Air cargo hub viable option.

• Author: Ross, Ian
• Position: Analyst identifies qualities needed to establish gateways in Sault Ste Marie and North Bay

If North Bay and Sault Ste. Marie intend to establish themselves as North American gateways for international cargo flights, it must be a lean and mean operation that is run efficiently with service that is "second to none," says a logistics consultant.

A study prepared by Inter VISTAS Consulting Inc. of Vancouver assessed global opportunities, challenges, strengths and weaknesses for North Bay and the Sault becoming North American gateways for air cargo flights from Asia using transpolar routes.

Low airport charges, plenty of incentives and aggressive marketing as a regional distribution centre for inbound air freight were among the findings listed by Mike Tretheway, vice-president of marketing and chief economist for InterVistas.

Based on the consultant's findings, North Bay is approaching the idea "guardedly optimistic," says Rick Evans, the city's economic development manager.

"We're not going to be like Chicago or a huge hub as with the U.S. airports, but there are some solid business opportunities for us to grow in niche markets."

North Bay plans to use the study to develop a business plan to investigate the establishment of a foreign trade zone component where incoming goods could be brought in duty free.

How successful this venture will be will depend on the type of aircraft and freight, says Evans, who was reluctant to disclose potential cargoes due to the extremely competitive nature of the industry.

Such air freight-handling hubs as Mount Hope Airport, near Hamilton, have done "tremendously well" with light cargo and time-sensitive material, such as Purolator and FedEx due to their proximity to the Greater Toronto Area, says Evans

"We can compete on that freight," but North Bay's niche might be in receiving heavy equipment.

The city is also pursuing a flight-specific exemption from the federal government to accept Russian heavy-lift aircraft, which do not meet new operating-noise criteria guidelines that went into effect last April.

Similar aircraft have landed at Jack Garland in years past.

"They've been in here before and they're less noisier than the military aircraft that we've been accustomed to," says Evans. "These types of aircraft are self-unloading and we don't have to invest $200,000 to $800,000 in (ground-handling) equipment."

Gander, Nfld. is home to the only other North American airport available to these aircraft, but the airport does not offer the logistics needed for distribution.

"They need something more central...