
Gateway lands $11M
CARGO HUB PLAN: Ottawa and the city will unveil big bucks to help London
become an international air cargo gateway
By
NORMAN DE BONO
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.
norman.debono@sunmedia.ca