CIFFA Well Represented at the 'Cluster Mobilization Forum' by President Marc Bibea

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Canadian International Freight Forwarders Association Dec 09, 2011

The Cluster Mobilization Forum for Logistics and Transportation of Montréal was held on November 23, in which CIFFA President Marc Bibeau was able to attend. Core issues for the logistics and transportation industry were discussed and there was validation of the findings of the preliminary consultation, but chiefly, the confirmation of the opportunities available to the industry and the role a coordinating body such as the cluster could play in this context.

Below is a summary of the meeting, including the next steps and conclusions from the Cluster Mobilization Forum

In fact, the cluster already exists

• A cluster is a geographical concentration of players in the same sector, a grouping of customers and suppliers, of competing or complementary companies in a defined territory
• Such a concentration actually exists, in the logistics and transportation sector, in the Montreal metropolitan area
• Companies in the sector, along with the public authorities, must decide if they wish to collaborate in the context of a formal cluster governance

Clusters contribute to the development of the sector as a whole, increasing the size of the market for the benefit of all participants

• Ability to address issues that affect multiple transport modes and logistic services
•  Potential to raise the competitiveness of the Montreal region on the global stage

The Montreal region has all the characteristics needed to be a competitive hub

• Geographical location, markets, infrastructures and equipment
• There is a need to collaboratively emphasize and enhance these assets

Priority actions identified and developed in workshops

Development opportunities - Develop a logistics hub in the Montreal region to attract distribution centers and promote value-added logistics offering. Facilitate relevant business development related to key projects (e.g.: free trade deals, Plan Nord) and the emergence of transshipment ports. Study key logistic chains and identify breaks or gaps that can be filled to further the use of Montreal. Promote green alternatives e.g.: short sea shipping.

Access and traffic flow - Use the cluster as a voice for the whole sector in road infrastructure and traffic management discussions. Improve terminal operating modes to increase efficiency of supply chain. Develop a database on cargo transportation in order to provide a better understanding of the sector and emphasize its importance.

Best practices and technology - Sharing of information on a common platform, to improve efficiency and optimize movements. Greening of the supply chain from a sustainable development perspective.

Harmonize and simplify regulations - Improve, and if possible eliminate, regulations that represent obstacles to efficiency. Harmonize regulations across jurisdictions

Two other lines of action were identified for the cluster:

• Publicize the positioning, role and contribution of the logistics and transportation sector in the local economy
• Increase knowledge of targeted labor issues and propose solutions

The positive response from the industry at the Forum leads into the next steps for the launch of the cluster

Prepare a business plan: Define a 3-year action plan outlining the role and contribution of a cluster for our industry

Finalize financing: Obtain commitments from the industry and confirm financing from the CMM and the provincial and federal governments.