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