Gateway expects liftoff

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A Free Press series exploring our region's next economy

By JONATHAN SHER

London's sluggish economy will get turbo-charged Monday, with federal officials expected to give millions of dollars to make the city's airport an international gateway for cargo, sources say.

Details of that aid remained elusive yesterday as officials at the airport and city declined to comment and steal the drama of an announcement that will be made by Gary Goodyear, Minister of State for the federal Economic Development Agency for Southern Ontario.

London Mayor Anne Marie DeCicco-Best wouldn't even confirm whether the money is for the long hoped-for gateway project -- she said she had been sworn to secrecy.

But while the mayor wouldn't divulge what she knew, she couldn't contain her excitement.

"I'm absolutely thrilled," she said yesterday. "It's going to be phenomenal for our region and our community.

Her comments were echoed by London West Conservative MP Ed Holder.

"This will be great news for London and the region," he said.

The city and the airport have proposed spending $11 million to expand space for cargo, hoping to capitalize on new regulations that could help make London a key stop for global cargo and a place where goods can be finished before final export.

The hope is that the gateway would be the first of several for a city with easy access to major highways, the U.S. border and heavily-populated areas in the U.S. northeast and midwest.

"Let's hope it's been what we've been asking for," said Deputy Mayor Tom Gosnell, who said he wasn't told what the city will be getting.

"We believe we made a very strong case and the gateway project is very important to the region," he said.

The funding will come from the new Federal Economic Development Agency for Southern Ontario, which received $206 million in its first year.

The projects it funds are meant to stimulate local economies and enhance southern Ontario's ability to grow and compete.

THE BIG PICTURE

Expanding London's airport as a centre for international cargo is part of a broader city plan to reposition London as a key transportation and shipping centre, the so-called gateway project.

Other gateway proposals include:

Servicing more land along Hwy. 401 to attract new industry.

Building a new interchange between Hwy. 401 and Wonderland Rd.

[sparky212]

this is the best news this year by far. I cant beleaave it is going to happen.:banana: :banana: :banana: :banana: :banana: :banana: :banana: :banana: :banana: :banana: :banana: :banana: :banana: :banana: :banana: :banana: :banana: :banana: :banana: :banana: :banana: :banana: :banana: :cool:

[JrUrbanDesigner]

Lets wait until tomorrow so we can hear what the announcement will actually be before we start with all these dancing bananas! haha - But hopefully they will be announcing something good to create more jobs in the city. However I would much rather an announcement on more funding for Public Transit.. and to deliver it in different ways such as brt- preferably LRT.... :)

[ldoto]

CARGO HUB PLAN: Ottawa and the city will unveil big bucks to help London become an international air cargo gateway

Last Updated: 30th November 2009, 11:06am

London's dream of becoming an international gateway for cargo will get an $8-million boost from the federal government today -- and another $3 million from the city -- The Free Press has learned.

Gary Goodyear, Minister of State for the federal Economic Development Agency for Southern Ontario, will lift the veil today on a plan to fund the much anticipated Gateway Project.

The project involves building a warehouse at the airport that will receive air freight from businesses, largely in Europe. Those goods would be shipped from London to destinations in the U.S. and Canada, sources said.

The city and the London Economic Development Corp. (LEDC) have been pushing for funding for the project, envisioning the city becoming a transportation hub for Ontario.

"We are very excited by this announcement," said Peter White, chief executive of the LEDC, adding he couldn't confirm the dollar figures. "The airport strategy adds a very important piece for us. We know London is positioned to take advantage."

A recent trade agreement between Canada and the European Union will allow air freight shipped here to be duty-free, establishing a type of free trade for the skies.

That will mean airports here will see a boost in cargo business from Europe. In addition, trucks shipping goods from Ontario will have paperwork filed before heading to the border, meaning goods can speed across the border.

"All these elements add up for us. We have low cost of operations and are strategically positioned," said White.

Construction will begin "as soon as possible" but will take time to build because it will involve creating new taxiways and runways as well as the new warehouse.

The cargo centre could create about 100 jobs initially, mostly in warehousing and trucking -- everything from clerks to forklift drivers -- and there may be some higher paying jobs such as in customs brokerage.

White said he'd be happy if the centre attracted three aircraft a day, each dropping off goods here.

"There is a real opportunity for growth. We have a lot of assets that can help this grow quickly," he said.

Ken Hardy, dean of entrepreneurship at the Richard Ivey School of Business at the University of Western Ontario, also likes idea of a cargo centre, saying it builds on our tradition as a regional transportation centre for Southwestern Ontario.

"Historically, we have been a crossroads city and a trading centre. It could bring business and a fair number of jobs here," Hardy said.

The centre won't be without its challenges. Windsor and Hamilton are also developing major air freight cargo centres and have been faster than London in getting their operations established.

Hamilton, in particular, will be tough to beat. It has become Canada's largest multimodal cargo airport with road and water access and plans to build a $15-million cargo facility. It also plans to develop more than 800 acres around the airport.

As for Windsor, it plans to take advantage of its border city status, calling for a centre consolidating U.S. and Canadian inspection and security agencies under one roof.

While the smaller regional airports will market themselves as less costly than Lester B. Pearson International Airport in Toronto, that airport has slashed its cargo fees 25% so it can remain competitive.

But Hardy said he believes London should still try to compete, saying it could support spinoff industries here.

"The economic activity it brings may be significant -- warehousing, shipping and brokerage. It is real value-added when doing high volume," Hardy said.

Ed Holder, MP for London West, declined to confirm the funding announcement but said the news today will recognize London as a regional centre for Southwestern Ontario.

"Southern Ontario has been reliant on manufacturing, but we are now taking it to the next level. This will be a much-need evolution for the city and region," he said.

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:previous: LOCATION, LOCATION

Among London advantages:


Only a day's drive from half of North America's population and economic production, especially the crucial U.S. northeast and midwest.

Located along Hwy. 401, Canada's busiest superhighway, on which an average 25,000 trucks roar past daily.

The volume of truck-carried freight more than doubled over the 10-year period ending in 2002.

More than half of Canada's trade moves through the area.

Served by rail carriers CP and CN, the latter now one of the continent's largest railways.

Close to three major Canada-U.S. border crossings.

Has a major airport, London International, with lower operating costs than metro competitors. Airport has grown 51% in three years. Last year, 460,000 flew from there.


GATEWAY ELEMENTS

The bid to reposition London as an international cargo gateway for the new economy takes advantage of its proximity to the huge. U.S. market, turning mostly on its location along Hwy 401. Map, above, from city hall, shows a series of related projects to maximize the economic gateway idea, including airport upgrades:

1. The new cargo centre announced yesterday.

2-3. Highway interchange improvements.

4. New sewage treatment plant in the southwest to handle the growth that could result.