUTURE OF VOLUMES Bill Anderson (bander@uwindsor.ca) Ontario Research Chair in Cross-Border Transportation.

Global trade

Almost 30% of Canada’s marine/rail imports destined to US

Asia-Pacific Gateway project Expansion potential in Halifax and

Montreal Halifax can handle large draft Potential for intermodal expansion in

Detroit

Page 10: REGIONAL FREIGHT PERSPECTIVES: QUESTIONS ABOUT THE FUTURE OF VOLUMES Bill Anderson (bander@uwindsor.ca) Ontario Research Chair in Cross-Border Transportation.