4
Learn about the vital connections that foster the growth of infrastructure and the economy DRIVING ALBERTA’S ECONOMY Business aviation A new commerce tool for Calgary Building blocks How supply chains support business WHAT YOU DON’T KNOW ABOUT TRANSPORATION IN ALBERTA AN INDEPENDENT SECTION BY MEDIAPLANET TO THE CALGARY HERALD MAIN PHOTO: CN I n November 1885, the last spike of the Canadian Pacific Railway was driven at Craigellachie, British Columbia. This spike represen- ted the drawing together of Cana- da by a ribbon of steel stretching from Vancouver to Montreal, and east. This monumental task was car- ried out by William Cornelius Van Horne, who was later to be knighted by Queen Victoria. The railway, often referred to as the “National Dream”, not only physically connected the country, but was a con- dition of British Columbia’s entering into Confederation in 1871. The rail- way was also a physical demonstra- tion of nationhood that would discou- rage United States settlers from ex- panding their territorial aspirations into the northwestern territory which would ultimately become Canada. Van Horne and his colleagues had to make a crucial decision as to where to locate a major centre along the route, not too close to the mountains, that could take advan- tage of the extensive land grants awarded to Canadian Pacific by the Government of Canada for buil- ding the railway. The location cho- sen at the confluence of the Bow and Elbow Rivers proved to be an excellent location for railway yards, a small settlement and a hub for the development of vast tracks of wheat and other grains and herds of cattle. Some of the main streets laid out in the new Calgary were designed as cattle trails to bring the livestock to the newly developed railhead. The sweet spot Moving forward to today, the wis- dom of choosing this location beco- mes remarkably clear. Calgary sits at the junction of the major east/west TransCanada Highway and north/ south CANAMEX corridor. Within one truck’s day drive from Calgary, one can access a population base of over 17 million. Globally, Calgary is located on the aviation great circle routes between Asia and North Ame- rica and Europe and North America. The transportation and logistics sec- tor includes over 4,000 companies employing close to 40,000 people (not including truck drivers) with a GDP contribution in excess of 3.5 billion. Employment growth in the sector between 2000 and 2010 was 10 percent. A hub of activity The Calgary region is home to at least eight of the largest global logistics companies by revenue. A very impres- sive list of retail, industrial products and project logistics companies have strategically located in Calgary to ope- rate distribution centres. The Calgary region is the head office for a num- ber of major transportation pro- viders including Canadian Paci- fic, WestJet, Mullen, CF Managing Movement, Safeway, Alliance Pi- pelines, Enbridge and TransCana- da Pipelines. Calgary’s airport is a major cargo and passenger hub with an airport development plan in excess of $2 billion including a new international facility and a new 14,000 foot runway in servi- ce May 2014. UPS, FedEx, Purolator and other logistics firms operate at Canada’s fourth busiest airport. Calgary has become a major railway hub for both Canadian Pa- cific and CN. With the completion of the new CN intermodal yard that will compliment the current yard operated by Canadian Pacific, this combined inland hub will be ab- le to handle 330,000 20-foot equivalent units (TEUs of containers) as a combi- ned local intermodal volume. One of the reasons as to why the Cal- gary region has become a major trans- portation and logistics hub is that th- rough a combination of factors, inclu- ding location, availability of labour and land, Calgary offers an overall to- tal cost advantage to distribution and logistics companies wishing to locate in Western Canada. The supply of skilled labour into the transportation and logistics sector fa- ces the same problems as with other sectors. To meet the high demand for these skilled employees, post-secon- dary institutions throughout the pro- vince are gearing up to respond. In Calgary,programs have been or are be- ing developed at Mount Royal Univer- sity, SAIT Polytechnic, Bow Valley Col- lege, and the Hakayne School of Bu- siness at the University of Calgary in partnership with the Van Horne In- stitute. For the Calgary region as a transpor- tation and logistics hub, the future is extremely positive. PETER WALLIS [email protected] FACTS Regional facts The Calgary region has be- come the transportation hub and intermodal distribution centre for Western Canada. Sixty six percent to 75 per- cent of all industrial real estate in the Calgary region is used by the transportation and logistics sec- tor. The region is intersected by the world’s longest highway; the TransCanada and the 6,000 kil- ometer CANAMEX corridor, a free trade corridor that extends from Alaska to Mexico. Calgary is a major rail hub for both CPR and CN. 330,000 20 foot equivalent units (TEUs) is their annual combined intermodal volume. Calgary’s airport is expand- ing and connectivity to the Port of Vancouver is improving through the Pacific Gateway and Corridor Strategy. Calgary has a total landed cost advantage to other cities as a single stocking point for Western Canada. Peter Wallis President & CEO, The Van Horne Institute Forging a future together TRANSPORTATION December 2011 FACTS 3

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I’m dreaming of a green Christmas

Learn about the vital connections that foster the growth of infrastructure and the economy

Learn about the vital connections that foster

DRIVING ALBERTA’S ECONOMY

Business aviationA new commerce tool for Calgary

Building blocks How supply chains support business

LOREM IPSUM DOLOR CONSECTETUER ADIPS ET

CING ELIT SE

STEPS/TIPS

WHAT YOU DON’T KNOW ABOUT

TRANSPORATION IN ALBERTA

AN INDEPENDENT SECTION BY MEDIAPLANET TO THE CALGARY HERALDM

AIN

PH

OTO

: CN

In November 1885, the last spike of the Canadian Pacifi c Railway was driven at Craigellachie, British Columbia. This spike represen-ted the drawing together of Cana-da by a ribbon of steel stretching from Vancouver to Montreal, and

east. This monumental task was car-ried out by William Cornelius Van Horne, who was later to be knighted by Queen Victoria.

The railway, often referred to as the “National Dream”, not only physically connected the country, but was a con-dition of British Columbia’s entering into Confederation in 1871. The rail-way was also a physical demonstra-tion of nationhood that would discou-rage United States settlers from ex-panding their territorial aspirations into the northwestern territory which would ultimately become Canada.

Van Horne and his colleagues had to make a crucial decision as to where to locate a major centre along the route, not too close to the mountains, that could take advan-tage of the extensive land grants awarded to Canadian Pacifi c by the Government of Canada for buil-ding the railway. The location cho-sen at the confl uence of the Bow and Elbow Rivers proved to be an excellent location for railway yards, a small settlement and a hub

for the development of vast tracks of wheat and other grains and herds of cattle. Some of the main streets laid out in the new Calgary were designed as cattle trails to bring the livestock to the newly developed railhead.

The sweet spotMoving forward to today, the wis-dom of choosing this location beco-mes remarkably clear. Calgary sits at the junction of the major east/west TransCanada Highway and north/south CANAMEX corridor. Within one truck’s day drive from Calgary,

one can access a population base of over 17 million. Globally, Calgary is located on the aviation great circle routes between Asia and North Ame-rica and Europe and North America. The transportation and logistics sec-tor includes over 4,000 companies

employing close to 40,000 people (not including truck drivers) with a GDP contribution in excess of 3.5 billion. Employment growth in the sector between 2000 and 2010 was 10 percent.

A hub of activityThe Calgary region is home to at least eight of the largest global logistics companies by revenue. A very impres-sive list of retail, industrial products and project logistics companies have strategically located in Calgary to ope-rate distribution centres. The Calgary

region is the head o� ce for a num-ber of major transportation pro-viders including Canadian Paci-fi c, WestJet, Mullen, CF Managing Movement, Safeway, Alliance Pi-pelines, Enbridge and TransCana-da Pipelines. Calgary’s airport is a major cargo and passenger hub with an airport development plan in excess of $2 billion including a new international facility and a new 14,000 foot runway in servi-ce May 2014. UPS, FedEx, Purolator and other logistics fi rms operate at Canada’s fourth busiest airport.

Calgary has become a major railway hub for both Canadian Pa-cifi c and CN. With the completion of the new CN intermodal yard that will compliment the current

yard operated by Canadian Pacifi c, this combined inland hub will be ab-le to handle 330,000 20-foot equivalent units (TEUs of containers) as a combi-ned local intermodal volume.

One of the reasons as to why the Cal-gary region has become a major trans-portation and logistics hub is that th-rough a combination of factors, inclu-ding location, availability of labour and land, Calgary o� ers an overall to-tal cost advantage to distribution and logistics companies wishing to locate in Western Canada.

The supply of skilled labour into the transportation and logistics sector fa-ces the same problems as with other sectors. To meet the high demand for these skilled employees, post-secon-dary institutions throughout the pro-vince are gearing up to respond. In Calgary, programs have been or are be-ing developed at Mount Royal Univer-sity, SAIT Polytechnic, Bow Valley Col-lege, and the Hakayne School of Bu-siness at the University of Calgary in partnership with the Van Horne In-stitute.

For the Calgary region as a transpor-tation and logistics hub, the future is extremely positive.

PETER WALLIS

[email protected]

FACTS

Regional facts

■ The Calgary region has be-come the transportation hub and intermodal distribution centre for Western Canada.

■ Sixty six percent to 75 per-cent of all industrial real estate in the Calgary region is used by the transportation and logistics sec-tor.

■ The region is intersected by the world’s longest highway; the TransCanada and the 6,000 kil-ometer CANAMEX corridor, a free

trade corridor that extends from Alaska to Mexico.

■ Calgary is a major rail hub for both CPR and CN. 330,000 20 foot equivalent units (TEUs) is their annual combined intermodal volume.

■ Calgary’s airport is expand-ing and connectivity to the Port of Vancouver is improving through the Pacifi c Gateway and Corridor Strategy.

■ Calgary has a total landed cost advantage to other cities as a single stocking point for Western Canada.

Peter WallisPresident & CEO,The Van Horne Institute

Forging a future together

TRANSPORTATIONDecember 2011

STEPS/TIPS

WHAT YOU DON’T LOREM IPSUM WHAT YOU DON’T LOREM IPSUM

FACTS3

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AN INDEPENDENT SECTION BY MEDIAPLANET TO CALGARY HERALD6 · DECEMBER 2011

Taking to new heights

! Calgary International Airport welcomed 12.6 million pas-

sengers and 163,500 air carrier mo-vements in 2010, while Spring-bank Airport saw 146,900 air car-rier movements during that year alone.

 In 2011, The Calgary Airport Aut-hority embarked on the largest

construction project the airport’s history. The “Airport Development Program (ADP)” is on schedule and on budget, with $2 billion being in-vested into the program.

Upon completion, Calga-ry Airport’s Air Terminal Buil-ding will nearly double its cur-rent size and the new 14,000 foot parallel runway will be the longest in Canada.

Calgary is unique. It hums with energy – from the oil patch to towering head offi-ces, from innovators to inter-national corporations—Cal-gary businesses thrive on challenge and compete to win.

Business aviation—planes that go where and when you need them—is a key part of Calgary’s success, using both Calgary International and Springbank airports to connect vir-tually all its economic sectors to the world and communities near and far.

An abundance of resourcesCalgary’s genius is its ability to transform raw opportunity into inn-ovation and wealth, according to, the sector’s national advocacy asso-ciation. It’s what you do with what you have. With the second highest concentration of head o� ces in Ca-nada, it’s no surprise that Calgary

is an international trade and com-merce hub—and also the second lar-gest user of business aviation in the country.

Your destination, your timeBusiness aviation is about access, market dominance and power. Com-mercially-scheduled fl ights are like public transport. It’s their schedule, their routes, and their economics. In contrast, business aviation puts you in the driver’s seat, in control and ab-le to deal with customers and suppli-ers in real time or deliver equipment and employees wherever they are needed, no matter how remote the destination is.

Business aviation covers a wide

array of types of air travel—from full ownership to fractional ownership to leasing to charter, business avi-ation responds to business’ needs. With over a hundred aviation bu-sinesses in Calgary, local business aviation services can respond in-stantly if a company needs a fl eet of aircraft, or uses a charter for one

fl ight.

Making sense of the costThe upfront cost of business aviation, compared with commercial fares, is well worth the investment. There is no downtime, no opportunity cost when you fl y business aviation. The cabin is an extension of an o� ce—private and productive, making full use of C-level executives’ valuable time. Given the nature of business, hundreds of thou-sands or even millions of dollars may depend on one face-to-face meeting or a critical piece of equipment. It makes economic sense to fl y business avia-tion and get the job done properly.

Besides being a key tool for com-merce generally, aviation also creates and supports Calgary’s thriving aero-space industry. It’s a win-win. The mo-re that Calgary uses business aviation, the more it contributes to Calgary’s economy.

Business aviation: The speed of success

SAM BARONE

[email protected]

CHALLENGESTHE

TRANSPOR-TATION AND

WAREHOUSING SECTOR

CONTRIBUTE $9.6 BILLION ANNUALLY

AN INDEPENDENT SECTION BY MEDIAPLANET TO CALGARY HERALD

THE

1FACT

WE RECOMMEND

“I think there’s a strong recognition that rail is a critical link in connec-ting various commo-dities to international markets…Strategically, having rail as one of the options to pipeline is a good move.”

Right on track p.3How is investment changing the face of rail in Alberta?

Training for a future p. 4How to make it big in the transportation, supply chain and logistics industries.

A critical linkHow rail continues to build prosperity for Canada’s western region.

PAGE 6

TRANSPORATION2ND EDITION, DECEMBER 2011

Responsible for this issue:Publisher: Lydia [email protected]: Penelope [email protected]: Sam Barone, Ray Danyluk, Michael Roschlau, Andrew Seale, Peter Wallis

Managing Director: Joshua [email protected] Developer: Mark [email protected]

Photo Credit: All images are from iStock.com unless otherwise accredited.

Distributed within:Calgary Herald, December 2011This section was created by Mediaplanetand did not involve Calgary Herald orits Editorial Departments.

Mediaplanet’s business is to create new customers for our advertisers by providing readers with high quality editorial contentthat motivates them to act.

FOLLOW US ON FACEBOOK AND TWITTER!www.facebook.com/MediaplanetCAwww.twitter.com/MediaplanetCA

Sam BaronePresident,Canadian Business Aviation Association

PHOTO: BOMBARDIER

Calgary is a city of commuters, and while projects such as new bridges, the airport tunnel and Ring Road are all aimed at easing tra� c con-gestion, the city is shifting its way of thinking while improving urban development and planning.

“I think the whole paradigm around urban development has changed, now that the price of fuel and land, and the value of our time, has increased in the last 30 years,” says Michael Roschlau, president and CEO of the Canadian Urban Transit Association. “I’m seeing, increasingly, families looking for a compact lifestyle that’s more Eu-ropean in nature, where they can do a lot more in close proximity to where they live.”

One answer to the demand of proximity is better public transit—a subject that’s always been a hot topic in Calgary.

“The massive investments in our

transportation infrastructure—whether it be roads, highways, bus lines or light rail—has to be total-ly integrated with urban develop-ment,” adds Roschlau.

Prioritizing transit In 2010, the city enacted the Cal-gary Transportation Plan, which focuses on marrying growing re-sidential areas, or areas the city wants to improve, with better ac-cess to all modes of transporta-tion.

“Land use and transportation are inexplicitly linked,” says Don Mulligan, director of transporta-tion for the city of Calgary. “The new West LRT area for example, was identified years ago as having a potential for higher density, and so the intent (behind the LRT ex-tension) was to serve the growing population, as well as the whole west side of the city.”

While the West LRT line is still slated to open next winter, it’s ex-

pected to see 37,000 transit riders per day.

“We hope to see more people li-ve within walking distance from the new stations and provide an-

other option for commuters,” says Mulligan. “We’re trying to con-nect all quadrants of the city to downtown.”

The transit shift is evident, at least when it comes to get-ting downtown. Last October, the amount of commuters travelling downtown by transit was up to 50 percent, which translates to more than 28,000 riders, compared to 33 percent in 1996. Conversely, non-carpooling drivers were down to 33 percent, from 49 percent in the same time frame.

Mulligan says the news is just one of piece of the overall goal.

“That’s what the CTP is all about,” says Mulligan. “Were gra-dually transforming the city so re-sidents have more choices on how they get around.”

ADAM TRINH

[email protected]

A FOCUS ON TRANSIT

Michael RoschlauPresident & CEO,Canadian Urban Transit Association

“I think the whole paradigm around urban development has changed now that the price of fuel and land... has increased over the past 30 years.”

Taking urban planning to the next step

Minister of Transportation Ray Danyluk shares his insight on Calgary’s transit goals–and what the future holds for infrastructure.

The man with the planHow much of a priority is ur-ban planning in Alberta?Planning is a very important activi-ty in Alberta, both in urban and rural areas. Good planning ensures that de-velopments are compatible with each other and that the transportation net-works, utility installations, and other infrastructure are in place to support developments. Good planning also encourages growth by providing clear guidelines and processes to inves-tors and developers. My department works very closely with municipali-ties to ensure our highway plans are compatible with municipal land use and development plans.

Can you talk about the im-pact of specific projects in relation to improving Calgary’s infrastructure (i.e. Deerfoot Trail, Ring Road)?

Deerfoot Trail is Alberta’s busiest highway and is a key roadway for both local and

longer-d i s -t a n t t r a f -f i c . T h e

r o -a d

is

also a key component of the CANA-MEX Trade Corridor, which is a hig-hway network connecting Alberta to markets in British Columbia, the U.S. and Mexico. It’s one of the reasons the Alberta government took over respon-sibility for Deerfoot Trail in 2000 be-cause government was in the best fi -nancial position to upgrade the road to corridor standards. Since 2000, the Alberta government has invested over $200 million to improve Deerfoot Trail. Those improvements include exten-ding the road from Highway 22X to the junction with Highway 2A south of Calgary and making Deerfoot Trail free-fl owing along its main line.

As for the Stoney Trail ring road, it will help meet the day-to-day travel needs of commuters, enhance the ef-fi cient movement of commodities in and around Calgary, and provide an option for travelers to bypass the ci-ty. This latter option is important be-cause it relieves congestion and pres-sure from the city’s arterial roads and allows them to better function as they were designed. The completion of Sto-ney Trail SE in 2013 is a great example of this because it will give motorists an alternative to Deerfoot Trail or Bar-low Trail. Considering there is far mo-re tra� c on Deerfoot Trail than it was designed to handle, other options are most welcome.

Does the transportation de-partment have any current or future goals, again, in re-lation to improving Calgary’s roads and urban planning?One of the mandates the Premier gave

me is developing a multi-modal trans-portation strategy to meet the day-to-day travel needs of Albertans as well as the e� cient movement of commodi-ties. This means integrating and con-necting road, rail, air, port, and urban transit in ways that best serve the di-verse needs of travelers and shippers alike. While this strategy is interna-tional in scope, there are defi nitely im-plications for Calgary and area.

Is the transportation depart-ment using any advanced methods or technology to better improve traffic?We have either implemented, ex-perimented with, or are in the process of developing a number of initiatives that will improve traf-fic flow, and more importantly, sa-fety. We have installed durable pa-vement markings on most of De-erfoot Trail’s main line, which do not fade as traditional painted markings do. On some parts of the Deerfoot, we had to repaint the traditional markings up to four times per year and the markings faded very badly during winter maintenance activities and posed safety concerns in the springs. We have installed reflective delinea-tors on either posts or guardrails to allow motorists to better see the line of the road at night. We have also increased our use of changeable message signs, both permanent and portable, to keep motorists updated in real time about construction and/or inci-dents so that they can make deci-

sions to avoid disruptions. On Sto-ney Trail, we have increased our minimum interchange spacing so that traffic flows better and we av-oid the weaving problems we so-metimes see on Deerfoot Trail.

What is the province’s invol-vement with Calgary’s public transit system (if any?). And how important is it to impro-ve the transit system?While the city operates and has responsibility for the transit sys-tem, the Alberta government pro-vides financial support through a number of grant programs. For the current fiscal year, the city has access to $166 million from my department and a further $256 million through the Munici-pal Sustainability Initiative, ad-ministered by Municipal Affairs. The city sets its own priorities for how it spends this funding and is able to put it toward transit. The Alberta government has also committed $800 million to Cal-gary and area through the Green Transit Incentives Program (GreenTrip), which is specifically targeted to transit. The goal is to take vehicles off the road, which reduces both traffic congestion and greenhouse gas emissions. Improving the transit system al-so gives people more options to get to where they need to go.

DID YOU KNOW?

Courtesy of Calgary Airport Authority

RAY DANYLUKThe Minister of Transpor-tation says a large city focus has been placed on improving traffic flow.PHOTO: GOVERNMENT OF ALBERTA

RAY DANYLUK

[email protected]

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AN INDEPENDENT SECTION BY MEDIAPLANET TO CALGARY HERALD DECEMBER 2011 · 7

CHALLENGES

TogetherMaking our communities safer places to live

www.cn.ca

The best way to build strong communities is to safeguard the health of their members. Through initiatives like our All Aboard for Safety Program, CN is committed to working with community leaders and safety-related organizations to help prevent injuries and promote safe lifestyles for everyone.

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NEWS

The resurgence of rail in Ca-nada bodes well for Alberta, a province poised to benefit from rail development due to its placement as a gateway for resources bound for both traditional and emerging markets.

“CN (Canadian National Railway Co.), which has traditionally served the Edmonton market, has made a com-

mitment to develop a $250-million rail inter-modal yard in the Calgary region, located at Conrich just outside the city li-mits of Calgary,” says Tom Dixon , business develop-

ment manager of Real Estate & Logis-tics for the Calgary Economic Develop-

ment organization.He points out that Canadian Paci-

fi c is also working with the City of Cal-gary to expand the Du� erin North rail intermodal yard, expanding its land base and infrastructure with develop-ment occurring in 2012.

“Both of these expanded rail capa-cities and developments support Cal-gary being clearly recognized as a re-gional powerhouse in the western Ca-nadian goods distribution and supply chain market,” says Dixon.

Chugging alongMark Hallman, director of public a� airs at CN, says the development is driven by continued growth in wes-tern freight volumes.

“We are making strategic rail in-vestments in Alberta to increase net-work capacity and improve train ve-locity along our transcontinental main line between Edmonton and

Winnipeg, and to be positioned to handle greater volumes of freight over our line to Fort McMurray, the gate-way to Alberta’s oil sands production region,” says Hallman.

In June, CN announced that it would complete investments of al-most $400 million to buy and rehabi-litate four short-line railways serving northern Alberta by year-end 2011.

The company is also investing in new technology such as distributed power units, which permit remote control of a locomotive throughout a train from the lead control locomoti-ve. Distributed power allows for long-er trains with increased capacity and safety.

Full speed aheadBruce Burrows, vice president of pu-blic and corporate a� airs for the Rail-way Association of Canada (RAC) says there’s no question that rail plays a lar-

ge role in the province’s economic fu-ture.

“I think there’s a strong recognition that rail is a critical link in connecting various commodities to international markets,” says Burrows. “Strategically, having rail as one of the options to pi-peline is a good move.”

Burrows says the RAC is encoura-ging the Alberta government to bring roadways up to scratch to help con-nect the trucking industry with train facilities to improve the supply chain and also to build a more stable regula-tory environment for rail in order to foster future investment.

“We’re optimistic that they will be,” says Burrows.

PROFILE

Rail investment in Alberta

■ CN plans to develop a $200-million logistics park in Rocky View County north east of Calgary in 2013 to help move goods to and from Calgary.

■ Canadian Pacific is working with the City of Calgary to expand the Dufferin North rail intermod-al yard.

■ Together, Canadian Nation-al Railway and Canadian Pacifi c Railway operate approximately 9,600 route kilometres in Alber-ta and transport in excess of 60 million tonnes into and out of the province.

■ The rail mode accounts for ap-proximately $18 billion of Alber-ta’s export values, representing 22% of all shipments.

ANDREW SEALE

[email protected]

BUILDING A FUTURE

Rail: A critical link for Alberta

FULL SPEED AHEADLeft: Freight train en route near Jasper, Alberta.Right: A locomotive chugs through Calgary, AB.PHOTOS: LEFT: CN, RIGHT: CP

2FACT

THROUGH RAIL, MORE THAN

$100 BILLION IN ALBERTA

PRODUCTS GO TO INTERNATIO-NAL MARKETS

PER YEAR

Courtesy of Government of Alberta

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AN INDEPENDENT SECTION BY MEDIAPLANET TO CALGARY HERALD8 · DECEMBER 2011

Question: How did Kudu Industries, a small, Calgary-based manufacturer, break into the gargantuan oil and gas industry?Answer: By focusing on their supply chain, they secured their niche—and prospered.

INSPIRATION

1

CITT Improve Your Abilities - Nov 7 2011 - OUTLINES.indd 1

11/7/2011 4:17:06 PM

The growing demands for Canadi-an goods and resources and the de-mographic challenges faced by an aging population have put increased strain on the transportation indu-stry workforce. But as the employ-ers look to fi ll those spots, increasing weight is put on the employee’s abi-lity to adapt and understand a rapid-ly changing global supply chain.

Angela Splinter, executive direc-tor of the Canadian Trucking Hu-man Resources Council, says having the proper education or certifi cation to keep the supply chain running smoothly shouldn’t be overlooked.

“This is an industry that has a $57-billion impact on the Canadi-an economy,” she says. And, the de-mographic challenges have hit the trucking workforce.”

Splinter points out that although certifi cation for people looking to get into trucking varies from provin-ce to province, “we encourage people to go into an accredited program if they’re going into truck driving.”

“Look for a program that trains to a national standard.”

And it’s not just driving the trucks, across the board. from cargo wor-kers to parts technicians, employees are needed to fi ll the gaps left by an aging population.

Putting a value on talentCatherine Viglas, president of CITT (Canadian Institute of Tra� c and Transportation), an association that provides certifi cation and pro-fessional development courses for the supply chain and logistics in-dustry, says CEOs are recognizing the importance of the supply chain in their business.

“They’re looking to have quali-fi ed, professional, trained indivi-duals in the same way that they would have a CA running their fi -nancial department,” she says.

CITT focuses on developing the individual’s skills so they can work

in the logistics side of whatever business they choose.

“We expect people to come out of college or university with an un-dergraduate degree and then come to us for the fi ve logistic-specifi c courses and also to have fi ve years of relevant business experience before we will certify them,” Viglas adds.

Get schooledThe courses covered by CITT tack-le a broad array of skills, from busi-ness law to integrated logistics.

Linda Lucas, chair of the Calgary Logistics Council, says increased demand for goods heading to fo-

reign markets from Alberta will create 50,000 jobs in the supply chain.

“You can grow your career and advancement relatively quickly once you are trained and have so-me practical experience because the demand is just so high,” says Lucas. “There is a supply chain and usually transportation connection at every other sector—stu� just has to get from where it was developed to where it’s going to be used.”

ANDREW SEALE

[email protected]

A FOCUS ON HR

Completed in 2008, the Stoney Trail-Highway 1 (16 Ave NW) interchange in

west Calgary incorporates a unique rounda-bout into its design.

A BIRD’S EYE VIEW

Mapping better connections

PHOTO: GOVERNMENT OF ALBERTA

Bouncing back from bankruptcy It’s no secret that the oil and gas industry is a highly competitive sector.

To put it bluntly, unless you tap into (and hold onto) a niche market, you’re bound to be chewed apart by the bigger fi sh.

How one small company became a big supplierBut Kudu Industries, a Calgary-based ma-nufacturer of progressive cavity pumps for the oil and gas industry did just that, emer-ging from what Chief Strategy O� cer Dun-can Gordon calls a “near-death experience” to become the world’s second largest manu-facturer and distributor of their product. “Manufacturing and supply chain are one and the same,” says Gordon. “If one link is broken, it falls apart—it’s as simple as that.”

In the beginningKudu Industries was founded in 1989 by Robert Mills and his son Ray. Business was booming and the company seemed poised to enter the big leagues were it not for the oil industry taking a nosedive in the 1990s. However, the company soon stood on the brink of bankruptcy.

“That near death experience, it helped to turn the company around—it helped us cre-ate consistent growth,” says Gordon.

In 1998 Kudu turned its focus toward lean

manufacturing—a process by which waste is cut out and production methods are res-tructured in order to decrease waste and in-crease value.

It proved to pay o� . Over the course of four years, the company managed to increase sa-les, reduce its stock outs by 98 percent, and clear its debt.

Ready to goGordon says the underpinnings to success lie on both the suppliers and the next one down the road, which is refl ected in Kudu’s philosophy when looking at suppliers is de-liverability, quality and cost.“If you get the cheapest price but they can’t deliver, it’s not going to matter.”

Being adaptable, from the way you re-ceive parts, transport products and serve customers both at home and abroad, is vital to success.

“If that trucks sitting there waiting for the product to get to the next customer and you’re missing the nuts and bolts—they’ll pick up the phone to a competitor,” says Gordon.

These days, Kudu supplies its products to both foreign markets and within Canada.

“Our ability to respond to di� erent mar-kets is critical,” he says.

One of the ways the company is doing that is through closer integration with its suppliers.

“We’re going through a process of actual-ly having them come in and stock our supp-lies at the factories.”

Change is necessaryBut functioning in a constant state of change and adaptability can prove ar-duous.“At times we’ve struggled with the change,” says Gordon. “I think Kudu’s really become a process-driven orga-nization.”

He points to the 5S system—a pro-duct of workplace methodology rooted in Japanese productivity techniques that includes sorting, straightening, systematic cleaning, standardizing, and sustaining.

Gordon says that it is challenging to constantly be organizing and cleaning but the employees have

come a long way in understanding the importance of the concept.

The joint e� ort between employees and management to constantly build on the processes and supply chain ha-ve helped to propel the company to its place as the world’s second largest ma-nufacturer and distributor of PCP.

“At the end of the day, we are on-ly as good as our supply chain,” says Gordon.

PROFILE

Productivity Alberta

■ Productivity Alberta is indus-try’s connection to tools, resourc-es, and services to help improve productivity, com-petitiveness, and profi tability. Serv-ing primarily small and medium-size enterprises in the industrial prod-ucts and servic-es sectors, Pro-ductivity Alberta is a not-for-profi t corporation that can help own-ers, managers, and employees to see their business from a new angle.

More informa-tion is available at productivity-alberta.ca

HOW WE MADE IT

ANDREW SEALE

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COLLABORATING ON QUALITYKudu Industries management and employees collaborating in the as-sembly of a progressing cavity pump at the Calgary manufacturing facility.PHOTO: PRODUCTIVITY ALBERTA

700,000 PEOPLE WORK IN SOME

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