Thunder Bay.

• Position: COMMUNITIES OF THE NORTH

International money markets are unstable and Thunder Bay's forestry industry stands in limbo, but the city's prospects toward achieving economic diversification have never appeared brighter. But in the last year, there's been new promise and opportunity in mineral exploration, back-office IT support, logistics, and expansion of its knowledge-based sectors.

In recent years, a new hospital combined with expanding applied research from Lakehead University has spun off into a cluster of health science-related and biotech businesses. The city is promoting its central Canada location and transportation links as a viable logistics hub to service the massive energy and natural resources development needs of Western Canada.

Grain movement through the Port of Thunder Bay is a fraction of its heydays, so the authority has changed gears in working with CN Rail to promote and beef up its freight-handling capacities in moving large project cargoes to service the Alberta oil sands. Local metal fabricators and manufacturers that once catered to the forestry industry are landing mega-project work in Alberta, Saskatchewan and Manitoba.

The city's suppliers and its airport are also vital cogs in positioning Thunder Bay as a staging base for junior miners to explore the untapped mineral potential of...