The creation of CentrePort

by Paul D. Larson

Dallas/Fort Worth, Denver, Des Moines, Edmonton, Kansas City, Prince George, Regina, San Antonio, Winnipeg. What do these North American cities have in common? They are sites of existing or planned inland ports. Now Winnipeg has entered the game with its CentrePort initiative, providing ready access to and from international markets via air, rail and road.

An inland port is a supply chain facility, located some distance away from any seaport, which supports both domestic and international trade through intermodal transportation alternatives and integrated logistics services, such as customs processing, warehousing, labeling, packaging, inspection, assembly, inventory control and information management. Logistics involves providing the best possible service (i.e., on-time delivery) at the lowest possible cost.

Turmoil in the global economy is changing the logistics total cost function and increasing the challenge of providing excellent customer service. Within the past year, oil prices have changed by more than $100 US per barrel. Canadian/U.S. dollar exchange rates have changed by nearly 40 cents on the dollar. Such volatile conditions are linked to shifting global transportation and trade flows. Businesses and governments are busy responding to the current recession and uncertainty about oil prices and currency rates. Some enlightened companies and jurisdictions

look at this turbulence as an opportunity for supply chain re-design and infrastructure investment. These firms have an opportunity to rethink their low-cost country sourcing strategies, postpone the processing or movement of material, and consolidate inventories at centralized locations. There is great potential for cost savings and service improvement by locating and integrating logistics activities at the push-pull boundary.

Stock consolidation and postponement strategies are inspired by the push-pull boundary. This boundary is an excellent position for an inland port; firms forward deploy or “push” material up to the boundary, and then postpone further processing or movement until their customers “pull” material downstream. In terms of logistics, the strategic focus is to be lean (reduce inventory, save money) upstream from the boundary and be agile (in rapid response to customer requirements) downstream.

An inland port requires access to the following: one or more container seaports; a full-service, freight and passenger international airport; one or more continental (Class I) railroads; trucking services; major highways; large metropolitan markets; a skilled local labour pool; integrated logistics services; and significant private-sector interest and investment. It is also essential that an inland port have foreign/free trade zone status, to facilitate the efficient flow of goods and performance of value-added services.

Winnipeg is situated at the crossroads: the intersection of the Trans-Canada Highway and the mid-continent (or NASCO) corridor. It is a traditional transportation and distribution hub. Winnipeg is 100 km north of Western Canada’s busiest border crossing at Pembina, North Dakota. The city features a 24-hour international airport, with the most dedicated cargo flights in Canada, and it is served by three Class I North American railroads: CN, CP and Burlington Northern/Santa Fe (BNSF). Winnipeg also has direct highway and rail access to West Coast seaports in Vancouver and Prince Rupert, as well as rail access to the Port of Churchill.

On December 22, 2008, Manitoba Premier Gary Doer announced the inaugural board of directors for CentrePort Canada Inc. CentrePort is a critical component of the Manitoba International Gateway Strategy (MIGS) positioning Manitoba as Canada’s “hub province.” Winnipeg’s inland port is 20,000 acres anchored at the James Armstrong Richardson International Airport.

The University of Manitoba Transport Institute (UMTI) is keenly interested in studying the inland port concept in general—and CentrePort in particular. UMTI’s mission is “to facilitate economic prosperity, environmental sustainability, and social advancement, through SCM and logistics research and education; linking business, government, the not-for-profit sector, academia and the community; in Manitoba, Canada and beyond.”

UMTI research is focused on clarifying the role of the push-pull boundary as a location for an inland port—and the role of the port as a facilitator of postponement and consolidation logistics strategies. The fundamental question is: What logistics services must be offered at an inland port to meet the needs of postponement and consolidation strategies?

Beyond their economic impact, inland ports also have significant environmental and social impact. An inland port can enhance transportation sustainability by supporting the related objectives of reducing green-house gas emissions, reducing highway congestion, and increasing fuel efficiency. With proper planning, an inland port could bring jobs to a community and make a favourable contribution to overall quality of life.

UMTI is also looking at present and future commodities flowing from, to and through Winnipeg. The shippers of these commodities are important customers of the inland port. Commodities represent opportunities for CentrePort to add value to the supply chain by moving goods better, faster and cheaper than ever before.

Paul D. Larson, Ph.D., is head of the Supply Chain Management department and director of the Transport Institute at the Asper School of Business. He can be reached by email at This e-mail address is being protected from spambots. You need JavaScript enabled to view it .