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2010 Manitoba Transportation Report Prepared For: Manitoba Infrastructure and Transportation University of Manitoba Transport Institute This report was prepared for Manitoba Infrastructure and Transportation. The views expressed do not necessarily represent those of the Provincial Government, which provides no warranties as to the validity or accuracy of the information presented herein.

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Page 1: umanitoba.ca of Contents 1. The Economic Impact of Transportation in Manitoba.......................................................................... 1 Gross Domestic …

2010 Manitoba

Transportation

Report

Prepared For: Manitoba Infrastructure and Transportation

University of Manitoba Transport Institute

This report was prepared for Manitoba Infrastructure and Transportation. The views

expressed do not necessarily represent those of the Provincial Government, which

provides no warranties as to the validity or accuracy of the information presented

herein.

Page 2: umanitoba.ca of Contents 1. The Economic Impact of Transportation in Manitoba.......................................................................... 1 Gross Domestic …
Page 3: umanitoba.ca of Contents 1. The Economic Impact of Transportation in Manitoba.......................................................................... 1 Gross Domestic …

Table of Contents

1. The Economic Impact of Transportation in Manitoba.......................................................................... 1

Gross Domestic Product ...................................................................................................................... 2

Labour Income ...................................................................................................................................... 9

Employment ........................................................................................................................................ 15

Expenditures ....................................................................................................................................... 22

2. Logistics and the Regional Canadian Economy .................................................................................. 25

Gross Domestic Product .................................................................................................................... 25

Employment ........................................................................................................................................ 31

Labour Income .................................................................................................................................... 35

3. The State of the Macro Economy ........................................................................................................... 40

The Global Growth Improvement ................................................................................................... 42

Shape to Recovery .............................................................................................................................. 43

Recovery Next ..................................................................................................................................... 45

Manitoba Economic Situation ........................................................................................................... 45

Economic Indicators ........................................................................................................................... 47

Monetary and Energy Indicators ..................................................................................................... 55

4. Domestic Trade and Infrastructure Utilization ................................................................................... 65

Province/Territories Exports Leaving Canada from Source Province ........................................ 65

Usage of Manitoba’s Transportation Infrastructure ..................................................................... 69

Rail Commodity Traffic Flows ......................................................................................................... 73

Truck Commodity Traffic Flows...................................................................................................... 82

Rail & Road: Imports and Exports ................................................................................................... 91

Port of Churchill ................................................................................................................................. 98

5. NASCO Trade ........................................................................................................................................ 102

Exports ............................................................................................................................................... 102

Imports ............................................................................................................................................... 106

6. Manitoba International Trade .............................................................................................................. 111

Exports ............................................................................................................................................... 111

Top 10 Export Commodities ...................................................................................................... 111

Top 10 International Export Partners ....................................................................................... 112

Mode of International Export for Manitoba 2009 ................................................................... 113

Imports ............................................................................................................................................... 115

Top 10 Import Commodities by Value ..................................................................................... 115

Top 10 International Import Partners by Value ...................................................................... 116

Mode of International Imports for Manitoba 2009 ................................................................. 117

Mode of Imports - Manitoba Historic Comparison ................................................................ 118

Data Tables...................................................................................................................................................... 121

1. The Economic Impact of Transportation in Manitoba ........................................................... 121

2. Logistics and the Regional Canadian Economy ...................................................................... 126

3. The State of the Macro Economy ............................................................................................... 131

4. Domestic Trade and Infrastructure Utilization ....................................................................... 135

5. NASCO Trade .............................................................................................................................. 141

6. International Trade ..................................................................................................................... 144

Glossary ........................................................................................................................................................... 147

List of Figures ................................................................................................................................................. 151

List of Tables ................................................................................................................................................... 155

Data Tables...................................................................................................................................................... 156

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1

1. The Economic Impact of Transportation in Manitoba1

The activities of various sectors of an economy are intertwined with those of other sectors such

that the economic impact is magnified or multiplied throughout the overall economy.

Measurement of such effects is undertaken through economic impact models which quantify

inter-sectoral relationships. There are numerous designs of such models, which vary primarily

in the scope of the “net” which defines the direct impacts of the sector under investigation.

For this study of transportation in Manitoba, the definition applied is the commercial carriage of

goods and people. This definition is advantageous to producing sound measures of the impact.

It limits criticism of overstatement of the effects by limiting the sectors considered to those

directly performing commercial transportation. It excludes allied sectors such as service

industries (e.g. hotels), repair shops, and equipment manufacturers. When included, these allied

sectors open the measured economic impact to criticism since the multiplicative effects of

activities from the direct industry include the impacts on these allied sectors. This restrictive

definition of the sector minimizes the validity of any criticism of double counting.

The Manitoba Bureau of Statistics regularly updates the parameters of the Input/Output model

which proxies the activities of and interactions among various sectors of the economy. It is these

interactions which provide the iterative process of the model. While making the model a more

accurate reflection of the economy, these revisions compromise the validity of comparisons

made to previous reports.

The robustness of economic impact results are dependent on the quality of information

acquired about the direct (or “driver”) sector, and the quality of the input/output matrix used to

derive the indirect and direct effects. Manitoba is a relatively small economy with few firms in

many sectors. One consequence of this is general weakness of direct and input/output data.

Two approaches are available to acquire data for the direct sector. Data can be acquired from

third-party data providers or the sector can be directly surveyed. In both cases, estimates of the

economic drivers of the entire population are developed from the survey.

This analysis uses data acquired from third party data providers, principally Statistics Canada.

This approach reduces costs, and allows the creation of historical results, which could assure

greater consistency of that historical information. The modes included in the analysis are: road

(for-hire trucking),2 rail, aviation, couriers and local messengers,3 and urban and inter-urban

bus.

1 Annual data updates, along with changes in multipliers, may yield results that are not comparable

among annual reports. 2 For-Hire trucking is the industry segment that explicitly covers truck transport. It consists of companies

whose purpose is to transport freight for remuneration to destinations in domestic or international

markets 3 Couriers and local messengers include the major international courier companies such as FedEx.

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2

Based upon the “driver” data provided, the Manitoba Bureau of Statistics generates indirect and

induced effects using multipliers created by its analysis of inter-sectoral relationships.

Gross Domestic Product

Estimated growth in total GDP for Manitoba derived solely from transportation activities4 is

summarized in Figure 1.1. Total GDP measured on this basis rose from $2.89 billion in 2004 to

$3.37 billion in 2008. Annual contribution to GDP has been on the rise, increasing by 16% since

2004.

Figure 1.1: Total GDP from Transportation in Manitoba

This total includes the leverage effect of direct activity in transportation on other sectors, in

other words, it is the sum of direct economic activity, indirect economic activity, and induced

economic activity. Direct activity is measured by the economic drivers of employment,

employment income, expenditures, and contribution to provincial gross domestic product by

the transportation sector. Indirect activities are those that occur in firms that supply inputs to

the direct sector. Induced effects are trickle down effects of expenditures by the direct and

indirect sectors as they multiply through other sectors of the economy. These are largely driven

by consumption spending. The indirect and induced effects are a measure of the leverage

derived from the direct effect. The higher the amount of leverage, the greater the additional

economic activity spawned from the original source. The total economic impact of the sector can

be measured when the direct and the leverage effects are combined.

4 These transportation activities comprise aviation, trucking, rail, courier, and bus (urban and other).

$2.89$3.20 $3.21 $3.27 $3.37

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

2004 2005 2006 2007 2008

$ B

illi

on

s

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3

Figure 1.2 shows the total Manitoba transportation GDP based on the distribution of Direct,

Indirect, and Induced effects. Overall, $1.00 of GDP from direct transportation activities results

in an additional $0.95 generated through activities in other sectors.5

Figure 1.2: Total GDP from Transportation in Manitoba by Leverage Component

Amongst the modes, trucking is the largest transportation sector in Manitoba, contributing over

$1.34 billion (39.91% of total contributions) to GDP in 2008, as shown in Figure 1.3. This is

followed by rail with $1.01 billion (30.02%) and aviation, which generates $0.57 billion (16.86%).

All modes combined contributed $3.37 billion to Manitoba’s GDP in 2008.

Figure 1.3: Total Contribution to Manitoba GDP by Transportation Mode: 2008

5 The leverage factor is calculated as: (Indirect GDP + Induced GDP)/Direct GDP.

$1.47 $1.64 $1.64 $1.68 $1.72

$0.66$0.72 $0.72 $0.74 $0.76

$0.76$0.84 $0.84 $0.85 $0.88

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

2004 2005 2006 2007 2008

$ B

illi

on

s

Direct Indirect Induced

Trucking, 39.91%

Rail, 30.02%

Bus, 6.34%

Aviation, 16.86%

Couriers, 6.87%

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4

Figure 1.4 shows the trends in annual contributions to GDP by each mode since 2004.

Figure 1.4: Contribution to Manitoba GDP by Transportation Mode

Courier and bus modes were relatively stable throughout the period, showing small, marginal

increases. Trucking experienced steady growth over the time period covered in Figure 1.4. Rail

has also enjoyed modest growth, although it may have peaked in 2005. Aviation’s contribution

to GDP was fairly stable from 2004 to 2005 but dropped to a lower level since then.

$0.6

1

$0.2

1

$1.0

0

$0.8

9

$0.1

8

$0.6

2

$0.2

1

$1.1

3

$1.0

5

$0.1

9

$0.5

4

$0.2

2

$1.2

5

$1.0

0

$0.2

0

$0.5

5

$0.2

2

$1.2

9

$1.0

1

$0.2

0

$0.5

7

$0.2

3

$1.3

4

$1.0

1

$0.2

1

$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

$1.40

$1.60

Aviation Couriers Trucking Rail Bus

$ B

illi

on

s

2004 2005 2006 2007 2008

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5

Figure 1.5 displays total GDP generated by the Manitoba aviation industry between 2004 and

2008. In 2008, the Manitoba aviation sector contributed $568 million towards provincial GDP.

From 2005 to 2006, aviation sector contributions to GDP declined by approximately $72 million.

The following year, aviation’s contribution increased marginally.

Figure 1.5: Total GDP Generated by Air Sector in Manitoba

Every dollar contributed to Manitoba’s GDP from aviation activities was multiplied by $1.52

through indirect and induced contributions. In 2008, $225 million was generated directly

through aviation itself, while an additional $189 million resulted from indirect activities and

$154 million came from trickle down or induced effects. Figure 1.6 displays a summary of

direct, indirect, and induced contributions to GDP by the Manitoba aviation industry.

Figure 1.6: Trend in Air GDP by Leverage Component

$608 $616

$544 $552 $568

$0

$100

$200

$300

$400

$500

$600

$700

2004 2005 2006 2007 2008

$ M

illi

on

s

$241 $245 $216 $219 $225

$202 $205$181 $183 $189

$165 $167$147 $149 $154

$0

$100

$200

$300

$400

$500

$600

$700

2004 2005 2006 2007 2008

$ M

illi

on

s

Direct Indirect Induced

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6

In 2008, rail activities generated over $1.01 billion for Manitoba’s GDP. Following a large

increase in 2005, contributions to the provincial GDP generated through rail activities leveled

off, averaging around $1 billion per annum from 2005-2008. Annual GDP generated by the rail

industry between 2004 through 2008 is displayed in Figure 1.7.

Figure 1.7: Total GDP Generated by Rail Sector in Manitoba

Figure 1.8 displays the distribution of provincial gross domestic product produced by rail

activities based on direct, indirect, and induced effects. In 2008, direct rail activities in Manitoba

contributed approximately $649 million to provincial GDP. Indirect rail activities generated an

additional $131 million, while induced activities contributed $230 million. For every $1.00 of

GDP produced through direct rail activities in 2008, an additional $0.55 was added to the

provincial economy.

Figure 1.8: Trend in Rail GDP by Leverage Component

$892

$1,048

$995 $1,006 $1,011

$500

$600

$700

$800

$900

$1,000

$1,100

2004 2005 2006 2007 2008

$ M

illi

on

s

$573$674 $639 $647 $649

$116$136 $129 $131 $131

$203

$238$226 $229 $230

$0

$200

$400

$600

$800

$1,000

$1,200

2004 2005 2006 2007 2008

$ M

illi

on

s

Direct Indirect Induced

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7

In 2008, the trucking industry contributed over $1.34 billion to provincial GDP, an increase of

5.1% from 2007. Figure 1.9 displays the annual GDP contribution produced by the Manitoba

trucking sector between 2004 through 2008.

Figure 1.9: Total GDP Generated by Trucking Sector in Manitoba

Since 2004, GDP produced by the trucking sector has been steadily increasing. Average annual

growth rate since 2004 is 7.7 percent. In 2008, for every dollar contributed to provincial GDP by

the trucking industry, a further $1.04 was generated via indirect and induced contributions.

Figure 1.10 displays trucking GDP contributions across the leverage components.

Figure 1.10: Trend in Trucking GDP by Leverage Component

Trucking operations directly contributed $657 million towards the Manitoba GDP and an

additional $686 million through indirect and induced contributions in 2008. For all three

components, GDP contributions increased by about 4.4 percent from 2007 to 2008.

$1,001$1,127

$1,249 $1,285$1,343

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

2004 2005 2006 2007 2008

$ M

illi

on

s

$490 $551 $611 $629 $657

$265$298

$331 $341 $356$246$277

$307 $316 $330

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

2004 2005 2006 2007 2008

$ M

illi

on

s

Direct Indirect Induced

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8

Direct activities of each mode represent the largest proportion of the total effect or contribution

to GDP. For example, in 2008, 40% of the total effect of air came from direct aviation activities,

33% from indirect, and 27% from induced activities. In the case of rail, direct activities account

for a striking 64% of the total effect. This may be attributable to the relative fuel and labour

efficiency of rail in long distance movement of large shipments.

Figure 1.11 shows comparative leverage of the modes in terms of contribution to GDP. Per

dollar of GDP generated directly, bus generates the highest leverage throughout the economy at

1.69, while rail is the lowest at 0.55. Leverage ratios for aviation, couriers and trucking were

1.52, 1.09 and 1.04, respectively.

Figure 1.11: Leverage Ratios for Manitoba Total GDP by Transportation Mode

1.691.52

1.09 1.04

0.55

0.000.200.400.600.801.001.201.401.601.802.002.202.402.602.80

Bus Aviation Couriers Trucking Rail

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9

Labour Income

In 2008, total labour income in Manitoba due to the transportation sector was $1.74 billion.

Figure 1.12 presents total labour income earned in the transportation sector of the Manitoba

economy, from 2004 to 2008. Note the small decrease from 2007 to 2008; a return to the level of

labour income generated by the sector in 2004.

Figure 1.12: Total Labour Income from Transportation in Manitoba

In 2008, for each dollar of direct labour income in transportation, an additional $0.76 in labour

income was created in the Manitoba economy.6 Figure 1.13 shows the distribution of labour

income from 2004 to 2008.

Figure 1.13: Labour Income by Leverage Component from Transportation in Manitoba

6 This is calculated as: (Indirect Income + Induced Income)/Direct Income.

1.741.86 1.82 1.85

1.74

$0.00

$0.50

$1.00

$1.50

$2.00

2004 2005 2006 2007 2008

$ B

illi

on

s

0.98 1.06 1.03 1.05 1.06

$0.39$0.41 $0.40 $0.41 $0.41

$0.37$0.40 $0.39 $0.39 $0.40

$0.00

$0.50

$1.00

$1.50

$2.00

2004 2005 2006 2007 2008

$ B

illi

on

s

Induced Indirect Direct

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10

As illustrated in Figure 1.14, in 2008, labour income from trucking represented nearly 47% of

the total Manitoba transportation labour income. This was followed by rail representing around

25%, aviation with 14%, and bus and couriers finishing up with 8.3% and 6.3% respectively.

Figure 1.14: Contribution to Manitoba Total Labour Income by Transportation Mode: 2008

Labour income generated by each transportation mode from 2004 to 2008 is shown in Figure

1.15. The only mode with consistent growth in labour income was trucking. Bus and couriers

were very stable. From 2004 to 2008, aviation labour income declined by almost $106 million.

Rail started at $450 million, peaked at $520 million in 2005, and dropped back to $460 million by

2008.

Figure 1.15: Total Labour Income by Transportation Mode

Trucking, 46.58%

Rail, 24.83%

Bus, 8.30%

Aviation, 13.95%

Couriers, 6.34%

Total: $1.86 billion

$0.3

7

$0.1

1

$0.6

7

$0.4

5

$0.1

4

$0.3

0

$0.1

1

$0.7

9

$0.5

2

$0.1

4$0.2

6

$0.1

1

$0.8

4

$0.4

7

$0.1

5$0.2

6

$0.1

1

$0.8

6

$0.4

6

$0.1

5$0.2

6

$0.1

2

$0.8

7

$0.4

6

$0.1

5

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

Aviation Couriers Trucking Rail Bus

$ B

illi

on

s

2004 2005 2006 2007 2008

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11

In 2008, approximately $260 million was paid to Manitoba residents as aviation wages and

salaries. Figure 1.16 displays the annual total labour income produced from the Manitoba

aviation sector.

Figure 1.16: Total Labour Income Generated by Air Sector in Manitoba

From 2004 to 2008, total aviation labour income in Manitoba declined at an average annual rate

of 8 percent, though things were very stable during the 2006-2008 period. In 2008, total labour

income from aviation increased slightly.

The effect of leverage components on Manitoba aviation incomes is displayed in Figure 1.17.

In 2008, $126 million, $79 million, and $55 million in aviation incomes were generated by direct,

indirect, and induced industry activities, respectively. Thus, indirect and induced activities

added about $1.06 in wages and salaries for every $1.00 paid out for direct aviation activities.

Figure 1.17: Trend in Air Labour Income by Leverage Component

$366

$303

$261 $259 $260

$0

$50

$100

$150

$200

$250

$300

$350

$400

2004 2005 2006 2007 2008

$ M

illi

on

s

$177 $147 $127 $126 $126

$111

$92$79 $78 $79

$78

$64$55 $55 $55

$0

$50

$100

$150

$200

$250

$300

$350

$400

2004 2005 2006 2007 2008

$ M

illi

on

s

Direct Indirect Induced

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12

Figure 1.18 displays total annual labour income generated from 2004 to 2008 by the rail sector.

In 2008, $462 million in labour income was earned by rail sector workers in Manitoba.

Figure 1.18: Total Labour Income Generated by Rail Sector in Manitoba

Since 2004, total labour income generated by the rail sector has been relatively stable. The only

exception was 2005, with an increase in labour income to over $500 million. But the following

year rail labour incomes fell back below a half billion dollars and stabilized.

Figure 1.19 displays the distribution of labour income generated by the Manitoba rail sector. In

2008, the rail industry directly generated approximately $296 million in labour income and an

additional $68 million and $98 million in indirect and induced labour income, respectively.

Figure 1.19: Trend in Rail Labour Income by Leverage Component

$451

$518$466 $461 $462

$0

$100

$200

$300

$400

$500

$600

2004 2005 2006 2007 2008

$ M

illi

on

s

$289 $332 $299 $295 $296

$66$76

$68 $67 $68

$96

$110$99 $98 $98

$0

$100

$200

$300

$400

$500

$600

2004 2005 2006 2007 2008

$ M

illi

on

s

Direct Indirect Induced

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13

For every dollar directly earned through the rail industry in 2008, an additional $0.56 in labour

income was generated throughout the provincial economy. Manitoba rail labour income was

very stable from 2006 to 2008.

In 2008, approximately $868 million in labour income was earned in the Manitoba trucking

sector. Annual total labour income produced by the Manitoba trucking industry is presented in

Figure 1.20. The growth experienced from the beginning of the 21st century began to wane.

From 2004 to 2006, the income generated from the trucking sector increased by 24%, while it

only increased by 4% over the next several years (2006 to 2008).

Figure 1.20: Total Labour Income Generated by Trucking Sector in Manitoba

In 2008, each $1.00 earned directly from the trucking sector, generated an additional $0.90

through induced and indirect sectors of the Manitoba trucking industry. A summary of

Manitoba trucking labour incomes broken down by leverage component is presented in Figure

1.21.

Figure 1.21: Trend in Trucking Labour Income by Leverage Component

$674

$790$837 $861 $868

$0

$200

$400

$600

$800

$1,000

2004 2005 2006 2007 2008

$ M

illi

on

s

$355 $416 $441 $454 $457

$176$206 $218 $224 $226$143

$168$178 $183 $184

$0

$200

$400

$600

$800

$1,000

2004 2005 2006 2007 2008

$ M

illi

on

s

Direct Indirect Induced

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14

In 2008, the Manitoba trucking industry directly generated $457 million worth of labour income.

This further generated approximately $226 million in indirect and $184 million in induced

incomes.

Figure 1.22 provides the 2008 leverage ratios for labour income by mode. Aviation provides the

greatest leverage with $1.06 of additional labour income through to the economy for every

dollar of direct labour income. This is followed by trucking ($0.90), couriers ($0.69), rail ($0.56),

and bus with $0.45 leveraged from each $1 of labour income spent directly in the sector.

Figure 1.22: Leverage Ratios for Manitoba Labour Income by Transportation Mode

1.06

0.90

0.69

0.560.45

0.00

0.20

0.40

0.60

0.80

1.00

1.20

Aviation Trucking Couriers Rail Bus

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Employment

In 2008, the total employment attributable to transportation in Manitoba was approximately

51,339 full-time equivalents (see Figure 1.23).

Figure 1.23: Total Employment in Transportation in Manitoba

As presented in Figure 1.24 total employment created by the trucking sector is greater than that

created by all the other sectors combined. Out of the total 51,339 FTEs in the Manitoba

Transportation industry, 55.42% were employed in trucking.

Figure 1.24: Contribution to Manitoba Total Transportation Employment by Mode: 2008

49,10052,189 50,791 50,742 51,339

0

10,000

20,000

30,000

40,000

50,000

60,000

2004 2005 2006 2007 2008

FT

Es

Trucking, 55.42%

Rail, 14.36%

Bus, 9.68%

Aviation, 12.97%

Couriers, 7.57%

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16

Figure 1.25 shows that from 2004 to 2008 employment related to trucking increased by 4,957

FTEs, from 23,495 to 28,452. Prior to 2008, all modes with the exception of trucking and couriers

were reducing their labour pool. In 2008 however, each sector in transportation increased the

number of employees.

Figure 1.25: Total Employment by Transportation Mode

When compared to the total number of people employed either directly, indirectly, or induced

in the air (approximately 6,660 positions), rail (7,370), and trucking (28,452) sectors; the average

annual wages were approximately $39,000 for air, $62,000 for rail, and $30,000 for trucking.7

7 These figures were found by dividing total labour income (Figure 1.15) by total employment (Figure

1.25)

8,51

1

3,75

4

23,4

95

7,93

8

5,40

2

7,15

9

3,75

8

27,6

77

8,42

3

5,17

3

6,68

0

3,72

5

27,8

94

7,50

0

4,99

2

6,57

0

3,75

8

28,2

78

7,27

2

4,86

4

6,66

0

3,88

7

28,4

52

7,37

0

4,97

0

0

5,000

10,000

15,000

20,000

25,000

30,000

Aviation Couriers Trucking Rail Bus

2004 2005 2006 2007 2008

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Figure 1.26 shows the total employment by year broken down between direct, indirect, and

induced effects. For each direct job in transportation an additional 0.93 jobs were created.

Figure 1.26: Employment by Leverage Component from Transportation in Manitoba

In 2008, the aviation industry in Manitoba provided approximately 6,660 FTEs. This was a

decrease of 1,851 full-time employees since 2004, but an increase by 1.37% (90 FTEs) since 2007.

A summary of the total provincial aviation employment is displayed in Figure 1.27.

Figure 1.27: Total Employment Generated by Air Sector in Manitoba

25,203 26,970 26,272 26,254 26,572

11,31211,931 11,636 11,643 11,771

12,58613,289 12,882 12,845 12,996

5,000

15,000

25,000

35,000

45,000

55,000

2004 2005 2006 2007 2008

FT

Es

Induced Indirect Direct

8,511

7,1596,680 6,570 6,660

0

2,000

4,000

6,000

8,000

10,000

2004 2005 2006 2007 2008

FT

Es

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In 2008, the Manitoba aviation industry directly employed about 2,670 FTEs. This resulted in the

additional employment of approximately 2,203 indirect FTEs and 1,787 induced FTEs. The ratio

of approximately 1.5 leveraged FTEs for every direct full-time employee is the largest of all

modes. A summary of the distribution of Manitoba aviation employment is displayed in Figure

1.28.

Figure 1.28: Trend in Air Employment by Leverage Component

When comparing the salaries of the direct, indirect, and induced full-time employees of the

aviation sector; direct FTEs of the air sector incomes were always the highest earners. In 2008,

the average annual salary for a direct FTE was approximately $47,000, whereas indirect and

induced FTEs on average were earning $35,000 and $30,000, respectively.

3,412 2,870 2,678 2,634 2,670

2,8152,368 2,210 2,173 2,203

2,283

1,9211,792 1,763 1,787

0

2,000

4,000

6,000

8,000

10,000

2004 2005 2006 2007 2008

FT

Es

Direct Indirect Induced

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In 2008, the Manitoba rail industry employed about 7,370 full-time people. The large decrease in

2006 (925 positions, approximately 11%) is primarily attributed to the closing of the CN call

centre. In 2008, the number of jobs generated by the Manitoba rail industry increased by a

further 98 positions from the recent low of 2007. Total annual rail industry employment in

Manitoba is presented in Figure 1.29.

Figure 1.29: Total Employment Generated by Rail Sector in Manitoba8

The increase in 2008 could mainly be attributed to an increase in direct employment in the rail

sector, accounting for 53 FTEs, followed by induced with 29 and indirect with 16 full-time

equivalent positions. Overall, approximately 3,971 positions were directly attributed to the

Manitoba rail industry. During this period, every job directly created by the rail industry

generated indirect and induced employment at a rate of approximately 0.86.

8 One rail company in Manitoba failed to report 2004 employment numbers, causing the 2004 to 2005

increase in employment to appear greater than it actually was.

7,940

8,425

7,500

7,2727,370

6,500

7,000

7,500

8,000

8,500

9,000

2004 2005 2006 2007 2008

FT

Es

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Figure 1.30 shows employment in the rail industry broken down by leverage component, from

2004 to 2008.

Figure 1.30: Trend in Rail Employment by Leverage Component

In 2008, the average annual income for those directly employed by the rail industry was

approximately $74,000. Similarly, average annual earnings for indirect and induced earnings

were $56,000 and $44,000 respectively.

In 2008, the trucking industry employed approximately 28,452 full-time positions in Manitoba.

This was an increase of 174 positions from 2007. Total annual employment in the Manitoba

trucking sector, from 2004 to 2008, is displayed in Figure 1.31.

Figure 1.31: Total Employment Generated by Trucking Sector in Manitoba

Employment in the trucking sector grew dramatically from 2004 to 2005 and then cooled down.

Overall, 4,957 positions were added in the trucking industry since 2004. In 2008, the Manitoba

trucking industry directly provided 14,790 full-time jobs. The industry also produced an

4,275 4,540 4,041 3,918 3,971

1,295 1,3701,221 1,184 1,200

2,3702,515

2,238 2,170 2,199

0

2,000

4,000

6,000

8,000

10,000

2004 2005 2006 2007 2008

FT

Es

Direct Indirect Induced

23,495

27,675 27,894 28,278 28,452

0

5,000

10,000

15,000

20,000

25,000

30,000

2004 2005 2006 2007 2008

FT

Es

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additional 13,661 full-time jobs: 7,010 indirect and 6,651 induced. Figure 1.32 is a summary of

the trucking employment contribution based on leverage.

Figure 1.32: Trend in Trucking Employment by Leverage Component

Nearly 1 indirect or induced job (approximately 0.92 FTE) was created with each person directly

employed full-time in the Manitoba trucking industry. By distributing average annual labour

income (see Figure 1.21), among full-time employees in the trucking sector, average annual

salaries of $30,899 (direct), $32,239 (indirect), and $27,665 (induced) were earned in 2008.

The leverage ratio for the aviation sector in creating jobs throughout the economy is 1.49 for

each direct job (see Figure1.33). Trucking comes second and creates 0.92 FTEs for each direct

job. This is followed by rail at 0.86 FTEs, bus at 0.81, and courier at 0.62 FTEs generated for each

direct full-time employee equivalent.

Figure 1.33: Leverage Ratios for Manitoba Employment by Transportation Mode

12,215 14,385 14,500 14,700 14,790

5,7906,820 6,873 6,968 7,010

5,490

6,470 6,521 6,611 6,651

0

5,000

10,000

15,000

20,000

25,000

30,000

2004 2005 2006 2007 2008

FT

Es

Direct Indirect Induced

1.49

0.920.86 0.81

0.62

0.00

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

Aviation Trucking Rail Bus Couriers

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Expenditures

In 2008, the total expenditures by the Manitoba aviation industry were worth approximately

$1.43 billion. This was an increase of 2.88% from 2007. Over the review period (see Figure 1.34),

provincial aviation expenditures have fluctuated, increasing from 2004 to 2005, and then

sharply declining in 2006, before picking up again in 2007.

Figure 1.34: Total Expenditures Generated by Air Sector in Manitoba

As illustrated in Figure 1.35, indirect and induced operations from the aviation sector generated

approximately $0.82 for every dollar spent directly in 2008. This resulted in an additional $643

million influx into the provincial economy through indirect ($390 million) and induced ($253

million) spending.

Figure 1.35: Trend in Air Expenditures by Leverage Component

$1,532 $1,553

$1,371 $1,390 $1,430

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

2004 2005 2006 2007 2008

$ M

illi

on

s

$843 $854 $754 $765 $787

$418 $424$374 $379 $390

$271 $275$243 $246 $253

$0

$500

$1,000

$1,500

$2,000

2004 2005 2006 2007 2008

$ M

illi

on

s

Direct Indirect Induced

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In 2008, direct aviation expenditures in Manitoba were worth around $787 million. This was an

increase of 2.88% from 2007. Following a decline in 2006 (of 11.7%), expenditures stabilized and

began to increase.

The Manitoba rail industry, in 2008, generated over $1.5 billion in expenditures. This was an

increase of 13% since 2004. The rail sector spent over $7.08 billion in the span of five years.

Annual total expenditures by the Manitoba rail sector are displayed in Figure 1.36.

Figure 1.36: Total Expenditures Generated by Rail Sector in Manitoba

Figure 1.37 displays the distribution of rail expenditures based on direct, indirect, and induced

spending. Rail expenditures in all categories increased slightly from 2007 to 2008. The leverage

ratio in 2008 was 0.64; for every $1.00 of direct spending, there was an additional $0.64 spent.

Figure 1.37: Trend in Rail Expenditures by Leverage Component

$1,406

$1,652

$1,568 $1,586 $1,592

$1,000

$1,100

$1,200

$1,300

$1,400

$1,500

$1,600

$1,700

2004 2005 2006 2007 2008

$ M

illi

on

s

$857 $1,007 $956 $967 $971

$214$252 $239 $242 $243

$334

$392 $373 $377 $378

$0

$500

$1,000

$1,500

$2,000

2004 2005 2006 2007 2008

$ M

illi

on

s

Direct Indirect Induced

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In 2008, total expenditures by the Manitoba trucking industry were nearly $2.8 billion. This was

an increase by $122 million from the previous year, and the highest recorded level of spending

in the review period (see Figure 1.38). Following tremendous growth in 2005 (12.6%) and 2006

(10.8%), the growth in 2007 slowed to a rate of 2.9%, only to increase to 4.5% the following year.

Figure 1.38: Total Expenditures Generated by Trucking Sector in Manitoba

The distribution of total trucking sector expenditures in Manitoba is presented in Figure 1.39. In

2008, approximately $0.84 of indirect and induced spending was generated for every dollar

directly spent the trucking sector. Over $1.53 billion of direct spending occurred during 2008,

which represents an increase by 4.5% since 2007. This resulted in $1.29 billion in indirect ($744

million) and induced ($543 million) expenditures.

Figure 1.39: Trend in Trucking Expenditures by Leverage Component

$2,099$2,363

$2,619 $2,696$2,818

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2004 2005 2006 2007 2008

$ M

illi

on

s

$1,140 $1,283 $1,422 $1,464 $1,530

$554$624

$692 $712 $744$405$456

$505 $520 $543

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

2004 2005 2006 2007 2008

$000

,000

Direct Indirect Induced

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2. Logistics9 and the Regional Canadian Economy

Canada is the second largest nation in the world in terms of land mass, but has the lowest

population density of the industrialized nations. Canada is also economically dependent on

international trade. Thus, logistics is critical to Canadian prosperity and mobility.

Gross Domestic Product

Figure 2.1 shows per capita gross domestic product (GDP), in constant (2002) dollars, from

logistics in Western and Eastern Canada. Note the slight, steady increase from 2004 to 2007 and

a small drop in 2008 in both regions, as well as nationally. Direct contribution to GDP per capita

from the sector was much higher in Western Canada ($2,451 in 2008) compared to Eastern

Canada ($1,422).

Figure 2.1: Per Capita Direct GDP from Logistics by Region10

9 In this chapter, “logistics” consists of transportation and warehousing, as defined by Statistics Canada. 10 Western Canada includes Manitoba, Saskatchewan, Alberta, British Columbia, Yukon Territory,

Northwest Territories and Nunavut.

$1,628$1,707 $1,743 $1,757 $1,741

$2,219

$2,373$2,456 $2,492 $2,451

$1,372 $1,416 $1,429 $1,429 $1,422

$1,250

$1,450

$1,650

$1,850

$2,050

$2,250

$2,450

$2,650

2004 2005 2006 2007 2008

Canada Western Canada Eastern Canada

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Figure 2.2 displays the increasing importance of logistics in Western Canada relative to Eastern

Canada. Since 2004, GDP per capita from logistics in Western Canada increased by more than

10%, versus an increase of 3.6% in Eastern Canada. However, the importance of the West

relative to the East seems to be diminishing. This is evident by a larger decline in per capita

contributions from the logistics sector to direct GDP of the West.

Figure 2.2: Per Capita Contribution of Logistics to Direct GDP: Western vs. Eastern Canada

Within Western Canada, the importance of the logistics sector varies by province. Figure 2.3

shows per capita direct GDP from logistics by province.

Figure 2.3: Per Capita Direct GDP from Logistics by Western Province

Logistics is more important in Alberta compared to the other three Western provinces. From

2004 to 2008, annual direct GDP contributions from the logistics sector in Manitoba increased at

rates greater than the other Western provinces (average annual growth of 2.69%). Due to this

steady growth, Manitoba surpassed British Columbia in 2007.

100

106.98

110.71

112.35

110.47

103.19104.18 104.17 103.64

98

100

102

104

106

108

110

112

114

2004 2005 2006 2007 2008

Ind

ex P

oin

ts (

2004

=100

)

Western Canada Eastern Canada

$2,027

$2,212

$2,540

$2,821

$2,175

$2,351

$2,022

$2,262

$1,900

$2,100

$2,300

$2,500

$2,700

$2,900

2004 2005 2006 2007 2008

British Columbia Alberta Saskatchewan Manitoba

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Figure 2.4 and 2.5 display the importance of logistics as a percentage of total GDP by territories

and provinces in 2008.11 Among Canadian provinces and territories, Manitoba had one of the

highest shares of GDP related to logistics (7.0%), just behind Northwest Territories (7.25%).

Figure 2.4: Logistics Direct Contribution to GDP by Territories: 2008

Figure 2.5: Logistics Direct Contribution to GDP by Provinces: 2008

11 The series was separated into territories and provinces due to the fact that figures from territories skew

the results.

2.75%

7.25%

1.57%

4.75%

6.11%

4.05%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0%

YUK

NWT

NUN

CDA

W CDA

E CDA

6.43%

5.68%

6.08%

6.99%

3.90%

4.33%

5.60%

4.04%

2.59%

2.86%

4.75%

6.11%

4.05%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0%

BC

AB

SK

MB

ON

QUE

N.B.

N.S.

P.E.I.

NFLD

CDA

W CDA

E CDA

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The importance of logistics relative to overall GDP in Manitoba is evident. Its share of GDP in

Manitoba is nearly 1% higher than the average for Western Canada (6.1%) and over 2% higher

than the national average (4.75%).

Figure 2.6 shows the trend in share of GDP for each of the Western provinces. As a share of

GDP, logistics has been relatively stable in the west, with Manitoba maintaining the highest

share, followed by British Columbia.

Figure 2.6: Logistics Contribution to Direct GDP by Province: Western Canada

A number of factors contribute to the greater importance of logistics in Western compared to

Eastern Canada. Economic growth has been higher in Western Canada, contributing to

infrastructure development. During this period, trade through the Asia Pacific gateway has also

increased, fueling greater demand for Western Canadian logistics services. (This is a

particularly important factor in British Columbia.) As well, the geography of Western Canada

requires greater travel distances compared to Eastern Canada.

6.26%6.51% 6.48% 6.45% 6.43%

5.27%5.49% 5.60% 5.69% 5.68%

6.05% 6.17% 6.30% 6.30% 6.08%

6.85%7.10% 7.14% 7.14%

6.99%

4.00%

4.50%

5.00%

5.50%

6.00%

6.50%

7.00%

7.50%

2004 2005 2006 2007 2008

BC AB SK MB

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In 2008, logistics (i.e. transportation and warehousing) was the fifth most important sector of the

Manitoba economy, contributing $2.7 billion to the provincial GDP12 of $38.3 billion. The

logistics sector was surpassed only by finance and insurance, manufacturing, health care and

social assistance, and retail trade (in terms of direct GDP). Logistics is a “derived demand”

activity, i.e. the demand for transportation and warehousing is based on shippers’ needs to

move and store goods. Thus, logistics enables a variety of other key sectors (shown by blue bars

in Figure 2.7) such as manufacturing, retail and wholesale trade, and construction. When these

sectors are included with logistics, total contribution to the Manitoba GDP in 2008 was more

than $18 billion.

Figure 2.7: Direct GDP of Sectors of the Manitoba Economy: 2008

12 The GDP measured by Statistics Canada in this section is the direct contribution of Transportation and

Warehousing and directly related sectors. It excludes indirect and induced effects.

$7,2

25

$4,7

61

$3,0

90

$2,8

49

$2,7

35

$2,6

96

$2,4

46

$2,0

69

$1,9

95

$1,8

91

$1,5

57

$1,2

54

$1,1

29

$1,0

55

$798

$686

$637

$344

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$ M

illi

on

s

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Figure 2.8 reveals a steadily growing GDP contribution from Manitoba logistics sector from

2004 to 2008. In 2008, GDP contribution was greater than $2.7 billion, a $359 million increase

from 2004. Growth in GDP contribution from the logistics sector from 2004 to 2008 averaged

1.7% per year.

Figure 2.8: Direct GDP Level Transportation and Warehousing: Manitoba

As displayed in Figure 2.9, logistics accounted for 6.97% of the Manitoba economy in 2008,

which was a decrease from the previous year (7.14%). During the past five years, the share of

GDP generated by the logistics sector has seen minor ups and downs; up to 7.15% in 2006,

down to 6.97% in 2008.

Figure 2.9: Trend in Share of Manitoba Direct GDP from Transportation and Warehousing

$2,376

$2,537

$2,639

$2,734 $2,735

$2,300

$2,400

$2,500

$2,600

$2,700

$2,800

2004 2005 2006 2007 2008

$ M

illi

on

s

6.85%

7.10%7.15% 7.14%

6.97%

6.0%

6.2%

6.4%

6.6%

6.8%

7.0%

7.2%

7.4%

2004 2005 2006 2007 2008

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31

Employment

Figure 2.10 displays employment in logistics per thousand people.

Figure 2.10: Direct Employment in Logistics per 1,000 People by Region

From 2004 to 2008, logistics employment in Western Canada ranged from 22.5 to 23.5

employees per 1,000 persons. In Eastern Canada, employment has also been relatively stable,

ranging from 18.3 to 19.4 employees per 1,000 persons. Note the jump in logistics employment

from 2007 to 2008 at the National level. Figure 2.11 shows the ratio of per capita logistics

employment for Western Canada compared to Eastern Canada. The ratio of logistics

employment per capita has remained relatively stable from 2005 to 2008. In 2008, the ratio of

number of people employed in Western Canada over those working in Eastern Canada

increased slightly to 120.9%. This indicates that the number of people employed in the logistics

sector in Western Canada increased by a larger rate than Eastern Canada (or taking into

consideration Figure 2.10, the Eastern Canadian work force declined).

Figure 2.11: Ratio of Per Capita Direct Logistics Employment: Western vs. Eastern Canada

19.4 19.5 19.6 19.8

20.7

22.5 22.523.1

23.5 23.5

18.318.8

19.119.5 19.4

17.0

18.0

19.0

20.0

21.0

22.0

23.0

24.0

2004 2005 2006 2007 2008

Canada Western Canada Eastern Canada

122.9%

120.1%120.9% 120.5% 120.9%

110%

115%

120%

125%

130%

2004 2005 2006 2007 2008

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Figure 2.12 displays direct employment in logistics per thousand persons in Western Canada.

In 2008, Manitoba was highest in employment per thousand persons in the logistics sector at

30.4, followed by BC at 22.9. After a decline from 2004 to 2005, employment in Manitoba’s

logistics sector recovered and grew. Employment recently grew by 14%, from 26.6 people per

1,000 in 2005 to 30.4 in 2008. During this time period, BC increased by a rate of 1.8% and Alberta

by 3.7%. Saskatchewan declined by 1.1% during this period.

Figure 2.12: Direct Employment in Logistics per 1,000 People by Province: Western Canada

22.4 22.5 22.9 23.1 22.9

21.1 21.4 22.122.7 22.2

19.1 19.0 18.8 18.9 18.8

27.526.6

27.528.6

30.4

17.0

19.0

21.0

23.0

25.0

27.0

29.0

31.0

33.0

2004 2005 2006 2007 2008

BC AB SK MB

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Figure 2.13 along with Figure 2.14 show the share of total employment from logistics for each

region, province, and territory in 2008. The share of jobs in the sector was the largest in the

Canadian territories. Note nearly 13% of the Northwest Territories workforce is in logistics.

Although the ratio of employment was higher in the territories, the population and number of

jobs available are much smaller than those found in most provinces.

Among the provinces, the share of jobs related to logistics was largest in Manitoba at 6.6%,

followed by New Brunswick and British Columbia at 5.3%. The share of jobs related to logistics

was larger in Western Canada, compared to Eastern Canada.

Figure 2.13: Logistics Contribution to Direct Employment by Territories: 2008

Figure 2.14: Logistics Contribution to Direct Employment by Provinces: 2008

9.2%

12.8%

6.9%

4.7%

5.2%

4.5%

0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0%

YUK

NWT

NUN

CDA

W CDA

E CDA

5.3%

4.6%

4.4%

6.6%

4.4%

4.7%

5.3%

4.4%

4.3%

4.5%

4.7%

5.2%

4.5%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0%

BC

AB

SK

MB

ON

QUE

N.B.

N.S.

P.E.I.

NFLD

CDA

W CDA

E CDA

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In 2008, logistics directly employed nearly 37,000 people in Manitoba (as shown by the red bar

in Figure 2.15), an increase of roughly 7.4% from the previous year (2007). This is approximately

7.3% of total paid employment in Manitoba and ranked 8th overall among industries (employing

more people than the construction, wholesale trade, and the professional services sectors13). If

other sectors dependent on logistics are included, then there were 256.9 per 1,000 people—more

than half (51%) of the entire Manitoba workforce.

Figure 2.15: Direct Paid Employment by Sector14 of the Manitoba Economy:

2008 Paid Employees

13 Agriculture is not included in the count of paid employees by Statistics Canada. 14 The data for Agriculture, Forestry, and Fishing, Mining, Oil and Gas, and Utilities are unavailable.

0.00

0.00

0.00

76.8

1

70.8

7

61.6

4

46.9

7

46.1

6

39.6

3

38.4

6

36.7

6

26.7

3

25.8

4

23.3

9

19.4

9

15.9

0

11.2

9

7.89

0

10

20

30

40

50

60

70

80

90

Th

ou

san

ds

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Figure 2.16 shows the trend in annual paid employment of logistics workers in Manitoba.

Figure 2.16: Trend in Logistics Direct Total Employment: Paid Employees

(Thousands)

Employment in the logistics sector experienced a decline between 2004 and 2005 of nearly 900

paid employees. The level of employment recovered the following year and has since increased

to 36,762 employees in 2008. This is a 7.4% increase from 2007 and a 13.9% increase from 2004.

Labour Income

Per capita labour income attributable to logistics for Western, Eastern, and all of Canada are

displayed in Figure 2.17. Per capita labour income rose steadily in all regions of Canada from

2004 to 2008. Per capita labour income from logistics in Western Canada reached $1,684 in 2008,

an increase by 22% from 2004. In Eastern Canada, per capita labour income from logistics was

$1,091 in 2008, an increase by 11% from 2004.

Figure 2.17: Per Capita Direct Labour Income from Logistics by Region

32.29

31.40

32.64

34.22

36.76

30

31

32

33

34

35

36

37

2004 2005 2006 2007 2008

$1,104 $1,134$1,210 $1,238

$1,275

$1,385$1,449

$1,573$1,620

$1,684

$982 $996$1,050 $1,068

$1,091

$900

$1,100

$1,300

$1,500

$1,700

$1,900

2004 2005 2006 2007 2008

Canada Western Canada Eastern Canada

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Figure 2.18 displays the ratio of per capita income from logistics in Western Canada relative to

Eastern Canada. The ratio rose steadily from 2004 to 2008, with an average annual growth of

approximately 1.26%. Overall, the ratio increased by almost 9.2% during the last five years. This

indicates (considering Figure 2.17) that in relative terms, the logistics industry is becoming an

increasingly important sector in Western Canada compared to Eastern Canada.

Figure 2.18: Ratio of Western to Eastern Direct Per Capita Income from Logistics

As shown in Figure 2.19, direct labour income per capita increased in each of the Western

provinces over a five year period (2004 to 2008). In 2008, Alberta experienced the highest

growth levels among Western provinces as labour income per capita from logistics reached

$2,029. This is an increase by 32% from 2004. During this period, direct labour income per capita

in Manitoba increased by 13%. Manitoba recorded the lowest level of growth among the

Western provinces; nevertheless, its actual value is higher than Saskatchewan’s.

Figure 2.19: Direct Labour Income per Capita from Logistics by Province: Western Canada

141%

145%

150%

152%

154%

140.0%

142.0%

144.0%

146.0%

148.0%

150.0%

152.0%

154.0%

156.0%

2004 2005 2006 2007 2008

$1,364$1,386

$1,476 $1,508 $1,537$1,542$1,661

$1,861$1,924

$2,029

$1,018 $1,090$1,170

$1,229$1,304$1,308 $1,353

$1,403$1,429

$1,472

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

$2,200

2004 2005 2006 2007 2008

BC AB SK MB

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Figure 2.20 displays the share of labour income generated by logistics for the territories, while

Figure 2.21 shows the same for the provinces. In 2008, the logistics sector’s share of labour

income was highest in Northwest Territories (7.62%). This was followed by Manitoba with

6.91%. Nationally, 5.16% of labour income generated came from the logistics sector of the

economy. Note the share is considerably higher in Western Canada compared to Eastern

Canada.

Figure 2.20: Logistics Direct Contribution to Labour Income by Territories: 2008

Figure 2.21: Logistics Direct Contribution to Labour Income by Provinces: 2008

4.12%

7.62%

3.26%

5.16%

6.10%

4.66%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0%

YUK

NWT

NUN

CDA

W CDA

E CDA

6.42%

5.69%

6.07%

6.91%

4.50%

4.95%

5.12%

4.68%

3.11%

5.32%

5.16%

6.10%

4.66%

0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0%

BC

AB

SK

MB

ON

QUE

N.B.

N.S.

P.E.I.

NFLD

CDA

W CDA

E CDA

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Figure 2.22 displays total labour income in Manitoba by sector. Logistics contributed $1.8 billion

to total labour income of the provincial economy in 2008 (represented by the red bar). This was

about 7% of total Manitoba labour income and ranked 7th among industry sectors. When

combined with those sectors which rely on logistics, labour income was worth $11.1 billion in

2008 (about 43.9% of Manitoba’s total).

Figure 2.22: Direct Total Labour Income by Sector of the Manitoba Economy: 2008

$3,2

61

$3,0

07

$2,4

29

$2,1

76

$2,1

17

$1,9

48

$1,7

80

$1

,77

7

$1,3

62

$1,1

05

$943

$753

$682

$640

$459

$381

$3

38

$300

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$ M

illi

on

s

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As shown in Figure 2.23, labour income from the logistics sector in Manitoba has grown in the

last five years from $1.5 billion to nearly $1.8 billion in 2008. This is a 15.8% increase from 2004

to 2008 (average annual growth of 3.7%).

Figure 2.23: Direct Labour Income In Transportation and Warehousing: Manitoba

In spite of the growth shown in Figure 2.23, as a share of total labour income in Manitoba,

logistics declined from 7.50% in 2004 to 6.99% in 2008 as shown in Figure 2.24. Although wages

have increased in the logistics sector, the declining trend reflects that wages in other industries

have collectively increased by a larger amount. Average annual salary received by a Manitoba

logistics worker only increased by 1.7% between 2004 and 2008 (to $48,400 per employee).15

Figure 2.24: Trend in Share of Manitoba Labour Income from Logistics

15When comparing Direct Labour Income and Direct Total Employment for the logistics industry.

$1,537

$1,596

$1,663

$1,711

$1,780

$1,500

$1,550

$1,600

$1,650

$1,700

$1,750

$1,800

2004 2005 2006 2007 2008

$ M

illi

on

s

7.50%7.45%

7.36%

7.11%

6.99%

6.90%

7.00%

7.10%

7.20%

7.30%

7.40%

7.50%

7.60%

2004 2005 2006 2007 2008

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3. The State of the Macro Economy The macroeconomic perspective presents performance, structure, and behavior of the national

or regional economy as a whole. This review of the macro economy will cover global, Canadian,

and Manitoban economies.

Most of the recent data and reports indicate that the global economy is on the verge of recovery,

following a severe global economic downturn dubbed “The Great Recession.” In January of

2009, the World Economic Situation and Prospects 2009 prepared by the United Nations

suggested that “the world economy is mired in the worst financial crisis since the Great

Depression. What first appeared as a sub-prime mortgage crack in the United States housing

market during the summer of 2007 began widening during 2008 into deeper fissures across the

global financial landscape and ended with the collapse of major banking [financial] institutions,

precipitous falls on stock markets across the world, and a credit freeze.”16

The new 2010 report states that the world economic situation is improving. “The economic

revival has been driven in no small part by the effects of the massive policy stimuli injected

worldwide since late 2008.” The recovery is uneven, and conditions for sustainable growth as

stated in the report remains “fragile.” There are plenty of reasons to worry. “Credit conditions

are still tight in major developed economies, where many major financial institutions need to

continue the process of deleveraging and cleansing their balance sheets. The rebound in

domestic demand remains tentative at best in many economies and is far from self-sustaining.

High unemployment rates and the large output gap in most countries, along with a number of

other factors, such as the possibility of pandemic virus outbreak, analogous to H1N1 in 2009

and H5N1 in the early 2000’s could hurt economic activity, continue to pose challenges for

policymakers worldwide. In addition, the global macroeconomic imbalances, which were part

of the problem in the first instance, could widen again to form a source of renewed financial

instability.”17

Four times larger than allowed under the European Union, the budget deficit of Greece

exceeded 12% of GDP, and led hedge fund managers and other speculators to attack the Euro,

betting that Greece will default or at least have difficulties paying its debt. A persistent belief

that Greece will default on its debt increases the risk of holding that debt, which increases the

interest payable, and leads to an overall increase in Greece’s budget deficit. Bloomberg News

(March 10, 2010) reported that Greece has more than €20 billion of debt due in April and May

2010. This debt was successfully rolled over with help of unprecedented €110 billion bail-out

from European Central Bank and IMF. Prior to announcing the bailout however, the options

available to Greece were default on its debt or bail out of some sort by Greece’s partners. Both

of those options, however, should/could hurt the Euro.

16 United Nations. World Economic Situation and Prospects 2009 - Global Outlook 2009. New York:

United Nations, 2009. 17 United Nations. World Economic Situation and Prospects 2010 - Global Outlook 2010. New York:

United Nations, 2 December 2009.

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Default could have sent a panic signal and speculative attacks to other deficit-plagued countries

such as Portugal, Spain, Italy, and Ireland. The bail out by other European Union countries,

which is against the Maastricht Treaty, could/should damage Greece and possibly the rest of the

European Currency Union through the moral hazard.18 Bailing out a country that is negligent in

its fiscal policy might set a bad example to other members of PIIGS (Portugal, Italy, Ireland,

Greece, and Spain) as they will lose their incentives to reduce public expenditures and cut their

deficits.

Greece is trying to cut its deficit. The outline of measures to reduce the budget deficit is in place.

Besides reducing spending, the Greek government increased tax on fuel and tobacco, increased

sales tax (especially on luxury goods), reduced wages in the public sector by 7%, and froze

pensions. In addition, civil servants’ holiday bonuses will be cut by 30% (equivalent to one

months pay for 700,000 public sector workers). The reduction in public servants’ wages and

holiday pay/bonuses led to massive walk outs (strikes) by tax collectors and garbage workers.

At the time of writing this report, the unfolding situation in Greece and for that matter the

whole European Union and the rest of the world is unknown, but the mood of some experts is

troublesome. The implications to the Euro Zone depend on the path Greece will follow. Greece

was bailed out and with almost $1 trillion bailout package (includes the Greece’s payment)

intended to stop the spread of crises onto other members of the PIIGS, might be a cure or at

least step in the right direction. The central presumption that underlines such drastic measures

by European Union is for Greece to rebound and fulfill its promise to cut its budget deficit to

3% of GDP by 2014. Based on data from CME Group19 however, there is a 54% chance that

Greece will default on its government bonds in the next 5 years. But as a Nobel Memorial Prize

winner in Economics, a Professor of Economics and International Affairs at the Woodrow

Wilson School of Public and International Affairs at Princeton University, a Centenary Professor

at the London School of Economics, and a columnist for The New York Times Paul Krugman

states the collapse of the Euro and return to national currencies would set off, “the mother of all

financial crises”.

18 Economist Paul Krugman described moral hazard as: "...any situation in which one person makes the

decision about how much risk to take, while someone else bears the cost if things go badly." Financial

bail-outs of lending institutions by governments, central banks or other institutions can encourage risky

lending in the future, if those that take the risks come to believe that they will not have to carry the full

burden of losses. Lending institutions need to take risks by making loans, and usually the most risky

loans have the potential for making the highest return. So-called "too big to fail" lending institutions can

make risky loans that will pay handsomely if the investment turns out well but will be bailed out by the

taxpayer if the investment turns out badly. Source: Krugman, Paul (2009). The Return of Depression

Economics and the Crisis of 2008. W.W. Norton Company Limited.

19 CME Group, the largest and most diverse derivatives exchange in the world based in Chicago, Illinois.

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The Global Growth Improvement

Based on data from the United Nations, in 2009 world, developed, transitory, and developing

economies reached troughs and a move towards recovery is evident (see Figures 3.1 and 3.2).

Figure 3.1: Annual Growth Rates of Real GDP20 by Region

Unlike previous year forecasts, the United Nations is more optimistic about 2010. They expect

the world to have “mild growth” of 2.4 percent, which is still below the more robust growth of

previous years. They predict recovery for the European Union (EU) and Japan, reaching GDP

growth of no more than 0.5 and 0.9 percent, respectively, in 2010. However, these are much

weaker projections than for the United States, which the United Nations predicts to be around

2.1 percent in 2010. Nevertheless, at this pace of recovery, the major developed economies are

not anticipated to provide a strong impetus to global growth in the near future.21

20 Source: United Nations. Development Policy and Analysis Division, Global Economic Outlook data. 21 United Nations. World Economic Situation and Prospects 2009 - Global Outlook 2009. New York:

United Nations, 2009.

3.9

-2.6

1.6

2.8

-3.9

0.6

8.0

-5.9

1.4

7.0

1.4

4.3

-8

-6

-4

-2

0

2

4

6

8

10

2006 2007 2008 2009 2010

World Developed Transition Developing

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Figure 3.2: Annual Growth Rates of Real GDP22 by Country

Shape to Recovery

The United Nations considers that the global economy is recovering.23 However, they indicate

that various countries will recover differently. Developing Asian economies are expected to

demonstrate the strongest recovery, and low-income countries are expected to have the weakest

recovery, with developed economies having a recovery that is somewhere in the middle. The

recovery path depends on how optimistic you are about recovery and prospects of a particular

economy. The three components for economic revival are the speed, strength, and durability of

the recovery. These three elements constitute Alphabet Theory on Recovery.

The main shapes of economic recovery are the “U,” the “V,” and the “W.” Figure 3.1 and Figure

3.2 might indicate that these economies are “V” shaped; they hit rock bottom and are now on a

steady course for recovery. This type of recovery is perhaps the best-hoped-case scenario for all

countries. Asian economies are most likely to follow the “V” shaped recovery. The strong

domestic demand (India and Indonesia) and, as the rest of the world recovers, an increasing

surge for exports will drive Asian economies out of the slump, becoming the world’s economic

growth locomotives. China forecasted to lead the recovery for the region, with their strong public

and private investments. Furthermore, China’s trade balance is improving, with exports rapidly

increasing as well as their imports.

22 Source: United Nations. Development Policy and Analysis Division, Global Economic Outlook data. 23 NBER responsible for determining recession and recovery periods defines recovery as a period

following the trough. On April 12, 2010 they announced that no trough had been reached, therefore,

indicating that the recovery period has not begun.

3.1

-3.0

1.0

11.1

7.68.2

2.8

-3.5

1.0

3.1

-3.5

0.0

7.3

5.0

6.3

7.7

-6.8

1.5

-10

-5

0

5

10

15

2006 2007 2008 2009 2010

Canada China U.S. European Union India Russia

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China is not only a supplier to the world; it is also rapidly becoming one of the main customers

in the world. These are signs that China might be a front-runner in leading the recovery.

However, more economists believe the recovery will be of the “U” form; slow and subdued.

Nearly two-thirds of top leading business economists in the Blue Chip Economic Indicators

Survey believe the United States is set for a U-shaped recovery. The recovery will begin with a

reduction in the pace of business inventory liquidation (the cycle), marginal improvements in

consumer spending, and residential investment. It will then falter a little, as non-residential

investment and a rigid labour market would remain a drag on GDP. This is a classical “U”

shaped recovery.

While Canada did far better than other major developed countries during the crisis, it felt the

negative shocks, mainly through trade, consumer/producer confidence, and financial channels.

Mark Carney, Governor of the Bank of Canada, stated: “with more than 400,000 jobs lost and a

$30 billion fall in output, the Canadian economy has suffered a deep, albeit brief, recession.”24

The good news is Canada is on its way towards recovery. “In Canada, as expected, a recovery

in economic activity is also under way, following three consecutive quarters of sharp

contraction. This resumption of growth is supported by monetary and fiscal stimulus, increased

household wealth, improving financial conditions, higher commodity prices and stronger

business and consumer confidence,” according to Carney. However, the heightened volatility

and the continuously strong dollar might be preventing Canada from following a “V” type of

recovery and instead point towards a more “U” shaped one. The Bank of Canada is now

projecting the economic growth to be slower than previously forecasted.25

The double-dip or the “W” shaped recovery is what a number of economists anticipate regions

with massive stimuli will follow. As the letter indicates, this type of recovery reflects an

economic roller coaster, decline followed by recovery, quickly followed by another dip, before

eventually returning to sustainable growth. The stimulus packages brought on have been

tremendously costly for some governments and the exit strategy from this fiscal policy could

spur a second wave of economic downturn. Furthermore, Dr. Paul Krugman believes there is a

risk of second wave of crisis, “<the risk of a second round of the crisis in the medium run is

high as a real revamp of the financial system has not happened.” 26

Another type of recovery that should be mentioned is the “L”. This shape of recovery implies

that after the sudden and big fall there is a very prolonged stagnation. This doomsday scenario

has its similarities with the “Lost Decade” experienced in Japan following the Japanese Asset

Price Bubble burst from 1991 to 2000.

24 Bank of Canada, Publication and Research, Remarks by Mark Carney on 16 December 2009. 25 Bank of Canada, Publication and Research, Remarks by Mark Carney on 29 October 2009. 26 CNBC News. Second Stimulus Needed to Avoid Lost Decade. Published: Monday, 10 Aug 2009.

< http://www.cnbc.com/id/32354922/>

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Krugman stated, “right now I think the world as a whole kind of looks like Japan in the early

90’s. Not a catastrophe, but we really don’t know how we get serious growth going.”

The job market is still declining in the United States (albeit at a lower rate), the housing market

is still at an “unknown” stage, a large budget deficit might frighten investors and lead them to

withdraw from U.S. debt, and rising oil price along with planned health-care reform are the

signs of possibility for worrisome times to come in the United States. Whichever shape the

economic recovery might take, “The good news is that it does not look like the 2nd great

depression<”27

Recovery Next

It has now been more than 24 months since the United States officially announced a recession.

(It is often assumed that of all OECD countries, the United States was the first one in recession).

Even though there is no official declaration that recession is over, a growing number of various

authorities and institutions are jumping on the “recession is over” wagon. The recession could

well be over. But the most pressing question is: when will the economies return to “normal”

levels? The answer to this question differs from region to region, but they all have one thing in

common: it will not be immediate.

“We are on track for the recovery both in Canada and globally,” Mr. Carney said at a news

conference. “But it's early days *we are on right track+. It's a long road *ahead+.” In Canada,

domestic demand has expanded, but the overall economic growth is lagging due to weak net

exports and a strong Canadian dollar. One of the fundamentals of the Canadian Economy is

international trade and therefore, our recovery is heavily dependent on recoveries elsewhere,

especially the United States. The good news for Canada is the job market shows tremendous

improvement. Overall, the recovery in Canada is projected to be somewhat more modest than

the average of previous cycles.28

Manitoba Economic Situation

It has been recorded that Manitoba has been the most stable provincial economy in Canada over

the last decade. The economic indicators showed that Manitoba was well positioned to weather

the impacts of a global economic slowdown. A well diversified economy, immigration, and

strong population growth are the main factors why the Manitoba economy remained resilient in

global economic downturn.29

27 CNBC News. Second Stimulus Needed to Avoid Lost Decade. Published: Monday, 10 Aug 2009.

< http://www.cnbc.com/id/32354922/> 28 Bank of Canada. Monetary Policy Report, October 2009. 29 The Conference Board of Canada. Canada’s New Economic Powerhouse (2009).

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Manitoba’s key industries include construction, transportation, manufacturing, agriculture,

hydro-electricity, minerals, finance, and trade. The manufacturing sector is expected to rebound

following the rising demand from the United States.

Mining is anticipated to be in expansionary mode in 2010 after the base metal and crude oil

prices have recovered and the service sector will continue to be strongly propelled by a good

performance in the finance, insurance, and the real estate industries.

Housing in Canada, and Manitoba in particular, has been quite robust in the recent economic

turbulence. The new rules geared towards cooling the housing market that come into effect in

April 2010 are signs indicating that real estate prices did not fall; they were actually rising

throughout 2009.30 It is expected that in 2010, housing in Manitoba will pick up where it left off,

and housing starts will rise.31 Although the construction sector might benefit from increasing

housing starts, due to completion of the Manitoba section of the Keystone pipeline and

therefore removing some of the momentum in the construction sector, it is anticipated to be a

drag on the economy in 2010.

30 Economist. Slow Canada (2010). 31 The Conference Board of Canada. Provincial Outlook (Winter 2010).

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Economic Indicators

The economic performance indicators listed in this section capture a set of trends in the

economies of Manitoba, Canada, and occasionally the United States, between 2005 and 2009.

Figure 3.3 shows GDP totals (in millions of 2002 dollars) for Canada and Manitoba, while Figure

3.4 presents rates of change in GDP for Canada, United States, and Manitoba.

Figure 3.3: Gross Domestic Product (Canada/Manitoba32),

$ Millions

From 2005 to 2008, Canada’s GDP increased by over $70 billion from $1.25 trillion to $1.32

trillion. In 2009, Canadian GDP fell back to $1.29 trillion, a decrease of 2.6%. As expected, GDP

in Manitoba did not experience a significant decline in 2009. The Manitoba GDP decreased by

only $127 million (2009), a 0.3% decline.

Figure 3.4 displays annual changes in GDP growth rate. From 2005 to 2007, Canadian and U.S.

levels of growth fluctuated, while the provincial growth maintained an overall steady increase.

In 2008, the rate of growth declined in Canada, United States, and Manitoba.

Serious economic weakness in the World and especially in the United States had a negative

impact on the Canadian economy as a weaker export sector spilled over into the non-export

components of the Canadian economy.33 Canadian GDP growth experienced a significant

decline from 2007 to 2008, from 2.53% to 0.41%, and went even further down in 2009 to -2.48%.

A similar story unfolded in the United States, where GDP growth plummeted from 2.14% in

2007 to -2.73% in 2009. Meanwhile, Manitoba’s economic performance in previous years was

strong. The GDP growth of Manitoba for the years between 2006 and 2008 outperformed the

national average. Manitoba GDP grew by 3.57% in 2007 and 1.96% in 2008. The reported GDP

growth for 2009 in Manitoba was -0.30%.

32 The data for 2009 are based on the Survey of Economic Forecasters. 33 Manitoba Finance: Budget Paper A. The Economy (2008)

$1,247,807

$1,283,419

$1,315,907

$1,321,360

$1,286,431

$38,860

$40,158

$41,593

$42,407 $42,280

$37,000

$38,000

$39,000

$40,000

$41,000

$42,000

$43,000

$1,200,000

$1,220,000

$1,240,000

$1,260,000

$1,280,000

$1,300,000

$1,320,000

$1,340,000

2005 2006 2007 2008 2009

GDP (Canada) GDP (Manitoba)

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Figure 3.4: GDP Growth (Canada/United States/Manitoba)34,3536

Figure 3.5 displays labour income (in millions of dollars) for Canada and Manitoba between

2005 and 2009. From 2005 until 2008, Canada’s labour income increased at an average annual

growth rate of 5% from $164.3 billion to $190.3 billion. In 2009, however, labour income in

Canada declined by 7% to $176.6 billion. During the same time period, Manitoba’s labour

income increased from $21.4 billion to over $25.9 billion. The average annual growth rate in

Manitoba was 4.8%.

Figure 3.5: Labour Income (Canada/Manitoba)

$ Millions

34 Source: International Monetary Fund, World Economic Outlook Database, October 2009 35 Source: CANSIM II, Chained 2002 Dollars, Gross Domestic Product Table 3840002, V15855778 36 Source: Survey of Economic Forecasters, February 26, 2010

2.64%

3.34% 3.57%

1.96%

-0.30%

3.05%2.67%

2.14%

0.44%

-2.73%

3.02%

2.85%

2.53%

0.41%

-2.48%

-4%

-3%

-2%

-1%

0%

1%

2%

3%

4%

2005 2006 2007 2008 2009% C

han

ge

Manitoba USA Canada

$164,323

$174,405

$183,730

$190,307

$176,600

$21,377$22,603

$24,070$25,458 $25,921

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

$150,000

$160,000

$170,000

$180,000

$190,000

$200,000

2005 2006 2007 2008 2009

Canada Manitoba

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Figure 3.6 shows the rate of change in labour income for Canada and Manitoba between 2005

and 2009. Since 2005, Manitoba preserved a steady rate of change in labour income until it

started slowing in 2008. From 2007 to 2009, labour income contracted by 4.7%. Canada’s rate of

change in labour income saw an increase from 2005 to 2006, a slight decline thereafter, and then

a free fall to reach -7.2% in 2009.

Figure 3.6: Change in Labour Income (Canada/Manitoba)

Figures 3.7 and 3.8 reflect changes in market prices (Consumer Price Index or CPI) in the

Canadian and Manitoban economies. CPI can be used to calculate the effects of inflation in

income, benefits, and the price of goods or commodities used. To calculate CPI, Statistics

Canada uses the retail price of a representative shopping basket of about 600 goods and services

from an average household's expenditure on: food, housing, transportation, furniture, clothing,

and recreation.37 As a measure of price of a basket of consumer goods and services, CPI is often

referred to as an indicator of price changes (inflation/deflation) in the economy.

Figure 3.7 displays the Consumer Price Indices for Canada and Manitoba. Between 2005 and

2009, the CPI for the Canadian economy increased from 107.0 to 114.4. This implies that prices

for the average Canadian basket of goods and services increased by 6.92% since 2005. Such an

increase in prices could partially be explained by the price increases in energy and other more

volatile sectors. Once the most volatile prices are removed, the price index rose by 6.8% during

the period from 2005 to 2009. The CPI for Manitoba also increased from 108.8 to 114.9 (2005 -

2009), an increase by almost 5.61% since 2005.

37 Bank of Canada. The Bank in Brief notes on the Consumer Price Index.

4.32%5.74%

6.49%5.76% 1.82%

6.37%6.14% 5.35%

3.58%

-7.20%

-10%

-5%

0%

5%

10%

15%

2005 2006 2007 2008 2009

% C

han

ge

Manitoba Canada

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Figure 3.7: Consumer Price Index38 (Canada/Manitoba)

Figure 3.8 shows rate of inflation in Canada and Manitoba from 2005 to 2009. Average annual

growth rate in headline CPI (average inflation) was 1.7% for Manitoba and 1.8% for Canada.

Since the mid 1980s, prices in Manitoba were always predominately higher than national prices.

The Bank of Canada focuses on inflation (inflation targeting), which excludes the 8 most volatile

components, so the average inflation in Canada between 2005 and 2009 was 1.6%. One main

reason headline inflation fell in 2008 was the falling level of aggregate demand (especially

global oil demand). Once the 8 most volatile components are removed, inflation actually

increased. To stimulate overall demand, the Bank of Canada cut its interest rate.

Figure 3.8: Change in CPI (Canada/Manitoba)

38 The Headline CPI is not adjusted for seasonality or for the often volatile elements of food and energy

prices. The eight most volatile components of CPI (fruit, vegetables, gasoline, fuel oil, natural gas,

mortgage interest, intercity transportation, and tobacco products) are removed.

107.0

109.1

111.5

114.1114.4

105.5

107.2

109.2110.4

112.3108.8

110.8

113.6114.2

114.9

100

102

104

106

108

110

112

114

116

2005 2006 2007 2008 2009

Ind

ex P

oin

ts (

2002

= 1

00)

Headline (Canada) Headline (except 8 most volatile) Headline (Manitoba)

2.21%2.00%

2.14% 2.37%

0.30%

1.64% 1.66%1.84% 1.05%

1.74%

3.04%

1.88%

2.50%

0.57%

0.58%

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

3.00%

3.50%

2005 2006 2007 2008 2009

% C

han

ge

Headline (Canada) Headline (except 8 most volatile) Headline (Manitoba)

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Figure 3.9 displays the year to year trends in quarterly average Bank of Canada interest rates.

The Bank of Canada’s bank rate decreased from the third quarter of 2007 until it reached a

historic low in the second quarter of 2009 and remained fixed from this point onward. The

current rate set by the Bank of Canada at 0.50% is the lowest level ever for the 75-year-old

central bank. This historic move was motivated by the sharp downturn in the global economy

(including Canada) and an attempt to stimulate the economy.

Figure 3.9: Quarterly Average Interest Rates (Bank of Canada Rate)

Figure 3.10 displays the changing value of personal expenditures in the Canadian and Manitoba

economies. Personal expenditures represent the portion of GDP contributed by consumption of

consumer goods and services. These goods and services reflect household expenditures.

Figure 3.10: Personal Expenditures (Canada/Manitoba39)

$ Millions

39 The data for personal expenditures in Manitoba for 2009 is unavailable at the time of writing the report.

4.75

0.50

60.6%

-77.8%

-100.0%

-80.0%

-60.0%

-40.0%

-20.0%

0.0%

20.0%

40.0%

60.0%

80.0%

0 %

1 %

2 %

3 %

4 %

5 %

2005

-1

2005

-3

2006

-1

2006

-3

2007

-1

2007

-3

2008

-1

2008

-3

2009

-1

2009

-3

% C

han

ge

Inte

rest

Rat

e %

$723,146

$752,727

$787,063

$810,723 $812,205

$24,265 $24,990

$26,277

$27,373

$24,000

$24,500

$25,000

$25,500

$26,000

$26,500

$27,000

$27,500

$28,000

$700,000

$720,000

$740,000

$760,000

$780,000

$800,000

$820,000

2005 2006 2007 2008 2009Canada Manitoba

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52

Canada’s personal expenditures increased to nearly $811 billion in 2008, an increase of over $23

billion from 2007. Between the years of 2004 to 2008 the average annual growth rate was 3.9%.

Manitoba’s personal expenditures increased to nearly $27.4 billion in 2008 from $23.6 billion in

2004 representing an annual average growth rate of 3.85%. Consumer spending will remain

firm as long as commodity prices don’t “fall through the floor”.40

Figure 3.11 shows the trends in personal expenditures for Canada and Manitoba between 2005

and 2009. Canada’s rate of change in personal expenditures rose by 0.9% from 2005 to 2007.

During this same period, Manitoba’s rate of change in personal expenditures increased by 2.2%.

In Canada and Manitoba personal expenditures rate of growth declined in 2008.

Figure 3.11: Change in Personal Expenditures (Canada/Manitoba)

Figure 3.12 presents the number of housing starts in Canada, United States, and Manitoba

between 2005 and 2009. Housing starts is a leading indicator and is usually used to identify the

patterns of the business cycle. When housing starts are rising, it implies the economy is

growing. If starts are declining, as in Canada, the United States, and Manitoba, it implies the

economy is contracting (recession).

The number of Canadian housing starts declined to a five-year low of 590,600 from 850,300 in

2008 (a decline of approximately 30.5%). Since 2007, Canadian housing starts decreased by 35%,

a further indication the economy was contracting. In the United States, the number of housing

starts declined even further. From 2005 to 2009 the United States housing starts fell by 73%. In

2009 alone, the number of U.S. housing starts was 6.6 million, a decline of 39% from 2008.

The Manitoba housing market was not immune as local housing starts declined in 2009 by 25%.

However, unlike the Canadian and U.S. housing markets, the number of housing starts in

Manitoba did not begin to decline until 2008.

40 MFC Global Investment Management. North American Economic Outlook. (Fall 2008)

3.67%4.09%

4.56%

3.01%

0.18%

2.94% 2.99%

5.15%

4.17%

0%

1%

2%

3%

4%

5%

6%

2005 2006 2007 2008 2009

% C

han

ge

Canada Manitoba

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Figure 3.12: Housing Starts (Canada/United States41/Manitoba)

$ Thousands

Figure 3.13 shows the rate of change in housing starts in Canada, United States, and Manitoba

between 2005 and 2009. The collapse in Canadian housing starts is evident. The number of

housing starts went from growth of 2.25% in 2006, to a decline of 30.54% in 2009.

Figure 3.13: Change in Housing Starts (Canada/United States/Manitoba)

41 Source: U.S. Bureau of the Census, Construction Reports, Series C-20, Housing Starts.

Housing start = The start of construction of a privately-owned housing unit is when excavation begins for

the footings or foundation of a building intended primarily as a housekeeping residential structure and

designed for nontransient occupancy. All housing in a multifamily building is defined as being started

when excavation for the building has begun.

896.3 916.5 911.6 850.3 590.6

24,875

21,74316,102

10,804

6,639

18.8

20.2

23.0 22.1

16.4

0

5

10

15

20

25

0

5,000

10,000

15,000

20,000

25,000

30,000

2005 2006 2007 2008 2009

Canada U.S. Manitoba

-3.70%2.25%

-0.53%-6.72%

-30.54%

7.43%7.45%

13.86%

-3.91%

-25.79%

6.33%

-12.59%

-25.94%

-32.90%-38.55%

-50%

-40%

-30%

-20%

-10%

0%

10%

20%

2005 2006 2007 2008 2009

% C

han

ge

Canada U.S. Manitoba

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54

The U.S. housing market has experienced decline since 2007. In 2009, the U.S. housing market

saw a decline of 25.8%. Compared to Canadian and U.S. housing starts, Manitoban housing

starts appeared to be stable until 2008 when starts declined by 3.9%. The number of Manitoba

starts declined even further in 2009 (approximately 25.8%).

Figure 3.14 displays the unemployment rate in Canada, United States, and Manitoba between

2005 and 2009. The unemployment rate is defined as the percentage of people unemployed that

are available and currently looking for work. In 2009, unemployment rates in Canada, United

States, and Manitoba were 8.3%, 9.3%, and 5.2% respectively. The last time the Canadian

unemployment rate was this high was in 1998, while the Manitoban unemployment rate

previously reached this level in 2004. The U.S. unemployment rate reflects a 28 year high, last

reaching this level in 1982.

In Manitoba, as was reported by Statistics Canada, the largest gains in employment were in the

logistics (transportation and warehousing) sector followed by education.

Figure 3.14: Unemployment Rate42 (Canada/United States/Manitoba43)

42 Source: International Monetary Fund, World Economic Outlook Database, October 2009. 43 Source: CANSIM II, Unemployment Rate, All Occupation, Table 270008, V2373417.

6.86.3

6.0 6.28.3

5.14.6 4.6

5.8

9.3

4.84.3 4.4 4.2

5.2

3 %

4 %

5 %

6 %

7 %

8 %

9 %

10 %

2005 2006 2007 2008 2009

% o

f L

abo

ur

Fo

rce

Canada U.S. Manitoba

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Figure 3.15 displays change in unemployment rates in Canada, the United States, and Manitoba

between 2005 and 2009. A negative number indicates a decrease in unemployment rate, due to

an increase in employment.

Figure 3.15: Change in Unemployment Rate (Canada/United States/Manitoba)

Canada experienced a declining unemployment rate from 2005 to 2007, decreasing by 0.4% in

2005, 0.5% in 2006, and 0.3% in 2007. In 2008, the unemployment rate increased by 0.2%. In

Manitoba, the change in unemployment rate has fluctuated both positive and negative between

2005 and 2009. The unemployment rate in the U.S. increased much faster than in both Manitoba

and Canada. In 2008, Manitoba’s unemployment rate decreased by 0.2%, whereas in Canada

and the U.S. it increased by 0.2% and 1.2%, respectively.

Monetary and Energy Indicators

The exchange rate between two currencies specifies how much one currency is worth in terms

of another. It is determined by the demand for and the supply of a currency in the foreign

exchange market. Many factors such as economic performance, balance of payments, interest

and inflation rates among others affect the Canadian exchange rate. Surplus in our balance of

payments for example, imply that foreigners are buying more goods and services from us than

we do from them, and they pay for these goods and services in Canadian dollars, therefore

demand more of our currency and boosting its value. High interest rate will attract foreign

investors, again boosting the value of our currency. If inflation in Canada is high, it tends to

send a signal that the currency is due to depreciate in order to keep our exports competitive.

-0.4% 0.2%

2.2%

-0.5%

1.2%

3.4%

-0.5%-0.2%

1.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

2005 2006 2007 2008 2009

% o

f L

abo

ur

Fo

rce

Canada USA Manitoba

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Figure 3.16 shows the trends in the exchange rate between Canadian and U.S. dollars.

Figure 3.16: Quarterly Average Exchange Rates – U.S. Dollar

The value of U.S. dollar against the Canadian dollar fell sharply in 2007 due to the continued

strength of the Canadian economy and the U.S. currency’s weakness on world markets. In

October of 2007, the Canadian dollar averaged above the U.S. dollar for the first time in 30

years, at CND $0.9447 for USD $1.00. Subsequently, the Canadian dollar averaged at par in

November of 2007, and closed the year (in December) above par at CND $0.9913 for USD $1.00.

For most of 2008, the Canadian dollar fluctuated around par. The exchange rate between the

Canadian dollar and the U.S. dollar began to appreciate in the last quarter of 2008 with an

average of CND $1.218. During the first quarter of 2009, the Canadian dollar continued to

depreciate against the U.S. dollar and averaged its lowest point since the second quarter of 2004

at CND $1.2613 per U.S. dollar. Since then however, the Canadian dollar started to appreciate

once again, closing at CND $1.051 in December of 2009.

$0.98

$1.25

$1.06

$0.80

$0.90

$1.00

$1.10

$1.20

$1.30

2005

-1

2005

-2

2005

-3

2005

-4

2006

-1

2006

-2

2006

-3

2006

-4

2007

-1

2007

-2

2007

-3

2007

-4

2008

-1

2008

-2

2008

-3

2008

-4

2009

-1

2009

-2

2009

-3

2009

-4

$ C

ND

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Figure 3.17 displays the quarterly Canadian dollar effective exchange rate index (CERI). This is

a fairly new index, which was created to replace the C-6 index that the Bank of Canada used

before. “The CERI uses multilateral trade weights published by the International Monetary

Fund and includes the six currencies of countries or economic zones with the largest share of

Canada’s international trade.”44 The multi-lateral trade weights used in CERI account for direct

and third-market competition, whereas the bilateral weights used in the C-6 index do not.

Thus, CERI shows a more comprehensive picture of Canada’s trade competitiveness. A rise in

CERI indicates appreciation in the Canadian dollar.

Figure 3.17: Quarterly Average Effective Canadian Exchange Rate Index (1992 = 100)45

With the Canadian dollar appreciating relative to the U.S. dollar (see Figure 3.16), the export-

based Canadian economy is in a competitive disadvantage with the United States (its main

trade partner). Looking at CERI, it becomes evident that the Canadian dollar is appreciating

relative to the U.S. Dollar, Euro, Japanese Yen, U.K. Pound Sterling, Mexican Peso, and Chinese

Yuan. This indicates that Canada is becoming less competitive, as the value of the Canadian

dollar relative to the currencies of our main trade partners is increasing.

44 Bank of Canada Review. A New Effective Exchange Rate Index for the Canadian Dollar (Autumn 2006). 45 Effective exchange rate index composed of an updated group of currencies and associated weights

based on the most recent IMF statistics.

122.31

97.86

113.07

60

70

80

90

100

110

120

130

2001

-1

2002

-1

2003

-1

2004

-1

2005

-1

2006

-1

2007

-1

2008

-1

2009

-1

2010

-1

Ind

ex P

oin

ts (

1992

= 1

00)

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The S&P/TSX Composite Index is an index of stock prices for the largest companies on the

Toronto Stock Exchange as measured by market capitalization. The S&P/TSX Composite Index

accounts for approximately 70% of market capitalization for all Canadian based companies

listed on the TSX. The size and extensive economic sector coverage of the S&P/TSX Index has

made it the primary indicator of market activity for Canadian equity markets.

Changes in the S&P/TSX Composite Index reflect the market view of economic prospects;

consequently, it is another leading indicator for the economy. Figure 3.18 shows the quarterly

average S&P/TSX Composite Index between 2005 and 2009.

Figure 3.18: Quarterly Average S&P/TSX Composite Index

In 2008, S&P/TSX Composite Index declined by 30% only to rebound in 2009, when the index

rose by 34% in total Canadian dollar return. The big losers of 2008 (Financial and Energy

sectors), became the big winners of 2009.46 In the first quarter of 2009, the index fell by 36% from

the levels of the same time in 2008.

46 MFC Global Investment Management. Global Intelligence (2009).

14372.93

8512.77

11368.02

-36%

22%

-40.0%

-30.0%

-20.0%

-10.0%

0.0%

10.0%

20.0%

30.0%

0

2000

4000

6000

8000

10000

12000

14000

16000

2005

-1

2005

-2

2005

-3

2005

-4

2006

-1

2006

-2

2006

-3

2006

-4

2007

-1

2007

-2

2007

-3

2007

-4

2008

-1

2008

-2

2008

-3

2008

-4

2009

-1

2009

-2

2009

-3

2009

-4

% C

han

ge

Ind

ex P

oin

ts

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A broader picture of activity in the Canadian economy is presented in Figure 3.19. The quarterly

average Composite Index of Leading Indicators for Canada comprises of top ten components,

which lead cyclical activity in the economy and together represent all major categories of GDP.47

When the series is above 100 index points and continues to increase, the economy is considered

to be in expansion, or this time around it is thought to be recovering.

Figure 3.19: Quarterly Average Composite Index of Leading Indicators (Canada)

The CLI is designed to provide early signals of turning points between upswings and

downswings in economic activity; the aim is to communicate more clearly the future outlook for

cyclical developments in economic activity. As the above figure shows, the CLI contracted from

high of 230 (third quarter of 2008) to 214 points (second quarter of 2009). Since then, it has been

in expansionary mode, reaching 226 points in the last quarter of 2009.

The index never declined below the 100 mark since 1992 (the base year for the CLI) therefore,

looking at the index points might be misleading. It is more useful to look at the rates of growth

in the index, which again show that Canada is in an expansionary mode. From the last quarter

of 2008 to the third quarter of 2009, the index grew from -3.35% to +3.44%.

47 Statistics Canada. Canadian Composite Leading Indicator (2009).

213.87

225.73

-3.35%

3.44%

-4.00%

-3.00%

-2.00%

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

185190195200205210215220225230235

2005

-1

2005

-2

2005

-3

2005

-4

2006

-1

2006

-2

2006

-3

2006

-4

2007

-1

2007

-2

2007

-3

2007

-4

2008

-1

2008

-2

2008

-3

2008

-4

2009

-1

2009

-2

2009

-3

2009

-4

% C

han

ge

Ind

ex P

oin

ts

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Figure 3.20 displays the average annual composite leading indicator between 2005 and 2009 for

Canada, Germany, Japan, the United States., and the United Kingdom. All five of these OECD

member countries experienced gradual declines in their composite leading indicator when

comparing them to a 100-mark (long-term trend).

Among the developed countries listed in Figure 3.20, Canada has the lowest growth rate from

2005 to 2008. In 2009, Canada’s average annual composite leading indicator was 88.59, behind

only United Kingdom at 90.91; while the United States was the lowest at 87.26.

Figure 3.20: Average Annual Composite Leading Indicator for Five ‚Developed‛ Economies

99.2

8

100.

01

101.

23

98.3

9

88.5

9

99.5

2 103.

61

104.

41

99.0

9

87.6

3

101.

94

104.

05

102.

53

100.

43

87.4

6

100.

16

101.

01

102.

56

98.6

3

90.9

1

100.

41

101.

82

103.

03

99.2

4

87.2

6

75

80

85

90

95

100

105

110

2005 2006 2007 2008 2009

Ind

ex P

oin

ts

Canada Germany Japan United Kingdom United States

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61

Figure 3.21 displays the average annual composite leading indicator for Canada, Brazil, Russia,

and Major Five Asian Economies48 (Indonesia, Korea, Malaysia, the Philippines and Thailand).

The contrast between Canada’s leading indicator and the CLI’s of emerging economies is well

evident from this chart. Brazil has shown the largest growth rate during the previous five years.

In 2008, Brazil’s average annual composite leading indicator was 105.72, closely followed by the

Russian Federation at 105.26. The Major Five Asian economies and Canada had a very similar

Composite Leading Indicator index.

Figure 3.21: Average Annual Composite Leading Indicator Canada to Emerging Economies

48 Asia-5 countries are the principal Asian economies affected by financial market turmoil since 1997.

Source: The OECD Economic Outlook: Sources and Methods.

99.2

8

100.

01

101.

23

98.3

9

88.5

9

103.

47

103.

72

105.

48

105.

72

90.1

4

99.7

2 102.

85 104.

77

105.

26

84.1

2

100.

64

101.

37

10

2.2

0

99.2

9

88.5

8

80

85

90

95

100

105

2005 2006 2007 2008 2009

Ind

ex P

oin

ts

Canada Brazil Russian Federation Major Five Asia

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62

Figure 3.22 presents the Average Annual Composite Leading Indicator of the Canadian,

Chinese and Indian economies. Average annual CLI in the fastest growing developing

economies of China and India is very similar to the CLI of Canada. After reaching a peak in

2007, China, India, and Canada all fell (in 2009) by about 13%.

Figure 3.22: Average Annual Composite Leading Indicator Canada to Chinese and Indian

Economies

Figure 3.23 displays the trend in quarterly average oil prices between 2005 and 2009.

Figure 3.23: Quarterly Average Price Oil/Barrel ($US)

In early 2009, oil prices continued to sink on signs of deepening recessions in developed

countries and sharply decelerating growth in emerging markets. The latter accounted for the

increased demand in oil during the past few years.

99.2

8

100.

01

101.

23

98.3

9

88.5

9

100.

46

100.

64

102.

10

98.9

7

88.8

4

99.9

1

100.

93

102.

33

99.2

9

89.0

8

85

90

95

100

105

2005 2006 2007 2008 2009

Ind

ex P

oin

ts

Canada China India

$121.40

$44.43

$74.63

-54.16%

36.53%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

$0

$20

$40

$60

$80

$100

$120

$140

2005

-1

2005

-2

2005

-3

2005

-4

2006

-1

2006

-2

2006

-3

2006

-4

2007

-1

2007

-2

2007

-3

2007

-4

2008

-1

2008

-2

2008

-3

2008

-4

2009

-1

2009

-2

2009

-3

2009

-4

% C

han

ge

US

$ /

Bar

rel

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63

Deep recessions in the United States and other developed nations, and a sharp slowdown in

industrial production and construction in emerging markets, reduced the global oil demand in

2009. This is likely one of the reasons for the sharp decline in price of oil. Since 2007, the oil price

has seen unprecedented volatility. The average price in the first quarter of 2007 was $57/barrel.

It reached an average of $121/barrel in the beginning of 2008, and hit an all time high at

$143/barrel in July of 2008. What followed was a free fall in oil price, plunging to $33/barrel by

the end of 2008, the lowest price level since the summer 2004. In just one quarter from the third

to the fourth of 2008, the price of oil fell 52.2%. The oil price has since rebounded, reaching

$74/barrel at the end of 2009.

Figure 3.24: Quarterly Average Unleaded Fuel Prices (Winnipeg Region)

As shown in Figure 3.24, prices for unleaded fuel in the Winnipeg region declined during the

later part of 2008. The bottom was reached during the first quarter of 2009 at $0.84/litre. The

price for unleaded fuel has since rebounded to $0.97/litre.

$1.34

$0.85

$0.97

24.7%

-30%

-20%

-10%

0%

10%

20%

30%

$0.0

$0.2

$0.4

$0.6

$0.8

$1.0

$1.2

$1.4

$1.6

2005

-1

2005

-2

2005

-3

2005

-4

2006

-1

2006

-2

2006

-3

2006

-4

2007

-1

2007

-2

2007

-3

2007

-4

2008

-1

2008

-2

2008

-3

2008

-4

2009

-1

2009

-2

2009

-3

2009

-4

% C

han

ge

$ C

ND

/ L

itre

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64

The price for diesel fuel in the Winnipeg region has followed the same trend as unleaded fuel

prices, reflecting the same volatility (see Figure 3.25). Average price for diesel fuel during the

third quarter of 2008 was $1.35 per litre. In just three quarters the price for diesel fell by 39.1% to

$0.82/litre.

Figure 3.25: Quarterly Average Diesel Fuel Prices (Winnipeg Region)

$1.35

$0.82

$0.91

43.5%

-37.8% -50%-40%-30%-20%-10%0%10%20%30%40%50%

$0.0

$0.2

$0.4

$0.6

$0.8

$1.0

$1.2

$1.4

$1.6

2005

-1

2005

-2

2005

-3

2005

-4

2006

-1

2006

-2

2006

-3

2006

-4

2007

-1

2007

-2

2007

-3

2007

-4

2008

-1

2008

-2

2008

-3

2008

-4

2009

-1

2009

-2

2009

-3

2009

-4

% C

han

ge

$ C

ND

/ L

itre

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65

4. Domestic Trade and Infrastructure Utilization

When using Customs-based trade statistics, there are caveats on the mode of transport for both imports

and exports. For imports, information on the transportation mode of a commodity usually refers to the

last mode by which commodities were transported to the Canadian port of clearance and documented by

Customs. This may not always be the mode by which goods arrived at the Canadian port of entry in the

case of inland clearance. For exports, the mode of transportation recorded represents the last mode used to

carry goods across international borders. This transportation mode may not necessarily be the same mode

used to deliver cargo within Canada, that is, trans-shipment effects are not recorded and are not readily

available. For example, some grain movements to China may not be recorded as marine.

Province/Territories Exports Leaving Canada from Source Province

Canadian provinces and territories export billions of dollars worth of goods annually to

countries around the world by different modes of transportation. The following tables display

the value of exports originating and exiting from each province/territory.49

Total exports via road, rail, air, water, powerlines or pipelines, and “other” modes comprise the

total exports of Canada50 (Table 4.1).

Table 4.1: 2009 Total Exports Leaving Canada via Originating Province ($,000)

Province Exports from Origin Total Provincial Exports % Depart From

Original Province

ON 128,795,439 147,588,395 87%

BC 21,942,745 25,698,611 85%

QUE 38,108,160 58,158,959 66%

MB 5,618,708 10,726,334 52%

AB 32,614,228 69,746,087 47%

SK 3,532,126 21,827,385 16%

OTHER 15,693,237 25,042,251 39%

TOTAL 246,304,643 358,788,022 69%

Ontario exported $148 billion, or 41% of Canada’s total of $359 billion in 2009. Ontario also

recorded the highest share of provincial exports departing from the source province, at 87%.

Manitoba exported $10.7 billion, with 52% of those exports ($5.6 billion) being sourced from

within the province. Forty-seven percent of Alberta’s export value departed directly from that

province, although it should be noted that the $69.7 billion of Alberta-sourced exports include

substantial oil and gas exports, the large majority of which depart via pipeline. Saskatchewan,

in contrast, shipped relatively little (16%) of its $22 billion in 2009 exports through its own ports.

49 All Data gathered by Statistics Canada 50 The mode “Other” often represents either intermodal traffic (where more than one mode of

transportation was used) or shipments that did not classify the mode of transportation that was utilized.

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The energy sector, mainly transported via the “powerline and pipeline” modes, can create a

“noise” factor when looking at the use of traditional transportation infrastructure in serving

Canada’s export needs. It is appropriate to remove the energy sector’s contribution to the

export analysis, as these commodities tend to move via a proprietary transportation

infrastructure. Table 4.2 repeats the summary presented in Table 4.1, but excludes the energy

sector commodities.

There were $304 billion in non-energy exports from Canada in 2009 (Table 4.2). Both Ontario

and British Columbia exported 87% of their exports from their own ports. In BC’s case, over $20

billion of the province’s $24 billion in exports left via BC’s ports. Ontario exported $148 billion

in total, of which $128 billion left Canada from that province. Manitoba exported just under $10

billion in total, and 50% of those exports left from Manitoba.

Table 4.2: 2009 Non-Energy Exports Leaving Canada via Originating Province ($,000)

Province Exports from Origin Total Provincial Exports % Depart from

Original Province

ON 128,289,636 147,082,592 87%

BC 20,449,270 23,520,185 87%

QUE 36,987,389 57,038,189 65%

MB 4,987,115 9,926,081 50%

AB 7,186,217 26,392,801 27%

SK 2,082,370 15,750,068 13%

OTHER 15,541,730 24,423,850 40%

TOTAL 215,523,727 304,133,766 71%

Looking specifically at the non-energy transportation modes, air records the highest share of

provincial exports leaving via the originating province’s ports (Table 4.3). With some provinces

being landlocked, it is not surprising to find water transportation to have the lowest share of

exports leaving via the originating province’s own ports.

Table 4.3: 2009 Non-Energy Export Modes Leaving Canada via Originating Province ($,000)

Mode Exports via

Originating Province Total Exports

% Depart from

Original Province

ROAD 106,913,089 136,919,459 78%

RAIL 29,560,116 49,030,474 60%

AIR 37,884,458 39,871,116 95%

WATER 35,245,407 71,585,384 49%

OTHER 5,920,657 6,727,333 88%

TOTAL 215,523,727 304,133,766 71%

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Tables 4.4 through 4.7 provide mode-specific summaries of the value of exports leaving via the

originating provinces’ own transportation infrastructure. Only 4 provinces/territories record at

least four-fifths of their road-based exports leave via their own portals. Ontario, BC, Manitoba

and New Brunswick distinguish themselves from the other jurisdictions by using their own

roads to a greater extent (Table 4.4).

Table 4.4: 2009 Road Exports Leaving Canada via Originating Province ($,000)

Province Exports from Origin Total Provincial Exports % Depart from Original

Province

ON 77,574,928 86,036,403 90%

BC 5,375,247 6,120,778 88%

MB 4,097,370 4,773,168 86%

NB 1,380,307 1,685,931 82%

AB 4,236,930 7,346,986 58%

QUE 13,314,990 26,098,355 51%

SK 926,221 2,025,736 46%

NS 6,147 1,917,241 0%

NFLD 689 330,645 0%

YK 260 122,226 0%

PEI 0 446,768 0%

NWT 0 14,525 0%

NU 0 697 0%

TOTAL 106,913,089 136,919,459 78%

Road exports accounted for $137 billion in exports in 2009, with Ontario and Quebec exporting

the highest values of goods. Ontario exported $86 billion, of which 90% left Canada through

Ontario based road infrastructure (approximately $78 billion). Manitoba exported $4.8 billion

and used its own infrastructure for 86% of those exports (by value).

Rail accounted for $49 billion in 2009 exports, with Ontario accounting for $24 billion, of which

98% departed Canada through Ontario border crossings (Table 4.5).

Table 4.5: 2009 Rail Exports Leaving Canada via Originating Province ($,000)

Province Exports from Origin Total Provincial

Exports

% Depart from Original

Province

ON 23,215,059 23,772,949 98%

BC 1,324,654 3,284,454 40%

QUE 2,771,321 7,660,462 36%

MB 578,505 1,727,006 33%

SK 952,377 4,116,653 23%

AB 501,093 7,212,051 14%

OTHER 217,107 1,256,899 7%

TOTAL 29,560,116 49,030,474 60%

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Manitoba exported $1.7 billion by rail in 2009 and used its own infrastructure for 33% of those

exports, or $578 million.

Table 4.6: 2009 Air Exports Leaving Canada via Originating Province ($,000)

Province Exports from Origin Total Provincial

Exports

% Depart from Original

Province

BC 1,408,158 1,436,259 98%

ON 22,005,887 22,665,259 97%

QUE 11,336,978 11,815,874 96%

AB 1,398,488 1,571,490 89%

SK 113,084 135,206 84%

MB 190,417 266,576 71%

OTHER 1,431,446 1,980,452 60%

TOTAL 37,884,458 39,871,116 95%

Air exports accounted for $40 billion in Canadian exports in 2009. British Columbia exported

$1.4 billion in total and appears to have utilized their own infrastructure the most (98%).

Ontario exported the most in terms of total value ($22.7 billion), of which 97% ($22 billion)

departed from Ontario airports. Manitoba exported $266 million in total, and used its own

airport infrastructure for 71% of those exports ($190 million).

Table 4.7: 2009 Marine Exports Leaving Canada via Originating Province ($,000)

Province Exports from

Origin Total Provincial Exports

% Depart From Original

Province

BC 12,007,962 12,344,007 97%

NB 6,238,580 7,059,183 88%

NS 878,062 1,011,038 87%

QUE 8,795,504 10,667,519 82%

NFLD 4,854,318 7,929,327 61%

ON 2,430,171 10,866,095 22%

PEI 11,221 111,704 10%

MB 29,589 3,045,170 1%

SK - 9,343,538 -

AB - 9,174,723 -

NWT - 26,803 -

YK - 5,119 -

NU - 1,158 -

Total 35,245,407 71,585,384 49%

Exports leaving Canada by water totaled about $72 billion in 2009. British Columbia had the

largest value of total water based exports, at $12 billion, of which 97% left from British

Columbia directly.

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Ontario ranked second, with a total of $10.9 billion, although only 22% of those exports (by

value) left directly from Ontario ports. Quebec’s water-based exports were very close to those

reported by Ontario ($10.7 billion), although a much greater percentage of those exports (82%)

left directly from Quebec ports. Manitoba exported $3 billion by water, of which a very small

percentage (1%) was exported from Manitoba’s only seaport, Churchill.

Usage of Manitoba’s Transportation Infrastructure

Figures 4.1 through 4.4 summarize the level of exports exiting through Manitoba on the basis of

source province or territory. While half of the exports leaving through Manitoba ports (by

value) are sourced from Manitoba (Figure 4.1), provinces such as Alberta, Saskatchewan and

Ontario extensively use Manitoba’s infrastructure to export their goods out of the country. This

information is summarized for all transportation modes.

Figure 4.1: 2008 Source Province Exports Leaving via Manitoba to International Destinations

Of the $10.7 billion in exports leaving from Manitoba, 52% originated from Manitoba. Sixteen

percent and 15% (by value) were sourced from Saskatchewan and Alberta, respectively. The

fourth largest source province/territory share (by value) belongs to Ontario, which accounted

for 12% of the $10.7 billion of exports exiting via Manitoba in 2008. It should be noted,

however, that the scale of total Ontario exports makes Manitoba’s infrastructure much less of a

factor in Ontario’s exports than for those from Saskatchewan or Alberta.

AB, 15.2%

SK, 16.2%

ON, 12.0%

MB, 52.3%

BC, 3.4%

By Value: $10.68 Billion

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Shifting from source province to transportation mode, Figure 4.2 illustrates that almost 70% of

the value of exports leaving from Manitoba in 2008 left by road.

Figure 4.2: Mode of 2008 Total Exports by All Provinces Departing From Manitoba to

International Destinations

Aside from road, only rail was a significant mode in terms of share of exports leaving via

Manitoba in 2008. Manitoba is the only province between Ontario and BC with marine access,

but the value of exports leaving via that route was rounded as too small to register when

compared with the other modes used to move exports via Manitoba’s infrastructure. No doubt,

Churchill’s short shipping season (about 3 months) limits the scale of Manitoba’s marine

exports, as do other logistics factors.

Much of the export market for Canadian products involves interprovincial or inter-territorial

movement prior to commodities’ final exit from the country. In this process, some

provinces/territories use other jurisdictions’ infrastructure to a greater extent than other

jurisdictions use the transportation infrastructure of source provinces or territories. Given

Canada’s strong trading relationship with the United States, provinces or territories not

adjacent to the U.S. have a particular handicap when it comes to using their own ground-based

infrastructure in exporting to the U.S.

Air, 2.8%

Energy, 3.3%

Rail, 24.7%

Road, 69.2%

By Value: $10.68 Billion

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However, even jurisdictions in direct contact with the U.S. do not necessarily take the most

direct route to the U.S. border. For example, all 3 prairie provinces have direct access to the U.S.

market, but use their own ground-based infrastructures to varying degrees. Figure 4.3 provides

a depiction of prairie provinces’ export surplus/deficit (by weight). A precise interpretation of

Manitoba’s line item in Figure 4.3 would be that “the weight of road exports leaving via

Manitoba is 542,000 tonnes greater than the weight of Manitoba’s own road-based exports”.

Conversely, “568,000 more Alberta-sourced road-based tonnes of exports leave Canada than the

weight of road-based exports leaving via Alberta”. Saskatchewan-sourced, road-based exports

exceed the weight of road-based exports leaving Canada via Saskatchewan by about 126,000

tonnes. Essentially, Alberta road-based exporters benefit from the use of others’ roads to a

greater extent than other jurisdictions benefit from Alberta’s roads. We interpret this as Alberta

being in a road export “deficit” situation.

Figure 4.3: 2008 Prairie Provinces' Road Export Weight Surplus/Deficit

(Exported by Road From Prairies)

As in the past, Manitoba was in the opposite situation. Others benefit more from the use of

Manitoba’s roads (and road portal infrastructure) than Manitoba benefits from others’ roads

and infrastructure. Manitoba therefore has maintained its “surplus” from previous years,

disproportionately assisting other provinces and jurisdictions in meeting their road-based

export infrastructure needs.

-0.568

-0.126

0.542

-0.75 -0.50 -0.25 0.00 0.25 0.50 0.75

Alberta

Saskatchewan

Manitoba

Million Tonnes

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Table 4.8 expands upon the information presented in Figure 4.3 to look at the overall

relationships among the provinces/territories in the use of roads and export infrastructure.

Table 4.8: 2008 Provincial/Territorial Usage of Jurisdictions’ Road Infrastructure

Province of Departure from Canada

Weight of

Prov's

Road

Exports

(‘000

Tonnes) BC AB SK MB ON Other

Ori

gin

atin

g

Pro

vin

ce

British

Columbia

3,019 25 40 46 36 26 3,192

94.6% 0.8% 1.3% 1.4% 1.1% 0.8% 100.0%

Alberta

198 1,514 260 224 150 38 2,384

8.3% 63.5% 10.9% 9.4% 6.3% 1.6% 100.0%

Saskatchewan

20 154 298 241 61 11 785

2.5% 19.6% 38.0% 30.8% 7.8% 1.3% 100.0%

Manitoba

29 16 20 1,950 76 10 2,100

1.4% 0.7% 0.9% 92.9% 3.6% 0.5% 100.0%

Ontario

239 84 39 179 24,959 576 26,076

0.9% 0.3% 0.2% 0.7% 95.7% 2.2% 100.0%

Other

Prov/Terr

34 23 1 2 5,145 7,525 12,730

0.3% 0.2% 0.0% 0.0% 40.4% 59.1% 100.0%

Total Weight of

Exports Leaving via

Prov. (‘000 Tonnes)

3,539 1,817 659 2,643 30,428 8,185 47,271

Percent of Weight of

Prov's Road Exports

Leaving via Own

Prov Infrastructure

107.0% 84.8% 51.1% 134.4% 59.2% 63.3%

Province's Surplus or

Deficit (‘000 Tonnes)

347 -567 -125 543 4,352 -4,545

Main Beneficiaries of

Port Province's

Infrastructure

BC AB SK MB ON “Other”

AB SK AB SK QC* ON

ON AB "Other"

*Included in “Other”

In Table 4.8 we see that the approximately 543,000 tonne Manitoba “surplus” is drawn from the

difference between the 2,643,000 tonnes leaving via Manitoba and the 2,100,000 tonnes of

Manitoba-sourced road exports. We also see that while 1,817,000 tonnes left Canada via Alberta

roads, 2,384,000 tonnes of Alberta-sourced road exports left Canada in 2008.

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In looking at the interprovincial movements which facilitate Canada’s road-based export

market, one notes that Alberta shipped 260,000 tonnes through Saskatchewan and 224,000

through Manitoba to foreign destinations, which collectively accounted for 20% of the weight of

Alberta-sourced road exports.

Saskatchewan shipped 241,000 tonnes through Manitoba, which accounted for 31% of the total

weight of Saskatchewan-sourced road exports.

Rail Commodity Traffic Flows

Figures 4.4 to 4.13 present the overall rail traffic flows in and through the provinces of Alberta,

Saskatchewan, Manitoba, Ontario and Quebec from 2004 through 2008. Intraprovincial flows

are those for which the originating and destination province is the same. East and West bound

flows are those that originated in other provinces or territories and are “just passing through”

the subject province or territory. The east bound and west bound categories are

understandably related to the subject province’s location relative to other jurisdictions. 51 Figure

4.4 presents the amount of rail traffic flow in and through the province of Manitoba in the

context of the categories introduced above.

Figure 4.4: Rail Traffic Flows In/Through Manitoba, 2004-2008

In 2008, 9.9 million tonnes of rail freight moved through Manitoba from the east (west bound),

and 19.2 million tonnes entered from the west, moving east bound. Manitoba intraprovincial

rail tonnage was relatively minimal in comparison with other rail movements (2008: 250,000

tonnes).

51 Statistics Canada - Stats Can publication: Rail in Canada 52-216

516

5,64

5

4,14

7

9,36

5

21,0

79

442

5,16

1

4,22

0

9,74

9

21,1

91

437

5,16

7

4,10

7

9,69

8

21,1

16

242

5,40

5

4,11

2

9,47

8

20,4

28

250

5,16

8

3,98

6

9,90

1

19,1

79

0

5,000

10,000

15,000

20,000

25,000

To

nn

es (

000)

2004 2005 2006 2007 2008

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Over the period 2004 to 2008, rail traffic originating from Manitoba declined from 5.6 to 5.2

million tonnes (although 2005 and 2006 tonnage was about equal to that in 2008). The only real

“trend” was in a reduction of east bound freight heading to provinces such as Ontario and

Quebec in 2007 and 2008.

Figure 4.5 presents the equivalent rail traffic flow information for the province of Alberta. The

main difference between the Alberta pattern and that for Manitoba is the dominance of Alberta-

origin rail freight in contrast to Manitoba’s relatively small percentage of “home grown” rail

freight.

Figure 4.5: Rail Traffic Flows In/Through Alberta, 2004-2008

Both west and east bound freight had increased from 2004 through 2007, although 2008

registered a decline in both east bound and particularly west bound freight. As with Manitoba,

Alberta registered relatively little intraprovincial rail, although Alberta’s level was the highest

of the three prairie provinces. Alberta generated approximately 30.7 million tonnes of

outbound freight in 2008, a slight decline from the recent 2006 high of about 32.8 million tonnes.

Both Alberta and Saskatchewan have significant outbound rail tonnage associated with

agricultural production and other primary resource production.

3,01

2

29,1

40

7,00

6

17,7

05

8,29

4

3,27

7

29,9

99

7,34

8

19,8

88

8,71

5

3,28

1

32,7

84

7,94

7

19,6

96

8,51

3

3,18

0

32,0

12

8,23

5

21,2

97

9,21

8

4,03

8

30,7

21

8,97

1

18,8

82

8,90

1

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

To

nn

es (

000)

2004 2005 2006 2007 2008

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Figure 4.6: presents similar rail traffic flow information for Saskatchewan. As with Alberta, rail

sourced from the “home” province was the single largest freight category.

Figure 4.6: Rail Traffic Flows In/Through Saskatchewan, 2004-2008

Saskatchewan’s west bound traffic flow remained steady at about 10 million tonnes per year

from 2004 to 2008. East bound rail traffic flows were relatively stable from 2004 to 2008 at about

13 million tonnes to just under 14 million tonnes in 2005. Intraprovincial movements within

Saskatchewan, as in Manitoba, were very low relative to other freight routing categories.

Saskatchewan’s origin traffic flows dropped by almost 4 million tonnes from 2007 to 2008, after

steady increases from 2004. Traffic destined for Saskatchewan had been steady for the period

from 2004 to 2007 at about 1.8 million tonnes, although it has risen to about 2.2 million tonnes in

2008.

197

24,0

36

1,78

6

9,79

9 13,6

57

185

25,8

24

1,77

8

10,1

12

13,9

17

165

25,9

07

1,79

5

10,3

80

12,9

63

192

26,5

04

1,83

6

10,3

12

13,2

81

168

22,7

91

2,19

2

10,7

43

13,2

05

0

5,000

10,000

15,000

20,000

25,000

30,000

To

nn

es (

000)

2004 2005 2006 2007 2008

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Figure 4.7 and Figure 4.8 present corresponding findings for Ontario and Quebec, respectively.

Ontario-destined rail freight appears to have been in decline since 2004, with a drop of over 2

million tonnes from 2007 to 2008.

Figure 4.7: Rail Traffic Flows In/Through Ontario, 2004-2008

Ontario’s west bound and east bound traffic flows have been relatively steady for the past few

years at somewhat over 3 million tonnes and 6.2 to 6.4 million tonnes, respectively. In addition

to its drop in inbound freight, Ontario has had a large drop in intraprovincial rail freight from 8

million tonnes in 2004 to about 2.5 million tonnes in 2008. Shipments originating in Ontario

have been fairly stable from 2004 through 2008, at somewhat under 15 million tonnes per year.

Quebec tends to register a low percentage of “pass through” freight, either east bound or west

bound. With Quebec, freight tends to be either inbound, outbound, or intraprovincial. With its

strong marine port sector, this may be expected, as inbound rail freight often transships to

marine.

8,03

7

14,7

75

26,3

45

3,14

3 6,35

4

7,82

1

14,6

99

25,8

91

3,14

8 6,43

2

5,75

3

14,6

12

25,3

86

3,32

1 6,40

1

5,71

7

14,6

46

24,7

11

3,36

7 6,23

5

2,54

7

14,9

20

22,4

90

3,34

6 6,16

4

0

5,000

10,000

15,000

20,000

25,000

30,000

To

nn

es (

000)

2004 2005 2006 2007 2008

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Figure 4.8: Rail Traffic Flows In/Through Quebec, 2004-2008

Figure 4.9 and Figure 4.10 present summaries of rail traffic tonnage for British Columbia and

the Atlantic Provinces, respectively. These figures are understandably less complex as there is

no provision for “pass through” east bound or west bound rail freight. With limited rail

infrastructure east of Quebec, and major marine port infrastructure in Quebec, it is

understandable to see similarities among the Quebec distribution (Figure 4.8) and the patterns

presented in Figures 4.9 and 4.10.

Figure 4.9: Rail Traffic Flows In/Out of British Columbia, 2004-2008

5,86

2 10,9

15

27,8

72

1,61

0

2,33

3

5,21

0 11,1

03

32,9

39

1,52

6

2,11

2

4,93

8

11,1

60

32,9

59

1,48

2

1,94

9

4,96

7 10,8

41

30,9

54

1,26

5

1,86

0

4,77

7 10,3

48

32,0

81

1,09

4

1,68

9

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

To

nn

es (

000)

2004 2005 2006 2007 2008

33,5

58

9,45

9

40,4

14

35,0

88

10,2

17

43,6

24

31,1

42

10,7

05

47,0

16

32,6

77

11,8

53

48,1

73

31,8

29

11,7

09

44,0

11

0

10,000

20,000

30,000

40,000

50,000

60,000

Intraprovincial BC-Origin BC-Destination

To

nn

es (

000)

2004 2005 2006 2007 2008

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BC’s intraprovincial freight has fluctuated somewhat since 2004, but has generally been in a

slight downward trend, from 33.6 million tonnes in 2004 to 31.8 million tonnes in 2008. Prior to

a drop of over 4 million tonnes from 2007 to 2008, BC-destined rail freight had been on an

upward trend from 40.4 million tonnes in 2004 to 48.1 million tonnes in 2007.

BC-origin rail freight has also been on an upward trend, although the strength of that growth

has been “softer” than for the BC-destined rail freight. Also, the drop-off in 2008 was less

pronounced for BC-origin rail freight.

Figure 4.10: Rail Traffic Flows In/Out Atlantic Canada, 2004-2008

In Atlantic Canada, intraprovincial movements (actually intraregional movements) have been

on a slow decline, with 5.5 million tonnes in 2004, and 4 million tonnes in 2008. Traffic flows

originating in the region totaled 21.8 million tonnes in 2008, a rise of about one million tonnes

over 2007 levels and an increase of 3.6 million tonnes over 2004 levels. Conversely, traffic

destined for Atlantic Canada has been decreasing since 2004, from 4.6 million tonnes to 3.7

million tonnes in 2008.

5,51

5

18,1

89

4,58

8

5,08

7

23,3

41

4,54

4

5,16

0

23,1

78

4,30

3

4,72

2

20,6

50

3,89

0

4,03

0

21,8

08

3,73

2

0

5,000

10,000

15,000

20,000

25,000

Intraprovincial ATL-Origin ATL-Destination

To

nn

es (

000)

2004 2005 2006 2007 2008

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Figure 4.11 summarizes the rail traffic tonnage in and through Manitoba on the basis of

originating province or territory. By weight, rail originating in BC and passing through

Manitoba on its way to more easterly points represents the largest single block of freight in

Manitoba’s profile. Despite a large amount of freight entering Manitoba from BC (22% of total

freight flowing in or through Manitoba), very little of it actually stays in Manitoba (1% of total

freight flowing in or through Manitoba).

Saskatchewan-sourced rail freight passing through Manitoba represents the second largest

block (19%), followed closely by rail freight passing through Manitoba from the other direction,

originating in Ontario (18%).

Only about 12% of freight passing through or destined for Manitoba actually has this province

as its final destination. Of that subset, about three-quarters (75%) comes from either Alberta,

Saskatchewan, or Ontario, with each of these three provinces having fairly similar shares, by

weight.

Figure 4.11: Rail Traffic Flows In/Through Manitoba, by Originating Province, 2008

(by Weight: 38.5 Million Tonnes)

22%

9%

19%

13%

18%

7%

1%

1%

3%

3%

1%

3%

1%

0%

0%

5%

10%

15%

20%

25%

Per

cen

tag

e o

f T

ota

l M

anit

ob

a T

raff

ic

Flow Through Manitoba Destined for Manitoba

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Ontario generates the most rail traffic flowing out west through Manitoba to the three western

provinces, with up to 40% of rail freight moving through Manitoba being an Ontario-Alberta

link (Figure 4.12).

Figure 4.12: West Bound Rail Traffic Flowing Through Manitoba, Destined for SK, AB, BC

The second largest rail freight link is the Ontario-BC movement of freight, with about one-

quarter of Manitoba’s pass-through rail freight (by weight).

Quebec-BC represents around 15% to 18%, followed by Quebec-Alberta (about 10%), and

Ontario-Saskatchewan (about 5%). Atlantic Canada accounts for very little of rail freight

traveling through Manitoba to the three western provinces.

SKSK

SKAB

AB

AB

BC

BC

BC

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Atlantic Quebec Ontario

2004 2005 2006 2007 2008

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Figure 4.13: East Bound Rail Traffic Flowing Through Manitoba, Destined for ATL, QC, ON

In terms of east bound rail freight being sourced from the provinces to the west of Manitoba,

Ontario is clearly the main recipient. Of east bound rail freight moving through Manitoba, 30%

to 38% appears to be a Saskatchewan-Ontario link (although 2008 appears to represent a

definite low point at about 30%). It appears the BC-Ontario link’s share of rail freight passing

through Manitoba has increased in response to reductions in the Saskatchewan-Ontario share of

freight. The BC-Ontario link is the second largest rail freight link passing through Manitoba.

Rail links from BC, Alberta and Saskatchewan to the Atlantic Provinces via Manitoba are

extremely small in terms of tonnage.

ATLATL ATL

QC QC

QC

ON

ON

ON

0%

5%

10%

15%

20%

25%

30%

35%

40%

Saskatchewan Alberta British Columbia

2004 2005 2006 2007 2008

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Truck Commodity Traffic Flows

Shifting to a view of truck-based freight movement, Figures 4.14 to 4.23 present information on

the breakdown of truck traffic flows in and through the provinces of Manitoba, British

Columbia, Alberta, Saskatchewan, Ontario, Quebec and Atlantic Canada from 2004 to 2008.

Intraprovincial flows are those for which the originating and destination provinces are the

same. East and west bound flows are those that originated in other provinces or territories and

are “just passing through” the subject province or territory.

East and west bound truck traffic flows are commodities that flow through a province and are

destined for provinces to the West or East of that province. 52 Figure 4.14, presents the truck

traffic flows, in and through, the province of Manitoba in the context of the above categories,

from 2004 and 2008.

Figure 4.14: Truck Traffic Flows In/Through Manitoba, 2004-2008

For Manitoba, the main difference between rail and truck movement is the share of

intraprovincial movement. While very little rail freight moves intraprovincially in Manitoba,

intraprovincial truck freight is the largest category, by weight.

In 2008, approximately 10.2 million tonnes of commodities entered or passed through Manitoba

from other provinces or territories, down from about 10.9 million tonnes in 2007. In 2008,

intraprovincial movements totaled 10.6 million tonnes, up slightly from 2007’s 10.4 million

tonnes.

52 Statistics Canada: Trucking Commodity Origin and Destination; Survey Data Release: August

11, 2008

0

2,000

4,000

6,000

8,000

10,000

12,000

8,29

2

2,94

2 5,38

9

3,47

3

2,32

8

9,77

3

2,99

7

4,31

4

4,63

3

1,95

7

9,61

9

3,05

4

3,58

8

4,57

3

2,23

2

10,4

10

2,85

7

3,90

0

4,00

9

3,01

7

10,5

51

3,98

0

3,74

2

4,15

0

2,32

5

To

nn

es (

000)

2004 2005 2006 2007 2008

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Truck freight destined for Manitoba was at a 5-year high in 2004 (5.4 million tonnes), but has

been fairly level at around 3.6 to 3.9 million tonnes for the last 3 years. West bound truck freight

through Manitoba to British Columbia, Alberta, and Saskatchewan appears to have been

strengthening through the last 5 years, with 2008 levels about 140,000 tonnes higher than for

2007. However, within the last 5 years, Manitoba actually reported its highest annual west

bound tonnage in 2005 and 2006. East bound truck tonnage is consistently lower than west

bound truck tonnage, which is opposite that for rail freight. Likely the commodity mix plays a

major role in this difference. East bound rail includes a significant grains and oilseeds

component on its way to the Saint Lawrence Seaway system, whereas east bound truck includes

very little of these commodities.

Figure 4.15, summarizes the truck traffic flows, in and through, the province of Alberta from

2004 to 2008. As a percentage of truck tonnage in and through Alberta, the province’s strong

intraprovincial share has been rising since 2004. In 2004, 76% of the province’s 101,594 tonnes of

truck freight was intraprovincial. By 2008, total in/through truck freight in Alberta rose 33% to

134,661 tonnes, of which 81% was intraprovincial. As demand for transportation is a derived

demand, this is a reflection of the high level of activity in the Alberta economy over the last 5

years. It is also interesting that virtually all of the growth in Alberta truck tonnage was as a

result of intraprovincial growth. For Alberta, as with Ontario, the intraprovincial truck trade

dwarfs truck movements involving other jurisdictions.

Figure 4.15: Truck Traffic Flows In/Through Alberta, 2004-2008

0

20,000

40,000

60,000

80,000

100,000

120,000

77,7

16

10,8

04

9,96

9

1,62

2

1,48

3

77,4

52

10,0

08

11,0

50

2,18

5

1,20

3

82,4

56

7,59

5

10,9

25

1,62

5

1,59

2

94,9

37

8,46

6

14,2

26

1,91

2

2,51

8

108,

900

11,0

61

11,3

17

1,90

0

1,46

2To

nn

es (

000)

2004 2005 2006 2007 2008

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Figure 4.16, summarizes the truck traffic flows, in and through, Saskatchewan from 2004 to

2008. Intraprovincial truck freight experienced a significant decline from 2006 to 2007, but

recovered in 2008. It would appear that the 2007 drop in intraprovincial truck tonnage

corresponded to a significant increase in Saskatchewan-originating truck freight. However,

2008 appears to reflect a return to “normal”, with intraprovincial trucking representing 54% of

tonnage (in comparison to 58% in 2006 and 44% in 2007).

Figure 4.16: Truck Traffic Flows In/Through Saskatchewan, 2004-2008

Generally, Saskatchewan’s extraprovincial truck freight (on a tonnage basis) appeared fairly

solid in 2008, although east bound freight was perhaps a bit “soft”, but that would be consistent

with some of the patterns for other Western Canadian freight sources.

0

5,000

10,000

15,000

20,000

25,000

14,8

08

6,50

3

5,30

2

4,16

1

3,92

9

20,3

77

4,82

7

3,66

7

5,15

9

3,21

9

22,1

84

4,33

9

3,59

2

4,83

8

3,37

6

17,4

04

8,91

3

4,44

7

4,40

1

4,00

0

23,4

63

5,64

8

5,79

4

5,02

6

3,24

1

To

nn

es (

000)

2004 2005 2006 2007 2008

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Figure 4.17, displays the truck traffic tonnage, in and through, the province of Ontario from

2004 to 2008. The main component of Ontario trucking is intraprovincial, which represented

80% of Ontario truck tonnage in 2008. This was only fractionally lower than the 81% recorded

in 2006. However, total truck tonnage has dropped in Ontario from 212.5 million tonnes in 2006

to 187 Million tonnes in 2008, a decline of 12%.

Figure 4.17: Truck Traffic Flows In/Through Ontario, 2004-2008

0

50,000

100,000

150,000

200,000

144,

880

16,9

51

18,0

04

850

805

154,

644

20,7

84

19,8

28

1,06

3

843

173,

067

19,8

68

17,5

09

1,21

1

873

164,

782

17,4

82

15,4

47

1,16

8

723

150,

399

18,7

95

15,6

30

1,22

0

975

To

nn

es (

000)

2004 2005 2006 2007 2008

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Figure 4.18: Truck Traffic Flows In/Through Quebec, 2004-2008

Figure 4.18, summarizes the truck traffic tonnage in and through Quebec from 2004 to 2008.

Quebec has a trucking pattern similar to that of Ontario, although on a percentage basis it

depends less upon intraprovincial movement than does Ontario (2008: Quebec: 68%; Ontario:

80%).

Also, east bound truck movement originating from the west and passing through Ontario to

points further east is almost non-existent (as a % of Ontario truck tonnage), whereas east bound

freight entering the west border of Quebec and exiting to the Atlantic provinces is actually

larger than the corresponding west bound flows through Quebec.

0

20,000

40,000

60,000

80,000

100,000

72,9

14

17,4

61

14,2

90

1,58

9

2,55

8

83,8

61

19,5

19

16,3

21

1,47

5

2,28

5

82,8

87

17,3

35

15,3

05

1,40

8

2,72

8

76,7

42

14,5

11

12,9

01

1,61

5

3,36

5

73,6

10

14,8

69

15,3

49

1,38

8

2,36

8To

nn

es (

000)

2004 2005 2006 2007 2008

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Figures 4.19 and 4.20 present summaries of truck traffic tonnage for British Columbia and the

Atlantic Provinces, respectively. These figures are understandably less complex as there is no

provision for “pass through” east bound or west bound rail freight.

Figure 4.19: Truck Traffic Flows in British Columbia, 2004-2008

Due to British Columbia’s geographic location as the most westerly province, there are no

shipments flowing east or west through the province. Intraprovincial traffic flows in British

Columbia have been fairly stable from 2004 to 2008 at 54 to 56 million tonnes, although there

was a 2007 spike to 72 million tonnes.

BC-origin truck freight was on a slight upward trend from 2004 to 2007, but fell back 18% in

2008. However, BC-destined truck freight rose 12% in 2008 from 2007 levels.

Atlantic Canada, as with British Columbia, does not have commodities passing through the

region. Intraprovincial movements (actually “intraregional” movements) declined in 2007 by

about 3 million tonnes and recovered in 2008 by 1 million tonnes. Atlantic-origin and Atlantic-

destined road freight enjoyed two relatively buoyant years (2006, 2007) which were bracketed

by lower tonnage in 2005 and 2008.

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

Intraprovincial BC-Origin BC-Destination

53,7

69

5,27

6

5,76

3

55,7

69

6,37

9

7,87

4

54,4

16

6,30

0

5,12

0

71,7

11

6,89

0

5,84

1

55,0

16

5,62

1

7,10

0

To

nn

es (

000)

2004 2005 2006 2007 2008

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Figure 4.20: Truck Traffic Flows in Atlantic Canada, 2004-2008

Figure 4.21 summarizes the truck traffic tonnage in and through Manitoba on the basis of

originating province or territory.

Figure 4.21: Truck Traffic Flows Destined For/Through Manitoba, by Originating Province,

2008

(By Weight: 24.75 Million Tonnes)

0

5,000

10,000

15,000

20,000

Intraprovincial ATL-Origin ATL-Destination

18,5

97

8,31

6

9,53

7

18,1

81

7,05

6

8,51

8

19,3

24

8,21

5 10,6

68

15,9

70

8,22

6 10,5

83

16,8

99

7,73

3

8,77

4

To

nn

es (

000)

2004 2005 2006 2007 2008

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

55%

BC AB SK MB ON QUE ATL

3.3%

4.5%1.6%

5.6%

12.6%

3.9%0.3%

1.0%

4.3%4.9%

42.6%

4.1%

0.7%

0.01%Per

cen

tag

e o

f T

ota

l M

anit

ob

a T

raff

ic

Flow Through Destined for MB

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About 58% of freight passing through Manitoba has this province as its final destination.

Ontario has the greatest “pass-through”, with 13% of truck freight in Manitoba’s profile coming

from Ontario on its way to areas west of Manitoba.

Figure 4.22, presents the percentage of west bound truck traffic tonnage through Manitoba

destined for Saskatchewan, Alberta and British Columbia from 2004 to 2008.

Figure 4.22: West Bound Truck Traffic Flowing Through Manitoba, Destined for SK, AB, BC

Ontario is the largest supplier to the western provinces, and the pattern of this graph is

surprisingly consistent with the rail equivalent (Figure 4.12). The main difference is that the

Ontario-BC and Quebec-BC rail links appear a bit stronger than the road links to BC (on a

percentage basis).

0%

10%

20%

30%

40%

50%

60%

Atlantic Quebec Ontario

SKSK

SK

AB

AB

AB

BC

BC

BC

2004 2005 2006 2007 2008

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Figure 4.23, presents the percentage of east bound truck traffic tonnage through Manitoba

destined for Atlantic Canada, Quebec and Ontario from 2004 to 2008.

Figure 4.23: East Bound Truck Traffic Flowing Through Manitoba

Destined for ATL, QUE, ON

In terms of east bound truck freight being sourced from the provinces to the west of Manitoba,

Ontario continues to be the main recipient. In 2007, Ontario experienced a significant drop-off

in truck freight tonnage coming from Alberta, and to a lesser extent from Saskatchewan.

However, 2007 tonnage from BC was dramatically higher than had been reported in 2006, and

was similarly almost twice as large as the tonnage reported in 2008.

As with rail, truck tonnage from Alberta, Saskatchewan and BC to Atlantic Canada continue to

be very small.

0%

10%

20%

30%

40%

50%

60%

Saskatchewan Alberta British Columbia

ATL ATL ATLQC

QC

QCON

ON

ON

2004 2005 2006 2007 2008

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91

Rail & Road: Imports and Exports

Canada is a trading nation. While the previous analysis summarizes domestic movement by

rail and road, international freight movement is critical to Canada’s balance of payments and

standard of living. Figures 4.24 through 4.33 summarize total imports/exports entering/leaving

Canada by the high volume modes of road and rail.

The Canada/US border is the world’s longest undefended international boundary. However,

there are many controlled entry/exit points along that border and movements across a handful

of those portals comprises a large share of total transborder movements. Figure 4.24 presents

the total export values for road and rail from Canada in 2009. Of the $137 Billion in road-based

exports, $122 Billion (89%) left via one of the Top 10 road export hubs in Canada. Rail exports

are even more concentrated among the Top 10 rail export hubs. The top 10 collectively account

for 95% of Canada’s $49 Billion in rail exports in 2009.

Figure 4.24: Total Exports Road and Rail (2009)

(000's)

With this level of concentration among the major export hubs, the subsequent summaries will

focus on those Top 10 road and rail portals, although the role of Emerson (Manitoba’s main

international portal) will be highlighted.

$0 $50,000,000 $100,000,000 $150,000,000

Rail

Road

$49,030,476

$136,919,460

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Figure 4.25 summarizes the distribution of 2009 rail exports (by value) for each of Canada’s Top

10 rail export portals. Sarnia and the Windsor/Ambassador crossing collectively account for

$22.5 Billion (46%) of Canada’s 2009 rail export value. Given the number of crossing points

along the Canada/U.S. border, this represents a significant concentration with the top 2 portals.

Emerson ranks 8th overall in value of rail exports through Canadian ports, moving $1.9 Billion

across the border in 2009. This represented 4% of Canada’s rail exports, by value.

Figure 4.25: Top 10 Rail Export Portals in Canada (2009)

($,000)

Sarnia

Windsor -…

Fort Frances

Fort Erie

North Portal

Pacific Highway

Lacolle

Emerson

Kingsgate

Trout River

$14,177,162

$8,327,019

$6,114,202

$5,812,869

$3,556,124

$2,129,990

$2,016,846

$1,940,270

$1,476,935

$849,736

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Looking at road-based exports (Figure 4.26), Windsor, Ontario was the largest exporting hub,

accounting for $40.8 Billion in 2009, or 30% of the total value of Canada’s road exports in that

year. Emerson, Manitoba ranks 6th, with $5.9 Billion, or 4.3% of Canada’s road exports in 2009.

Figure 4.26: Top 10 Road Export Portals in Canada (2009)

(000's)

Figure 4.27: Top 10 Rail Export Portals in Western Canada (2009)

(000's)

Windsor - Ambassador Bridge

Fort Erie

Sarnia

Lacolle

Lansdowne

Emerson

Pacific Highway

Coutts

Philipsburg

North Portal

$40,789,907

$24,760,311

$16,641,041

$12,017,268

$6,621,538

$5,879,326

$5,318,496

$5,026,738

$2,771,553

$2,031,614

North Portal

Pacific Highway

Emerson

Kingsgate

Coutts

Huntington

Vancouver Marine Operations

Cascade

Prince Rupert

Sprague

$3,556,124

$2,129,990

$1,940,270

$1,476,935

$611,294

$40,294

$20,535

$20,321

$1,302

$309

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Figure 4.28: Top 10 Road Export Portals in Western Canada (2009)

(000's)

Figures 4.27 and 4.28 focus on Western Canadian portals’ exports by rail and road, respectively.

North Portal, Saskatchewan is the largest western Canadian rail export portal, moving $3.6

Billion in exports via rail in 2009. Emerson, Manitoba ranks third in western Canada, moving

$1.9 Billion.

In terms of truck transport, Emerson ranks first in western Canada, with $5.9 billion of road-

based exports.

Emerson

Pacific Highway

Coutts

North Portal

Huntington

Kingsgate

Boissevain

Osoyoos

Regway

Edmonton

$5,879,326

$5,318,496

$5,026,738

$2,031,614

$1,237,572

$879,098

$382,991

$263,598

$230,225

$136,813

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Shifting to 2009 imports, Figures 4.29 through 4.33 reflect the “backhaul” side of Canada’s

exports. In 2009, $193 Billion was imported into Canada by truck (Figure 4.29), or about $56

Billion more than we exported by truck in that same year.

Figure 4.29: Total Imports Road and Rail

(000's)

Rail-based imports were valued at $26 Billion in 2009 or about $23 Billion less than were

exported by rail in that same year. The net import-export difference between Canada and the

USA for combined road and rail movement in 2009 was about $33 Billion. However, “pipeline

and powerline” energy sector exports are a significant offsetting source of revenue for Canada’s

balance of payments.

Figures 4.30 and 4.31 summarize the value of imports through Canada’s Top 10 rail and road

portals, respectively. While the actual site is usually fairly well identified on the export side,

import records are more tied to the location where a shipment clears Customs. As such,

locations well within Canada’s borders are often cited as the “port of entry.” For example, the

Toronto “Long Room” is identified as the largest rail import “portal” ($5.4 Billion) although the

shipments likely entered through Windsor, Sarnia or Fort Erie before transiting to Toronto.

The Windsor Ambassador Bridge ranks first by road in Canada ($46.6 Billion). Emerson ranks

6th ($9.4 Billion). The Top 10 Canadian road import sites account for $147 Billion (76% of total).

$0 $50,000,000 $100,000,000 $150,000,000 $200,000,000

Rail

Road

$25,901,392

$192,909,635

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96

Figure 4.30: Top 10 Rail Import Portals for Canada (2009)

(000's)

Figure 4.31: Top 10 Road Import Portals for Canada (2009)

(000's)

Toronto - Main Long Room

Windsor - Ambassador Bridge

Sarnia

Edmonton

Montréal - Main Long Room

Vancouver - Main Long Room

Calgary

Fort Erie

Winnipeg

Emerson

$5,417,955

$4,817,202

$3,137,072

$2,460,118

$2,230,763

$1,214,492

$1,213,497

$923,322

$541,844

$68,867

Windsor - Ambassador Bridge

Sarnia

Fort Erie

Niagara Falls

Pacific Highway

Emerson

Lacolle

Toronto - Pearson Int. Airport

North Portal

Coutts

$46,611,969

$26,626,310

$17,949,232

$10,551,393

$10,455,422

$9,417,269

$7,990,640

$6,391,763

$5,866,104

$5,778,973

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97

Figures 4.32 and 4.33 summarize imports through the Top 10 Western Canadian rail and road

portals, respectively.

Figure 4.32: Top 10 Rail Import Portals for Western Canada (2009)

(000's)

Figure 4.33: Top 10 Road Import Portals in Western Canada (2009)

(000's)

Edmonton

Vancouver - Main …

Calgary

Winnipeg

Regina

Saskatoon

Lethbridge

Emerson

Kamloops

North Portal

$2,460,118

$1,214,492

$1,213,497

$541,844

$370,788

$274,459

$204,221

$68,867

$68,238

$36,753

Pacific Highway

Emerson

North Portal

Coutts

Vancouver - Main …

Kingsgate

Huntington

Winnipeg

Edmonton

Vancouver - Int. Airport

$10,455,422

$9,417,269

$5,866,104

$5,778,973

$2,466,200

$1,287,257

$1,058,491

$644,889

$635,819

$577,175

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Edmonton is the largest western Canadian rail portal, with $2.46 Billion clearing import

Customs in that city. As with Toronto (and other “inland” ports), this is simply a reflection of

where Customs were cleared, not where the commodities actually crossed the border into

Canada.

Emerson ranked 8th in Western Canada’s Top 10 in 2009, clearing $68.87 Million in rail imports.

Winnipeg ranked fourth in rail import value, clearing $541.84 Million.

Emerson is the second largest road import site in Western Canada, accounting for $9.4 Billion in

imports. The largest road import portal is the Pacific Highway in British Columbia, with $10.46

Billion. Together, these two hubs account for 52% of the road imports entering via Western

Canada.

It should be reiterated that import data are tied closely to the “clearing house” at which a

shipment is recorded as entering Canada. In contrast, export data are more closely linked with

the physical port through which a shipment left Canada. As such, reviewing the pattern of

exports rather than the pattern of imports (particularly for rail) is likely much more revealing in

understanding the relationship between Canada’s trade and use of transportation

infrastructure.

Port of Churchill

The Port of Churchill is located on Hudson Bay and serves as Canada’s only deep water arctic

seaport. Although the port was primarily developed to serve as an exporter of Western

Canadian agricultural products, the port’s operations have since expanded with the resupply of

northern communities in the Kivalliq and Qikiqtaalk regions of Nunavut.

Operations at the Port of Churchill can be classified primarily as either International or Domestic.

Although there can be some overlap, these classifications provide good distinctions between

port operations.

International

Port operations that are classified as International are those traveling from Churchill directly to

other countries (i.e. no stops at other major Canadian ports).

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99

Exports

In 2009, approximately $155 million worth of international exports left the Port of Churchill.

These exports consisted of nearly 530 thousand tonnes of wheat and durum leaving on 18

vessels bound for ports in Mexico, South America, Africa, and Europe.53

International cargo leaving from Churchill is primarily in the form of agricultural products

(grains and oilseeds) originating from the Canadian Wheat Board, the port’s largest customer

(in 2008, approximately 90% of the total traffic leaving the port was sourced from the CWB).54

Figure 4.34 summarizes the types and values of commodities exported through the port of the

previous five years.

Figure 4.34: Port of Churchill Export Commodities 2005-2009

The commodity listed as “Other” represents agricultural equipment shipped to Singapore in

2005, which accounted for less than 1% of the total value of goods shipped from the port that

year. During the past three years, international exports from Churchill have consisted entirely

of wheat. In 2009, wheat shipments from Churchill represented 2.6% of the total value of wheat

exported from Canada. In addition, approximately 50.3% of the total value of wheat

commodities leaving Manitoba (bound for international customers) cleared via Churchill.

53 Home. 12 Dec. 2009. Port of Churchill. <http://www.portofchurchill.ca/> 54 2008 November 06. Grain flows through Churchill despite tight supply.

< http://www.cwb.ca/public/en/newsroom/releases/2008/110608.jsp>

$92

$109

$175

$134

$155

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

2005 2006 2007 2008 2009

$ M

illi

on

s (2

009)

CA

D

Wheat (Including Durum, Meslin) Canola Seeds Peas Other

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Despite Churchill’s location, which would suggest service to ports in Russia, Greenland,

Iceland, United Kingdom, or Norway, exports over the previous five years have primarily been

bound for Europe (aside from the UK), (predominantly throughout the Mediterranean Sea) and

Africa.

Over the past 5 years, goods being shipped internationally from the Port of Churchill have

originated from the Western Canadian provinces (Manitoba, Saskatchewan, Alberta, and British

Columbia). Figure 4.35 differentiates the value of goods leaving the Port of Churchill on the

basis of the provinces of origin.

Figure 4.35: 2009 Port of Churchill Exports by Province of Origin

Over half (52%) of the value of exports was sourced from Saskatchewan, with 33% being

sourced from Alberta, with these two provinces collectively accounting for 85% of the value of

2009 exports through Churchill

Imports

Vessels arriving in Churchill have primarily arrived empty. In 2007 and 2008, Churchill

received shipments of fertilizer from Russia, destined for Saskatoon.55 Following the offloading,

the vessels were reloaded with wheat bound for Italy.56 Although these shipments of fertilizer

had been arranged with a buyer, the purpose of these deliveries was largely to serve as a

demonstration to promote the viability of an “Arctic Bridge” between Churchill and Russian

ports.57

55 Port of Churchill Welcomes Continued Ship Movements From Russia. 12 Dec. 2009.

<http://www.portofchurchill.ca/cms/index.php/cms/page/35> 56 (2007 October 17). Port of Churchill Welcomes First-Ever Ship From Russia.

<http://www.portofchurchill.ca/cms/index.php/cms/page/32> 57 Port of Churchill Welcomes Continued Ship Movements From Russia. 12 Dec. 2009.

<http://www.portofchurchill.ca/cms/index.php/cms/page/35>

Alberta,

$51,006,161

British

Columbia,

$166,950

Manitoba,

$22,799,144

Saskatchewan,

$81,272,818

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Domestic

In addition to international operations, the Port of Churchill also serves the Canadian Domestic

market on two levels; Northern Resupply and Short-Sea Shipping.

Northern Resupply

With no direct land link (i.e. road or rail) to southern Canada, communities, businesses,

industries, families, and individuals in Nunavut largely rely on an annual sealift to supply non-

perishable goods for the year. Sealift offers a cheaper alternative to purchasing goods that have

been shipped using costly airfreight. Among the major companies performing sealift services

(e.g. Northern Transportation Company Ltd (NTCL)., Nunavut Sealink & Supply, Nunavut

Eastern Arctic Shipping (NEAS)), many operate from the Saint Lawrence Seaway and travel

around the northern coast of Quebec, supplying remote communities along the way. Vessels

are able to resupply in Churchill before continuing on to communities on the Hudson Bay shore

of the Kivalliq (Keewatin) region. It is also possible to continue the sealift to communities in the

Qikiqtaalk (Baffin) region, although direct routing from the Saint Lawrence Seaway is the more

common routing.

In 2009, approximately 15,000 tonnes of dry goods and construction materials were shipped

from Churchill. This was a significant decline (representing approximately 30,000 tonnes) from

2008 due to the completion of the Meadowbank Mine in Nunavut. Variability in freight

requirements in response to a volatile mining sector makes it difficult to plan long-term for

Churchill’s freight infrastructure.

Short-Sea Shipping

In addition to northern supply, firms have also begun testing Churchill as a base for short-sea

shipping. In short-sea operations, firms will transport loads between domestic ports using

water ways which are often cheaper then overland methods such as rail or road. Beginning in a

2007 trial program, grain was shipped to the Port of Halifax from Churchill.58 Following the

success of these operations, an agreement was signed in 2009 between both ports to continue

developing this “grain bridge” and to establish other short-sea opportunities.59

Short-sea shipping serves as a backhaul load for vessels that are resupplying northern

communities. Backhaul loads provide cargo to vessels that otherwise would have traveled

empty, increasing their revenues and providing incentive to continue northern operations.

58 (2009 March 10). Halifax and Churchill team up to build bridge for grain, arctic business.

<http://www.greaterhalifax.com/en/home/about_the_partnership/media_centre/news_releases/chrurchill

pressrelease.aspx> 59 Ibid

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5. NASCO Trade

This section focuses on commodities traded and freight transportation modes used along the

NASCO corridor; running through “the central United States, eastern and central Canada, and

deep into Mexico.” (For maps and details about NASCO, see http://www.nascocorridor.com/).

The NASCO corridor is an initiative of the North America Corridor Coalition Inc.

The NASCO corridor connects a number of railways, including CN, Canadian Pacific, Union

Pacific, Kansas City Southern, Burlington Northern Santa Fe, and Ferromex. The main roads of

NASCO are Highway 1 and Highway 75 in Canada; I-35, I-94 and I-29 in the United States; and

Routes 80, 86, 40, 57 and 70 in Mexico. U.S. states along the corridor include: Illinois, Indiana,

Iowa, Kansas, Michigan, Minnesota, Missouri, Nebraska, North and South Dakota, Oklahoma,

Texas, and Wisconsin. NASCO crosses into Canada at Pembina, North Dakota, making

Winnipeg well-situated for trade with the U.S. and Mexico.

Exports60

Figure 5.1 displays Manitoba exports by road to U.S. and Mexican states along the NASCO

corridoor. In 2009, road exports to NASCO members were valued at approximately $2.6 billion.

This was a decline of 9% from 2008. Exports to NASCO states represented 64% of total

Manitoba cleared exports to the United States, by value. The dollar value of exports to NASCO

states by road has decreased by 20% since 2004.

Figure 5.1: Manitoba Exports by Road to NASCO States

60 Exports refer to goods which depart through Manitoba borders. Some of these goods originated in

other Canadian provinces.

$68 $84 $66 $55 $58 $58

$3,206 $3,135$2,969 $3,001

$2,841$2,574$3,137 $3,052

$2,903 $2,946$2,783

$2,517

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Figure 5.2 presents a breakdown of NASCO exports by road by U.S. state of destination (and

also includes Mexico). In 2009 the majority of Manitoba’s NASCO exports were to Minnesota,

North Dakota, Illinois, Iowa, Wisconsin and Texas. They accounted for 77% of road export

traffic to NASCO states in 2009.

From 2008 to 2009, growth in the value of goods cleared through Manitoba (to NASCO states),

ranged from -43% (South Dakota) to +1% (Minnesota). In 2009, Minnesota accounted for 24% of

the total value of NASCO exports. Other major destinations included North Dakota (19%),

Illinois (10%) and Iowa (10%). Overall, the total value of goods exported to NASCO partners

through Manitoba decreased by 11% from 2008 to 2009.

Figure 5.2: Ditribution of NASCO Exports from Manitoba, by Road

In 2009, the leading Manitoba export to Minnesota (by value) were buses, valued at $175

million, and accounting for 29% of total export value. The second largest commodity exported

to Minnesota were motor vehicle parts with a value of $41 million.

Soya Beans, buses, and sunflower seeds were the leading commodities exported to North

Dakota in 2009. Soya beans was the most valuable commodity at $79 million (16% of total

exports). Bus exports were the second highest valued commodity with values of $54 million

(bus frames, 11% of total exports) and $30 million (completed vehicles, 6% of total exports).

Since 2004 Manitoba exports to North Dakota have decreased by 12%.

In 2009, $58 million worth of goods was exported from Manitoba to Mexico. Between 2004 and

2009, the value of exports to Mexico decreased by 6%. This appears to be primarly due to a

decrease of pork exports. However, frozen potatoes experienced increasing demand. The most

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valuable export was frozen potatoes (over 41% of total Manitoba exports to Mexico), followed

by processed pork, valued at $5.7 million (10%).

Figure 5.3 displays Manitoba exports by rail to NASCO states. Exports to U.S. NASCO members

represented approximately 46% of the total value of Manitoba rail exports to the United States.

Figure 5.3: Manitoba Exports to NASCO Partners, by Rail

In 2009, total value of Manitoba exports by rail to Mexico was $43 million, representing 15% of

Manitoba’s total export traffic to NASCO partners. While 2008 was the busiest year for exports

to Mexico with a value of $84 million, in 2009 Manitoba exports to Mexico declined to $43

million. This was primarily due to a decline in exports of wheat, canola, and other cereals. These

commodities represented approximately 76% of the total value of Manitoban exports to Mexico

(by rail) in 2008. In 2009, these commodities represented only 2% of the total value of Manitoban

exports to Mexico.

$59

$21$36 $37

$84

$43

$255$224

$285

$335

$436

$287

$196 $204

$249

$298

$352

$245

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Figure 5.4 presents a breakdown of NASCO exports by rail by U.S. state of destination (and

Mexico). The major destinations of Manitoba exports were Illinois, Minnesota, Texas, North

Dakota, Iowa, and Nebraska, accounting for over 70% of Manitoba’s rail export traffic to

NASCO states, by value. From 2008 to 2009, change in the value of goods cleared through

Manitoba (to NASCO states), ranged from -83% (Michigan) to +19% (Texas).

Figure 5.4: Distribution of NASCO Exports from Manitoba, by Rail

From 2008 to 2009, exports to Illinois decreased by $50 million (42%), largely due to declining

exports of canola products, which was the highest valued commodity ($56 million) (exported to

Illinois in 2009), as well as declines in exports of automobile parts, building supplies, and scrap

materials.

In 2009, exports to Minnesota decreased by $18 million (29%). The most valuable commodities

exported to Minnesota were sodium ($7 million), Oats ($6 million), and urea ($4 million).

In 2009, the value of Manitoban exports (by rail) increased in only 4 jurisdictions mentioned in

Figure 5.4 (Iowa, Missouri, North Dakota, and Texas). Of these, Texas experienced the highest

growth in value from the previous year ($7 million, 19%). This was largely attributed to

increased exports of sodium chlorate ($20 million)which represented 45% of the total value of

exports to Texas (by rail).

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Imports

Figure 5.5 presents the value of Manitoba imports by road from NASCO origins. In 2009, road

imports from NASCO were worth over $6 billion, a decrease of 9% from the previous year.

Between 2004 and 2009, Manitoba imports from NASCO increased by 17% ($887 million).

Figure 5.5: Manitoba Imports from NASCO partners, by Road

In 2009, Manitoba imports by road from U.S. NASCO states were worth $5.8 billion. This

represented approximately 64% of the total value of Manitoba imports by road from the United

States. This was a decline of $463 million from the previous year, largely due to decreasing

imports from Wisconsin, Texas, and Indiana.

In 2009, Manitoba imported $270 million worth of goods from Mexico by road, a decrease of

10% from the previous year.

$179 $210 $221 $259 $293 $270

$5,180

$5,792 $6,000 $6,068$6,632

$6,068

$5,001

$5,582 $5,780 $5,809

$6,339

$5,797

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Figure 5.6 provides a breakdown of NASCO imports by road by U.S. state of origin (and

Mexico). In 2009, the majority of Manitoba’s NASCO imports were from Illinois, Minnesota,

Wisconsin, North Dakota, Texas and Iowa. They accounted for $4.5 billion (or 75%) of the road

import traffic from the NASCO corridor in 2009.

Imports from Illinois have increased by 47% since 2004, partly due to increased imports of

dump trucks. In 2009, dump trucks represented $204 million (14% of total road imports). Since

2005 this has been the leading commodity imported from Illinois, followed by newspapers and

periodicals, valued at $108 million (8% of the total). Illinois accounted for 23% of total Manitoba

imports from NASCO in 2009.

The second largest origin of NASCO imports to Manitoba was Minnesota, at $1.0 billion, or 18%

of total Manitoba imports from NASCO. From 2008 to 2009, imports from Minnesota declined

by 5%. In 2009, the largest commodities imported by road were snowmobiles ($149 million),

followed by automobiles ($110 million).

In 2009, approximately 4% of Manitoba’s imports from NASCO originated from Mexico. From

2008 to 2009, the value of Manitoba imports from Mexico decreased by 8%. The major

commodities coming from Mexico were automotive parts, cigarettes, and furniture.

Figure 5.6: Distribution of NASCO Imports to Manitoba, by Road

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Figure 5.7 displays Manitoba imports from NASCO partners, originating by rail. In 2009, rail

imports were valued at $283 million (a decrease of 26% from 2008). The list of top commodities

(by value) was quite diverse, including copper, automobiles, herbicides, rail tankers, and

automobile parts.

In 2009, Manitoba imported $263 million in goods from U.S. NASCO states, which amounted to

48% of all rail imports from the United States. From 2008 to 2009, the value of rail imports from

U.S. NASCO origins decreased by 29%.

During this period, goods imported to Manitoba from Mexico were valued at $21 million

(representing 7% of total imports from NASCO origins). Imports from Mexico increased 76%

from 2008 to 2009, and 127% from 2004 to 2009.

Figure 5.7: Manitoba Imports from NASCO Partners, by Rail

$9$28 $21 $9 $12 $21

$220

$339

$256 $261

$384

$283

$210

$311

$236$251

$372

$263

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Figure 5.8 shows NASCO imports by rail. The value of goods coming in by rail from NASCO

states has fluctuated year-to-year. In 2009, the majority of Manitoba’s NASCO imports

originated from Texas, Illinois, Minnesota, Wisconsin, and Missouri. These states collectively

represented 69% of the total value of NASCO imports to Manitoba.

Figure 5.8: NASCO Imports to Manitoba by Rail

Between 2008 and 2009, the value of goods imported into Manitoba declined among 8 of the 14

NASCO members. These declines ranged from $3 million (Indiana) to $68 million (Michigan).

During this period, the value of rail imports from Michigan declined from $85 million to $17

million (approximately 80%). The previous year (2008) was significant in regards to the value of

imported goods from Michigan into Manitoba. These imports represented the highest value of

annual imports from a NASCO state between 2004 and 2009. This spike can largely be

attributed to an import of refined copper in 2008 that was valued at approximately $53 million

(2009). This commodity represented 63% of the total value of goods imported from Michigan

that year and was an increase of 185% from the previous year. The value of refined copper

imports were reduced to $8 million in 2009 (a decline of 86% from 2008 and 59% from 2007).

Similarly, imports of unrefined copper increased from $1 million in 2007 to $7 million in 2008.

Imports of unrefined copper were worth $1.9 million in 2009 (an increase of 82% from 2007).

In addition, there was a purchase of petroleum that was valued at nearly $13 million (2009) and

represented approximately 15% of the total value of goods imported from Michigan that year.

This appears as a one time purchase, as this commodity was not shipped by rail in the year

prior (2007) or after (2009).

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In 2009, rail imports from Illinois declined by 33% from the previous year (a decline of $21

million). This was due to reduced imports of several assorted commodities. These commodities,

which included petroleum, processed metals, animal feed, and anti-freeze, were valued

between $2 to $6 million in 2008 and were among the most valuable commodities imported

from Illinois. In 2009, the value of many of these commodities was worth less than $1 million. In

addition, in 2008, imports of ammonia were worth $9 million and represented 14% of all Illinois

rail imports. In 2009, this commodity did not clear into Manitoba by rail.

The previous discussion highlights the volatility in Manitoba trade with any one NASCO

partner, and underscores the need to retain diversity in our stable of trading partners. Such

diversity could assist Manitoba in ensuring stability in its trade with our southern neighbours.

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6. Manitoba International Trade

Exports

In 2009, Manitoba exported over $10.7 billion in commodities to other countries, a 3% increase

from 2008 ($10.3 Billion).

Top 10 Export Commodities

In 2009, major Manitoba exports included a mix of agricultural goods, raw materials, finished

goods, and energy products. Overall, the “Top 10” commodities represented 44% of total value

of Manitoba goods that were exported in 2009. These same commodities accounted for 38% of

the total value of Manitoba exports in 2008. The Top 10 export commodities in 2009 are listed

below in Table 6.1.

Table 6.1: Top 10 Export Commodities from Manitoba

Top 10 Export Commodities Value

($ Millions) %

Wheat, nes61 and meslin $982 9%

Low erucic acid rape or colza seeds, whether or not broken $756 7%

Nickel unwrought, not alloyed $540 5%

Petroleum oils and oils, obtained from bituminous minerals, crude $489 5%

Copper unrefined, copper anodes for electrolytic refining $343 3%

Electrical energy $331 3%

Potatoes, prepared or preserved other than by vinegar or acetic acid, frozen $324 3%

Aircraft parts nes $324 3%

Low erucic acid rape (canola) or colza oil and its fractions, refined $310 3%

Repairs $295 3%

Total of Top 10 $4,694 44%

Total of all Export Commodities $10,726

Between 2008 and 2009 there was little shift among the major export commodities. Seven of the

commodities listed in Table 5 were ranked among the top exports in 2008, with the top four

having the same ranking in both years. Commodities that entered the Top 10 in 2009 included

aircraft parts (nes), copper, and electricity. Some commodities that dropped out of the Top 10

ranking (diesel powered buses, live bovine, and oats) still ranked among the top 20 Manitoba

exports.

61 Not Elsewhere Specified (NES)

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Top 10 International Export Partners

In 2009, approximately 87% of all Manitoba exports were destined for only ten countries.

Among these countries, exports appeared to be regionalized with concentrations in North

America, Asia, and the Middle East. Figure 6.1 presents the distribution of Manitoba exports

among major international export destinations.

Figure 6.1: 2009 Manitoba’s Top Countries of Export

($ Millions)

The majority of Manitoba exports are shipped to the United States. In 2009, approximately 67%

of the total value of Manitoba exports was destined for the United States. This was a decline of

2% from 2008. The top four recipients of Manitoba exports (United States, China, Japan, and

Mexico) remained unchanged from 2008, though the ranking shifted, as the distribution of

exports to China tripled from 2% to 6%, overtaking Japan which increased from 3% to 5%. New

entrants among the major export destinations in 2009 included Hong Kong, Australia, Saudi

Arabia, and Iraq. These replace previously ranked countries United Arab Emirates, Taiwan,

Iran, and Indonesia.

$1,404

$73

$94

$96

$109

$116

$182

$266

$511

$648

$7,228

0% 10% 20% 30% 40% 50% 60% 70% 80%

Other

Russian Federation

Iraq

United Kingdom

Saudi Arabia

Australia

Hong Kong

Mexico

Japan

China

United States

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Mode of International Export for Manitoba 2009

A commodity’s characteristics can be a major determinant in the choice of mode to move that

product to its destination. The concentration of road (44%) and rail (16%) traffic (Figure 6.2)

reflects the commodity mix which emphasizes low value and heavy weight goods being

shipped (relatively) short distances (United States), which would not be appropriate or cost

effective to ship by air. In addition, the topography and geography of Manitoba supports direct

road and rail traffic to the United States (as opposed to freshwater or marine traffic).

A summary of the mode of transport of Manitoba’s exports is presented in Figure 6.262.

Figure 6.2: Mode of Manitoba Exports 2009

($ Millions)

Compared to 2008, the value of goods shipped by road and rail each decreased by 5%, while air

decreased by 8%.

62 The transportation mode “Other” represents intermodal traffic or shipments in which the mode of

transport was not listed.

Air, $267 Energy, $800

Other, $114

Rail, $1,727

Road, $4,773

Water, $3,045

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Figure 6.3 displays the value of Manitoba exports on the basis of mode of transportation from

2003 to 2009.

Figure 6.3: Modes of Manitoba Exports- Historical

During this period (2003-2009), the value of goods shipped by road declined by 15%. This was

the only mode that experienced a decrease in value during this period.63 Increases in the value

of goods moved by water and air (31% and 1.7% respectively) may reflect Manitoba exports

traveling to more destinations outside of North America (away from easily accessible road and

rail networks).

63 The mode “Other” declined by 8%, though this may be a reflection of record keeping rather than

transportation practices.

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Imports

Due to the difficulty of tracking a single item past the port of clearance, it is important to note

that these imports only represent goods that entered into Canada through Manitoba. Following

their entry, these goods may have travelled farther to other provinces.

In 2009, goods imported through Manitoba ports and borders were valued at approximately $13

Billion. This was a decline of 11% from the previous year.

Top 10 Import Commodities by Value

Table 6.2 displays the top 10 commodities imported through Manitoba based on value in 2009.

Table 6.2: Top 10 Import Commodities to Manitoba by Value

Top 10 Import Commodities Value

($ Millions) %

Parts of turbo-jets or turbo-propellers $300 2%

Wheeled tractors, nes $228 2%

Newspapers, journals and periodicals, nes $213 2%

Dump trucks designed for off-highway use $210 2%

Herbicide, anti-sprouting & plant-growth regs,forms/pack for retail sale or prep/art $207 2%

Combine harvester-threshers $194 1%

Snowmobiles, golf cars and similar vehicles $167 1%

Parts of cranes, work-trucks, shovels, and other construction machinery $158 1%

Petroleum oils and oils, obtained from bituminous minerals, crude $140 1%

Automobiles with reciprocating piston engine displacing not more than 1,000 cc $132 1%

Total Top 10 $1,947 15%

Total Imports $12,965

In 2009, the highest valued imports entering into Manitoba were classified as aircraft parts.

Overall, these goods represented 2% of the total value of imports entering into Manitoba.

Between 2008 and 2009, the total value of imported aircraft parts increased by 165% and shifted

in rank from 13th to 1st. Additional high ranking imports (in terms of value) included tractors,

newspapers and periodicals, and dump trucks. Petroleum, which was previously ranked 5th in

2008, fell to 9th in 2009, with an overall decline of 17%.

It should be noted that the Top 10 exports represented 44% of the value of Manitoba’s exports,

while the Top 10 imports collectively only accounted for 15% of imports, with the single largest

commodity only accounting for 2%. As such, relatively small shifts in the dollar values of

commodities imported can create volatility in the ranking of those commodities.

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Top 10 International Import Partners by Value

Although the United States is the dominant player, the provincial economy holds a relatively

diversified portfolio of trading partners. As such it is important to review in depth exactly

which countries Manitoba trades with and what exactly is being traded.

Figure 6.4 presents the Top 10 import partners to Manitoba in 2009.

Figure 6.4: 2009 Manitoba’s Top Countries64 of Imports

($ Millions)

In 2009, the United States was the largest supplier of imports to Manitoba (81%). In terms of

value, China decreased by 12% from 2008. In 2009 the United Kingdom re-entered the list of

major import partners, ranking 7th with a value of $118 Million (an increase of 43% from 2008).

This growth was due (in part) to an increase in imports of herbicide ($33 million) and tractors

($7 million) in 2009. Overall, the top 10 import partners accounted for 95% of the total value of

imports into Manitoba.

64 In 2009, Canada ranked 6th among the largest international suppliers to Manitoba. Imports that are

classified as Canadian often represent goods that were produced in Canada, exported to another country

for sale, and then re-entered Canada unaltered.

$630

$58

$85

$97

$118

$119

$126

$227

$360

$596

$10,549

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Other

France

Taiwan

Italy

United Kingdom

Canada

Japan

Germany

Mexico

China

United States

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Mode of International Imports for Manitoba 2009

In 2009 the primary mode of transportation for goods moving into Manitoba was by road,

representing 82% of the total value of imports. Rail accounted for roughly 5% of the value,

water65 transportation to Manitoba was responsible for 4%, while air transportation was utilized

for 8% of the value. Pipeline and Energy transmission was responsible for less than 1%. The

modal category of “other” captured approximately 1% of the total value of imported goods.

Figure 6.5: Manitoba Modes of Imports (2009)

($ Millions)

From 2008 to 2009, the modal distribution of imports into Manitoba was fairly stable, though

the total value of imports declined by 11%. With the exception of air, each of the modes

experienced a decline during this period. The value of Manitoba road imports decreased by 11%

(approximately $1.2 Billion), while imports of energy, water, rail, and “other” decreased at rates

of 47%, 12%, 28%, and 12% respectively.

65 Water based imports do not represent the Port of Churchill. Instead these are likely goods that arrived

to Canada by way of ocean, Great Lakes, or St. Lawrence Seaway which were then transferred to road or

rail and shipped to Manitoba where customs were cleared.

Air, $1,050

Energy

$45

Other, $140

Rail, $611

Road, $10,665

Water, $454

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Mode of Imports - Manitoba Historic Comparison

The level of activity (based on commodity value) has varied among each of the transportation

modes from 2003 to 2009. Figure 6.6 highlights the value of goods transported by road. Figure

6.7 expands the value scale to provide greater detail of the other (non-road) modes and their

performance over the past seven years.

Figure 6.6: Modes of Manitoba Imports- Historical

From 2003 to 2009, the value of goods being imported by road increased by 13% with the only

decline occurring in 2009 (10%). From 2003 to 2008, the value of road traffic had increased 26%,

at an average annual rate of 5%.

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

2003 2004 2005 2006 2007 2008 2009

$ M

illi

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009)

Air Energy Other Rail Road Water

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Figure 6.7: Modes of Manitoba Imports- Historical (Road Removed)

From 2003 to 2009, the value of imports into Manitoba by air declined by 18%. This actually

represents a recovery, as 2009 recorded the second highest value (nearly $1.1 Billion) during this

period. The value of annual air imports was in decline between 2003 and 2006, reaching a low

of $778 million66 in 2006. Since then, the value of commodities being received by air has

increased at an average annual rate of 11%. Rail imports fluctuated, with relatively high values

in 2005 and 2008. Overall, the value of rail imports has increased 13% from 2003 to 2009.

Imports by water increased by 17% during this period, though at a gradual rate marked with a

small decline (2%) in 2006 and a larger decline (12%) in 2009.

66 Adjusted for inflation.

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

2003 2004 2005 2006 2007 2008 2009

$ M

illi

on

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Air Energy Other Rail Water

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Data Tables

1. The Economic Impact of Transportation in Manitoba

Data Table 1: Total GDP from Transportation in Manitoba

($ Billions)

2004 2005 2006 2007 2008

$2.89 $3.20 $3.21 $3.27 $3.37

Manitoba Bureau of Statistics

Data Table 2: Total GDP from Transportation in Manitoba by Leverage Component

($ Billions)

2004 2005 2006 2007 2008

Direct $1.47 $1.64 $1.64 $1.68 $1.72

Indirect $0.66 $0.72 $0.72 $0.74 $0.76

Induced $0.76 $0.84 $0.84 $0.85 $0.88

Total $2.89 $3.2 $3.2 $3.27 $3.36

Manitoba Bureau of Statistics

Data Table 3: Contribution to Manitoba GDP by Transportation Mode

($ Billions)

2004 2005 2006 2007 2008

Aviation $0.61 $0.62 $0.54 $0.55 $0.57

Couriers $0.21 $0.21 $0.22 $0.22 $0.23

Trucking $1.00 $1.13 $1.25 $1.29 $1.34

Rail $0.89 $1.05 $1.00 $1.01 $1.01

Bus $0.18 $0.19 $0.20 $0.20 $0.21

Manitoba Bureau of Statistics

Data Table 4: Trend in Air GDP by Leverage Component

($ Millions)

2004 2005 2006 2007 2008

Direct $241 $245 $216 $219 $225

Indirect $202 $205 $181 $183 $189

Induced $165 $167 $147 $149 $154

Total $608 $616 $544 $552 $568

Manitoba Bureau of Statistics

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Data Table 5: Trend in Rail GDP by Leverage Component

($ Millions)

2003 2004 2005 2006 2007 2008

Direct $557 $573 $674 $639 $647 $649

Indirect $113 $116 $136 $129 $131 $131

Induced $197 $203 $238 $226 $229 $230

Total $868 $892 $1,048 $995 $1,006 $1,011

Manitoba Bureau of Statistics

Data Table 6: Trend in Trucking GDP by Leverage Component

($ Millions)

2003 2004 2005 2006 2007 2008

Direct $467 $490 $551 $611 $629 $657

Indirect $253 $265 $298 $331 $341 $356

Induced $234 $246 $277 $307 $316 $330

Total $955 $1,001 $1,126 $1,249 $1,285 $1,343

Manitoba Bureau of Statistics

Data Table 7: Leverage Ratios for Manitoba Total GDP by Transportation Mode in 2008

Bus Aviation Couriers Trucking Rail

1.69 1.52 1.09 1.04 0.55

Manitoba Bureau of Statistics

Data Table8: Total Labour Income from Transportation in Manitoba

($ Billions)

2004 2005 2006 2007 2008

$1.74 $1.86 $1.82 $1.85 $1.74

Manitoba Bureau of Statistics

Data Table 9: Total Labour Income from Transportation in Manitoba by Leverage

Component

($ Billions)

2003 2004 2005 2006 2007 2008

Direct $0.95 $0.98 $1.06 $1.03 $1.05 $1.06

Indirect $0.37 $0.39 $0.41 $0.40 $0.41 $0.41

Induced $0.36 $0.37 $0.40 $0.39 $0.39 $0.40

Total $1.68 $1.74 $1.86 $1.82 $1.85 $1.74

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Data Table 10: Total Labour Income from Transportation in Manitoba by Mode

($ Billions)

2004 2005 2006 2007 2008

Aviation $0.37 $0.30 $0.26 $0.26 $0.26

Couriers $0.11 $0.11 $0.11 $0.11 $0.12

Trucking $0.67 $0.79 $0.84 $0.86 $0.87

Rail $0.45 $0.52 $0.47 $0.46 $0.46

Bus $0.14 $0.14 $0.15 $0.15 $0.15

Manitoba Bureau of Statistics

Data Table 11: Trend in Air Labour Income by Leverage Component

($ Millions)

2003 2004 2005 2006 2007 2008

Direct $197 $177 $147 $127 $126 $126

Indirect $123 $111 $92 $79 $78 $79

Induced $86 $78 $64 $55 $55 $55

Total $405 $366 $303 $261 $259 $260

Manitoba Bureau of Statistics

Data Table 12: Trend in Rail Labour Income by Leverage Component

($ Millions)

2003 2004 2005 2006 2007 2008

Direct $294 $289 $332 $299 $295 $296

Indirect $67 $66 $76 $68 $67 $68

Induced $98 $96 $110 $99 $98 $98

Total $459 $451 $518 $466 $461 $462

Manitoba Bureau of Statistics

Data Table 13: Trend in Trucking Labour Income by Leverage Component

($ Millions)

2003 2004 2005 2006 2007 2008

Direct $308 $355 $416 $441 $454 $457

Indirect $152 $176 $206 $218 $224 $226

Induced $124 $143 $168 $178 $183 $184

Total $584 $674 $790 $837 $861 $868

Manitoba Bureau of Statistics

Data Table 14: Leverage Ratios for Manitoba Labour Income by Transportation Mode in 2008

Aviation Trucking Couriers Rail Bus

1.06 0.90 0.69 0.56 0.45

Manitoba Bureau of Statistics

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Data Table 15: Total Employment from Transportation in Manitoba

2004 2005 2006 2007 2008

49,100 52,189 50,791 50,742 51,339

Manitoba Bureau of Statistics

Data Table 16: Employment by Leverage Component from Transportation in Manitoba

2002 2003 2004 2005 2006 2007 2008

Direct 24,460 24,277 25,203 26,970 26,272 26,254 26,572

Indirect 10,993 10,934 11,312 11,931 11,636 11,643 11,771

Induced 12,314 12,161 12,586 13,289 12,882 12,845 12,996

Total 47,767 47,372 49,100 52,189 50,791 50,742 51,339

Manitoba Bureau of Statistics

Data Table 17: Total Employment from Transportation in Manitoba by Mode

2004 2005 2006 2007 2008

Aviation 8,511 7,159 6,680 6,570 6,660

Couriers 3,754 3,758 3,725 3,758 3,887

Trucking 23,495 27,677 27,894 28,278 28,452

Rail 7,938 8,423 7,500 7,272 7,370

Bus 5,402 5,173 4,992 4,864 4,970

Manitoba Bureau of Statistics

Data Table 18: Trend in Air Employment by Leverage Component

2003 2004 2005 2006 2007 2008

Direct 3,638 3,412 2,870 2,678 2,634 2,670

Indirect 3,002 2,815 2,368 2,210 2,173 2,203

Induced 2,435 2,283 1,921 1,792 1,763 1,787

Total 9,074 8,511 7,159 6,680 6,570 6,660

Manitoba Bureau of Statistics

Data Table 19: Trend in Rail Employment by Leverage Component

2003 2004 2005 2006 2007 2008

Direct 4,365 4,275 4,540 4,041 3,918 3,971

Indirect 1,320 1,295 1,370 1,221 1,184 1,200

Induced 2,415 2,370 2,515 2,238 2,170 2,199

Total 8,100 7,940 8,425 7,500 7,272 7,370

Manitoba Bureau of Statistics

Data Table 20: Trend in Trucking Employment by Leverage Component

2003 2004 2005 2006 2007 2008

Direct 10,875 12,215 14,385 14,500 14,700 14,790

Indirect 5,155 5,790 6,820 6,873 6,968 7,010

Induced 4,890 5,490 6,470 6,521 6,611 6,651

Total 20,920 23,495 27,675 27,894 28,278 28,452

Manitoba Bureau of Statistics

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Data Table 21: Leverage Ratios for Manitoba Total Employment by Transportation Mode in

2008

Aviation Trucking Rail Bus Couriers

1.49 0.92 0.86 0.81 0.62

Manitoba Bureau of Statistics

Data Table 22: Trend in Air Expenditures by Leverage Component

2003 2004 2005 2006 2007 2008

Direct $840 $843 $854 $754 $765 $787

Indirect $417 $418 $424 $374 $379 $390

Induced $270 $271 $275 $243 $246 $253

Total $1,527 $1,532 $1,553 $1,371 $1,390 $1,430

Manitoba Bureau of Statistics

Data Table 23: Trend in Rail Expenditures by Leverage Component

2003 2004 2005 2006 2007 2008

Direct $834 $857 $1,007 $956 $967 $971

Indirect $208 $214 $252 $239 $242 $243

Induced $325 $334 $392 $373 $377 $378

Total $1,367 $1,406 $1,652 $1,568 $1,586 $1,592

Manitoba Bureau of Statistics

Data Table 24: Trend in Trucking Expenditures by Leverage Component

2003 2004 2005 2006 2007 2008

Direct $1,087 $1,140 $1,283 $1,422 $1,464 $1,530

Indirect $529 $554 $624 $692 $712 $744

Induced $386 $405 $456 $505 $520 $543

Total $2,002 $2,099 $2,363 $2,619 $2,696 $2,818

Manitoba Bureau of Statistics

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2. Logistics and the Regional Canadian Economy

Data Table 25: Population by Region

PROVINCE 2004 2005 2006 2007 2008

BC 4,167,424 4,215,574 4,263,784 4,334,464 4,407,745

AB 3,261,151 3,346,914 3,452,379 3,527,567 3,622,025

SK 997,164 993,356 992,595 1,005,840 1,018,894

MB 1,174,737 1,179,133 1,185,242 1,197,423 1,209,111

ON 12,436,034 12,577,928 12,708,345 12,840,049 12,985,677

QUE 7,553,487 7,598,756 7,649,790 7,704,948 7,777,410

N.B. 749,176 747,608 744,928 746,379 747,668

N.S. 939,755 938,764 937,332 936,698 937,434

P.E.I. 137,691 138,127 138,051 138,615 140,327

NFLD 516,930 513,764 509,405 507,436 507,611

YUK 31,702 32,128 32,364 32,673 33,414

NWT 43,349 43,526 43,253 43,303 43,615

NUN 29,801 30,399 30,835 31,301 31,696

Canada 32,038,401 32,355,977 32,688,303 33,046,696 33,462,627

Western Canada 9,705,328 9,841,030 10,000,452 10,172,571 10,366,500

Eastern Canada 22,333,073 22,514,947 22,687,851 22,874,125 23,096,127

CANSIM Multidimensional, Table 510005

Data Table 26: Total GDP by Region

$000,000

PROVINCE 2004 2005 2006 2007 2008

BC $135,021 $141,339 $147,120 $151,162 $151,532

AB $157,088 $164,652 $175,172 $179,275 $179,754

SK $35,833 $36,820 $36,500 $37,744 $39,415

MB $34,701 $35,703 $36,938 $38,269 $39,127

ON $458,650 $471,000 $481,225 $492,346 $491,114

QUE $232,260 $236,228 $239,668 $246,300 $249,428

N.B. $20,186 $20,496 $20,978 $21,036 $21,051

N.S. $25,250 $25,593 $25,837 $26,231 $26,865

P.E.I. $3,508 $3,545 $3,639 $3,732 $3,759

NFLD $15,763 $16,119 $16,636 $18,186 $18,319

YUK $1,232 $1,263 $1,330 $1,366 $1,425

NWT $3,438 $3,410 $3,426 $3,774 $3,485

NUN $947 $956 $983 $1,081 $1,177

Canada $1,123,878 $1,157,124 $1,189,452 $1,220,501 $1,226,450

Western Canada $368,260 $384,144 $401,468 $412,670 $415,914

Eastern Canada $755,617 $772,980 $787,984 $807,831 $810,535

CANSIM Multidimensional, Table 3790025

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Data Table 27: Total GDP from Transportation and Warehousing Sector by Region

$000,000

PROVINCE 2004 2005 2006 2007 2008

BC $8,447 $9,208 $9,530 $9,748 $9,749

AB $8,284 $9,041 $9,811 $10,196 $10,216

SK $2,169 $2,273 $2,300 $2,376 $2,396

MB $2,376 $2,537 $2,639 $2,734 $2,735

ON $17,917 $18,765 $19,063 $19,116 $19,164

QUE $10,059 $10,392 $10,554 $10,741 $10,791

N.B. $1,083 $1,109 $1,172 $1,179 $1,179

N.S. $1,037 $1,016 $1,037 $1,047 $1,085

P.E.I. $84 $90 $89 $91 $97

NFLD $461 $504 $512 $518 $524

YUK $33 $37 $35 $37 $39

NWT $203 $244 $231 $247 $253

NUN $20 $18 $16 $17 $19

Canada $52,171 $55,232 $56,989 $58,047 $58,247

Western Canada $21,531 $23,356 $24,562 $25,355 $25,406

Eastern Canada $30,640 $31,876 $32,428 $32,692 $32,841

CANSIM Multidimensional, Table 3790025

Data Table 28: Direct GDP of Sectors of the Manitoba Economy

$000,000

Sector 2004 2005 2006 2007 2008

Finance and Insurance $6,462 $6,625 $6,862 $7,056 $7,225

Manufacturing $4,432 $4,589 $4,519 $4,901 $4,761

Health Care and Social Assistance $2,952 $2,931 $2,942 $3,028 $3,090

Retail Trade $2,233 $2,311 $2,423 $2,682 $2,849

Transportation and Warehousing $2,376 $2,537 $2,639 $2,734 $2,735

Public Administration $2,523 $2,554 $2,617 $2,661 $2,696

Wholesale Trade $1,960 $2,081 $2,295 $2,349 $2,446

Educational Services $1,893 $1,924 $1,945 $2,016 $2,069

Agriculture, Forestry, Fishing $1,729 $1,652 $1,808 $1,798 $1,995

Construction $1,379 $1,438 $1,623 $1,692 $1,891

Utilities $1,277 $1,583 $1,555 $1,568 $1,557

Information and Cultural Industries $1,159 $1,163 $1,206 $1,228 $1,254

Other Services $1,040 $1,032 $1,047 $1,104 $1,129

Professional Services $907 $928 $1,000 $1,023 $1,055

Accommodation and Food Services $792 $790 $771 $778 $798

Administrative and Support Services $641 $640 $661 $680 $686

Mining and Oil and Gas $599 $596 $670 $654 $637

Arts, Entertainment and Recreation $341 $342 $331 $338 $344

CANSIM Multidimensional, Table 3790025

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Data Table 29: Direct Employment in Transportation and Warehousing Sector by Region

(000’s)

PROVINCE 2004 2005 2006 2007 2008

BC 93.54 94.81 97.83 100.29 101.14

AB 68.81 71.50 76.35 80.14 80.57

SK 19.08 18.92 18.67 19.04 19.16

MB 32.29 31.40 32.64 34.22 36.76

ON 222.49 232.78 240.56 246.03 247.94

QUE 144.77 146.91 148.51 155.29 155.74

N.B. 15.91 15.98 16.27 16.36 16.40

N.S. 16.14 16.53 16.92 17.36 17.32

P.E.I. 2.40 2.40 2.41 2.49 2.61

NFLD 7.63 7.81 8.26 8.70 8.50

YUK 1.55 1.48 1.56 1.62 1.78

NWT 2.83 2.90 2.88 3.09 3.32

NUN 0.53 0.67 0.73 0.73 0.72

Canada 621.7 629.4 640.9 652.7 691.9

Western Canada 219 222 231 239 243

Eastern Canada 409 422 433 446 449

CANSIM Multidimensional, Table 2810042

Data Table 30: Total Employment All Industries by Region

(000’s)

PROVINCE 2004 2005 2006 2007 2008

BC 1670.483 1713.568 1792.229 1859.547 1908.827

AB 1469.072 1528.379 1628.294 1699.95 1746.518

SK 389.359 398.229 408.108 418.268 430.818

MB 510.527 514.932 524.947 542.69 556.958

ON 5247.993 5314.557 5438.286 5542.886 5637.568

QUE 3171.504 3209.94 3258.236 3303.37 3321.036

N.B. 298.415 296.215 301.588 304.978 309.452

N.S. 371.582 376.82 383.681 384.064 392.418

P.E.I. 59.036 59.692 59.035 60.634 60.561

NFLD 177.653 174.821 177.135 183.099 188.649

YUK 16.6 17.005 17.791 18.607 19.342

NWT 23.596 24.207 22.891 23.945 25.917

NUN 9.88 9.746 10.155 10.538 10.401

Canada 13415.7 13638.1 14022.4 14352.6 14608.5

Western Canada 4,090 4,206 4,404 4,574 4,699

Eastern Canada 9,326 9,432 9,618 9,779 9,910

CANSIM Multidimensional, Table 2810042

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Data Table 31: Direct Paid Employment by Sector in Manitoba

Sector 2004 2005 2006 2007 2008

Agriculture, Forestry, Fishing N/A 618 N/A N/A N/A

Mining and Oil and Gas N/A 1,929 N/A N/A N/A

Utilities N/A 7,471 N/A N/A N/A

Construction 20,713 21,251 22,782 24,705 25,840

Manufacturing 61,050 62,330 62,578 62,440 61,635

Wholesale Trade 22,359 22,003 22,553 23,969 23,386

Retail Trade 61,358 62,397 63,189 66,434 70,871

Transportation and Warehousing 32,286 31,398 32,641 34,216 36,762

Information and Cultural Industries 11,703 12,088 10,842 10,908 11,285

Finance and Insurance 34,797 37,321 38,585 39,900 39,385

Professional Services 16,111 15,918 15,663 15,969 15,898

Administrative and Support Services 20,959 23,320 24,669 25,176 26,727

Educational Services 44,584 46,156 45,841 45,786 46,159

Health Care and Social Assistance 64,555 64,737 66,019 69,246 76,813

Arts, Entertainment and Recreation 6,075 6,037 6,183 6,335 7,886

Accommodation and Food Services 35,471 34,319 35,838 37,303 38,464

Other Services 18,392 18,226 18,675 19,700 19,492

Public Administration 36,823 36,394 37,004 37,630 46,968

CANSIM Multidimensional, Table 2810042

Data Table 32: Total Labour Income from Transportation and Warehousing Sector by Region

PROVINCE 2004 2005 2006 2007 2008

BC $5,686,229 $5,842,959 $6,294,152 $6,537,303 $6,774,423

AB $5,027,809 $5,558,398 $6,424,029 $6,785,904 $7,348,926

SK $1,015,006 $1,082,562 $1,161,448 $1,236,123 $1,328,324

MB $1,536,853 $1,595,516 $1,662,676 $1,710,686 $1,780,036

ON $12,678,110 $13,212,424 $14,233,583 $14,504,012 $14,956,580

QUE $7,248,836 $7,257,515 $7,520,079 $7,798,084 $8,061,129

N.B. $739,695 $705,024 $703,000 $726,163 $747,582

N.S. $788,987 $774,802 $822,597 $840,342 $861,691

P.E.I. $59,572 $64,087 $69,535 $73,140 $77,343

NFLD $411,647 $420,515 $466,207 $481,398 $492,700

YUK $33,965 $32,825 $34,473 $39,796 $42,533

NWT $114,923 $120,854 $127,460 $146,446 $157,800

NUN $29,835 $22,366 $23,961 $26,184 $28,386

Canada $35,371,467 $36,689,847 $39,543,200 $40,905,581 $42,657,453

Western Canada $13,444,620 $14,255,480 $15,728,199 $16,482,442 $17,460,428

Eastern Canada $21,926,847 $22,434,367 $23,815,001 $24,423,139 $25,197,025

CANSIM Multidimensional, Table 3830009

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Data Table 33: Total Labour Income per Capita by Region, All Industries

($000)

PROVINCE 2004 2005 2006 2007 2008

BC $80,599,368 $85,805,490 $93,962,849 $99,893,624 $105,505,721

AB $81,883,346 $93,034,127 $107,029,857 $119,143,810 $129,118,497

SK $16,312,859 $17,234,519 $18,726,114 $20,178,062 $21,873,766

MB $20,490,906 $21,376,827 $22,602,881 $24,257,195 $25,750,401

ON $277,077,022 $289,994,664 $304,517,363 $318,922,256 $332,729,242

QUE $139,815,438 $144,773,873 $149,948,075 $158,179,964 $162,935,832

N.B. $12,353,840 $12,819,319 $13,328,613 $13,976,906 $14,603,244

N.S. $15,555,618 $16,384,393 $16,911,680 $17,604,408 $18,411,394

P.E.I. $2,113,239 $2,175,913 $2,270,022 $2,391,193 $2,484,268

NFLD $7,679,981 $7,920,880 $10,174,396 $9,680,405 $9,258,366

YUK $782,667 $826,242 $906,339 $971,543 $1,031,890

NWT $1,540,227 $1,649,727 $1,793,747 $1,950,384 $2,071,488

NUN $703,107 $735,590 $781,223 $842,878 $870,199

Canada $656,907,618 $694,731,564 $742,953,159 $787,992,628 $826,644,308

Western Canada $202,312,480 $220,662,522 $245,803,010 $267,237,496 $286,221,962

Eastern Canada $454,595,138 $474,069,042 $497,150,149 $520,755,132 $540,422,346

CANSIM Multidimensional, Table 3830009

Data Table 34: Direct Total Labour Income by Sector of the Manitoba Economy

$000,000

Sector 2004 2005 2006 2007 2008

Agriculture, Forestry, Fishing $370 $365 $368 $371 $381

Mining and Oil and Gas $226 $227 $257 $270 $300

Utilities $397 $409 $425 $454 $459

Construction $968 $1,012 $1,324 $1,606 $1,777

Manufacturing $2,800 $2,895 $2,977 $3,230 $3,261

Wholesale Trade $1,085 $1,138 $1,209 $1,271 $1,362

Retail Trade $1,563 $1,630 $1,680 $1,785 $1,948

Transportation and Warehousing $1,537 $1,596 $1,663 $1,711 $1,780

Information and Cultural Industries $580 $612 $643 $659 $682

Finance and Insurance $1,738 $1,792 $1,894 $2,010 $2,117

Professional Services $684 $746 $826 $874 $943

Administrative and Support Services $497 $518 $575 $614 $640

Educational Services $1,829 $1,936 $2,013 $2,070 $2,176

Health Care and Social Assistance $2,421 $2,527 $2,632 $2,829 $3,007

Arts, Entertainment and Recreation $284 $287 $297 $309 $338

Accommodation and Food Services $617 $641 $665 $706 $753

Other Services $863 $914 $946 $1,007 $1,105

Public Administration $2,034 $2,160 $2,209 $2,292 $2,429

CANSIM Multidimensional, Table 3830009

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3. The State of the Macro Economy

Data Table 35: Annual Growth Rates of Real GDP by Region

2004 2005 2006 2007 2008 2009 2010

World 4 3.5 3.9 3.9 2.1 -2.6 1.6

Developed Economies 3 2.4 2.8 2.5 0.8 -3.9 0.6

North America 3.6 2.9 2.8 2.1 1.1 -3.4 1

Transition Economies 7.6 6.5 8 8.3 5.3 -5.9 1.4

Developing Economies 7.1 6.8 7 7.6 5.4 1.4 4.3

Canada 3.1 2.9 3.1 2.7 0.5 -3 1

China 10.1 10.2 11.1 13 9 7.6 8.2

U.S.A. 3.6 2.9 2.8 2 1.1 -3.5 1

India 7.1 11.5 7.3 9.3 7.3 5 6.3

Russian Federation 7.2 6.4 7.7 8.1 5.6 -6.8 1.5

European Union 2.5 1.9 3.1 2.8 0.8 -3.5 0

United Nations. Development Policy and Analysis Division, Global Economic Outlook data

Data Table 36: Gross Domestic Product (Canada/Manitoba)

$000,000

2005 2006 2007 2008 2009

Canada $1,247,807 $1,283,419 $1,315,907 $1,321,360 $1,286,431

Manitoba $38,860 $40,158 $41,593 $42,407 $42,280

CANSIM Multidimensional, Table 3860085

CANSIM Multidimensional, Table 15855778

Data Table 37: Gross Domestic Product Growth (U.S.A/Canada/Manitoba)

2005 2006 2007 2008 2009

U.S.A 3.05% 2.67% 2.14% 0.44% -2.73%

Canada 3.02% 2.85% 2.53% 0.41% -2.48%

Manitoba 2.64% 3.34% 3.57% 1.96% -0.30%

CANSIM Multidimensional, Table 3840002

International Monetary Fund, World Economic Outlook Database

Data Table 38: Labour Income (Canada/Manitoba)

$000,000

2005 2006 2007 2008 2009

Canada $164,323 $174,405 $183,730 $190,307 $176,600

Manitoba $21,377 $22,603 $24,070 $25,458 $25,921

CANSIM Multidimensional, Table 3820006

Data Table 39: Change in Labour Income (Canada/Manitoba)

2005 2006 2007 2008 2009

Canada 6.37% 6.14% 5.35% 3.58% -7.20%

Manitoba 4.32% 5.74% 6.49% 5.76% 1.82%

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Data Table 40: Consumer Price Index (Canada/Manitoba)

2005 2006 2007 2008 2009

Headline (Canada) 107.0 109.1 111.5 114.1 114.4

Headline (Canada)

(except 8 most volatile) 105.5 107.2 109.2 110.4 112.3

Headline (Manitoba) 108.8 110.8 113.6 114.2 114.9

CANSIM Multidimensional, Table 3860020

Data Table 41: Change in Consumer Price Index (Canada/Manitoba)

2005 2006 2007 2008 2009

Headline Canada 2.21% 2.00% 2.14% 2.37% 0.30%

Headline Canada

(except 8 most volatile) 1.64% 1.66% 1.84% 1.05% 1.74%

Headline Manitoba 3.04% 1.88% 2.50% 0.57% 0.58%

Data Table 42: Quarterly Average Interest Rate

Quarter 2005 2006 2007 2008 2009

Q1 2.75 3.1% 3.83 39.4% 4.50 17.4% 4.08 -9.3% 1.08 -73.5%

Q2 2.75 22.2% 4.42 60.6% 4.50 1.9% 3.25 -27.8% 0.50 -84.6%

Q3 2.83 21.4% 4.50 58.8% 4.75 5.6% 3.25 -31.6% 0.50 -84.6%

Q4 3.33 21.2% 4.50 35.0% 4.67 3.7% 2.25 -51.8% 0.50 -77.8%

Quarterly AVG% % Change from previous year’s quarter

CANSIM Multidimensional, Table 1760043

Data Table 43: Personal Expenditures and % Change (Canada/Manitoba)

$000,000

2005 2006 2007 2008 2009

Canada $723,146 $752,727 $787,063 $810,723 $812,205

Canada 3.67% 4.09% 4.56% 3.01% 0.18%

Manitoba $24,265 $24,990 $26,277 $27,373 N/A

Manitoba 2.94% 2.99% 5.15% 4.17% N/A

CANSIM Multidimensional, National Economic Accounts

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Data Table 44: Housing Starts and % Change (Canada/U.S.A./Manitoba)

000’s

2005 2006 2007 2008 2009

Canada 896.3 916.5 911.6 850.3 590.6

-3.70% 2.25% -0.53% -6.72% -30.54%

U.S.A 24,875 21,743 16,102 10,804 6,639

6.33% -12.59% -25.94% -32.90% -38.55%

Manitoba 18.8 20.2 23 22.1 16.4

7.43% 7.45% 13.86% -3.91% -25.79%

CANSIM Multidimensional, Table 730427

CANSIM Multidimensional, Table 730436

U.S. Bureau of the Census, Construction Reports, Series C-20

Data Table 45: Unemployment Rate and % Change (U.S.A/Canada/Manitoba)

2005 2006 2007 2008 2009

Canada 6.8 6.3 6 6.1 8.3

-0.4% -0.5% -0.3% 0.2% 2.2%

U.S.A 5.1 4.6 4.6 5.8 9.3

-0.5% -0.5% 0.0% 1.2% 3.4%

Manitoba 4.8 4.3 4.4 4.2 5.2

-0.5% -0.5% 0.1% -0.2% 1.0%

CANSIM Multidimensional, Table 270008

International Monetary Fund, World Economic Outlook Database

Data Table 46: Quarterly Average Exchange Rate - $US and CERI

Quarter 2005 2006 2007 2008 2009

Q1 $1.23 98.92 $1.15 106.49 $1.17 103.94 $1.00 118.55 $1.25 97.86

Q2 $1.25 98.04 $1.11 109.02 $1.08 110.59 $1.01 117.13 $1.15 103.80

Q3 $1.19 101.95 $1.12 108.96 $1.04 115.69 $1.05 114.25 $1.08 109.37

Q4 $1.17 104.97 $1.14 107.03 $0.98 122.31 $1.22 100.20 $1.06 113.07 Quarterly Average Exchange Rate - US$ Quarterly Average Effective Exchange Rate Index

CANSIM Multidimensional, Table 1760064

Data Table 47: Quarterly Average S&P/TSX Composite Index

Quarter 2005 2006 2007 2008 2009

Q1 9494.92 10.0% 11914.86 25.5% 13081.55 9.8% 13362.64 2.1% 8512.77 -36.3%

Q2 9626.46 14.6% 11853.85 23.1% 13793.34 16.4% 14372.93 4.2% 10023.27 -30.3%

Q3 10701.23 25.9% 11888.66 11.1% 13876.00 16.7% 13039.02 -6.0% 11016.77 -15.5%

Q4 10826.57 19.6% 12668.45 17.0% 14049.06 10.9% 9340.36 -33.5% 11368.02 21.7%

Index Points % Change from previous year's quarter

CANSIM Multidimensional, Table 1760047

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Data Table 48: Quarterly Average Composite Index of Leading Indicators (Canada)

Quarter 2005 2006 2007 2008 2009

Q1 201.90 0.92% 212.07 1.31% 223.03 1.38% 228.17 -0.26% 218.93 -3.35%

Q2 204.07 1.07% 215.23 1.49% 226.13 1.39% 228.77 0.26% 213.87 -2.31%

Q3 206.67 1.27% 217.83 1.21% 228.47 1.03% 229.67 0.39% 218.23 2.04%

Q4 209.33 1.29% 220.00 0.99% 228.77 0.13% 226.53 -1.36% 225.73 3.44%

Index Points % Change from previous year's quarter

CANSIM Multidimensional, Table 3770003

Data Table 49: Average Annual Composite Index of Leading Indicators

Country 2005 2006 2007 2008 2009

Canada 99.28 100.01 101.23 98.39 88.59

Germany 99.52 103.61 104.41 99.09 87.63

Japan 101.94 104.05 102.53 100.43 87.46

United Kingdom 100.16 101.01 102.56 98.63 90.91

United States 100.41 101.82 103.03 99.24 87.26

Major Five Asia 100.64 101.37 102.20 99.29 88.58

Brazil 103.47 103.72 105.48 105.72 90.14

China 100.46 100.64 102.10 98.97 88.84

India 99.91 100.93 102.33 99.29 89.08

Russian Federation 99.72 102.85 104.77 105.26 84.12

United Nations. Development Policy and Analysis Division, Global Economic Outlook data

Data Table 50: Quarterly Average Price Oil/Barrel (US$)

Quarter 2005 2006 2007 2008 2009

Q1 $47.70 49.41% $61.75 29.47% $57.76 -6.46% $96.94 67.82% $44.43 -54.16%

Q2 $51.63 45.65% $69.53 34.68% $68.58 -1.37% $121.40 77.01% $58.70 -51.65%

Q3 $61.47 48.53% $69.62 13.26% $74.95 7.66% $114.40 52.62% $68.20 -40.38%

Q4 $56.88 28.79% $59.68 4.92% $88.56 48.39% $54.66 -38.28% $74.63 36.53%

Brent Crude $US/Barrel % Change from previous year's quarter

U.S. Energy Information Administration

Data Table 51: Quarterly Average Unleaded Fuel Prices (Winnipeg Region)

Quarter 2005 2006 2007 2008 2009

Q1 $81.07 16.1% $88.47 9.1% $90.80 2.6% $108.07 19.0% $84.70 -21.6%

Q2 $89.17 9.5% $104.97 17.7% $108.07 3.0% $126.10 16.7% $95.10 -24.6%

Q3 $100.43 25.5% $106.17 5.7% $107.73 1.5% $134.37 24.7% $100.20 -25.4%

Q4 $93.37 14.7% $88.10 -5.6% $101.43 15.1% $97.53 -3.8% $97.13 -0.4%

Unleaded Fuel Prices - CND$ % Change from previous year's quarter

CANSIM Multidimensional, Table 3260009

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Data Table 52: Quarterly Average Diesel Fuel Prices (Winnipeg Region)

Quarter 2005 2006 2007 2008 2009

Q1 $82.50 26.6% $92.03 11.6% $92.93 1.0% $111.27 19.7% $83.83 -24.7%

Q2 $85.33 22.5% $95.07 11.4% $96.60 1.6% $132.20 36.9% $82.17 -37.8%

Q3 $92.73 29.0% $98.20 5.9% $94.00 -4.3% $134.90 43.5% $88.63 -34.3%

Q4 $100.70 31.7% $81.33 -19.2% $101.87 25.2% $110.73 8.7% $91.23 -17.6%

Diesel Fuel Prices - CND$ % Change from previous year's quarter

CANSIM Multidimensional, Table 3260009

4. Domestic Trade and Infrastructure Utilization

Data Table 53: 2008 Provincial Exports Leaving Via Manitoba to International Destinations

(By Value)

AB BC MB ON SK Total

$1,626,332,656 $362,875,817 $5,585,048,314 $1,281,378,245 $1,729,662,825 $10,676,174,841

15.2% 3.4% 52.3% 12.0% 16.2% 100.0%

Statistics Canada, International Trade Division

Data Table 54: Total Exports by Provinces Through Manitoba to International Destinations

(By Mode)

Air Energy Rail Road Total

$293,091,519 $347,992,485 $2,593,186,833 $7,256,595,279 $10,490,866,116

3% 3% 25% 69% 100%

Statistics Canada, International Trade Division

Data Table 55: Provincial Exports Leaving Through Manitoba for the United States

(By Value)

AB BC MB ON SK Other Total

$1,423,085,946 $356,997,371 $5,055,654,696 $1,265,465,476 $1,502,359,014 $70,379,989 $9,673,942,492

15% 4% 52% 13% 16% 1% 100%

Statistics Canada, International Trade Division

Data Table 56: Prairie Provinces' Road Export Weight Surplus/Deficit

Province Kilograms

Alberta -567,657,386

Saskatchewan -125,700,126

Manitoba 541,622,866

Statistics Canada, International Trade

Division

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Data Table 57: Rail Traffic Flows In/Through Manitoba by Weight

(‘000 Tonnes)

Province Flows 2004 2005 2006 2007 2008

Manitoba

Westbound 9,365 9,749 9,698 9,478 9,901

Eastbound 21,079 21,191 21,116 20,428 19,179

Intraprovincial 516 442 437 242 250

MB-Origin 5,645 5,161 5,167 5,405 5,168

MB-Destination 4,147 4,220 4,107 4,112 3,986

Saskatchewan

Westbound 9,799 10,112 10,380 10,312 10,743

Eastbound 13,657 13,917 12,963 13,281 13,205

Intraprovincial 197 185 165 192 168

SK-Origin 24,036 25,824 25,907 26,504 22,791

SK-Destination 1,786 1,778 1,795 1,836 2,192

Alberta

Westbound 17,705 19,888 19,696 21,297 18,882

Eastbound 8,294 8,715 8,513 9,218 8,901

Intraprovincial 3,012 3,277 3,281 3,180 4,038

AB-Origin 29,140 29,999 32,784 32,012 30,721

AB-Destination 7,006 7,348 7,947 8,235 8,971

Ontario

Westbound 3,143 3,148 3,321 3,367 3,346

Eastbound 6,354 6,432 6,401 6,235 6,164

Intraprovincial 8,037 7,821 5,753 5,717 2,547

ON-Origin 14,775 14,699 14,612 14,646 14,920

ON-Destination 26,345 25,891 25,386 24,711 22,490

Quebec

Westbound 1,610 1,526 1,482 1,265 1,094

Eastbound 2,333 2,112 1,949 1,860 1,689

Intraprovincial 5,862 5,210 4,938 4,967 4,777

QC-Origin 10,915 11,103 11,160 10,841 10,348

QC-Destination 27,872 32,939 32,959 30,954 32,081

British Columbia

Intraprovincial 33,558 35,088 31,142 32,677 31,829

QC-Origin 9,459 10,217 10,705 11,853 11,709

QC-Destination 40,414 43,624 47,016 48,173 44,011

Atlantic Canada

Intraprovincial 5,515 5,087 5,160 4,722 4,030

QC-Origin 18,189 23,341 23,178 20,650 21,808

QC-Destination 4,588 4,544 4,303 3,890 3,732

Statistics Canada: Rail in Canada 52-216

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Data Table 58: Rail Traffic Flows In/Through Manitoba, By Originating Province, 2008

(By Weight)

Province Flow Through

Manitoba

Destined

for

Manitoba

British Columbia 22% 1%

Alberta 9% 3%

Saskatchewan 19% 3%

Manitoba 13% 1%

Ontario 18% 3%

Quebec 7% 1%

Atlantic 1% 0%

Statistics Canada: Rail in Canada 52-216

Data Table 59: Westbound Rail Traffic Through Manitoba, Destined for SK, AB, BC

2007 (By Weight)

Origin SK AB BC

Atlantic 0% 2% 1%

Quebec 1% 10% 18%

Ontario 4% 37% 28%

2006 (By Weight)

Origin SK AB BC

Atlantic 0% 2% 1%

Quebec 1% 10% 17%

Ontario 4% 37% 28%

2005 (By Weight)

Origin SK AB BC

Atlantic 0% 1% 1%

Quebec 1% 9% 16%

Ontario 4% 38% 29%

2004 (By Weight)

Origin SK AB BC

Atlantic 0% 2% 1%

Quebec 1% 8% 18%

Ontario 3% 40% 27%

Statistics Canada: Rail in Canada 52-216

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Data Table 60: Eastbound Rail Traffic Through Manitoba, Destined for Atlantic, QC, and ON

2007 (By Weight)

Origin Atlantic Quebec Ontario

SK 1% 6% 35%

AB 0% 5% 10%

BC 1% 15% 27%

2006 (By Weight)

Origin Atlantic Quebec Ontario

SK 1% 6% 38%

AB 1% 5% 12%

BC 1% 14% 23%

2005 (By Weight)

Origin Atlantic Quebec Ontario

SK 2% 6% 34%

AB 1% 5% 13%

BC 1% 13% 25%

2004 (By Weight)

Origin Atlantic Quebec Ontario

SK 2% 6% 35%

AB 1% 5% 14%

BC 1% 12% 24%

Statistics Canada: Rail in Canada 52-216

Data Table 61: Rail Traffic Flows Through Selected Canadian Provinces, 2008

(000’s Tonnes)

Province AB SK MB ON QC

Westbound 18,882 10,743 9,901 3,346 1,094

Eastbound 8,901 13,205 19,179 6,164 1,689

Total Flow-Through 27,783 23,947 29,079 9,510 2,784

% Westbound 68% 45% 34% 35% 39%

% Eastbound 32% 55% 66% 65% 61%

Intraprovincial 4,038 168 250 2,547 4,777

Total Traffic 31,821 24,115 29,329 12,057 7,561

Origin Flow 30,721 22,791 5,168 14,920 10,348

Destination Flow 8,971 2,192 3,986 22,490 32,081

Total Traffic 71,512 49,098 38,484 49,467 49,989

Statistics Canada: Rail in Canada 52-216

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Data Table 62: Truck Traffic Flows In/Through by Weight,

(000 Tonnes)

Province Flows 2004 2005 2006 2007 2008

Manitoba

Westbound 3,473 4,633 4,573 4,009 4,150

Eastbound 2,328 1,957 2,232 3,017 2,325

Intraprovincial 8,292 9,773 9,619 10,410 10,551

MB-Origin 2,942 2,997 3,054 2,857 3,980

MB-Destination 5,389 4,314 3,588 3,900 3,742

Saskatchewan

Westbound 4,161 5,159 4,838 4,401 5,026

Eastbound 3,929 3,219 3,376 4,000 3,241

Intraprovincial 14,808 20,377 22,184 17,404 23,463

SK-Origin 6,503 4,827 4,339 8,913 5,648

SK-Destination 5,302 3,667 3,592 4,447 5,794

Alberta

Westbound 1,622 2,185 1,625 1,912 1,900

Eastbound 1,483 1,203 1,592 2,518 1,462

Intraprovincial 77,716 77,452 82,456 94,937 108,900

AB-Origin 10,804 10,008 7,595 8,466 11,061

AB-Destination 9,969 11,050 10,925 14,226 11,317

Ontario

Westbound 850 1,063 1,211 1,168 1,220

Eastbound 805 843 873 723 975

Intraprovincial 144,880 154,644 173,067 164,782 150,399

ON-Origin 16,951 20,784 19,868 17,482 18,795

ON-Destination 18,004 19,828 17,509 15,447 15,630

Quebec

Westbound 1,589 1,475 1,408 1,615 1,388

Eastbound 2,558 2,285 2,728 3,365 2,368

Intraprovincial 72,914 83,861 82,887 76,742 73,610

QC-Origin 17,461 19,519 17,335 14,511 14,869

QC-Destination 14,290 16,321 15,305 12,901 15,349

British Columbia

Intraprovincial 53,769 55,769 54,416 71,711 55,016

QC-Origin 5,276 6,379 6,300 6,890 5,621

QC-Destination 5,763 7,874 5,120 5,841 7,100

Atlantic Canada

Intraprovincial 18,597 18,181 19,324 15,970 16,899

QC-Origin 8,316 7,056 8,215 8,226 7,733

QC-Destination 9,537 8,518 10,668 10,583 8,774

Statistics Canada: Trucking Origin and Destination Survey

Data Table 63: Truck Traffic Flows Through Selected Canadian Provinces, 2008

(000 Tonnes)

Province AB SK MB ON QUE

Westbound 1,899,913 5,026,403 4,150,060 1,220,194 1,387,990

Eastbound 1,461,571 3,241,262 2,324,869 975,215 2,368,323

Total Flow-Through 3,361,484 8,267,665 6,474,929 2,195,409 3,756,313

% Westbound 57% 61% 64% 56% 37%

% Eastbound 43% 39% 36% 44% 63%

Total Traffic 134,640 43,173 24,747 187,019 107,584

Statistics Canada: Trucking Origin and Destination Survey

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Data Table 64: Truck Traffic Flows Destined For/Through Manitoba, by Originating

Province, 2008

(By Weight)

Province Flow

Through

Destined

for MB

BC 3% 1%

AB 5% 4%

SK 2% 5%

MB 6% 43%

ON 13% 4%

QC 4% 1%

ATL 0% 0%

Statistics Canada: Trucking Origin

and Destination Survey

Data Table 65: Westbound & Eastbound Truck Traffic Flowing Through Manitoba,

Destined for ATL, QC, and ON 2004 – 2008,

By Weight

Year 2004 2005 2006 2007 2008

Westbound 3,473,443 4,633,271 4,573,201 4,008,569 4,150,060

Eastbound 2,328,413 1,957,245 2,232,427 3,017,167 2,324,869

Statistics Canada: Trucking Origin and Destination Survey

Data Table 66: Port of Churchill Export Commodities 2005 – 2009

($ 2009)

Commodity 2005 2006 2007 2008 2009

Wheat (Including Durum, Meslin) $69,846,357 $84,665,236 $175,155,210 $133,839,702 $155,245,073

Canola Seeds $8,960,549 $14,105,090 - - -

Peas $12,822,940 $9,815,958 - - -

Other $100,465 $0 - - -

Total $91,730,311 $108,586,284 $175,155,210 $133,839,702 $155,245,073

Statistics Canada, International Trade Division

Data Table 67: Port of Churchill Exports by Province of Origin 2009

($ 2009)

Province Alberta British Columbia Manitoba Saskatchewan

Export Value (2009) $51,006,161.00 $166,950.00 $22,799,144.00 $81,272,818.00

% of Churchill Exports 32.86% 0.11% 14.69% 52.35%

Statistics Canada, International Trade Division

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5. NASCO Trade

Data Table 68: Manitoba Exports to NASCO Partners, by Road

2004 2005 2006 2007 2008 2009

Total Road

Exports to NASCO $3,205,744,326 $3,135,410,615 $2,969,252,681 $3,000,887,625 $2,840,661,528 $2,574,118,108

Total Road Exports to US $3,137,488,816 $3,051,567,573 $2,902,966,684 $2,945,906,663 $2,782,679,088 $2,516,599,473

Total Road Exports to

Mexico $68,255,510 $83,843,042 $66,285,997 $54,980,962 $57,982,440 $57,518,635

Statistics Canada, International Trade Division

Data Table 69: Distribution of NASCO Exports from Manitoba, by Road

Destination 2004 2005 2006 2007 2008 2009

Illinois $445,700,276 $413,600,325 $384,198,949 $332,955,378 $286,366,693 $268,350,644

Indiana $68,948,047 $73,109,717 $75,683,848 $73,279,999 $85,345,263 $75,611,979

Iowa $281,460,629 $316,162,700 $304,170,805 $301,631,696 $285,779,432 $253,450,304

Kansas $103,351,201 $117,083,826 $119,730,429 $104,345,127 $87,972,426 $75,533,414

Michigan $71,852,856 $78,785,220 $73,423,037 $68,439,042 $76,666,612 $69,733,990

Minnesota $826,765,317 $791,590,243 $688,390,791 $672,070,580 $589,148,960 $606,721,923

Missouri $48,034,150 $56,584,212 $57,260,485 $54,946,192 $57,613,048 $56,659,574

Nebraska $87,635,987 $147,474,152 $194,584,013 $246,534,387 $236,248,807 $165,493,267

North Dakota $621,652,244 $484,684,869 $459,455,079 $547,292,483 $539,991,696 $490,979,718

Oklahoma $54,343,012 $26,502,333 $41,850,220 $33,732,950 $47,175,090 $38,628,373

South Dakota $162,652,836 $161,207,560 $139,426,473 $143,301,753 $97,949,112 $56,902,592

Texas $134,640,827 $168,415,865 $178,465,587 $180,482,836 $198,890,026 $177,009,394

Wisconsin $230,451,435 $216,366,551 $186,326,969 $186,894,239 $193,531,924 $181,524,301

Mexico $68,255,510 $83,843,042 $66,285,997 $54,980,962 $57,982,440 $57,518,635

Statistics Canada, International Trade Division

Data Table 70: Total Value of Manitoba Exports to NASCO Partners, by Rail

2004 2005 2006 2007 2008 2009

Total Rail

Exports to NASCO $255,130,696 $224,452,815 $285,267,713 $335,479,908 $436,051,128 $287,075,451

Total Rail Exports to US $195,656,180 $203,721,177 $248,778,324 $298,296,346 $351,803,325 $244,521,946

Total Rail Exports to

Mexico $59,474,516 $20,731,638 $36,489,388 $37,183,561 $84,247,803 $42,553,505

Statistics Canada, International Trade Division

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Data Table 71: Distribution of NASCO Exports from Manitoba, by Rail

Data Table 72: Total Value of Manitoba Imports from NASCO, by Road

2004 2005 2006 2007 2008 2009

Total Road

Imports from NASCO $5,180,113,223 $5,791,565,222 $6,000,251,293 $6,068,397,647 $6,631,730,210 $6,067,525,647

Total Road Imports from

U.S. $5,000,934,366 $5,581,549,736 $5,779,658,975 $5,809,389,823 $6,338,785,102 $5,797,359,741

Total Road Imports from

Mexico $179,178,857 $210,015,486 $220,592,319 $259,007,824 $292,945,108 $270,165,906

Statistics Canada, International Trade Division

Destination 2004 2005 2006 2007 2008 2009

Illinois $74,352,424 $85,852,366 $119,534,794 $126,983,336 $118,133,729 $68,076,158

Indiana $2,864,754 $8,597,161 $4,298,368 $6,837,285 $3,993,547 $3,147,316

Iowa $18,090,316 $7,920,972 $16,793,533 $15,112,010 $22,302,648 $23,389,044

Kansas $2,584,234 $2,155,478 $3,649,438 $5,285,589 $9,146,645 $4,498,131

Michigan $2,682,532 $1,094,561 $1,118,399 $3,562,719 $5,290,989 $886,155

Minnesota $38,208,440 $36,669,070 $35,854,144 $56,233,238 $61,521,735 $43,683,654

Missouri $4,697,296 $12,033,440 $11,130,670 $11,853,158 $7,648,789 $8,012,160

Nebraska $17,765,685 $7,987,228 $8,559,562 $19,184,532 $42,846,069 $13,773,121

North Dakota $15,920,513 $9,395,931 $7,850,097 $11,057,032 $21,335,847 $24,092,355

Oklahoma $1,738,153 $757,988 $1,789,767 $2,152,553 $2,366,393 $1,227,499

South Dakota $998,900 $9,145,071 $7,194,969 $5,793,319 $12,141,122 $4,296,235

Texas $3,841,015 $11,376,988 $17,919,854 $25,897,516 $36,225,981 $44,039,502

Wisconsin $11,911,918 $10,734,922 $13,084,730 $8,344,059 $8,849,831 $5,400,616

Mexico $59,474,516 $20,731,638 $36,489,388 $37,183,561 $84,247,803 $42,553,505

Statistics Canada, International Trade Division

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Data Table 73: Distribution of NASCO Imports to Manitoba, by Road

Origin 2004 2005 2006 2007 2008 2009

Illinois $1,069,328,315 $1,255,972,135 $1,292,347,379 $1,288,829,833 $1,303,132,484 $1,415,034,254

Indiana $406,986,318 $456,879,301 $470,645,936 $496,411,666 $490,216,643 $379,494,178

Iowa $445,315,716 $531,361,022 $557,198,439 $557,966,756 $643,573,448 $550,983,610

Kansas $120,315,190 $147,394,160 $132,253,612 $129,036,648 $144,018,003 $129,269,015

Michigan $234,217,670 $263,125,393 $290,232,665 $253,704,445 $249,249,262 $204,174,540

Minnesota $994,931,021 $996,858,825 $955,093,606 $1,020,315,864 $1,100,274,825 $1,071,731,524

Missouri $186,522,239 $202,452,840 $230,553,252 $243,514,757 $228,116,164 $189,157,354

Nebraska $77,796,416 $114,073,005 $131,261,415 $120,173,177 $166,893,516 $153,287,987

North Dakota $226,859,945 $240,521,309 $294,263,469 $325,232,972 $544,883,387 $490,947,781

Oklahoma $75,274,647 $86,208,925 $124,690,560 $117,591,150 $104,446,321 $101,874,850

South Dakota $86,277,941 $64,356,622 $79,554,090 $96,648,638 $106,184,923 $87,003,161

Texas $413,975,584 $534,535,474 $536,814,752 $470,407,200 $528,338,202 $415,101,410

Wisconsin $663,133,363 $687,810,726 $684,749,801 $689,556,718 $729,457,925 $609,300,077

Mexico $179,178,857 $210,015,486 $220,592,319 $259,007,824 $292,945,108 $270,165,906

Statistics Canada, International Trade Division

Data Table 74: Manitoba Imports from NASCO Partners, by Rail

2004 2005 2006 2007 2008 2009

Total Rail

Imports from NASCO $219,546,477 $338,893,637 $256,470,468 $260,622,902 $383,831,851 $283,481,570

Total Rail Imports from

U.S. $210,493,731 $310,854,472 $235,883,441 $251,268,940 $372,144,520 $262,887,182

Total Rail Imports from

Mexico $9,052,746 $28,039,165 $20,587,028 $9,353,963 $11,687,331 $20,594,388

Statistics Canada, International Trade Division

Data Table 75: Distribution of NASCO Imports to Manitoba, by Rail

Origin 2004 2005 2006 2007 2008 2009

Illinois $66,147,217 $63,880,866 $41,671,528 $59,255,481 $67,674,897 $46,402,608

Indiana $5,250,094 $9,235,278 $9,155,520 $7,760,590 $8,964,361 $5,596,928

Iowa $27,329,951 $24,696,869 $27,703,967 $29,490,396 $30,582,927 $17,471,405

Kansas $163,653 $7,264,644 $10,735,871 $12,082,161 $6,814,592 $12,782,375

Michigan $20,612,528 $83,758,465 $30,678,274 $35,337,806 $84,834,309 $17,117,197

Minnesota $8,086,313 $16,036,521 $15,421,981 $21,870,450 $47,698,690 $38,181,952

Missouri $13,017,860 $11,891,442 $10,155,790 $26,710,032 $33,311,707 $22,193,425

Nebraska $14,644,590 $10,890,513 $9,128,016 $8,681,879 $10,575,244 $12,242,135

North Dakota $7,829,541 $15,345,343 $1,870,521 $2,215,400 $6,279,138 $1,462,966

Oklahoma $2,177,102 $474,814 $1,363,620 $165,107 $113,294 $731,582

South Dakota $1,040,049 $881,179 $1,172,892 $306,134 $379,090 $808,643

Texas $40,999,221 $57,996,168 $67,509,696 $34,067,256 $41,384,289 $58,579,368

Wisconsin $3,195,612 $8,502,371 $9,315,766 $13,326,248 $33,531,981 $29,316,598

Mexico $9,052,746 $28,039,165 $20,587,028 $9,353,963 $11,687,331 $20,594,388

Statistics Canada, International Trade Division

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6. International Trade

Data Table 76: Top 10 Export Partners of Manitoba by Value (2009)

Top 10 Export Partners Value

($ Millions) %

United States $7,228 67%

China $648 6%

Japan $511 5%

Mexico $266 3%

Hong Kong $182 2%

Australia $116 1%

Saudi Arabia $109 1%

United Kingdom $96 1%

Iraq $94 1%

Russian Federation $73 1%

Total Top 10 $9,323 87%

Total of all Export Partners $10,726

Statistics Canada, International Trade Division

Data Table 77: Manitoba Exports By Mode- Historic

($ 2009)

Mode 2003 2004 2005 2006 2007 2008 2009

Air $262,102,380 $288,759,759 $359,205,949 $400,202,848 $508,771,175 $290,907,247 $266,575,538

Energy $695,655,395 $704,952,979 $1,020,803,261 $1,267,686,737 $850,558,562 $355,789,851 $800,253,167

Other $123,471,063 $127,938,733 $129,107,210 $129,199,855 $121,649,630 $36,361,675 $114,161,168

Rail $1,645,750,450 $1,761,166,451 $1,620,725,055 $1,856,249,937 $2,095,681,709 $1,809,610,998 $1,727,006,115

Road $5,639,909,290 $5,617,262,278 $5,503,518,950 $5,824,035,932 $5,599,607,068 $5,032,004,184 $4,773,167,810

Water $2,327,819,133 $2,631,419,449 $2,223,092,392 $2,703,108,522 $2,898,290,416 $2,454,808,162 $3,045,170,405

Total $10,694,707,711 $11,131,499,649 $10,856,452,817 $12,180,483,830 $12,074,558,560 $9,979,482,118 $10,726,334,203

Statistics Canada, International Trade Division

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Data Table 78: Top 10 Import Partners of Manitoba by Value (2009)

Top 10 Import Partners Value 2009

($ Millions) %

United States $10,549 81%

China $596 5%

Mexico $360 3%

Germany $227 2%

Japan $126 1%

Canada $119 1%

United Kingdom $118 1%

Italy $97 1%

Taiwan $85 1%

France $58 0%

Total of Top 10 $12,334 95%

Total Imports $12,965

Data Table 79: Manitoba Imports By Mode- Historic

($ 2009)

Mode 2003 2004 2005 2006 2007 2008 2009

Air $1,282,105,774 $1,038,223,455 $817,770,538 $777,982,301 $899,384,332 $979,125,969 $1,050,438,399

Energy $320,885,845 $198,552,647 $32,361,350 $45,575,062 $52,943,763 $83,284,359 $44,487,708

Other $20,470,866 $90,404,965 $134,458,858 $142,612,548 $154,637,499 $158,328,015 $140,426,468

Rail $540,647,958 $509,942,842 $748,377,826 $608,718,584 $602,645,443 $845,032,200 $610,762,119

Road $9,410,331,300 $9,570,854,020 $10,556,691,951 $11,038,938,053 $11,228,876,802 $11,894,691,155 $10,664,810,017

Water $387,803,664 $356,819,932 $415,520,744 $406,863,717 $452,732,245 $513,297,594 $453,647,881

Total $11,962,245,409 $11,764,797,860 $12,705,181,267 $13,036,460,177 $13,391,220,085 $14,473,759,293 $12,964,572,592

Statistics Canada, International Trade Division

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Glossary

Aviation: Level I to III air carriers; classified by Statistics Canada as follows:

Level I. Canadian air carriers not classified as level VI that, in each of the two calendar

years immediately preceding the report year, transported at least 1,000,000

revenue passengers or at least 200,000 tonnes of revenue goods.

Level II. Canadian air carriers not classified as level VI that, in each of the two calendar

years immediately preceding the report year, transported 100,000 revenue

passengers or more, but fewer than 1,000,000 revenue passengers, or 30000

tonnes of revenue goods or more but less than 200,000 tonnes of revenue goods.

Level III. Canadian air carriers not classified as level VI that, in each of the two calendar

years immediately preceding the report year, realized annual gross revenues of

$1,000,000 or more for the air services for which the air carrier held a license.

Level IV. Not applicable.

Level V. Canadian air carriers not classified as level I, II, III or VI that, in each of the two

calendar years immediately preceding the report year, realized annual gross

revenues of less than $1,000,000 for the air services for which the air carrier held

a license.

Level VI. Canadian air carriers that, in the report year, operated the air service for which

the air carrier holds a license for the sole purpose of serving the needs of a lodge

operation.

(Source: http://dsp‐ psd.pwgsc.gc.ca/Collection‐ R/Statcan/51‐ 203‐ XIB/51‐ 203‐ XIE2005000.pdf)

Canadian-Dollar Effective Exchange Rate Index (CERI): A weighted average of bilateral

exchange rates for the Canadian dollar against the currencies of Canada's major trading

partners. The six foreign currencies in the CERI are: U.S. dollar, euro, Japanese yen, U.K.

pound, Chinese yuan, and Mexican peso. The South Korean won forms part of the index before

1996, but the Chinese yuan does not. CERI replaced the C-6 index in October 2006. It is

calculated using multilateral trade weights, while the C-6 index used bilateral trade weights.

(Source: http://www.bankofcanada.ca/en/glossary/glossceri.html)

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Couriers and Local Messengers: The courier industry comprises establishments primarily

engaged in providing air, surface or combined courier delivery services. Courier establishments

of the Post Office are included. The local messenger industry comprises establishments

primarily engaged in providing messenger and delivery services of small parcels within a single

urban area. Establishments engaged in the delivery of letters and documents, such as legal

documents, often by bicycle or on foot; and the delivery of small parcels, such as take‐ out

restaurant meals, alcoholic beverages and groceries, on a fee basis, usually by small truck or

van, are included.

(Source: http://dsp‐ psd.pwgsc.gc.ca/Collection‐ R/Statcan/50‐ 002‐ XIB/50‐ 002‐ XIE2006003.pdf)

Consumer Price Index (CPI): A measure of price movements, produced by Statistics Canada

and obtained by comparing retail prices of a representative "shopping basket" of goods and

services at two different points in time (http://www.bankofcanada.ca/en/glossary/glosscpi.html)

Direct Economic Activity: The direct employment, employment income, expenditures and

contribution to provincial gross domestic product for a sector.

Employment: employed persons are those who, during the reference week: (a) did any work at

all at a job or business, that is, paid work in the context of an employer‐ employee relationship,

or self‐ employment. It also includes unpaid family work, which is defined as unpaid work

contributing directly to the operation of a farm, business or professional practice owned and

operated by a related member of the same household; or (b) had a job but were not at work due

to factors such as own illness or disability, personal or family responsibilities, vacation, labour

dispute or other reasons (excluding persons on layoff, between casual jobs, and those with a job

to start at a future date).

(Source:

http://dsp‐ psd.pwgsc.gc.ca/collection_2007/statcan/71‐ 543‐ G/71‐ 543‐ GIE2007001.pdf)

For Hire Trucking: Any motor carrier that transports goods for compensation.

(Source: http://dsppsd.pwgsc.gc.ca/Collection‐ R/Statcan/53‐ 222‐ XIB/0000453‐ 222‐ XIE.pdf)

Gross Domestic Product (GDP): by industry at basic prices is a measure of the economic

production which takes place within the geographical boundaries of Canada.

“Gross” means that capital consumption costs, that is the costs associated with the depreciation

of capital assets (buildings, machinery and equipment), are included. Estimates are prepared

for 215 separate industries using the North American Industrial Classification System (NAICS).

(http://www.statcan.ca/cgibin/imdb/p2SV.pl?Function=getSurvey&SDDS=1301&lang=en&db=I

MDB&dbg=f&adm=8&dis=2)

Indirect Economic Activity: Additional economic activity that occurs in firms that supply

inputs to the direct sector.

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Induced Economic Activity: The trickle-down effect of expenditures by the direct and related

indirect sectors as they multiply through other sectors of the economy. These are largely driven

by consumption spending.

Labour Income: Labour income comprises of wages and salaries and supplementary labour

income. It is defined as all compensation paid to employees. Earnings of self‐ employed

persons or working owners of unincorporated businesses are not included in labour income. In

addition to regular remuneration, it includes directors’ fees, bonuses, commissions, gratuities,

income in kind, taxable allowances, retroactive wage payments and stock options. Wages and

salaries are estimated on a “gross” basis, i.e. prior to deductions for employees’ contributions to

income tax, employment insurance, pension funds, etc. Supplementary labour income, which is

defined as payments made by employers for the future benefit of their employees, comprises

employer contributions to employee welfare, workers’ compensation, employment insurance

and pensions.

(http://www.statcan.ca/cgi‐ in/imdb/p2SV.pl?Function=getSurvey&SDDS=2602&lang=en&db=I

MDB&dbg=f&adm=8&dis=2)

Leading Indicators: The Canadian Composite Leading Indicator (CCLI) comprises of ten

components which lead cyclical activity in the economy and together represent all major

categories of Gross Domestic Product (GDP). It thus reflects the variety of mechanisms that can

cause business cycles.

(http://www.statcan.ca/cgibin/imdb/p2SV.pl?Function=getSurvey&SDDS=1601&lang=en&db=I

MDB&dbg=f&adm=8&dis=2)

Leverage: The sum of the indirect and induced activities. The leverage ratio is calculated as:

(Indirect Income + Induced Income)/Direct Income.

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Paid Employment: work activity excluding housework and volunteer activity.

(Source: http://dsppsd.pwgsc.gc.ca/collection_2007/statcan/71‐ 543‐ G/71‐ 543‐ GIE2007001.pdf)

Rail: Traditionally rail data was classified under Class I and Class 2 railways. Since 1997, data

has been classified using the NAICS system. Rail Transportation falls under NAICS subsector

482, which is further classified as follows: Short‐ Haul Freight Rail Transportation (482112);

Mainline Freight Rail Transportation (482113); and Passenger Rail Transportation (482114).

(Source: http://dsp‐ psd.pwgsc.gc.ca/Collection‐ R/Statcan/52‐ 216‐ XIB/52‐ 216‐ XIE2005000.pdf)

Unemployment: Given the concept of unemployment as the unutilized supply of labour, the

operational definition of unemployment is based primarily on the activity of job search and the

availability to take a job. In addition to being conceptually appropriate, job search activities

can, in a household survey, be objectively and consistently measured over time. Therefore,

unemployed persons are those who: (a) were on temporary layoff during the reference week with

an expectation of recall and were available for work, or (b) were without work, had actively

looked for work in the past four weeks, and were available for work, or (c) had a new job to

start within four weeks from reference week, and were available for work.

Persons are regarded as available if they reported that they could have worked in the reference

week if a suitable job had been offered (or recalled if on temporary layoff); or if the reason they

could not take a job was of a temporary nature such as: illness or disability, personal or family

responsibilities, because they already have a job to start in the near future, or because of

vacation (prior to 1997, those on vacation were not considered available). Full‐ time students

currently attending school and looking for full‐ time work are not considered to be available for

work during the reference week. They are assumed to be looking for a summer or co‐ op job or

permanent job to start sometime in the future, and are not part of the current labour supply.

(Source:

http://dsp‐ psd.pwgsc.gc.ca/collection_2007/statcan/71‐ 543‐ G/71‐ 543‐ GIE2007001.pdf)

Unemployment Rate: Number of unemployed persons expressed as a percentage of the labour

force. The unemployment rate for a particular group (e.g. age, sex, marital status) is the number

unemployed in that group expressed as a percentage of the labour force for that group.

(Source:

http://dsp‐ psd.pwgsc.gc.ca/collection_2007/statcan/71‐ 543‐ G/71‐ 543‐ GIE2007001.pdf)

Urban and Inter-urban Bus: Includes public transit from the Canadian Urban Transit

Association and an estimate of inter-urban buses based on historical Statistics Canada data.

Inter-urban includes intercity, school, charter, sightseeing and other buses.

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List of Figures

Figure 1.1: Total GDP from Transportation in Manitoba ..................................................................... 2

Figure 1.2: Total GDP from Transportation in Manitoba by Leverage Component ........................ 3

Figure 1.3: Total Contribution to Manitoba GDP by Transportation Mode: 2008 ............................ 3

Figure 1.4: Contribution to Manitoba GDP by Transportation Mode ................................................ 4

Figure 1.5: Total GDP Generated by Air Sector in Manitoba............................................................... 5

Figure 1.6: Trend in Air GDP by Leverage Component ....................................................................... 5

Figure 1.7: Total GDP Generated by Rail Sector in Manitoba ............................................................. 6

Figure 1.8: Trend in Rail GDP by Leverage Component ...................................................................... 6

Figure 1.9: Total GDP Generated by Trucking Sector in Manitoba .................................................... 7

Figure 1.10: Trend in Trucking GDP by Leverage Component ........................................................... 7

Figure 1.11: Leverage Ratios for Manitoba Total GDP by Transportation Mode ............................. 8

Figure 1.12: Total Labour Income from Transportation in Manitoba ................................................. 9

Figure 1.13: Labour Income by Leverage Component from Transportation in Manitoba .............. 9

Figure 1.14: Contribution to Manitoba Total Labour Income by Transportation Mode: 2008 ...... 10

Figure 1.15: Total Labour Income by Transportation Mode .............................................................. 10

Figure 1.16: Total Labour Income Generated by Air Sector in Manitoba ........................................ 11

Figure 1.17: Trend in Air Labour Income by Leverage Component ................................................. 11

Figure 1.18: Total Labour Income Generated by Rail Sector in Manitoba ....................................... 12

Figure 1.19: Trend in Rail Labour Income by Leverage Component ............................................... 12

Figure 1.20: Total Labour Income Generated by Trucking Sector in Manitoba .............................. 13

Figure 1.21: Trend in Trucking Labour Income by Leverage Component ...................................... 13

Figure 1.22: Leverage Ratios for Manitoba Labour Income by Transportation Mode ................... 14

Figure 1.23: Total Employment in Transportation in Manitoba ........................................................ 15

Figure 1.24: Contribution to Manitoba Total Transportation Employment by Mode: 2008 .......... 15

Figure 1.25: Total Employment by Transportation Mode .................................................................. 16

Figure 1.26: Employment by Leverage Component from Transportation in Manitoba ................ 17

Figure 1.27: Total Employment Generated by Air Sector in Manitoba ............................................ 17

Figure 1.28: Trend in Air Employment by Leverage Component..................................................... 18

Figure 1.29: Total Employment Generated by Rail Sector in Manitoba ........................................... 19

Figure 1.30: Trend in Rail Employment by Leverage Component ................................................... 20

Figure 1.31: Total Employment Generated by Trucking Sector in Manitoba .................................. 20

Figure 1.32: Trend in Trucking Employment by Leverage Component .......................................... 21

Figure 1.33: Leverage Ratios for Manitoba Employment by Transportation Mode ....................... 21

Figure 1.34: Total Expenditures Generated by Air Sector in Manitoba............................................ 22

Figure 1.35: Trend in Air Expenditures by Leverage Component .................................................... 22

Figure 1.36: Total Expenditures Generated by Rail Sector in Manitoba .......................................... 23

Figure 1.37: Trend in Rail Expenditures by Leverage Component ................................................... 23

Figure 1.38: Total Expenditures Generated by Trucking Sector in Manitoba ................................. 24

Figure 1.39: Trend in Trucking Expenditures by Leverage Component .......................................... 24

Figure 2.1: Per Capita Direct GDP from Logistics by Region ............................................................ 25

Figure 2.2: Per Capita Contribution of Logistics to Direct GDP: Western vs. Eastern Canada .... 26

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Figure 2.3: Per Capita Direct GDP from Logistics by Western Province ......................................... 26

Figure 2.4: Logistics Direct Contribution to GDP by Territories: 2008 ............................................. 27

Figure 2.5: Logistics Direct Contribution to GDP by Provinces: 2008 .............................................. 27

Figure 2.6: Logistics Contribution to Direct GDP by Province: Western Canada .......................... 28

Figure 2.7: Direct GDP of Sectors of the Manitoba Economy: 2008 .................................................. 29

Figure 2.8: Direct GDP Level Transportation and Warehousing: Manitoba ................................... 30

Figure 2.9: Trend in Share of Manitoba Direct GDP from Transportation and Warehousing ...... 30

Figure 2.10: Direct Employment in Logistics per 1,000 People by Region....................................... 31

Figure 2.11: Ratio of Per Capita Direct Logistics Employment: Western vs. Eastern Canada ...... 31

Figure 2.12: Direct Employment in Logistics per 1,000 People by Province: Western Canada .... 32

Figure 2.13: Logistics Contribution to Direct Employment by Territories: 2008 ............................ 33

Figure 2.14: Logistics Contribution to Direct Employment by Provinces: 2008 .............................. 33

Figure 2.15: Direct Paid Employment by Sector of the Manitoba Economy: 2008 Paid Employees

.................................................................................................................................................................... 34

Figure 2.16: Trend in Logistics Direct Total Employment: Paid Employees ................................... 35

Figure 2.17: Per Capita Direct Labour Income from Logistics by Region ........................................ 35

Figure 2.18: Ratio of Western to Eastern Direct Per Capita Income from Logistics ....................... 36

Figure 2.19: Direct Labour Income per Capita from Logistics by Province: Western Canada ..... 36

Figure 2.20: Logistics Direct Contribution to Labour Income by Territories: 2008 ......................... 37

Figure 2.21: Logistics Direct Contribution to Labour Income by Provinces: 2008 .......................... 37

Figure 2.22: Direct Total Labour Income by Sector of the Manitoba Economy: 2008 ..................... 38

Figure 2.23: Direct Labour Income In Transportation and Warehousing: Manitoba ..................... 39

Figure 2.24: Trend in Share of Manitoba Labour Income from Logistics......................................... 39

Figure 3.1: Annual Growth Rates of Real GDP by Region ................................................................. 42

Figure 3.2: Annual Growth Rates of Real GDP by Country .............................................................. 43

Figure 3.3: Gross Domestic Product (Canada/Manitoba), .................................................................. 47

Figure 3.4: GDP Growth (Canada/United States/Manitoba), ............................................................. 48

Figure 3.5: Labour Income (Canada/Manitoba) ................................................................................... 48

Figure 3.6: Change in Labour Income (Canada/Manitoba) ................................................................ 49

Figure 3.7: Consumer Price Index (Canada/Manitoba) ...................................................................... 50

Figure 3.8: Change in CPI (Canada/Manitoba) .................................................................................... 50

Figure 3.9: Quarterly Average Interest Rates (Bank of Canada Rate) .............................................. 51

Figure 3.10: Personal Expenditures (Canada/Manitoba) .................................................................... 51

Figure 3.11: Change in Personal Expenditures (Canada/Manitoba) ................................................. 52

Figure 3.12: Housing Starts (Canada/United States/Manitoba) ......................................................... 53

Figure 3.13: Change in Housing Starts (Canada/United States/Manitoba)...................................... 53

Figure 3.14: Unemployment Rate (Canada/United States/Manitoba) .............................................. 54

Figure 3.15: Change in Unemployment Rate (Canada/United States/Manitoba) ........................... 55

Figure 3.16: Quarterly Average Exchange Rates – U.S. Dollar .......................................................... 56

Figure 3.17: Quarterly Average Effective Canadian Exchange Rate Index (1992 = 100) ................ 57

Figure 3.18: Quarterly Average S&P/TSX Composite Index ............................................................. 58

Figure 3.19: Quarterly Average Composite Index of Leading Indicators (Canada) ....................... 59

Figure 3.20: Average Annual Composite Leading Indicator for Five “Developed” Economies .. 60

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Figure 3.21: Average Annual Composite Leading Indicator Canada to Emerging Economies.... 61

Figure 3.22: Average Annual Composite Leading Indicator Canada to Chinese and Indian

Economies ................................................................................................................................................. 62

Figure 3.23: Quarterly Average Price Oil/Barrel ($US) ....................................................................... 62

Figure 3.24: Quarterly Average Unleaded Fuel Prices (Winnipeg Region) ..................................... 63

Figure 3.25: Quarterly Average Diesel Fuel Prices (Winnipeg Region) ........................................... 64

Figure 4.1: 2008 Source Province Exports Leaving via Manitoba to International Destinations .. 69

Figure 4.2: Mode of 2008 Total Exports by All Provinces Departing From Manitoba to

International Destinations ...................................................................................................................... 70

Figure 4.3: 2008 Prairie Provinces' Road Export Weight Surplus/Deficit ........................................ 71

Figure 4.4: Rail Traffic Flows In/Through Manitoba, 2004-2008 ....................................................... 73

Figure 4.5: Rail Traffic Flows In/Through Alberta, 2004-2008 ........................................................... 74

Figure 4.6: Rail Traffic Flows In/Through Saskatchewan, 2004-2008 ............................................... 75

Figure 4.7: Rail Traffic Flows In/Through Ontario, 2004-2008 ........................................................... 76

Figure 4.8: Rail Traffic Flows In/Through Quebec, 2004-2008 ........................................................... 77

Figure 4.9: Rail Traffic Flows In/Out of British Columbia, 2004-2008 .............................................. 77

Figure 4.10: Rail Traffic Flows In/Out Atlantic Canada, 2004-2008 .................................................. 78

Figure 4.11: Rail Traffic Flows In/Through Manitoba, by Originating Province, 2008 .................. 79

Figure 4.12: West Bound Rail Traffic Flowing Through Manitoba, Destined for SK, AB, BC ...... 80

Figure 4.13: East Bound Rail Traffic Flowing Through Manitoba, Destined for ATL, QC, ON ... 81

Figure 4.14: Truck Traffic Flows In/Through Manitoba, 2004-2008 .................................................. 82

Figure 4.15: Truck Traffic Flows In/Through Alberta, 2004-2008...................................................... 83

Figure 4.16: Truck Traffic Flows In/Through Saskatchewan, 2004-2008 .......................................... 84

Figure 4.17: Truck Traffic Flows In/Through Ontario, 2004-2008 ..................................................... 85

Figure 4.18: Truck Traffic Flows In/Through Quebec, 2004-2008 ..................................................... 86

Figure 4.19: Truck Traffic Flows in British Columbia, 2004-2008 ...................................................... 87

Figure 4.20: Truck Traffic Flows in Atlantic Canada, 2004-2008 ....................................................... 88

Figure 4.21: Truck Traffic Flows Destined For/Through Manitoba, by Originating Province, 2008

.................................................................................................................................................................... 88

Figure 4.22: West Bound Truck Traffic Flowing Through Manitoba, Destined for SK, AB, BC ... 89

Figure 4.23: East Bound Truck Traffic Flowing Through Manitoba ................................................. 90

Figure 4.24: Total Exports Road and Rail (2009) .................................................................................. 91

Figure 4.25: Top 10 Rail Export Portals in Canada (2009) .................................................................. 92

Figure 4.26: Top 10 Road Export Portals in Canada (2009) ................................................................ 93

Figure 4.27: Top 10 Rail Export Portals in Western Canada (2009) .................................................. 93

Figure 4.28: Top 10 Road Export Portals in Western Canada (2009) ................................................ 94

Figure 4.29: Total Imports Road and Rail ............................................................................................. 95

Figure 4.30: Top 10 Rail Import Portals for Canada (2009) ................................................................ 96

Figure 4.31: Top 10 Road Import Portals for Canada (2009) .............................................................. 96

Figure 4.32: Top 10 Rail Import Portals for Western Canada (2009)................................................. 97

Figure 4.33: Top 10 Road Import Portals in Western Canada (2009) ................................................ 97

Figure 4.34: Port of Churchill Export Commodities 2005-2009 ......................................................... 99

Figure 4.35: 2009 Port of Churchill Exports by Province of Origin ................................................. 100

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Figure 5.1: Manitoba Exports by Road to NASCO States................................................................. 102

Figure 5.2: Ditribution of NASCO Exports from Manitoba, by Road ............................................ 103

Figure 5.3: Manitoba Exports to NASCO Partners, by Rail ............................................................. 104

Figure 5.4: Distribution of NASCO Exports from Manitoba, by Rail ............................................. 105

Figure 5.5: Manitoba Imports from NASCO partners, by Road ...................................................... 106

Figure 5.6: Distribution of NASCO Imports to Manitoba, by Road ............................................... 107

Figure 5.7: Manitoba Imports from NASCO Partners, by Rail ........................................................ 108

Figure 5.8: NASCO Imports to Manitoba by Rail .............................................................................. 109

Figure 6.1: 2009 Manitoba’s Top Countries of Export....................................................................... 112

Figure 6.2: Mode of Manitoba Exports 2009 ....................................................................................... 113

Figure 6.3: Modes of Manitoba Exports- Historical .......................................................................... 114

Figure 6.4: 2009 Manitoba’s Top Countries of Imports .................................................................... 116

Figure 6.5: Manitoba Modes of Imports (2009) .................................................................................. 117

Figure 6.6: Modes of Manitoba Imports- Historical .......................................................................... 118

Figure 6.7: Modes of Manitoba Imports- Historical (Road Removed) ........................................... 119

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List of Tables

Table 4.1: 2009 Total Exports Leaving Canada via Originating Province ........................................ 65

Table 4.2: 2009 Non-Energy Exports Leaving Canada via Originating Province ........................... 66

Table 4.3: 2009 Non-Energy Export Modes Leaving Canada via Originating Province ................ 66

Table 4.4: 2009 Road Exports Leaving Canada via Originating Province ........................................ 67

Table 4.5: 2009 Rail Exports Leaving Canada via Originating Province .......................................... 67

Table 4.6: 2009 Air Exports Leaving Canada via Originating Province ........................................... 68

Table 4.7: 2009 Marine Exports Leaving Canada via Originating Province .................................... 68

Table 4.8: 2008 Provincial/Territorial Usage of Jurisdictions’ Road Infrastructure ........................ 72

Table 6.1: Top 10 Export Commodities from Manitoba ................................................................... 111

Table 6.2: Top 10 Import Commodities to Manitoba by Value ...................................................... 115

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Data Tables

Data Table 1: Total GDP from Transportation in Manitoba ............................................................ 121

Data Table 2: Total GDP from Transportation in Manitoba by Leverage Component ................ 121

Data Table 3: Contribution to Manitoba GDP by Transportation Mode ....................................... 121

Data Table 4: Trend in Air GDP by Leverage Component .............................................................. 121

Data Table 5: Trend in Rail GDP by Leverage Component ............................................................. 122

Data Table 6: Trend in Trucking GDP by Leverage Component .................................................... 122

Data Table 7: Leverage Ratios for Manitoba Total GDP by Transportation Mode in 2008 ......... 122

Data Table8: Total Labour Income from Transportation in Manitoba ........................................... 122

Data Table 9: Total Labour Income from Transportation in Manitoba by Leverage Component

.................................................................................................................................................................. 122

Data Table 10: Total Labour Income from Transportation in Manitoba by Mode ....................... 123

Data Table 11: Trend in Air Labour Income by Leverage Component .......................................... 123

Data Table 12: Trend in Rail Labour Income by Leverage Component ......................................... 123

Data Table 13: Trend in Trucking Labour Income by Leverage Component ................................ 123

Data Table 14: Leverage Ratios for Manitoba Labour Income by Transportation Mode in 2008123

Data Table 15: Total Employment from Transportation in Manitoba ............................................ 124

Data Table 16: Employment by Leverage Component from Transportation in Manitoba.......... 124

Data Table 17: Total Employment from Transportation in Manitoba by Mode ........................... 124

Data Table 18: Trend in Air Employment by Leverage Component .............................................. 124

Data Table 19: Trend in Rail Employment by Leverage Component ............................................. 124

Data Table 20: Trend in Trucking Employment by Leverage Component .................................... 124

Data Table 21: Leverage Ratios for Manitoba Total Employment by Transportation Mode in

2008 .......................................................................................................................................................... 125

Data Table 22: Trend in Air Expenditures by Leverage Component ............................................. 125

Data Table 23: Trend in Rail Expenditures by Leverage Component ............................................ 125

Data Table 24: Trend in Trucking Expenditures by Leverage Component ................................... 125

Data Table 25: Population by Region .................................................................................................. 126

Data Table 26: Total GDP by Region ................................................................................................... 126

Data Table 27: Total GDP from Transportation and Warehousing Sector by Region .................. 127

Data Table 28: Direct GDP of Sectors of the Manitoba Economy.................................................... 127

Data Table 29: Direct Employment in Transportation and Warehousing Sector by Region ....... 128

Data Table 30: Total Employment All Industries by Region ........................................................... 128

Data Table 31: Direct Paid Employment by Sector in Manitoba ..................................................... 129

Data Table 32: Total Labour Income from Transportation and Warehousing Sector by Region 129

Data Table 33: Total Labour Income per Capita by Region, All Industries ................................... 130

Data Table 34: Direct Total Labour Income by Sector of the Manitoba Economy ........................ 130

Data Table 35: Annual Growth Rates of Real GDP by Region ........................................................ 131

Data Table 36: Gross Domestic Product (Canada/Manitoba) .......................................................... 131

Data Table 37: Gross Domestic Product Growth (U.S.A/Canada/Manitoba) ................................ 131

Data Table 38: Labour Income (Canada/Manitoba) .......................................................................... 131

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Data Table 39: Change in Labour Income (Canada/Manitoba) ....................................................... 131

Data Table 40: Consumer Price Index (Canada/Manitoba) .............................................................. 132

Data Table 41: Change in Consumer Price Index (Canada/Manitoba) ........................................... 132

Data Table 42: Quarterly Average Interest Rate ................................................................................ 132

Data Table 43: Personal Expenditures and % Change (Canada/Manitoba) .................................. 132

Data Table 44: Housing Starts and % Change (Canada/U.S.A./Manitoba).................................... 133

Data Table 45: Unemployment Rate and % Change (U.S.A/Canada/Manitoba) .......................... 133

Data Table 46: Quarterly Average Exchange Rate - $US and CERI ................................................ 133

Data Table 47: Quarterly Average S&P/TSX Composite Index ....................................................... 133

Data Table 48: Quarterly Average Composite Index of Leading Indicators (Canada) ................ 134

Data Table 49: Average Annual Composite Index of Leading Indicators ..................................... 134

Data Table 50: Quarterly Average Price Oil/Barrel (US$) ................................................................ 134

Data Table 51: Quarterly Average Unleaded Fuel Prices (Winnipeg Region) .............................. 134

Data Table 52: Quarterly Average Diesel Fuel Prices (Winnipeg Region) .................................... 135

Data Table 53: 2008 Provincial Exports Leaving Via Manitoba to International Destinations ... 135

Data Table 54: Total Exports by Provinces Through Manitoba to International Destinations ... 135

Data Table 55: Provincial Exports Leaving Through Manitoba for the United States ................. 135

Data Table 56: Prairie Provinces' Road Export Weight Surplus/Deficit ......................................... 135

Data Table 57: Rail Traffic Flows In/Through Manitoba by Weight ............................................... 136

Data Table 58: Rail Traffic Flows In/Through Manitoba, By Originating Province, 2008 ........... 137

Data Table 59: Westbound Rail Traffic Through Manitoba, Destined for SK, AB, BC ................ 137

Data Table 60: Eastbound Rail Traffic Through Manitoba, Destined for Atlantic, QC, and ON 138

Data Table 61: Rail Traffic Flows Through Selected Canadian Provinces, 2008 ........................... 138

Data Table 62: Truck Traffic Flows In/Through by Weight, ............................................................ 139

Data Table 63: Truck Traffic Flows Through Selected Canadian Provinces, 2008 ........................ 139

Data Table 64: Truck Traffic Flows Destined For/Through Manitoba, by Originating Province,

2008 .......................................................................................................................................................... 140

Data Table 65: Westbound & Eastbound Truck Traffic Flowing Through Manitoba, ................. 140

Data Table 66: Port of Churchill Export Commodities 2005 – 2009 ................................................ 140

Data Table 67: Port of Churchill Exports by Province of Origin 2009 ............................................ 140

Data Table 68: Manitoba Exports to NASCO Partners, by Road .................................................... 141

Data Table 69: Distribution of NASCO Exports from Manitoba, by Road .................................... 141

Data Table 70: Total Value of Manitoba Exports to NASCO Partners, by Rail ............................. 141

Data Table 71: Distribution of NASCO Exports from Manitoba, by Rail ...................................... 142

Data Table 72: Total Value of Manitoba Imports from NASCO, by Road ..................................... 142

Data Table 73: Distribution of NASCO Imports to Manitoba, by Road ......................................... 143

Data Table 74: Manitoba Imports from NASCO Partners, by Rail ................................................. 143

Data Table 75: Distribution of NASCO Imports to Manitoba, by Rail ........................................... 143

Data Table 76: Top 10 Export Partners of Manitoba by Value (2009) ............................................. 144

Data Table 77: Manitoba Exports By Mode- Historic ....................................................................... 144

Data Table 78: Top 10 Import Partners of Manitoba by Value (2009)............................................. 145

Data Table 79: Manitoba Imports By Mode- Historic ....................................................................... 145