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Consultations begin on Windsor crossing
Windsor—Long-term plans are under way to expand border crossing capacity in Windsor. Transport Canada and the Ontario Transportation Ministry started community outreach programs in March, to address public concerns about the expansions.
As Canada’s busiest border crossing, Windsor-Detroit sees over 16 million vehicles and $120 billion in goods each year, according to Canadian Transport Minister Harinder Takhar. “Our economy depends on keeping the traffic moving.”
The governments of Canada, the US, Ontario and Michigan are moving forward with the Bi-National Partnership, to implement a 30-year, five-phase transportation strategy. The plan will deal with trade, environmental and community concerns.
Construction of new crossing corridors is expected to begin in 2010, with the new corridors opening in 2013, about the same time the Ambassador Bridge is expected to reach capacity.
Fees reduced for Welland Canal freight
St. Catharines—The St. Lawrence Seaway is reducing lockage fees on the Welland Canal in Ontario for ships carrying cargo new to the waterway. The new rate system will provide the biggest reductions to smaller vessels.
“We want to encourage new business for the seaway and more short-haul traffic, carried by smaller ships,” said Richard Corfe, president of the St. Lawrence Seaway Management Corp.
The fees, which came into effect March 23, are a result of collaboration between Transport Canada and the St. Lawrence Seaway, to promote “short sea shipping.”
“New cargo” can be containerized, or comprised of freight which hasn’t moved through the canal in an amount greater than 10,000 metric tons annually between 2001 and 2003.
“Any cargo that qualifies as new cargo will remain qualified for the reduction through the 2007 shipping season. A ship carrying more than one cargo will qualify for the reduction if more than 50 per cent of its cargo in any transit is classified as new,” Corfe explained.
The fees are calculated by gross registered tonnage (GRT). For instance, a ship of 23,000 GRT has been given a 15 per cent reduction. Smaller vessels are favoured under the new system. A ship of 7,000 GRT, for example, receives a 75 per cent discount.
Modest growth for Canadian economy in 2005
Toronto—The Canadian economy is expected to grow by 2.7 per cent this year, compared to 2.8 per cent in 2004, according to Toronto-based RBC Financial Group.
“Given the approximately 30 per cent appreciation of the Canadian dollar over the past two years, the Canadian economy continues to face some economic challenges,” said Craig Wright, vice-president and chief economist with RBC. “However, resilient consumer and business spending will lead growth this year while international trade is expected to become less of a drag on growth as 2005 progresses.”
Business spending is expected to increase in 2005, as corporate profitability remains solid, allowing companies striving for better productivity to invest in machinery and technology. Consumer spending will be buoyed by low inflation and interest rates, RBC reports.
Canada’s trade sector was battered during the second half of 2004, by the soaring Canadian dollar. Imports spiked, while exports took a sharp downturn. But this drag is expected to lessen this year.
IT lacking innovation
Chicago—A new report by A.T. Kearney reveals IT innovation is dipping, even though companies are putting the emphasis on growth creation, according to the study, which involved 200 North American and European business executives.
While 67 per cent of executives view IT innovation as important to their companies’ success, only 20 per cent of the companies’ IT budget is earmarked for innovation—a 30 per cent decrease from a similar study conduced in 2002. Most IT spend goes to daily maintenance and efforts to cut costs.
“These findings shatter the notion that IT leads the early adoption of technology and the business side slows down the process,” said Mark Livingston, a vice-president at A.T. Kearney. “The reality is most IT departments can’t effectively explore innovative uses of technology because they are stuck in the daily operational grind.”
Strategic alignment between companies and their IT departments has moved in the wrong direction, according to the report. Just 25 per cent of respondents said their IT planning develops simultaneously with business planning, compared to 32 per cent in 2002.
As a result, IT departments are often perceived as unresponsive. Only 41 per cent of executives believe their IT operations react well to change. More than 30 per cent believe a fifth of the IT budget goes to waste.
The bottom line is IT departments have to start contributing to the success of core business operations, instead of simply focusing on day-to-day functionality and cost cutting, according to A.T. Kearney.
CPR buys hybrid locomotives
Calgary—Canadian Pacific Railway (CPR) is buying 35 hybrid locomotives over the next four years. The Green Goat locomotives—supplied by RailPower Technologies Corp. of Vancouver—are quieter and more environmental than conventional units, according to CPR.
The Green Goats are powered by batteries charged by a small diesel genset. They reduce smog-causing oxides of nitrogen and diesel particulates by as much as 90 per cent, compared to other yard locomotives, according to RailPower.
CPR will convert seven locomotives to the hybrid system this year, for testing at its Calgary operations. If the technology proves itself, 28 more locomotives will be converted over the next three years.
“Our studies indicate operating cost savings approaching $4 million annually should we acquire all 35 Green Goat hybrids,” said Neal Foot, senior vice-president of operations for CPR. The railway tested the hybrid system and found it’s 60 per cent more fuel-efficient than conventional yard locomotives.
Toronto—Efforts are down in Canadian research and development, according to a new survey by the Impact Group, a Toronto-based consulting firm.
The study, called The Demographics of Industrial Research in Canada 1994-2000, found the number of companies performing research between 1994 and 2000 remained static.
Though the seven years marked a period of significant economic growth, nine out of 10 provinces showed a decline in the number of industrial research performers. Only Quebec showed a net gain, increasing the number of companies performing research by 34 per cent.
The 16 industries (out of 46) posting an increase in the number of research performers included computer and related services, aircraft parts, electronic parts and components, motor vehicle parts and accessories, transportation equipment and primary metals.
The study also shows research is not an ongoing project in most firms, said Ron Freedman, author of the study. “A healthy economy needs increasing innovation in all sectors. Our data suggests that two-thirds are in decline.”
SAMSys partnering with Microsoft
Toronto—SAMSys Technologies Inc., a provider of radio frequency identification (RFID) hardware, is partnering with Microsoft.
SAMSys will provide RFID programs through the Microsoft RFID partner advisory council. Members of the council include major consulting firms, system integrators, software vendors and hardware manufacturers.
Microsoft is building an open software platform for partners to use when creating RFID solutions.
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