montréal economic powerhouse 2012

PP 416145289,95 $

2012

edi

tion Montréal

Economic Powerhouse

VOLUME 3 ISSUE 1

AEROSPACE | LIFE SCIENCES | TRANSPORT

AEROSPACE

For world-class SMEsLIFE SCIENCES AND THE NEW CHUM

Economic gateways TRANSPORT

Promoting transportationPLAN NORD

The sky’s the limit

Couvert_élites_v3n1_Mise en page 1 12-03-14 16:08 Page3

The face of Montréal – a daring, innovative metropolis – is changing thanks to projects of all kinds

WHERE CREATIVITY LEADS TO SUCCESS

Do you have a project?montreal2025.com 514 872-2025

montréal

Couvert_élites_v3n1_Mise en page 1 12-03-14 16:08 Page4

The future Éco-campusHubert Reeves,dedicated to companies in the Cleantech sector.

technoparc.com

in the Cleantech sector.dedicated to companies Hubert Reeves,The future Éco-campus

in the Cleantech sector.dedicated to companies Hubert Reeves,The future Éco-campus

in the Cleantech sector.dedicated to companies

The future Éco-campus

technopa

in the Cleantech sector.

c.comrtechnopa

in the Cleantech sector.in the Cleantech sector.

Élites2012_Éditorial_ENG_Mise en page 1 12-03-15 14:14 Page3

4 — Montréal Economic Powerhouse – 2012 edition

Contents

PUBLISHERJacques Boisvert

CHIEF EDITORDanielle Ouellet

WRITERSSerge Beaucher, Jacques Boisvert, Catherine Flores and Danielle Ouellet

TRANSLATION, REVISION AND PROOFINGCatherine Faucher, Adrienne Jackson and Maureen Nicholson

ART DIRECTION AND WEBDESIGNCarole Bordeleau

COVER PAGE ILLUSTRATIONIstockphoto by Samarskaya and Dzianis Haikov

ADVERTISINGZoé Lafond, Sales Director

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[email protected] www.jacquesboisvert.com

The Aerospace Industry SMEs on board for large innovation projects

The MACH Initiative Tackling the slimming of the supply chain

SA2GE project Opening the way for tomorrow'saircraft

Ten candles and lots of projects for CRIAQ

Talentfor the asking

Blue skies for Québec's aerospace industry

AEROSPACE

Message from the Editor

Montréal, city of talent and collaboration

Gérald Tremblay Banking on innovation

Richard Deschamps Promoting immigration

Montréal InternationalAttracting talent: the great seduction

5

7

8

13

15

EDITORIAL

Breathing new life into life sciences and health technologies

Linkingscience and economics

CHU Sainte-Justine Investing in the health of tomorrow's adults

The new CHUM An economic gateway for Montréal

The CHUMResearch Center

The CHUMFoundation

Building big

TechnoparcMontréal

35

36

4O

41

45

47

48

52

LIFE SCIENCES

Transportationwith impact

The port,a bona fide economic engine

Plan NordThe sky's the limit

55

61

63

TRANSPORT

MINING INDUSTRY

19

21

26

28

30

32


ontréal is in seduction mode on many fronts these days. As a genuine knowledge

economy materializes, human capital is becoming more than ever the driver of business

competitiveness. Attracting top talent to the metropolis and keeping it here is a key focus of

present economic development.

Fortunately, Montréal has much to offer. Besides its fine quality of life, which is well-known

abroad, the investment promotion agency Montréal International extols the economic

metropolis status of this city where business thrives. Montréal's creativity and innovation

are becoming strong drawing cards given keen global competition to recruit highly educated

young people.

The big economic clusters established ten years ago are bearing fruit. Thanks to the success

of leading prime contractors and original equipment manufacturers, Montréal has become one

of the world's three aerospace capitals. The industry is now looking to its SMEs and making

every effort to help subcontractors rise to the rank of world-class suppliers.

While the life sciences and health technologies are enjoying conditions that foster this new momentum, personalized

medicine is drawing substantial Québec and federal government investment that unites science and the economy.

Added to this are large-scale construction projects to revamp hospitals and their research centres. New prospects for

innovation and collaboration are opening up and already stirring strong interest abroad.

As the keystone of this revitalized economic foundation, the flow of people and goods is a very strong focus.

A wide-ranging urban plan banks on densification of the population through the creation of mixed areas where people

live, work and play in the vicinity of transportation access points. Rehabilitation of the road network begun in recent

years is still timely, and public transit under the banner of sustainable development is claiming top place.

Other prospects for economic spinoffs for Montréal and all Québec are appearing with deployment of the Plan Nord,

which, for one, will spotlight Québec's mining and geological industry in the years ahead.

This 2012 edition of Élites "Montréal Economic Powerhouse" presents the challenges and benefits of investments

tied to these new prospects.

Danielle Ouellet

Chief editor, Élites

Message from the Editor

DANIELLE OUELLET

The great seduction

M

5Montréal Economic Powerhouse – 2012 edition —


Immobilier commercialMagazine

MaintenanceMagazine

Élites Villes d’avenirMagazine

Élites Montréal Economic Powerhouse

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Immobilier commercialProfi l

Champions de la constructioncommerciale et industrielle

Magazine

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www.jacquesboisvert.com



Montréal,city of talent and collaboration

BY 2019, EMPLOI-QUÉBEC ESTIMATES, QUÉBEC WILL NEED ALMOST 1.4 MILLION WORKERS TO MEET THE BUSINESS REQUIREMENTS IN THEPROVINCE. MONTRÉAL WILL NOT ESCAPE THAT LABOUR SHORTAGE ANDWILL HAVE TO TAKE THE NECESSARY MEASURES TO CONTINUE PROVIDINGDESIRABLE BUSINESS AND LIVING ENVIRONMENTS. MONTRÉAL MAYORGÉRALD TREMBLAY AND RICHARD DESCHAMPS, EXECUTIVE COMMITTEEVICE CHAIRMAN AND RESPONSIBLE FOR LARGE-SCALE PROJECTS ANDECONOMIC DEVELOPMENT, ARE FIRMLY COMMITTED TO DEVELOP, ATTRACT AND RETAIN TALENT.

By Jacques BoisvertPH

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MONTRÉAL ECONOMIC POWERHOUSE

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"Underlying our actions are the idea of

services tailored to new entrepreneurial

needs, independent neighbourhood busi-

nesses, high performance infrastructure

and greater mobility for people, goods and

ideas. Practically speaking, we are banking

on the organization of mixed areas for a

harmonious combination of "work, live and

play", a concept described in Montréal's

2011-2017 Economic Development

Strategy released last June. This approach,

which is also described in the recent

Metropolitan Land Use Planning and

Development Plan, calls for densification

and the concentration of people and

services around public transportation

access points and employment zones.

These actions are all encompassed in

a vision of sustainable development that

will make Montréal a preeminent "green

and blue" city.


Human capital is key to business competitiveness.

The availability and quality of that capital is certain

to determine how Montréal grows in the long term. The

city can already bank on world-class higher education and

research assets, including eleven academic institutions,

making it a bona fide metropolis of knowledge. We are

also seeing excellent results from the big economic clus-

ters created back when I entered the mayor's office ten

years ago – Montréal InVivo (life sciences), Aéro Montréal

(aerospace), TechnoMontréal (information technologies)

and the Bureau du cinéma et de la télévision du Québec.

Those early initiatives were followed more recently by two

more clusters: Écotech Québec (clean technologies) and

Finance Montréal (financial services).

"But the world's major metropolitan areas are locked in

keen competition. Being a creative city is no longer

enough to attract talent, for more than 180 cities around

the world lay claim to creativity. We want to attract even

greater numbers of skilled people. Even more, we want to

keep them here. So we will continue to create clusters,

encourage brain-storming and promote collaboration.

We're determined to be more than a commercial

exchange centre; we intend to work toward our goals in

a favourable environment. That environment is already

appearing in the quality of our living environment and in a

focus on locally owned business, diversity, planning and

design — bear in mind that Montréal is a UNESCO design city.

Gérald Tremblay Banking on innovation

Montréal> First in Canada for

university research

> First in Canada for music,

third in North America

> In the world's top 50 cities

> World's third best summer city

> In the top 10 cities

for outdoor dining

> In the top 20 history

and heritage destinations

> First city in North America for

bicycle paths, eighth in the world

> In the top 10 most wired cities

> In the top 10 travel destinations

for 2012

" PRACTICALLY SPEAKING, WE ARE BANKING

ON THE ORGANIZATION OF MIXED AREAS

FOR A HARMONIOUS COMBINATION

OF WORK, LIVE AND PLAY."

– Gérald Tremblay

"

PHOTO

: VILLE DE MONTRÉAL


"A unique mixed zone has already come of age in the

district where Ubisoft is located at the corner of Saint-

Laurent and Saint-Viateur. An entire neighbourhood

has sprung up around this interactive game software

company. It now includes quality but affordable housing,

bars and restaurants for eating out and diversified local

services.



"The Innovation District, built up around the École de

technologie supérieure (ÉTS), is another bustling area,

with the opening of the INGO Innovation Centre, Griffin-

town revitalization, the Bassins du Nouveau Havre project,

the Bell Centre and, of course, two universities – ÉTS and

McGill. A complete living environment guaranteed to

attract a great deal of talent is being created.

"A huge $470 million revitalization project is under way

in the Namur–Jean-Talon area of the Côte-des-Neiges

and Notre-Dame-de-Grâce borough, known as

Le Triangle and soon to be a green urban space. Nine

housing developments are being built in this 40 hectare

area adjoining two subway stations and axial highways.

In the long run, there will be 4,200 dwellings and diversi-

fied local businesses. A brand-new living environment

is being created right before our eyes, transforming a

somewhat dilapidated commercial area into a neighbour-

hood geared to mass transit and quality of life.

"Besides quality of life, Montréal talent is itself a strong

drawing card. The names Arcade Fire, Cirque du Soleil and

Moment Factory are enough to stir interest and motivate

people to come settle in Montréal.

JUST FOR LAUGHS FESTIVAL

C2-MTLMONTREAL CREATIVITY IN COMMERCIAL MODEFrom May 22 to 25, 2012, Montréal will host the ground-breaking C2-MTL

Conference, which promises to have a following among business leaders seeking

ways to make creativity central to the strategic development of their

organizations. Counting on partners such as Sid Lee, Cirque du Soleil,

HSM Global and Fast Company, the event will be full of surprises, with

participants entering into a new-look conference and a brave new commercial

world conducive to invention. Montréal talent in the limelight!



PHOTOS : VILLE DE MONTRÉAL

CENTRED AROUND THE ÉCOLE DE TECHNOLOGIE SUPÉRIEURE (ÉTS), THE INNOVATION DISTRICT IS BUSTLING. Fusion Jeunesse

GANGING UP ON SCHOOL DROPOUTFusion Jeunesse is an organization that creates original university-school

partnerships to fight school dropout through projects that attract,

motivate and stimulate students and ensure their commitment.LE TRIANGLE: THE NAMUR–JEAN-TALON AREA OF THE CÔTE-DES-NEIGES–NDG BOROUGH




Montréal International

ATTRACTING TALENTMontréal International (MI) continues developing its know how and activities

for attracting international talent thanks, for one, to a $655,000 grant

awarded under the action strategy of the Conseil emploi métropole.

It will use this grant to help bolster Greater Montréal's pool of skilled labour,

with emphasis on three areas: study on foreign talent pools, web use

and international recruitment.

PHOTO

: VILLE DE MONTRÉAL

"The businesses that move here see our trademark spirit

of collaboration coupled with our creativity. This was clear

when we launched our new economic development stra-

tegy: cyber characters the likes of Lara Croft are dressed

by Montréal fashion icons such as Marie Saint Pierre;

health care and digital arts join ranks to improve healing

for sick children through collaboration between the

Technical Arts Society and CHU Sainte-Justine, and so on.

Such collaboration is fairly rare around the world.

"Fine dining in Montréal is another sector that is gaining

ground and exerting its power of attraction. Indeed, it is

drawing the interest of food critics the world over and

attracting famous chefs the likes of Daniel Boulud, who

has a restaurant in the Ritz-Carlton. A brand image for

gastronomy is forming." Tourisme Montréal vice president

Pierre Bellerose said recently, adding that 2012 could well

be a stand out year for our image as "North America's

leading city of haute cuisine."

"So we are counting on many and varied sectors of excel-

lence in which we are already garnering awards in the

global competition for talent.

Gourmet MontréalGROWING NOTORIETYIn summer 2012, Montréal will be a destination on the Omnivore

World Tour, a travelling food festival that will stop in 12 world cities

renowned for their creative cuisine. Chefs Hugue Dufour (M. Wells),

Marc-André Jetté and Patrice Demers (Les 400 Coups), as well as

Derek Dammann and Alex Cruz (DNA), have been invited to participate

in the Paris Omnivore Food Festival.

ILLUSTRATION : VILLE DE MONTRÉAL



Immigration is proving to be a vital source of talent

in these economic times. Besides keen global

competition to attract skills, population decline and

aging in Québec are putting pressure on businesses and

employers in need of workers. These two factors could

cause labour shortages, in economic sectors with high

added value, for instance. The young people now in

training will fill half of the jobs, but immigration provides

a second huge and important labour pool.

"This points to the need to pro-

mote the social and economic

integration of immigrants and take

practical steps to deal with the

factors that block integration.

Insufficient on-the-job experience

or contacts in the Canadian job

market, as well as unrecognized

prior learning and experience

abroad, go a long way in explaining

why immigrants find it hard to

integrate our workforce.

"

Richard DeschampsPromoting immigration

RICHARD DESCHAMPS

PHOTO

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"AT THIS POINT, THE 30,000 IMMIGRANTS

ARRIVING EACH YEAR ARE THE DOMINANT

DRIVER OF POPULATION GROWTH IN THE

GREATER MONTRÉAL AREA AND THE MAIN

SOURCE OF EMPLOYMENT GROWTH."

– Richard Deschamps

International Startup FestivalWHEN INNOVATION AND TECHNOLOGY MEETFrom July 11 to 13, 2012, this festival will bring together industry veterans

and fresh faces, opinion leaders and technology giants from around the world

for a series of lean, fast-paced events. This second staging of the festival will

include startup launches, inspiring keynotes and deep dives into hot sectors

such as mobility, social networking and gaming.

World Congress on Information TechnologiesFULFILLING THE PROMISES OF THE DIGITAL AGEFrom October 22 to 24, 2012, Montreal will host thousands of delegates

convening here from more than 80 countries under the theme "One Vision

for a Global Digital Society." A unique opportunity to showcase Montréal

know how and upgrade our public digital infrastructure.

"At this point, the 30,000 immigrants arriving each year

are the dominant driver of population growth in the Greater

Montréal area and the main source of employment growth.

The Conference Board of Canada states, nevertheless,

that meeting needs will require exceptional growth in

immigration levels. Current projections in Québec do not

address this.

"According to the latest information, Greater Montréal is

able to retain seven out of ten new immigrants five years

after their arrival. The other three move to the suburbs,

another Canadian city or another country. This makes

immigrant workplace integration and retention a serious

challenge that we are already taking on."

Many initiatives have recently been taken to properly

address these challenges: the Plan emploi métropole;

the Conseil emploi métropole; a roundtable on Greater

Montréal's toughest workforce challenges; the Défi Montréal

strategy for promoting job access for Montreal immigrants;

the Franco-Québec agreement on professional mobility

to better welcome international talent; the partnership

between Montréal International and the Department

of Immigration and Cultural Communities to promote the

retention of skilled temporary workers; the issuing of a

Québec selection certificate for foreign students having

earned a degree in Québec and for temporary workers

who fill skilled labour needs; the Interconnection program

set up by the Board of Trade of Metropolitan Montréal in

partnership with Emploi-Québec and the Department of

Immigration and Cultural Communities; Emploi Nexus:

choose, invest, succeed, a support and referral program to

help Montréal businesses meet head-on the challenges

of hiring skilled immigrants in the fields of aerospace,

information technologies, life sciences and health

technologies. Projects with a sure future.



INVESTING, INNOVATING, WORKING AND LIVING IN GREATER MONTRÉAL – ALL ACTIVITIES TO BE IMPRESSED UPON FOREIGN COMPANIES TO ATTRACT THEM TO QUÉBEC'SMETROPOLIS. THE RECRUITMENT OF THOSE FIRMS MUST ADVANCE THE ECONOMIC DEVELOPMENT OF THE MONTRÉAL METROPOLITAN COMMUNITY (MMC), WHICH, WITHITS 82 MUNICIPALITIES AND POPULATION OF 3.9 MILLION, ACCOUNTS FOR HALF OF QUÉBEC'S GROSS DOMESTIC PRODUCT (GDP). THERE IS STRONG COMPETITION WITHINTHE GLOBAL KNOWLEDGE ECONOMY, BUT GREATER MONTRÉAL HAS MANY THINGS TO RECOMMEND IT.

JACQUES SAINT-LAURENT, PRESIDENT AND CEO OF THE INVESTMENT PROMOTIONAGENCY MONTRÉAL INTERNATIONAL (MI), EXPLAINS HIS GOALS AND HIS STRATEGY.

Montréal InternationalAttracting talent:

the great seduction

JACQUES SAINT-LAURENTPresident and CEOMontréal International (MI)

Interview by Danielle Ouellet


Since 2000, investments totalling $7 billion in 450 projects

supported by MI have been instrumental in creating

and maintaining more than 40,000 jobs. In 2010 alone,

28 specific projects were completed, half of them for new

business establishments.

É.What kind of businesses do you target?

J.S.-L. We recruit with the MMC's economic prioritiesuppermost in mind. Montréal International has its sights

on aerospace, life sciences and health technologies (LSHT)

and information and communication technologies (ICT),

among other high-tech sectors. The results are encoura-

ging, I might add.

To take an example, the French aircraft company Groupe

Latécoère announced last fall that it was establishing a

new Canadian subsidiary called LATecis, with plans to

create 60 jobs between now and 2014. It is making

Montréal its gateway to the North American market and

also moving closer to Bombardier.

At one point, the video game company Square Enix Group

decided to expand its Eidos-Montréal studio, which opened

in 2007, by creating 100 new high-tech jobs. In 2012,

it will open another studio providing another 150 jobs.

The city of Beauharnois, which is part of the Greater

Montréal area, is becoming the North American gateway

for OVH.com, Europe's leading web host. OVH.com will be

investing $127 million and creating 117 jobs here over

the next three years.



Montréal’s power of attraction in North America2nd for the ratio of university students to the general population

2nd for the quality of the health system and hygiene

3rd for the quality of life

5th for attracting patented inventions

7th for the concentration of high-tech jobs

Source : Montréal International (2008-2010 data)

Élites. How much of Montréal's prosperity do you attri-bute to the foreign companies that have settled here?

Jacques Saint-Laurent.Their presence is highly profitablefor the metropolitan area. Though they account for a mere

9% of overall employment in the region, they currently

generate more than 20% of Greater Montréal's GDP. They

create wealth through their vigorous research, develop-

ment and innovation activity. They provide high-level jobs

that are very well paid, often as much as one and a half

times the average wage in the region.


We support the firms throughout the stages necessary

for settling in, while at the same time working to retain

the companies we've already attracted. Indeed, it is vital

to retain the subsidiaries already established here and

to support their growth because half of the 2,000 or so

foreign companies settled in our region are strategically

positioned for us in terms of economic spinoffs.

We are also interested in agri-food, nanotechnologies and

new materials, clean technologies, transportation and

logistics. We favour incisive targeting of firms that contri-

bute added value to these sectors.

É.What about the competition during this great seduction?

J.S.-L. There is very strong competition from other large

metropolitan areas in Canada, but also in the United States

and Europe. We're not the only ones to realize the eco-

nomic benefits of attracting high-tech companies. The

challenges are becoming harder and harder. In addition,

the increased exchange rate of the Canadian dollar against

the American dollar is dampening the enthusiasm of some

companies.

I might add that the Montréal subsidiaries of foreign

corporations – for example, Bell Helicopter, a subsidiary

of the U.S. corporation Textron – often find themselves

competing with their parent company's other subsidiaries

in countries with cheaper labour or other advantages.

We vigorously support our subsidiaries so that they come

out winners whenever possible. All in all, Greater Montréal

is doing very well.

É. What strategic technological advantages do we have?

J.S.-L. The quality of Montréal as a place to settle offsets

the difficulties. What's more, we can call on solid partners,

such as industrial cluster secretariats and Investissement

Québec.

Our critical mass of activities in leading-edge sectors is

key to our recruitment activities around the world.


"THERE IS VERY STRONG COMPETITION FROM OTHER LARGE

METROPOLITAN AREAS IN CANADA, BUT ALSO IN THE UNITED

STATES AND EUROPE. WE'RE NOT THE ONLY ONES TO REALIZE THE

ECONOMIC BENEFITS OF ATTRACTING HIGH-TECH COMPANIES.

THE CHALLENGES ARE BECOMING HARDER AND HARDER.

IN ADDITION, THE INCREASED EXCHANGE RATE OF THE CANADIAN

DOLLAR AGAINST THE AMERICAN DOLLAR IS DAMPENING

THE ENTHUSIASM OF SOME COMPANIES."

– Jacques Saint-Laurent


Airports Council International (ACI), which comprises

580 international airport authorities running more than

1,650 airports in 179 countries, inaugurated its head

office in Montréal in 2011. It brought with it annual

spending of $270 million and 1,500 direct jobs. Besides

these advantages, ACI's presence projects Montréal onto

the international scene as an outward-looking city.

At the same time, the Secretariat of the United Nations

Convention on Biodiversity, which has been here since

2006, announced the expansion of its Montréal premises

to prepare for implementing the Nagoya Protocol on the

protection of biodiversity.

Other metropolitan areas are engaged in the same contest,

but few of them are blessed with the same ground-

breaking environment we have. Creativity is also an

economic concept, as represented convincingly by Cirque

du Soleil or the Moment Factory, which produced Madonna's

show at this year's Super Bowl.

É.What big challenges lie ahead?

J.S.-L.We will have to attract even more talent. This mayseem illogical since we already have a large, highly skilled

workforce of excellent quality. But a real war for talent is

being waged on a world scale. Highly educated young

people are seeking more and more to settle in a city that

will offer them several career opportunities over the

years, and they attach great importance to quality of life.

Montréal excels in these respects and also provides a

fertile environment of higher learning (see boxes).

Montréal's renown for its joie de vivre, fine dining and

culture is so strong that it somewhat overshadows its

status as an economic city where it is profitable to do

business and pursue a career. We need to get this point

across even better around the world.



The Greater Montréal area ranks amongCanada’s leading metropolitan areas for:

> overall investment in university research

> number of foreign university students

> number of research centres

> number of research scientists

> number of patents held

> number of science publications through university-business collaboration

> venture capital investments in 1996-2011

Source : Montréal International (2005-2008 data)

"HIGHLY EDUCATED YOUNG PEOPLE ARE SEEKING

MORE AND MORE TO SETTLE IN A CITY THAT WILL OFFER

THEM SEVERAL CAREER OPPORTUNITIES OVER THE YEARS, AND

THEY ATTACH GREAT IMPORTANCE TO QUALITY OF LIFE.

MONTRÉAL EXCELS IN THESE RESPECTS AND ALSO PROVIDES

A FERTILE ENVIRONMENT OF HIGHER LEARNING."– Jacques Saint-Laurent



The Aerospace Industry SMEs on board for

large innovation projects

The industry mobilizes for its SMEsontréal has unquestionably risen to the rank of world

aerospace hub thanks to the leading prime contrac-

tors and OEMs that call it home. But Greater Montréal's

aerospace industry is also upwards of 200 small and

medium enterprises gravitating around the big players.

Together, these players big and small form an ecosystem

capable of ensuring its global competitiveness, provided

that the SMEs receive the support they need to grow.

"Boosting the innovation capabilities of SMEs is among

our priorities," states Suzanne M. Benoît, president and CEO

of Aéro Montréal. "We want to draw them more into the

projects of the industrial cluster, such as the mobilizing

project for a more ecological aircraft and the MACH

initiative to optimize supply chain performance."

Helping an SME go from subcontractor status to that of

a world-class supplier is an ambitious undertaking needing

mechanisms for close collaboration between those firms

and OEMs. "International competition is exerting strong

pressure, especially when it takes the form of low pro-

duction costs in emerging countries. If we are to keep

manufacturers and workers here in Montreal, we have to

give the SMEs an opportunity to move up the supply

chain into the global industrial sphere. But they must take

certain financial and technological risks," Ms. Benoît

points out.

The members of Aéro Montréal

have mobilized to further the

expertise and know how of the

SMEs, for example, by bringing

them into precompetitive indus-

trial cooperation projects – such

as those developed with the

Consortium for Research and

Innovation for Aerospace in Québec

(CRIAQ) – and by helping them

finance themselves, diversify and

raise their profile.

"The industry's strength lies in its

tremendous ability to innovate, as

shown by the $600 million annual

R&D investment right here. The

SMEs have their role to play in this

connection," Ms. Benoît concludes.

M

Feature report by Catherine Flores

Aerospace

SUZANNE M. BENOÎTPresident and CEOAéro Montréal

"THE INDUSTRY'S STRENGTH LIES IN ITS TREMENDOUS

ABILITY TO INNOVATE, AS SHOWN BY THE $600 MILLION

ANNUAL R&D INVESTMENT RIGHT HERE. THE SMES HAVE

THEIR ROLE TO PLAY IN THIS CONNECTION."

– Suzanne M. Benoît

Élites2012_Aerospatiale_ENG_Mise en page 1 12-03-15 14:39 Page19

dynamic global trend has all aerospace OEMs slimming

down their weighty supply chains so that they have

only a limited number of subcontractors to deal with.

An example of this is Airbus, which chopped its suppliers

for making the A380 from 3,000 to 500. Nowadays,

manufacturers are required to make integrated systems

and manage large numbers of subcontractors associated

with those systems. As a result, suppliers often need to

be more involved in the design stages and to share the

technological risk, and even the financial risk. How can

our SMEs succeed under these conditions?

21

The MACH InitiativeTackling the slimming of the supply chain

AMaking Quebec SMEs world-class partners

"We don't have enough SMEs of the size needed for

this new role," explains Philippe Hoste, president of the

Aéro Montréal Supply Chain Development Working

Group and CEO of Sonaca Montréal. "Our SMEs must

absolutely position themselves differently by broadening

their skills and areas of activity."

The Working Group has taken on this big challenge. The

MACH initiative is the result of joint discussions among

members of the cluster. Its aim is to elevate Québec SMEs

to the rank of world-class integrators and suppliers based

on special collaborative relationships between suppliers

and clients. Prominent industry players such as CAE,

Bombardier Aerospace, Bell Helicopter Textron Canada,

Pratt & Whitney Canada, Héroux-Devtek, Mecachrome,

L-3 Communications MAS, Mecaer and Sonaca Montréal,

to name a few, are participating in the MACH program

and providing mentorship for SMEs.

Montréal Economic Powerhouse – 2012 edition —


This supplier evaluation results in the award of a perfor-

mance label having five levels ranging from MACH 1 to

MACH 5. The scheme is uncompromising, for the lowest

rating obtained for any one business process is the overall

rating assigned to the company. The diagnosis is performed

at arm's-length by an outside firm, Sous-Traitance Indus-

trielle Québec (STIQ), to guarantee objectivity.

The second component consists in helping the diagnosed

SME put together a development plan and improve its

performance by closing the gaps discovered. A special

feature of this component involves pairing the SME with

a mentor, in other words, a client firm that will share its

expertise and best practices with the smaller firm, inform

that firm of its own needs as a client and help it achieve

its goals."

The MACH program has a five-year allocation of $15 million,

with SMEs and participating mentors contributing up

to 40% of that budget. To date, the other contributors

are the Québec Department of Economic Development,

Innovation and Export Trade; the Labour Market Partner

Commission; the Montréal Metropolitan Community;

Economic Development Canada and Aluminerie Alouette,

which is helping boost the visibility of participating SMEs.

Foreseeably, 70 SMEs will join in this initiative, the aim

being to enable most of them to achieve world-class status.

The first cohort of 20 SMEs is currently involved in the

process, and selection of the next cohort will get under

way shortly.


AEROSPACE

Formal engagement (Supplier and client)

MACH framework of excellence processes

maturity evaluation (audit)

Identification of performance gaps

MACH performance certification attribution or

revision

Elaboration of personalized improvement plan linked with identified

performance gaps

Improvement plan and projects approval

Elaboration of a personalized training program linked to the

approved improvement projects

Execution of improvement projects and training

program

12 to 14 Months cycle

Green Aviation Research & Development Network

Blue-sky thinking for a green aerospace future

www.gardn.orgCanada’s fi rst green aviation initiative

This unifying project is multifaceted, Mr. Hoste explains.

"First, there is the diagnostic component, which is

supported by the MACH framework for excellence, a

management tool developed by Aéro Montréal to help

SMEs evaluate their results, identify performance gaps

and determine which course of action they should take

to improve their position along the supply chain. This

framework focuses on three areas: excellence in leader-

ship, excellence in operations and excellence in planning

and developing workforce skills. This diagnostic tool

measures almost 800 checkpoints and is used to evaluate

SME maturity in light of 15 key business processes."

Source : Aéro Montréal



PHILIPPE HOSTECEO of Sonaca Montréal

"WE DON'T HAVE ENOUGH SMES

OF THE SIZE NEEDED FOR

THIS NEW ROLE. OUR SMES

MUST ABSOLUTELY POSITION

THEMSELVES DIFFERENTLY BY

BROADENING THEIR SKILLS AND

AREAS OF ACTIVITY."– Philippe Hoste

Philippe Hoste feels confident: "The SMEs are facing

global competition. The OEMs are all choosing the best

ones, no matter what part of the world they are in.

Whereas SMEs were once left on their own to gain

visibility and canvas for clients, the MACH initiative gives

them a single path to the OEMs. Our mentorship model

is unequalled in Québec and all of Canada."

A good case in point: Sonaca Montréal is a company

that took off owing to its relationship with a large firm,

Bombardier Aerospace. Twenty years ago, it was a small

enterprise named NMF with 10 employees which had

developed a high performance process for forming very

thin wing panels. Acquired in 2003 by the Belgian group

Sonaca, it now has a workforce of almost 300 and is

claiming attention in the regional and business jet market

through its ability to make large aluminum aircraft wing

panels. It is also a systems integrator that delivers finished

parts from its clients' technical drawings.

Aéro Montréal was established in 2006 as a think tank grouping all of Québec's

aerospace leaders from industry, educational institutions and research centres,

as well as related associations and unions. Its mission is to optimize the compe-

titiveness, growth and expansion of Québec's aerospace cluster so that it

remains a source of wealth creation for the Montréal region, Québec and Canada.

QUÉBEC AEROSPACE FACTS AND FIGURES > Montréal, one of three world capitals of aerospace, along with Toulouse and Seattle

> Some 235 firms

> Nearly 40,000 workers

> 70% of Canadian R&D spending

> Sales totalling $10.9 billion

Aéro Montréal, Québec’s aerospace cluster



AEROSPACE

RUI CABRALCEOAbipa Canada Inc.

ABIPA CANADA INC., MENTORED BY SONACA MONTRÉAL "One of our common traits as SMEs is frequently a very

short-sighted strategic vision," states Rui Cabral, CEO of

Abipa Canada, one of the first 20 SMEs to join in the

MACH initiative. Following its diagnosis in October 2011,

Abipa got down to preparing a development plan with

support from a mentor, Sonaca Montréal.

When it started out in 1982, this Laval-based SME man-

ufactured tools for various industrial sectors. Over the

years, it gradually focused solely on tooling and welding

components for the aerospace industry thanks to orders

from Pratt & Whitney Canada, then Bombardier Aero-

space, Safran and Rolls-Royce. Today, Abipa employs 100

people and its productivity gain holds out hope for 15%

annual growth. Concerned about the strong competition

from low production costs in emerging countries, it hopes

that MACH will move it into the world market.

"Thanks to this project, we are able to compare our strong

points and performance gaps with the expectations of

OEMs, and we know their vision over a 10 year horizon",

Mr. Cabral states. "Being so close to the strategies of

Bombardier Aerospace, Pratt & Whitney Canada and

other OEMs makes us push our own strategy further.

It also makes us ask some questions: do we have the

critical mass to provide the service an OEM needs?

Should we aim to have it as a direct client or should we

be its supplier?"

In Rui Cabral's opinion, the other advantage of the pro-

gram is its harmonizing effect. "Operationally, this means

continuity because we were already looking to improve

our performances through the programs of excellence

of Bombardier Aerospace and Pratt & Whitney Canada.

But it was difficult juggling different supplier audit

programs all at the same time."

Mr. Cabral hopes for more initiatives of this kind. "Coaching

and mentoring by the large firms and their concern for

making their needs transparent are fundamental. We also

have to promote long-term collaboration among SMEs."

"ONE OF OUR COMMON TRAITS AS SMES IS FREQUENTLY

A VERY SHORT-SIGHTED STRATEGIC VISION."

– Rui Cabral

PHOTO

: ABIPA CANADA



A CHAIN IS NO STRONGER THAN ITS SMALLEST LINKOne mentoring firm is itself an 80-employee SME.

Mecaer America Inc., the Laval-based division of Italy's

Mecaer Aviation Group, produces landing gear for busi-

ness aircraft and helicopters. The firm posts annual sales

approaching $18 million, and most of its client base is

outside Québec, in Ontario, Italy and Philadelphia.

Anne-Marie Bertrand, Mecaer America's Vice president,

Supply Chain sits on an Aéro Montréal working group. She

emphasizes the situation of SMEs specializing in surface

treatment at the end of the chain. "These suppliers are

usually very small neglected companies and sometimes

just workshops. It's hard for them to predict orders and

plan, which puts Aéro Montréal's big projects out of their

reach. To paraphrase, a chain is never stronger than its

smallest link..."

Mecaer America has offered to mentor Lego Finishing

Center Inc., its surface treatment supplier, in order to pro-

vide support and visibility. "Lego has already completed

the audit and diagnostic report phases, and we're working

on its improvement plan. In becoming stronger, it wards

off the risk of weakening the entire chain," points out

Ms. Bertrand, who wants such collaboration to have

a stronger impact. "We have to bank more on comple-

mentarity, join forces to develop our

relationships with prospective clients

and submit joint bids to them. Thanks

to initiatives such as MACH, there

is already more discussion, and SME

commitment is becoming more

apparent."

Ms. Bertrand is convinced that most

Québec firms in the industry can achieve

international stature. "Of course, it's

inconceivable that OEMs in Canada

forego outside suppliers, and that

includes Mecaer. But our SMEs can

bank on their own strong innovative

niches. We have to protect our essen-

tial skills and make sure we remain

competitive."

ANNE-MARIE BERTRANDVice president, Supply ChainMecaer America Inc.

"THESE SUPPLIERS ARE USUALLY VERY SMALL NEGLECTED

COMPANIES AND SOMETIMES JUST WORKSHOPS. IT'S HARD

FOR THEM TO PREDICT ORDERS AND PLAN, WHICH PUTS

AÉRO MONTRÉAL'S BIG PROJECTS OUT OF THEIR REACH. TO PARA-

PHRASE, A CHAIN IS NEVER STRONGER THAN ITS SMALLEST LINK..."

– Anne-Marie Bertrand

PHOTO

: ABIPA

CANADA



AEROSPACE

SA2GE projectOpening the way for tomorrow's aircraft

his applies to the Québec industry as well. Six of

its brightest stars – Bombardier Aerospace, Bell

Helicopter Textron Canada, Esterline CMC Electronics,

Héroux-Devtek, Pratt & Whitney Canada and Thales

Canada – have established the Regroupement pour le

développement de l'avion plus écologique, an association

for the development of more environment-friendly

aircraft to open the way for the aircraft of tomorrow, a

"greener" aircraft. This recently gave rise to the SA2GE

initiative (Systèmes Aéronautiques d'avant-Garde pour

l'Environnement), which is developing five sub projects

steered by its members: fuselage, less polluting engines,

integrated avionics for cockpit applications, critical

systems and landing gear of the future.

PATRICK CHAMPAGNEVice president, Cockpits and Systems IntegrationEsterline CMC Electronics

TIT IS ESTIMATED THAT THE NUM-BERS OF FLIGHTS WORLDWIDEWILL SOAR FROM 26 MILLION TOMORE THAN 50 MILLION BY 2030.THIS IS RAISING ENVIRONMENTALCONCERNS IN THE GLOBAL AERO-SPACE COMMUNITY.



With a four-year budget of $150 million, breaking down

as $80 million from the industry and $70 million from the

provincial government, SA2GE is one of the initiatives

described as "mobilizing" in Québec's 2010-2013

Research and Innovation Strategy. Its industrial partners

join with Québec firms and research centres to pilot their

R&D activities. In the six SA2GE firms alone, the initiative

should provide for creating or maintaining 120 jobs.

SA2GE seeks not only to design a new type aircraft, but

also to improve the component parts. "We are aiming

for aircraft that perform better, burn less fuel and are

generally greener," explains Patrick Champagne, vice

president, Cockpits and Systems Integration at Esterline

CMC Electronics, and responsible for the integrated

avionics component of SA2GE's cockpit applications.

"For us, this means using the most innovative technologies,

but also activating networks of firms pooling together to

develop and apply skills." This will improve aircraft navi-

gation performance, even in poor weather. It will also

allow for more precise prediction of the time of landing,

while reducing the distance between planes.

Airport congestion worsens with an increase in air traffic

and delayed take-offs and landings owing to weather

conditions. While banked up waiting for a free runway,

aircraft must keep running and needlessly burn fuel. One

solution is to group computing, display, control and signal

processing systems in a single unit in front of the pilot.

"This will improve decision making because pilots will find

it faster and easier to retrieve the data they need."

"WE ARE AIMING FOR AIRCRAFT THAT PERFORM BETTER,

BURN LESS FUEL AND ARE GENERALLY GREENER."

– Patrick Champagne

WWW.PWC.CA

With every new engine we develop, we’re reducing noise, emissions and fuel consumption. Today, we’re building engines that better many International Civil Aviation Organization standards by up to 50%. Because our world’s future depends on greener technology. And for that the world can depend on us.

BECAUSE YOU SEE BLUE, WE THINK GREEN



AEROSPACE

Ten candles and lots of projects for CRIAQ

onsortium de recherche et d’inno-

vation en aérospatiale au Québec

(CRIAQ) is ten years old this year.

Its big successes include marrying

research culture and industrial culture.

For its president and CEO, Clément Fortin,

the unique partnership model proposed

by the Consortium – the collaboration

of two firms and two universities or

research centres on the same project –

has promoted trust among partners.

"We always steer clear of situations that

create competition between the partners.

The generic intellectual property agreement that we

developed for precompetitive projects greatly favours

this type of collaboration."

This model of open collaboration is arousing widespread

envy. "We have signed many international cooperation

agreements, including quite a few in Asia, and a recent

biofuel manufacturing agreement with an Indian oil

company, which is investing $4 million. We plan to spread

our model all across Canada," Mr. Fortin announces.

The research projects carried out under CRIAQ are pre-

competitive. The president and CEO is moving toward the

design of demonstrators by building more gateways

between the research and product development stages.

"A CRIAQ+, as it were."

CLÉMENT FORTINPresident and CEOCRIAQ

C



S I M U L A

M O D E L I N G .

T I O N .S I M U L A

M O D E L I N G .

T R A I N I N G .

T R A I N I N G .

and training for civil aviation and defence.

CAE is a global leader in modeling, simulation

and training for civil aviation and defence.

CAE is a global leader in modeling, simulation

cae.com

"OUR BIENNIAL FORUM IS AN EXCEPTIONAL

OPPORTUNITY FOR COMPANIES TO PRESENT

THEIR PROJECTS AND FIND PARTNERS TO

CARRY THEM OUT. MANY SMES WOULD

BENEFIT FROM THIS 'PARTNER SPEED-DATING'!"

– Clément Fortin

CRIAQ is seeking to attract more SMEs to the forum it

will be holding this May. "Our biennial forum is an excep-

tional opportunity for companies to present their projects

and find partners to carry them out. Many SMEs would

benefit from this 'partner speed-dating'!"

CRIAQ has 36 SMEs among its members. "Some of them

come in the sole hope of becoming more visible to OEMs.

I don't see that as the best way to seize business oppor-

tunities," Mr. Fortin regrets to say. "We can help SMEs take

full part in the collaborative strategy, whether at the

forum or at search committee meetings of managers out

searching for their universities and research centres."

Among other CRIAQ projects that could give strong impetus

to SMEs, we might mention the projects with the Green

Aviation Research and Development Network (GARDN),

a federal initiative for industrial research funding.



SERGE BRASSETExecutive director of Collège Édouard-Montpetit and director of École nationale d’aérotechnique

THE AVAILABILITY OF SKILLEDLABOUR IS AMONG THE PRIMEASSETS OF QUÉBEC'S AERO-SPACE INDUSTRY. WELL ESTAB-LISHED DIALOGUE BETWEENUNIVERSITIES AND BUSINESSGUARANTEES BALANCE BETWEENCOMPANY NEEDS AND THE NUM-BER OF TRAINED ENGINEERS."UNIVERSITY-LEVEL AEROSPACEENGINEERING PROGRAMS ORCOURSES ARE DEVELOPED WITHINDUSTRY NEEDS IN MIND, ANDTHE PRESENCE OF AEROSPACEINSTITUTES IN MONTRÉAL'SFOUR ENGINEERING FACULTIESOR SCHOOLS SERVES AS A CATALYST," SUZANNE M. BENOÎT,PRESIDENT AND CEO OF AÉROMONTRÉAL STATES.

Patrick Champagne of Esterline CMC Electronics is most

pleased. "Today's young graduates are more open to the

world and more savvy about working in teams. They have

had more complete programs that are better pegged

to the industry, and they have interned in the field."

The multiculturalism in today's schools provides an

opportunity, he feels. " […] graduates become accustomed

to cultural diversity earlier on. Such collaborators are an

asset for firms such as ours that make 85% of their sales

outside the country."

Still, industry representatives all agree that skilled techni-

cians are in short supply. ÉNA, the National Institute of

Aeronautics, which offers specialized courses in aircraft

construction, aircraft maintenance and avionics, admits

900 full-time students, whereas it has space for 1,300.

The careers of ÉNA graduates get off to a good start, with

salaries ranging between $17.33 and $30 an hour and

a placement rate of 100% for aircraft construction

jobs. "Many of our graduates go on to university," says

Serge Brasset, executive director of Collège Édouard-

Montpetit and director of ÉNA.

Talent for the asking

PHOTO

: ÉN

A



The CSeries aircraft program is currently in the development phase and as such is subject to changes in family strategy, branding, capacity, performance, design and/or systems. All specifications and data are approximate, may change without notice and are subject to certain operating rules, assumptions and other conditions. The actual aircraft and configuration may differ from the image shown. Bombardier and CSeries are registered trademarks of Bombardier Inc. or its subsidiaries.

INGENUITY IS MAKING IDEAS FLY.Ingenuity is what happens when imagination meets possibility. Our tradition of looking ahead is what makes Bombardier a world leader when it comes to strategic thinking, technical expertise and ingenious solutions for the world’s aerospace challenges.It’s all about our dedication and resilience. IT’S HOW WE THINK.

aero.bombardier.com

ENA also offers continuing education. "For one, we develop

short customized training courses that are highly worth-

while for SMEs in urgent need of expertise," explains

André Marcil, director of ENA business partnerships

and of the Centre de services aux entreprises et de

formation continue

Montréal's aerospace trade school (École des métiers de

l'aérospatiale de Montréal - ÉMAM) offers a nine-month

program that adjusts student admissions to industry

needs and is the only program of its kind in Québec.

According to a recent CAMAQ study on aerospace industry

needs, the Québec industry foresees the need to hire

3,600 workers in 2012, including 500 technicians.

"Those needs should peak in 2016. There will be a mad

dash to hire engineers, specialists and trades people!"

Suzanne M. Benoît asserts.

ANDRÉ MARCILDirector of ENA business partnerships and of the Centre de services aux entreprises et de formation continue

"WE DEVELOP SHORT

CUSTOMIZED TRAINING

COURSES THAT ARE HIGHLY

WORTHWHILE FOR SMES

IN URGENT NEED OF

EXPERTISE."

– André Marcil



AEROSPACE

Blue skies for Québec's aerospace industry

GILLES LABBÉ, CHAIRMAN OFAÉRO MONTRÉAL AND PRESIDENTAND CEO OF HÉROUX-DEVTEK, ACANADIAN LEADER IN THE DESIGNAND MANUFACTURE OF AIRCRAFTLANDING GEAR, IS OPTIMISTICABOUT THE FUTURE. INDEED, INDUSTRY TRENDS INDICATEPROMISING GROWTH PROSPECTSFOR THE INTEGRATOR AND ITSPARTNERS.GILLES LABBÉ

Chairman of Aéro Montréal andPresident and CEO of Héroux-Devtek

HELPING LOCAL SMES TAKE OFFAs Gilles Labbé sees it, the vitality of Québec's aerospace

industry is directly contingent on the creation of synergies

between prime contractors, original equipment manufac-

turers (OEMs) and the network of SMEs. This is why

Héroux-Devtek is fully engaged in developing its supply

chain in Québec, for one by participating along with

many other aerospace firms in the MACH program, an

Aéro Montréal initiative. "Being competitive these days is

no longer simply a matter of offering the best possible

costs. It also means offering a full-service package

together with the product, everything from design to

after-sales service. This is true for integrators such as us

and it's true for SMEs," Mr. Labbé emphasizes.


He gives the example of Héroux-Devtek's substantially

bigger role vis-à-vis its clients. "It is no longer strictly a

client-supplier relationship; it is a partnership. We work

closely with our clients to develop their new aircraft

models. This also entails sharing the financial risks. This

business logic also applies to the SMEs. With all of us

pursuing the same goals, we will all be stronger."

A POSITIVE HEALTH REPORT "The good health of the world commercial aviation sector

is reflected in the order books of our clients, Gilles Labbé

points out. Boeing, which announced orders totalling

$356 billion in late 2001 and 9% growth in its civil

aviation sales, is banking on close to 600 civilian aircraft

deliveries this year. Airbus, for its part, had a record year

for orders in 2011 and estimates that orders will increase

to 650 or so in 2012.

Business aviation, which slumped in 2008-2011, seems

to be making a comeback, thanks especially to Asian

orders. For example, Bombardier has firm orders for its

CRJ-900 from China Express Airlines. A Honeywell study

shows that purchase intentions in Asia for 2012-2015

have increased by five points since 2011, more than for

the other world regions.

However, there is some disappointment over the military

aviation sector, in which Héroux-Devtek chalks up 50%

of its sales, with the announcement of cutbacks in the

U.S. defence budget. "This is sure to affect military

aviation programs, but the U.S. government remains

committed to a certain number of aircraft under those

programs," Gilles Labbé explains. For example, orders for

2,400 F-35 Joint Strike Fighter jets are expected, including

600 outside the United States. Each order represents

income of $750,000 for Héroux-Devtek, which supplies

the aerostructures. "This sector will not grow as fast as

we hoped, but there will nevertheless be some growth,"

Mr. Labbé comments.

INNOVATION AT THE HEART OF DEVELOPMENT STRATEGYInnovation is the other key factor in growth. Canada's

aerospace industry invests no less than $1.4 billion a year

in R&D. "Rising oil prices argue in favour of aircraft that

consume less fuel. All aircraft makers are turning their

attention to building such planes these days. Our R&D

projects are in line with this trend as we focus especially

on developing technologies for making lighter, quieter

landing gear."

Mr. Labbé's company has named the development of

exclusive value added products based on design engi-

neering as its primary strategic objective, and it is inves-

ting 5% of its sales revenue in research and development.

Its R&D team, which now comprises a hundred engineers

and researchers – ten times more than ten years ago –

recently obtained a development centre for simulating

aircraft landings, a new facility equal to the task. This centre,

which is located in Saint-Hubert, represents an invest-

ment upwards of $5 million.

The R&D team must also meet the demand for systems

that are easier and faster to service and is tackling the

development of new processes for making more environ-

ment-friendly corrosion resistant coatings.


"BEING COMPETITIVE THESE DAYS IS NO LONGER SIMPLY

A MATTER OF OFFERING THE BEST POSSIBLE COSTS. IT ALSO

MEANS OFFERING A FULL-SERVICE PACKAGE TOGETHER

WITH THE PRODUCT, EVERYTHING FROM DESIGN TO AFTER-SALES

SERVICE. THIS IS TRUE FOR INTEGRATORS SUCH AS US

AND IT'S TRUE FOR SMES." –Gilles Labbé


GOING ABROAD Héroux-Devtek recently set up in Querétaro, Mexico, to

support the development of its clients, Bombardier and

Bell Helicopter in particular.

Does this move beyond our borders threaten its Québec

workforce? According to Mr. Labbé, Héroux-Devtek's

projects provide enough work for its Canadian teams,

which are suffering no ill effects from the transfer of certain

operations to Mexico. "We are bound by the requirement

to stay competitive, while at the same time working to

retain know how and skilled labour here at home. This is a

delicate balance to achieve, but I think we can do it," the

president and CEO says.

Héroux-Devtek's Mexican facility currently has about

20 employees. This year, it will produce its first airframe

and wing components. With the projected growth in

business activity between now and 2014, it should see

that personnel grow five-fold and its production space

expand from 50,000 to 150,000 square feet.

A LESSON IN OPTIMISMGilles Labbé sees perseverance as the secret of success

in the sensitive aerospace market. "A good manager in our

sector has to think very long term. In beginning a business

relationship, we must realize that it may take a long time

to win a contract!"

He mentions by way of example that it took Héroux-Devtek

no less than ten years to win its first contract with

Lockheed Martin Aeronautics back in 1997. Today, the

two companies have a seven-year $70 million agreement

for manufacturing landing gear for the C-130J Super

Hercules. "As I'm in the habit of saying, success in our sector

requires believing that today's no is tomorrow's yes,"

Gilles Labbé concludes.


AEROSPACE



Breathing new life into life sciences and

health technologies

Life Sciences

Feature Report by Danielle Ouellet

Personalized medicine is drawing substantial public

and private investment, science is partnering with

economics, the pharmas are restructuring their research

and billions are being poured into the construction of

new health facilities. While all this is happening,

efforts are intensifying to attract life science

and health technology firms to Montreal and keep

them here. The future looks bright.

ILLUSTRATION : ISTOCKPHOTO BY ARTCALIN

Élites2012_ScienceVie_ENG_Mise en page 1 12-03-15 14:43 Page35


LIFE SCIENCES

ILLUSTRATION : ISTOCKPHOTO BY VLADIMIR

technological tools within Québec's health system.

Approved projects will be announced in the spring, and

their spinoffs will be a strong stimulus for economic activity

in this sector.

Added to this effort is Génome Canada's large-scale

genomics and personalized health competition held in

cooperation with the Canadian Institutes of Health

Research (CIHR) and the Cancer Stem Cell Consortium

(CSCC). The organization will allocate close to $67.5 million

to promote more effective treatments and thereby

stimulate Canadian competitiveness in the field of person-

alized medicine. And there's something new: the project

proposals must have an economic component. "This is

a first," comments Marc LePage, the new president and

CEO of Génome Québec. "Candidates will have to foresee

the practical social and economic return benefits of their

Linkingscience and economics

2011, the Québec government

announced investments of

$20 million in personalized medicine,

an approach to health care that ties

into our personal identity and is proving

to be a promising niche for both

Montréal and Québec. The private

sector, for its part, was to put in an

equivalent amount. Québec's chief

scientist, Rémi Quirion, says that he has

received a half dozen project proposals:

development and consolidation of a

high performance biomarker validation

platform; product development pro-

grams, e.g. for diagnostic kits; digital

tool production and a strategy for

integrating and evaluating those

MARC LEPAGE President and CEOGénome Québec

In


TRANSFORMATION OF THE PHARMACEUTICAL INDUSTRYLarge numbers of pharmaceutical jobs have been cut in

recent months. "The situation hits research the hardest

and may cause concern," Michelle Savoie acknowledges.

However, it ties in with transformation of the pharmas'

business model around the world in the past few years.

The firms often stay in Montréal but stop developing new

molecules in house. They team up instead with biotechs,

such as Caprion for proteomics or Corealis, which special-

izes in the development of pharmaceuticals (capsules,

tablets and granules) or with university research labora-

tories, such as the Université de Montréal's Institute for

Research, in Immunology and Cancer (IRIC), the Montréal

Heart Institute, the Centre d’innovation de Génome Québec,

McGill University, and so on. This is generating a great

many business opportunities.


RÉMI QUIRION

A CHIEF SCIENTIST FOR QUÉBEC Québec appointed a chief scientist on September 1, 2011. Until then, life science researcherRémi Quirion was scientific director at the Douglas Institute, where his laboratory studied agingand Alzheimer's disease. His current role is to advise the government on science matters in aworld where interdisciplinarity is becoming the norm. "It's important to reduce the silo effectbetween disciplines," he explains. "For one thing, access to health care is increasingly helpedalong by input from other professionals, including engineers and ethicists." The chief scientistchairs the boards of Québec's three major funding agencies: the Fonds québécois de recherchesur la société et la culture (FQRSC), the Fonds québécois de recherche sur la nature et les technologies (FQRNT) and the Fonds de recherche en santé du Québec (FRSQ), "an ideal positionfor forging ties."

Rémi Quirion is just now completing an extensive consultative tour of Québec's 18 researchcentres. He is very pleased to see the enthusiasm of researchers from all areas and sets himselftwo big objectives for the five years ahead. "I want to consolidate and enhance the financing of Québec's main research funding agencies, and I want to set four or five wide-ranging cross-sectoral projects in motion." He is curently contemplating the sectors of mining, populationaging, culture, imaging and multimedia, and training an advanced new generation.

work and suggest implementation strategies. This compo-

nent accounts for much of the project evaluation. This is

unprecedented! We are confident that Québec researchers

will do well in this competition, for we already have big

players in such diverse fields as oncology, cardiovascular

disease, neurology, diabetes and infectious diseases."

Michelle Savoie, chief executive officer of Montréal InVivo,

Greater Montréal's life science and health technology

cluster, is thrilled with this approach. "We are working

closely with Génome Québec, Génome Canada and the

CIHR to stimulate development of this sector in Québec.

We are creating a critical mass in personalized medicine

that will showcase our expertise internationally in order

to attract investors. The establishment of the Québec

Network for Personalized Health Care, a new non profit

organization tasked with implementing the strategy

developed for this sector will probably be announced

in June 2012," she goes on to say.

" WE ARE CONFIDENT THAT QUÉBEC RESEARCHERS WILL DO WELL

IN THIS COMPETITION, FOR WE ALREADY HAVE BIG PLAYERS IN

SUCH DIVERSE FIELDS AS ONCOLOGY, CARDIOVASCULAR

DISEASE, NEUROLOGY, DIABETES AND INFECTIOUS DISEASES."

– Marc LePage



LIFE SCIENCES

therapy for the rare and often fatal disease of hypophos-

phatasia (HPP), was bought for close to one billion dollars

by the American firm Alexion Pharmaceuticals. Montréal

investors such as the Fonds de solidarité FTQ and Desjardins

Venture Capital will no doubt benefit from this.

"There is another positive impact, for Montréal know

how remains here in some cases," Michelle Savoie adds.

This happened when the American firm Vertex bought

Laval-based ViroChem Pharma, a spinoff of Biochem

Pharma, originator of the triple cocktail for treating AIDS.

Vertex kept the Laval laboratory and filled out the

personnel there. Similarly, Elekta bought out Resonant

Medical, which specialized in magnetic resonance imaging,

and has made the Montréal laboratory a world-class

centre for excellence.

BOOSTING MONTRÉAL'S POWER OF ATTRACTION The Québec government is currently spending some

$5.5 billion to modernize Montréal's health institutions.

The new Centre hospitalier de l'Université de Montréal

(CHUM) and its research centre are receiving the lion's

share, $2.5 billion to be exact (see p. 41). They form

the basic core of the Health District, which will include

the Norman-Bethune Campus, specializing in population

health, and already accommodates UQAM, the Université

du Québec à Montréal. UQAM has more than a hundred

professors and some 20 research units interested in

health and life sciences, and 50 or so health-related

undergraduate and graduate programs.

"A new era is dawning," Ms. Savoie

continues. "We need to get in position.

In this connection, we will be sure to

provide strong support for our compa-

nies and university research centres.

They must have access to funding at

different links in the drug development

chain. Big business needs support, espe-

cially regarding intellectual property, an

area in which Canada is lagging behind

other global competitors. This calls for

the Québec government to play its role

with its federal counterparts in order

to modernize our approach, especially

where patents are concerned."

Montréal InVivo management also intends to target,

develop and promote Québec's sectors of excellence to

make the pipeline of discovery of new drugs and pro-

cesses even more productive. But what about the growing

number of high performance biotechs bought up by

foreign interests? "There are consequences on two

levels," states Ms. Savoie, who takes an optimistic view

of the situation. First of all, the buyouts create a return of

capital that could be highly attractive for local investors.

By way of example, Enobia Pharma, which produces a

Montréal InVivo> Groups 620 organizations, including some 150 research organizations,

and 80 foreign subsidiaries

> Comprises 43,000 skilled workers

> Draws on 11 institutes of higher education

Source : Montréal InVivo

MICHELLE SAVOIECEOMontréal InVivo

PHOTO : GÉNOME QUÉBEC

PHO

TO : É

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DEN

IS B

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MCGILL UNIVERSITY AND GÉNOME QUÉBEC INNOVATION CENTRE



The CHU Sainte-Justine has received nearly one billion

dollars (see p. 40) for modernization and the McGill

University Health Centre (MUHC) close to two billion

dollars to build the Glen Campus, which will group the bulk

of McGill's health care and research facilities. As of 2014,

it will host the Montréal Children's Hospital, Royal Victoria

Hospital, Montréal Chest Institute, MUHC Cancer Centre

and MUHC Research Institute with its 500 researchers.

The MUHC's Lachine Campus with its hospital and the

Mountain Campus, centred around the Montréal General

Hospital, round out the McGill reorganization project.

All of these new facilities are intended to improve health

care, with the associated service and research activities

becoming powerful incentives for attracting companies

to the metropolitan area.

The administrations of these three hospitals are committed

to putting Montréal and Québec in the lead worldwide.

Complementarity is essential in this connection to avoid

duplication of efforts. "The Centre d'innovation Génome

At Pfizer, we believe to be truly healthy, it takes more than medication. Introducing morethanmedication.ca – a website devoted to the

everyday pursuit of health and wellness.

morethanmedication.ca

Québec and McGill University are excellent models of

collaboration," Marc LePage points out. "Genomic research

facilities have been concentrated in one single place, thus

reducing procurement and utilization costs, while boosting

Québec productivity. There are close to 70 employees

and 800 Canadian users (60%) and foreign users (40%),

American for the most part. These facilities post overall

sales of $10 million a year. The activities of all concerned

are enhanced."

These efforts are vital, the Montréal InVivo CEO believes.

"Practically all regions in the world have targeted the

knowledge sectors, particularly the life sciences, as

drivers of economic development. The challenge for

Montréal is to take up a strong position of world leader-

ship in our sectors of excellence by establishing sound

directions, optimal strategies and the most effective

policies for attracting and retaining investors and for

stimulating the development of high performance

Québec firms."


2010, the Québec government

announced a $995 million

investment to modernize the facilities

of the Centre hospitalier universitaire

(CHU) Sainte-Justine, the children's

hospital then described by Premier

Jean Charest as "the jewel of pedia-

tric medecine."

For Sainte-Justine executive director

Dr. Fabrice Brunet, this project is

primarily an investment in Québec

population health. "Over and above

the buildings, the most important

economic spinoff will come through

future generations. We want today's

children to become healthy adults

and so to particpate more effectively

in economic development. Brain

power and human health go hand in

hand."

The old building will be renovated and will house the

outpatient department, laboratories and teaching facilities.

The new building, which will be started in March, will house

neonatal and pediatric intensive care units, the birthing

centre, the surgery department and the medical imaging

department. The research centre will occupy 27,000

square metres, and the number of researchers that can

be accommodated will increase from 165 to 265.

"The modernized facilities will be a place for technological

innovation as well," Dr. Brunet points out. "For instance,

the neonatology unit will have 80 beds instead of the

65 it now has. We will be able to take in and treat premature

infants using the world's best technologies. As for cancer-

ology and cardiology, we will gain a better understanding

of the effects of treatment and will be able to alleviate

therapeutic side effects. Our objective in all cases will

be to reduce late effects and improve the health of

tomorrow's adults."

The return benefits are already being seen in the arrival

of world-class specialists drawn by our new technological

environment. "There will be others," Dr. Brunet predicts.

"The investments will also give us a greater hand in

developing Québec's network of health care and social

services. Telemedecine, for one, will give more children

access to specialized and super-specialized care."

The know how of Sainte-Justine's specialists is already

recognized the world over. Their services are in demand

for information technologies, biomedical technologies,

etc. The hospital has ties with 22 countries, including

Morocco for heart surgery, Haiti for construction of a

regional university hospital, and also China, India, Europe

and South America. "In the final analysis, these partner-

ships lighten the Québec tax burden," Dr. Brunet states.

"Bear in mind," he concludes, "that a healthy population is

the best assurance of a healthy economy. This is the real

objective of today's investments."

DR. FABRICE BRUNETExecutive directorCHU Sainte-Justine

PHOTO

: CHU SAINTE-JUSTINE

PHOTO

: ISTOCKPHOTO

BY DNY5

9

CHU Sainte-Justine Investing in the health

of tomorrow's adults


LIFE SCIENCES

In


CHRISTIAN PAIREExecutive directorCentre hospitalier universitaire del’Université de Montréal (CHUM)

The new CHUM An economic gateway for Montréal

fter years of planning, construc-

tion of the new Centre hospitalier

de l'Université de Montréal (CHUM) is

well under way. Before the scheduled

opening of the hospital in 2016, the

CHUM Research Centre (CRCHUM)

and the Centre intégré d'enseignement

et de formation (CIEF, integrated tea-

ching and training centre) will open in

the same building in 2013. Lastly, the

surrounding buildings, amphitheatre,

library and clinical and administrative

offices will open in 2019. This hub of

excellence in health care, research and education is already

generating economic spinoffs for Montréal. It also pro-

mises more international economic activity of benefit to

Greater Montréal and all Québec.

The immensely enthusiastic principals of this huge project

are being challenged to carry out an elaborate strategic

plan and to broaden and harmonize the culture of

collaboration, consolidate areas of complementarity

within the health network, create more partnerships with

business and in the community, integrate the new CHUM

into Montréal's emerging Health District and construct

sophisticated buildings.

AFeature Report by Danielle Ouellet

ILLUSTRATION : CANNON-DESIGN - DCYSA ARCHITECTURE+DESIGN


THE CHUM'S NEW EXECUTIVE DIRECTOR Christian Paire has had a love for Québec since childhood

and gladly accepted the offer to head the Centre hospi-

talier de l'Université de Montréal and construction of its

new facilities. Having been recruited in Rouen, where he

ran one of France's largest hospital centres for eight years,

he settled in Montréal in December 2009. "I was to par-

ticipate in a wonderful project. A $2.5 million investment

including a research centre, a new-look urban design/

architectural project and integration of that project into

the Health District – all of this made for an exceptional,

unprecedented project. I was deter-

mined to begin on solid footing."

Upon his arrival, Mr. Paire persua-

ded the Québec government to

increase its investment. "I'm res-

ponsible for reality checks. I realized

the importance of keeping up the

momentum. The CHUM Research

Centre has some 165 research teams. Public authorities

had the necessary political will and quickly agreed to

provide the missing $400 million for research so that

the project would reflect researchers' aspirations and the

needs of the public. I see it every day, the hope of resear-

chers to move onto the cutting edge of excellence.

Research is inseparable from a university hospital."

THE WAY TO THE NEW CHUMChristian Paire also saw the urgency of developing a

strategic plan "that would point the way to a successful

project." Pauline Maisani, who had worked on the merger

of Paris hospitals, headed that plan. "I was struck by the

differences in culture and practices at the three hospitals

– Hôtel-Dieu, Notre-Dame and Saint-Luc – that will

make up the new CHUM," she confides. "The architectural

model of the new hospital was beautiful, but we needed

broad, cohesive consultation about how we would

organize our activities. We had to share our vision of the

future and direct our efforts toward the same goal."

The consultations revealed some very different needs.

"We had to justify our two primary interests: linking clinical

practice and research and putting more emphasis on

ultra-specialized care in the future CHUM," Ms. Maisani

recalls. "This is our true mission as a university hospital.

If we are to accomplish it, we must fortify our partnerships

within the health network."

Building bridges between clinicians and researchers was a

challenge. "The first want very much to do research, and

some of them already do; but they're stretched too thin.

The others are often very focused on their work. We had

to think about remuneration, time management and

medical recruitment strategies."

As for the type of care provided: "As a university hospital,

we have the means to do more for patients in need of

ultra-specialized care calling for a leading-edge technical

platform found nowhere else. This is the category of

patients for whom we especially want to focus our efforts

and resources." Ultimately, Hôtel-Dieu hospital will be

closed and Hôpital Saint-Luc razed and replaced by the

new hospital. Hôpital Notre-Dame will become a commu-

nity hospital. "We have entered into partnership with the

Jeanne-Mance health and social services centre (CSSS)

for support to change Notre-Dame into an urban

community hospital," Mr. Paire explains.


LIFE SCIENCES

PAULINE MAISANIStrategic planning directorCentre hospitalier universitaire del’Université de Montréal (CHUM)

Five key areas of excellenceat the CHUM> Cardiovascular and metabolic disorders

> Neuroscience

> Transplantation

> Oncology

> Functional musculoskeletal disorders

THE FOUR FIELDS OF ADVANCED CROSS-SECTORAL EXPERTISE SUPPORTING THESE CLINICAL AREAS OF EXCELLENCE

> Imaging

> Leading-edge technologies

> Biomarkers and genetics

> Immunology and infectious diseases



come into play. To take an example, I've known dancers

on AIDS wards who have altered the attitude of both staff

and patients for the better."

Patients will not only have access to the 500-seat

amphitheatre and the library; they will also receive treat-

ment in a light-filled environment and can rest in friendly

open areas while enjoying splendid views of the city.

IN THE HEART OF THE HEALTH DISTRICTThe proximity between the new CHUM and the Montréal

Convention Centre – 45% of the events taking place

there involve life sciences – will generate synergy, made

stronger by the 15,000-m2 Pavillon des bio industries

to be built between the two complexes. "We're already

wooing the biotechnology community, as well as firms

that might benefit from the proximity of a healthcare

and research complex ten minutes from the business

district, the international district and the tourist sites of

Old Montréal," Christian Paire tells us.

The success of the 2011-2015 strategic plan is guaran-

teed by interdisciplinary cooperation, recruitment consis-

tent with the university vocation, an innovative method

of remunerating medical staff involved in teaching and

research, joint action and partnerships, as well as revision

of health funding methods. The plan, which coincides with

the 15 years of the CHUM, expresses "a shared will to

rank the CHUM, and through it Montréal and Québec,

among the world's leading health institutions."

AN ENVIRONMENT OF HUMAN SCALEThe 772 beds in the new CHUM, all in individual rooms,

will be ready for the first patients in 2016, three years

earlier than originally planned. Patients will have access to

high-tech medicine in an environment of human scale.

"The artistic aspect is essential," asserts Christian Paire,

who is convinced of the positive connection between

culture and health. "Adding a cultural component changes

how society sees its hospitals. Individuality and humanity


The Université de Montréal School of Public Health is

another important integrating element that will promote

exchanges and joint projects for improving population

health. Soon to be installed in the Îlot Voyageur complex

north of the new CHUM and its research centre, it will be

the first component of the Public Health Campus, which

should ultimately host the Institut national de santé

publique du Québec, the Montréal-Centre Public Health

Department and the Université de Montréal Public

Health Research Institute.

THE CHUM, AN ECONOMIC DRIVERThe CHUM's $700-million annual budget represents a

third of the total investment of some two billion dollars

for construction of the hospital centre alone, "which is

equivalent to only three years of operation," Christian

Paire emphasizes. The investment may seem enormous,

but the horizon is 100 years and the economic spinoffs

critical.


LIFE SCIENCES

The new CHUM in facts and figures> An area of 336,800-m2, including the research and teaching centre

> $2.5 billion invested, including the research and teaching centre

> 772 individual rooms

> 26 inpatient units

> 39 operating rooms

> 7,000 employees

> 800 doctors

> 5,000 students and interns

> 1,350 researchers, investigators and clinicians

> 400 volunteers

"FOR NOW, THE CHUM IS THE SECOND LARGEST EMPLOYER IN THE

REGION, AND WE ARE CREATING WEALTH IN MANY WAYS – PROVIDING

WORK FOR THOUSANDS OF EMPLOYEES, HIRING SERVICE COMPANIES,

BUYING MEDICAL EQUIPMENT AND, ESPECIALLY, SEEING TO THE GOOD

HEALTH OF PEOPLE WHO WOULD OTHERWISE NOT BE WORKING."

– Christian Paire"Once the Pavillon des bio-industries is in place, the

economic impact on research and the firms housed there

will become clearer," he continues. "For now, the CHUM

is the second largest employer in the region, and we are

creating wealth in many ways – providing work for thou-

sands of employees, hiring service companies, buying

medical equipment and, especially, seeing to the good

health of people who would otherwise not be working."

"In the long run, Montréal will rank in the health sector

right up there with the large cities on the U.S. East Coast,

Boston and Philadelphia for example, and even Paris,"

Mr. Paire concludes. "There is one condition, however:

Québec must overhaul its hospital funding system and

create performance incentives, which it will be doing

very soon!"

AN INTERNATIONAL ROLEOwing to scientific strides, the CHUM is already favourably

positioned on the international scene. New avenues for

treating breast cancer, the discovery of a common genetic

cause for autism and epilepsy, and breakthroughs in

the causes of amyotrophic lateral sclerosis (Lou Gehrig's

disease) are some examples. But there is more.

Knowledge transfer and training are becoming avenues of

choice for boosting the impact of research in Québec and

around the world. "We want society to reap the benefit

of the huge investments in the project," Mr. Paire states.

Service delivery activities – telemedicine, information

technologies, a training simulation centre – are being

developed. Collaboration with other institutions in

Québec, but also in India, China and the Middle East is

taking shape.

"Globalization has a big impact for us," Mr. Paire adds.

"Clinical trials are being conducted more and more in

emerging countries. To preserve our advance in this field,

we need to bank on our values of ethics and transparency

and keep up with pharmaceutical innovation. With the

new CHUM, we will be ready and able to star on the world

health stage."



The CHUMResearch Centre

oney is the crux of the matter,

especially when it comes to

research. Dr. Jacques Turgeon, director

of the CHUM Research Centre, esti-

mates that his facility now contributes

"$60 million a year to economic acti-

vity in Greater Montréal in the form of

researcher funding, research grants

and contracts with pharmaceutical

firms and government agencies."

He intends to boost funding by several

means. "First, by having all research

teams in one place, not spread out at

six Montréal locations as they are now.

That will allow more collaboration, thereby improving our

edge in the major competitions of the Canadian Institutes

for Health Research.

"With the arrival of world-class research scientists and

equipped with the finest technologies, we will be able to

attract more foreign capital from large institutions such

as the Bill Gates Foundation and the National Institutes of

Health, for example, or through contracts with Montréal-

based international divisions of pharmaceutical firms,"

Dr. Turgeon continues. "Our outside advisory committee,

which meets every two years, gathers top experts in the

field who help us obtain the best performance ratings."

DR. JACQUES TURGEONDirectorCHUM Research Chair (CRCHUM)

M

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KRIS

TIAN S

EKULIC



LIFE SCIENCES

DR. FRANCOIS LESPÉRANCECHUM associate director general of medical and academic affairs anddirector of professional servicesPH

OTO

: PRO

DUCTION M

ULTIM

ÉDIA CHUM

Scientific expertise and priorities for the CHUMResearch Centre> Cancer

> Cardiometabolic risk

> Infection, immunity and inflammation

> Musculoskeletal diseases

> Neuroscience

> Population health: health risks, world health, healthcare and service systems

Dr. François Lespérance, CHUM associate director general of

medical and academic affairs and director of professional

services, stresses the importance of conducting basic research

close to a clinical environment. "There is growing collaboration

between the public and private sectors and between universities

and business, and research centres are getting involved sooner

and sooner in the production of new drugs or new therapeutic

technologies. This is a global trend: proximity creates trust and

promotes knowledge. We must also get even better at selling

our expertise, which is why we are considering new research

development structures."

The efforts to secure an international position for the CHUM

Research Centre, which is aiming for $100 million a year,

depend on collaboration. "We favour complementarity with

other universities," Mr. Turgeon says. "This is the preferred

approach for creating the Health District. Each of us will be the

best in our particular field, and the Research Centre will be

on an equal footing with such major centres as Singapore,

New York, Toronto and Vancouver."

In this vein, the CHUM Research Centre already stands out in

three key areas: imaging, reinforced by delivery of a new

cyclotron; clinical research, favoured by the presence of a

research centre – phases 1 and 2; and the creation of a centre

for data analysis and evaluative and epidemiological investiga-

tion. For that particular centre, "we recently recruited three top

names who have received funding of several million dollars,"

Dr. Turgeon states. "Through these efforts, we will get a very

helpful overall picture of the community – for family medicine,

for instance."

CHUM Research Centrefacts and figures> Occupies 68,800-m2

> $470 million invested

> 110 basic-research teams

> 55 clinical and population health research teams

> Over 800 researchers, students and post-doctoral fellows

> Over 500 research coordinators, professionals, research technicians and office workers

> 75 laboratories

> 36 clinical examining rooms

> 10 specialized platforms

> 1 cyclotron

> 1 specialized research pharmacy

"THERE IS GROWING COLLABORATION BETWEEN THE PUBLIC

AND PRIVATE SECTORS AND BETWEEN UNIVERSITIES AND

BUSINESS, AND RESEARCH CENTRES ARE GETTING INVOLVED

SOONER AND SOONER IN THE PRODUCTION OF NEW DRUGS

OR NEW THERAPEUTIC TECHNOLOGIES."

– Dr. François Lespérance


he CHUM Foundation, a special partner of the

Centre hospitalier de l'Université de Montréal, was

established 14 years ago through merger of the found-

ations for the three hospitals comprising the CHUM:

Hôpital Notre-Dame, Hôtel-Dieu and Hôpital Saint-Luc.

Donations come from the business community, the

Foundation's fundraising activities, present and former

patients, individuals and family foundations. In 2010-

2011, the Foundation handed over more than $8 million

to the CHUM, 45% for research, 45% for care and health

promotion and 10% for training.

A novel recent initiative is creating excitement. A patient,

violinist Anne Robert, and her surgeon, Alain Gagnon,

who is also a pianist, combined their musical talents to

set up the Continuum project. "I'm completely taken

with the beauty of this project," exclaims Ékram Antoine

Rabbat, president and CEO of the CHUM Foundation.

"In addition to their concerts, there

is an interactive website, a music CD

and a book. They want to provide

patients suffering from genetic

mutations with ready information

about a little-known type of breast

cancer. Their first benefit concert

has already brought the Foundation

$80,000 for Continuum."

"The CHUM Foundation is about to

launch one of the biggest fundrais-

ing campaigns the Canadian health

community has ever seen," Mr. Rabbat

says. "True, our $300-million target

is ambitious, but it's far from out-

landish considering the community

support and many pledges we've

received."


A PATIENT, VIOLINIST

ANNE ROBERT, AND HER SURGEON,

ALAIN GAGNON, WHO IS ALSO A

PIANIST, COMBINED THEIR

MUSICAL TALENTS TO SET UP

THE CONTINUUM PROJECT.

The CHUMFoundation

T

ÉKRAM ANTOINE RABBATPresident and CEOCHUM Foundation



LIFE SCIENCES

Buildingbig



THE NEW CHUM IS ONE OF THE WORLD'S BIGGESTUNIVERSITY HOSPITAL BUILDING PROJECTS, SURPASSED ONLY BY TWO OTHERS, ONE ENGLISHAND THE OTHER AUSTRALIAN. ADDED TO THE$2.089 BILLION PROJECTED FOR THE HOSPITALCENTRE ITSELF ARE $470 MILLION FOR THE CHUMRESEARCH CENTRE, WHICH WILL ALSO HOUSE ANINTEGRATED TEACHING AND TRAINING CENTRE(CIEF). PROJECT DIRECTOR PAUL LANDRY IS HAPPYTO HAVE ARRIVED ON THE JOB "AT THE RIGHT TIME,DURING THE CALL FOR TENDER PROCESS," WHICHFINISHED IN LATE 2010. "I WAS ABLE TO SHARE INTHE CONSORTIUM'S DECISION (SEE BOX P. 50),EXAMINE THE BUDGET IN DETAIL AND MAKE SURETHE SCHEDULE WAS REALISTIC."

aul Landry has a long-standing interest in health

administration against the backdrop of an aging

population and in the enormous economic impact and

changes that this means for the health field. He is

currently directing a megaproject that will be completed

in 2019 with construction of a 500-seat amphitheatre,

a library and clinical and administrative offices on the

site of the present Hôpital Saint-Luc.

The nearest project delivery date is September 2013

when the 68,800-m2 research and teaching centre will

be completed. "We've finished pouring the concrete for

the 15-storey north tower, earmarked for research,"

reports Sylvain Villiard, who heads this part of the project.

This stage has been completed for the six storey south

tower, which will house the administrative offices. The

first tunnel connecting the research and teaching centre

to the Champ-de-Mars subway station has been built

and will connect with the Montreal Transit Corporation

subway system once the access has been built. The

second tunnel, which leads to the hospital under Avenue

Viger is almost completed. This multifaceted downtown

construction project poses big challenges in terms of

P PAUL LANDRYProject directorNew CHUM

"I WAS ABLE TO SHARE IN THE CONSORTIUM'S DECISION,EXAMINE THE BUDGET IN DETAIL AND MAKE SURE THE SCHEDULE WAS REALISTIC."

– Paul Landry

controlling the impacts of noise, dust and vibration, as

well as automobile, pedestrian and bicycle traffic. We

and our partner will need to keep tight rein over these

impacts in the vicinity of Hôpital Saint-Luc. Our priorities

include quality construction and compliance with our

performance specifications, schedule and budget, as

well as the health and safety of our workers."

In October 2013, 2,500 research scientists, master's

and doctoral students, postdoctoral fellows, and tech-

nical and administrative personnel will be working daily

in the research and teaching centre.



LIFE SCIENCES

The 20-storey hospital covering 268,000-m2 and ha-

ving 772 rooms will admit its first patients in 2016. Until

then, the site will be teeming with activity. "In late 2012,

some 300 workers will report every day to the building

site of the research and teaching centre. There will be

even more working on the hospital building site,"

Mr. Landry foresees. "In 2013, there will be 1,500 workers

on site every day, creating conditions that generate

economic activity, not to mention hundreds of millions

of dollars spent on materials that come mostly from the

Greater Montréal area and elsewhere in Québec."

With the solid experience he gained during construction

of two hospital centres in Ontario, Paul Landry can count

on his strong organization skills, so essential for making

a success of this kind of project. "It takes planning,

deciding on strategy together with the consortium

and relying on high performance in house teams. Some

60 people are at work operationalizing our road map

charted three years ago.

SYLVAIN VILLIARDSecretary general Associate Executive Director Institutional and legal AffairsCentre hospitalier de l'Université de Montréal

The CHUM’s partnersFor the research and teaching centre: the Accès Recherche Montréal consortium is the private partner in this project; the designwork and construction are handled by Consortium Pomerleau-Verreault S.E.N.C.

For the hospital: Collectif Santé Montréal, a consortium of the firms Innisfree, OHL Canada, Laing O’Rourke and Dalkia, is responsiblefor hospital design, construction, funding and maintenance. This $1.97-billion agreement covers a period of 38.8 years, the earlyyears for construction and the remaining 30 years for maintenance.

PHOTOS : CHUM



"The team of clinical consultants is meeting with doctors

and nurses and helping them work with the consortium's

architects so that their needs for emergency, operating,

radio oncology and imaging rooms – facilities covering

all specialties of the hospital – are filled as well as

possible. More support is provided by the expert engi-

neering team, which checks plan designs and compliance

with performance requirements.

"The logistics team," Mr. Landry continues, "is responsible

for planning all stages of delivery of provisions – food,

medical supplies, tools, linens, medications, etc. – to ensure

that everything arrives on time in the right place until

the facilities open. A fourth team is responsible for

procuring specialized medical equipment and infor-

mation technologies.

"These people are all working closely with the group

of project managers, engineers, architects and other

experts from the firms of SNC-Lavalin and Genivar,

which are helping us work with our partners to advance

the various stages of design and construction."

The new CHUM is the first and biggest stage in revita-

lizing what will be a genuine health district.

nouveauchum.com

"IT TAKES PLANNING, DECIDING ON STRATEGY

TOGETHER WITH THE CONSORTIUM AND RELYING

ON HIGH PERFORMANCE IN HOUSE TEAMS.

SOME 60 PEOPLE ARE AT WORK OPERATIONALIZING

OUR ROAD MAP CHARTED THREE YEARS AGO."

– Paul Landry



LIFE SCIENCES

he Centre d'initiative technologique

de Montréal (CITech) was established

in 1987 in answer to the government's

determination to settle high-tech centres

in the metropolitan area. CITech was

mandated to turn an area of 2.3 million

square metres into one of the world's

leading research facilities. Technoparc

Montréal, the outcome of that initia-

tive, consists of three hubs, namely, the

Saint-Laurent Campus, the Health District

and the Hubert Reeves Eco-Campus.

Every day, over 6000 people go to work

on the Saint-Laurent Campus. Their

average age is 29, 60% of them are from

outside Canada and, all origins considered, they speak

30 languages. Total payroll amounts to $315 million, and

the $300 million investment in construction generates

$13.5 million in municipal and school tax revenue.

"We support the administrations of the major industrial

clusters, as well as Montréal International, in their efforts

to attract companies here," explains Mario Monette,

president and CEO of Technoparc Montréal, "because all

their efforts would be in vain without solid infrastructures

to accommodate those companies.

"The costs of setting up on the campus are much lower

in Montreal than in any other large North American city,"

Mr. Monette emphasizes. "This plus comes on top of

generous tax refunds, North America's lowest business

tax rates (30.9%) and five year tax breaks for foreign

research scientists."

T

MARIO MONETTEPresident and CEOTechnoparc Montréal

By Danielle Ouellet

TechnoparcMontréal

PHOTO : TECHNOPARC

PHOTO : ÉLITES B

Y DENIS

BERNIE

R



IN AEROSPACE TERRITORYSet in a wooded regional park ten minutes from

Montréal-Trudeau Airport and a few kilometres north of

centre city, Technoparc Montréal is firmly planted in

the middle of aerospace territory. "Over half of Canadian

corporations are located within a 30 km radius," Mr. Monette

points out, "and 75% of Montreal firms are less than 10 km

away. Over 1500 aerospace engineers and researchers

hail from Montreal's four leading universities. All of

Bombardier's major research programs around the world

are represented here, and the employees of engine maker

Pratt & Whitney and Bell Helicopter are within walking

distance of Air Canada's biggest maintenance facility.

EXPANSION FOR LIFE SCIENCES The Saint-Laurent Campus has also become a strategic

site for the life sciences. "They represent 50% of the

activities taking place on the campus and a third of the

jobs, spread among 300 research groups. We are home to

the Human Proteome Organization, and the Canada-US

free trade agreement positions Montréal as a strategic

gateway to a market upwards of 425 million consumers,

almost half of them less than 1000 km away."

The Health DistrictTHE HEALTH DISTRICT BUILDINGS OCCUPY THREE GEOGRAPHIC SECTORS:

West sector: 42,000 m2, 2 buildings, 8 storeys

Central sector : 10,000 m2, 2 buildings, 4 storeys

East sector: 32,000 m2, 1 building, 12 storeysSource : Technoparc Montréal

Since 2009, the Health District has become the second

hub of Technoparc Montréal (see box). "We have sealed

agreements with key stakeholders in the Health District,"

Mario Monette explains. "At present, it provides another

attractive location downtown for foreign firms. The new

Centre hospitalier de l'Université de Montréal (CHUM),

the Norman-Bethune Campus specializing in population

health, and the Pavillon des bio-industries for housing

biotech firms are located there. Other large real estate

projects – at the McGill University Health Centre and

CHU Sainte-Justine – are providing impetus for the life

sciences and creating new conditions for success in future.

Substantial spinoffs can be expected two or three years

from now."

PHOTO : IN

FOGRAPHIE

GRAPH SYN

ERGIE

PHOTO : TECHNOPARC



LIFE SCIENCES

Many global leaders in information and communication

technologies (ICT) have a Montréal place of business:

a CSC Centre of Excellence specializing in business

applications and corporate resource planning, Ericsson,

IBM, Matrox, SAP, and so on. Canada claims 3% of the

$30 billion world market of original interactive games,

and Montréal hosts several giants of that particular

industry – Softimage, Ubisoft, Eidos and Electronic Arts

Montréal. "The video game and multimedia industries

are concentrated more in the Innovation District, however,

not far from the École de technologie supérieure (ETS),"

Mr. Monette goes on to say. "Together with them, we're

looking for the best way for us to be part of developing

that pole."

THE THIRD HUBThe Hubert Reeves Eco-Campus, which was announced

in 2010, rounds out the Technoparc Montréal triad. "2012

will be a pivotal year for developing this new facility,"

Mario Monette expects. "The demonstration buildings for

cleantech companies will accommodate tests, trials and

exchanges. The challenges in this sector tie into the deci-

sion making of consumers, who are not always ready and

willing to change their habits – even when they clearly

understand the benefits, as in the case with measures to

block climate change. Still, the world's clean technology

market is booming, and we intend to pull in as many as

60% of foreign cleantech companies."

A GROWING DEMAND FOR MONTRÉAL REAL ESTATE"There is a growing appetite worldwide for Canadian and

Montreal real estate," Mr. Monette informs us. "This has

been playing out for several years now. For example, Nortel's

collapse in 2008 left behind ten empty buildings. Those

buildings are now full, and only 8500 square metres, or

4.26% of high-tech building space, are vacant. Our real

estate market is among the most robust in the world,

outpacing those of Asia and Europe. The time is right to

capitalize on our strong position."

A MONTREAL PREMIERE FOR ITCNow that a large electronic data processing centre is

settled on the Saint-Laurent Campus, "Montréal will be

able to attract companies having huge information

processing requirements, examples being the Apples,

Twitters and Googles of this world," an enthusiastic

Mario Monette says. This TIER 3 data centre is being

established in collaboration with Canadian industry giant

Canix, which already hosts the servers of more than

10,000 Canadian and international companies.

THE HUBERT REEVES ECO-CAMPUS, WHICH WAS ANNOUNCED

IN 2010, ROUNDS OUT THE TECHNOPARC MONTRÉAL TRIAD.

ILLUSTRATION : TECHNOPARC



Transportationwith impact

TRANSPORTATION IS THE LIFEBLOOD OF A CITY. INMONTRÉAL AND VICINITY, FOR INSTANCE, EIGHTMILLION PEOPLE TRAVEL DAILY IN ALL DIRECTIONSTO WORK, STUDY OR PLAY. USING CAR, TRUCK, METRO,TRAIN AND BUS, THEY KEEP THE GIANT WHEELS OFTHE LOCAL ECONOMY TURNING. "THE MOBILITY OFPEOPLE AND GOODS IS FUNDAMENTAL TO EVERYMODERN ECONOMY," COMMENTS YVES PHANEUF,TRANSPORTATION COORDINATOR WITH THE MONTRÉAL METROPOLITAN COMMUNITY (MMC).

If mobility in itself is a daily stimulus for

economic activity, what of the benefits

created by investment in transporta-

tion? Both investments and spinoffs

figure in the hundreds of millions of

dollars a year. In terms of spinoffs alone,

public transit far outperforms private

travel by automobile.

Public transportation is the focus of all

authorities in this field, in Qué bec City

and the city of Montréal, as well as the

MMC. While staying on course with

rehabilitation of the road network

By Serge Beaucher

Transport

PHOTO

: STM

YVES PHANEUFTransportation coordinator with the Montréal Metropolitan Community (MMC)

Élites2012_TRANSPORT_ENG_Mise en page 1 12-03-15 14:47 Page55


TRANSPORT

"ON ISLAND AND OFF, PUBLIC TRANSIT

RIDERSHIP ON THE WHOLE HAS INCREASED

IN THE PAST 10 YEARS: 3% IN GREATER

MONTRÉAL, 20% FOR COMMUTER TRAINS

ALONE, AND 11.5% FOR THE STM NETWORK

FROM 2007 TO 2011."– Michel Labrecque

MICHEL LABRECQUEChairmanMontreal Transit Corporation (STM)

PHO

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begun in recent years, those bodies

are readying to invest billions of dollars

in public transit. With the environ-

ment in mind, naturally, but also to

mitigate the growing problems

caused by congestion of streets,

roads and highways in the Greater

Montreal area.

ENORMOUS FIGURESWhether we look back or ahead, the

figures are enormous! Over the past

ten years, nearly $7 billion has been

spent on the road network alone,

which includes 24 bridges and

17,000 kilometres of roads, 10%

of them highways. Much more lies

ahead. With large ongoing construc-

tion sites, such as the Turcot Inter-

change, Dorval Circle, Mercier and

www.port-montreal.com

Tie your business to the worldIf the success of your business is tied to the rest of the world, the Port of Montreal can take you there. From reducing transit time between the American Midwest and Europe to offering alternative routes to global markets, the Port of Montreal is the connection you need.

10:07

BUS



Champlain bridges and comple-

tion of Highway 30 on Montréal's

South Shore, to name but a few,

billions of dollars will flow for

years to complete the network

and upgrade aging infrastructure.

Collateral damage? Users will still

need a large store of patience, but

"they will be happy to have better

public transportation," Michel

Labrecque, chairman of the

Montreal Transit Corporation

(STM), qualifies.

Between 2000 and 2008, spending on public trans-

portation systems in the metropolitan area totalled

$2.7 billion, including $700 million for extension of the

metro to Laval and new rolling stock for the commuter

train network. Administered by the Agence métropolitaine

de transport (AMT), that network comprises five lines

serving 16 million passengers a year. The STM, for its part,

makes 1.2 million trips a day on the island of Montréal, or

more than 80% of all public transit in the metropolitan area.

Its network consists of 213 bus lines (1,700 vehicles)

and four metro lines served by more than 700 metro cars.

On island and off, public transit ridership on the whole has

increased in the past 10 years: 3% in Greater Montréal,

20% for commuter trains alone, and 11.5% for the STM

network from 2007 to 2011. During that time, the use

of cars dropped 1% in Greater Montréal and 6% on the

island – despite steady growth in the automobile base.

This shows that spending on public transit has begun

bearing fruit. According to the latest available figures,

public transportation now accounts for a fourth of all

morning rush hour traffic over the entire territory. But the

bar is set higher.

A BIG CHALLENGEThe STM's 2020 strategic plan calls for spending

$11.6 billion to improve the transit corporation's network

and services with the aim of reaching 540 million rides

in 2020, as compared with 405 million in 2011, for an

increase of 40%! "This is a big challenge," the STM chairman

acknowledges. "The stars will have to be properly aligned.

The first real boost will come in 2014 with delivery of

the new metro cars we've been waiting for five years

to receive."

PHOTOS : STM

ARTICULATED NOVA BUS LFS

TROLLEYBUS

METRO



TRANSPORT

The measures that should help the STM reach its goal

include a long list of projects: replacement of a second

series of subway cars; replacement and addition of buses,

including 32 just to relieve the inconvenience of road

work; extension of the metro eastward; introduction

of an iBus smart communication system to provide

real-time information for employees and riders; addition

of more reserved lanes; commissioning of trolleybuses

and a tramway, and gradual electrification of the entire

vehicle fleet.

On Montréal's South Shore, the AMT and the Réseau de

transport de Longueuil (RTL) are still planning to add

six stations to metro line 4 arriving from Montréal

($1.2 billion). They also want to carry through with the

light rail transit line alongside Highway 10, the former

Champlain Bridge/Estacade project. Furthermore, the

AMT intends to expend part of its efforts on boosting its

service to the east and the west, with at least one new

line, and on electrifying the entire system.

" FURTHERMORE, THE AMT INTENDS TO EXPEND PART

OF ITS EFFORTS ON BOOSTING ITS SERVICE TO THE EAST

AND THE WEST, WITH AT LEAST ONE NEW LINE, AND ON

ELECTRIFYING THE ENTIRE SYSTEM."– Yves Phaneuf

MORE THAN $20 BILLIONPublic transportation in Greater Montréal will require

spending some $23 billion over the next 10 to 20 years,

according to the Metropolitan Planning and Development

Plan, which the MMC released in December. That docu-

ment, which follows upon broad consultation, set out the

sustainable development that Greater Montréal (more

than 80 municipalities and regional county municipalities)

will have to provide by 2031. One of its main proposals is

for creating sustainable neighbourhoods around public

transit access points in order to concentrate 40% or

perhaps 60% of new households in those areas, provided

more public transportation is available. The goal, which

was set together with the partners, is a 30% increase

in overall travel by mass transit in the region.

Yves Phaneuf admits that $23 billion is a great deal of

money. However, the amount has the consensus of the

transit agencies that submitted their asset improvement

and maintenance requirements when the plan was being

drafted. "It's now a matter of completing the financial

framework to meet these needs," he says. This part of

the plan will be submitted for further public consultations

this spring. It is already expected that the participants will

have to decide on such measures as highway and bridge

tolls, higher licence fees and gas taxes and other financing

sources that are not necessarily popular.

A PAYING INVESTMENTWe must consider, however, that such an investment can

make economic sense," Mr. Phaneuf goes on to say.

Citing Public transport: at the heart of Montréal’s econo-

mic development, a recent study by the Board of Trade

of Metropolitan Montréal, he emphasizes that each dollar

spent on public transit provides almost three times the

economic stimulus that the same dollar spent on auto-

mobile transport would provide.

Why is this? "For one thing, because Québec does not

make cars, but we are home to the likes of Bombardier

and Alstom, which manufacture rolling stock," Michel

Labrecque replies. For another, because the metro and

soon the buses and commuter trains will run on electricity,

which is clean Québec-owned energy, whereas the gas

that powers automobiles is imported.

PHO

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TRAMWAY


www.groupeorleans.com

Groupe Orléans specializes in all facets of bus transportation: urban, intercity, charter, airport, school and paratransit. Safe, reliable, and uncompromisingly customer-oriented, Groupe Orléans will effi ciently meet all of your needs. From individual travellers to public transit authorities, each of our customers is unique, which is why we offer solutions tailored to your particular transportation requirements. Groupe Orléans is a member of the Keolis Group, one of Europe’s leading public transportation providers, established in 12 countries and owned in part by the Caisse de dépôt et placement du Québec.

TAILOR-MADE TRANSPORTATION



TRANSPORT

The Board of Trade's study also mentions the

rise in the value of property located near a

transportation line, as well as the easing of

congestion problems, which cost "$3 billion

a year in Montréal according to the most

recent data from the Department of Trans-

portation," Mr. Labrecque points out. Not to

mention the avoided costs of accidents, the

costs relating to greenhouse gas emissions

and the overall savings of $800 million a year

for people who opt for public transit.

In 2009 alone, the study states, the $1.8 billion

spent by transit agencies in the metropolitan

area generated added value of $1.1 billion for

the economy and supported more than

14,000 job-years! Even more, that spending

has provided a transit system that improves

year after year and also benefits motorists

and the trucking industry by easing pressure

on the road network.

As the STM chairman says, "No dynamic metro-

polis can develop economically and maintain

its vitality these days without relying on good

public transportation service."

While the goal and economic aim is to increase the share that public transit claims in overall

travel within Greater Montréal, it is a matter of improving not only the public transit, but also

the efficiency of the information service, says Catherine Morency, holder of the Mobility Chair

at the École Polytechnique de Montréal. The municipalities and the transit agencies, many of

which are Mobility Chair partners, are counting heavily on this.

Public transit users will become intermodal pedestrians informed in real time of all the possible

ways to get where they want to go, Ms. Morency predicts. It will not be long before users,

mobile phone in hand, will be able to call up a 3D display of their city to find out the location

and traffic situation of the bus they are waiting for. "Increasingly, information and technology

will be part of the transit experience," the researcher says.

Are we talking "smart mobility"?

Smart mobility

Public transit in Montréal is also thousands of people who arrive every day from

all parts to keep the wheels of the local economy turning.

All by itself, the Groupe Orléans, the leading intercity transport operator in

Québec, embarks and disembarks more than a million passengers a year on the

platforms of Montréal and Longueuil motorcoach terminals. Besides its Orléans

Express routes, which also provide a shuttle service to the airport, the company

operates a system of city buses in Montréal's second suburban ring –Terrebonne

and Repentigny – as well as school buses and paratransit vehicles in Lanaudière.

In addition, two daily services carry students and workers from Saint-Donat and

Joliette to the Radisson metro station

in Montréal's east end.

Denis Andlauer, the new president

and CEO, does not hide the fact that

his company wants a higher profile in

urban transit in distant suburbs. The

company would also like to extend its

activities into Ontario by acquiring

companies serving that market. The

Montréal-based Groupe Orléans has

450 vehicles, including its Murray Hill

motorcoaches and its Acadian fleet in

the Maritimes. It has a workforce of 900.

Intercity transportation

CATHERINE MORENCYHolder of the Mobility Chair

École Polytechnique de Montréal

DENIS ANDLAUERPresident and CEO

Groupe Orléans



The port :a bona fide economic engine

It would be hard to talk about Montréal transportation

without special mention of its port, a bona fide economic

engine. Millions of tons of merchandise – 28 million

during the record year of 2011 – are received or shipped

out year after year. The 2,200 ships that docked at the

port last year represented a third of all vessels plying the

St. Lawrence River. The Port of Montréal is Québec's

largest harbour and the second largest in Canada,

after Vancouver.

"The main economic impact of the port is the 18,000

direct and indirect jobs it creates and the $1.5 billion

in spinoffs it generates," says Sylvie Vachon, president

and CEO of the Montreal Port Authority (MPA), the

arm's-length federal agency that manages the port.

Ms. Vachon leases the port facilities to private companies

operating the terminals along the 20 kilometres of docks

down from the Old Port. The MPA

alone spends an average $25 million a

year on its facilities, and the terminal

operators as a whole probably spend as

much, according to Ms. Vachon.

The other significant impact, the pres-

ident and CEO points out, is attracting

to Montréal "manufacturing or service

companies that want to profit by the

port's proximity to carry on business."

Large shipping lines such as Hapag-

Lloyd and MSC Canada have even

opted to base their head offices in the

metropolis.

PHOTO

: PO

RT DE MONTR

ÉAL, PHOTO

GRAPH

E JEAN-PAUL LEJEUNE

SYLVIE VACHONPresident and CEOMontreal Port Authority (MPA)

PHOTO

: YVES

MÉD

AM



TRANSPORT

Containers are the trademark of the port, which has four

terminals spread over 80 hectares with an annual capacity

of 1.6 million containers. The port also handles all types

of non-containerized cargo, including solid and liquid bulk

goods. Even cruise ships dock there in season to embark

and disembark thousands of passengers, 48,000 in 2010.

The local economy benefits all the more as Montréal is

not just a stopover for passenger ships, but also a point

of arrival or departure, Ms. Vachon says.

The Montréal Port Authority has its own railroad network

to route merchandise to the docks: five locomotives going

back and forth over a hundred kilometres of track

connected to the Canadian National and Canadian Pacific

railways and a highway circuit, putting markets only a

few hours away.

In addition to her position at the MPA, Sylvie Vachon

chairs an interim committee that, at the MMC's request,

is examining the feasibility of forming an industrial cluster

on logistics and transportation in the region. That new

cluster could comprise some 40 transportation industry

firms seeking to resolve the challenges they all face.

PHO

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DE

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OTO

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IGU

ÈRE



MINING INDUSTRY

Plan NordThe sky's the limit

By Danielle Ouellet

IT IS QUÉBEC PREMIER JEAN CHAREST'S INTENTIONTO MAKE THE PLAN NORD A KEY ECONOMIC PLAT-FORM FOR THE 25 YEARS AHEAD. THE PLAN, AN AMBITIOUS RESOURCE DEVELOPMENT MEGA-PROJECT SET IN THE FAR NORTH, POSES CHALLENGESON MANY COUNTS: MINING EXPLORATION ANDGEOLOGY FIRST OF ALL, BUT ALSO TRANSPORTA-TION, LABOUR, ENVIRONMENT AND SUSTAINABLEDEVELOPMENT, ETC. THE QUÉBEC GOVERNMENTEXPECTS INVESTMENTS AND PROGRAM SPENDINGTO TOTAL $2.1 BILLION FOR THE FIRST ACTION PLAN2011-2016. REFLECTION ON PROJECT DELIVERY ISONGOING, WHEREAS SOME PRACTICAL BENEFITSARE ALREADY MAKING THEIR WAY SOUTH.

BOOM TIMESThere are high hopes for investment spinoffs. "They are

not unrealistic and the circumstances are indeed very

favourable," according to Michel Jébrak, geology professor

at the Université du Québec à Montréal (UQAM), who

thinks of the high points in the history of mining develop-

ment worldwide. "There have been three times of inten-

sive urbanization, meaning strong demand for metals. The

first boom occurred during the belle époque at the turn

of the twentieth century when most of today's big mines

were discovered, with large deposits of iron, copper, coal

and, to a lesser extent, nickel and aluminum. That time

gave rise to giants such as Rio Tinto in 1880.

"The second boom occurred in the post-war years, when

uranium became an energy source in demand, and Canada

became one of the world's leading uranium exporters.

"During the past ten years, the world has seen a third mining

boom. For one thing, modern communication technologies

require a wide new variety of metals – including rare earths

and lithium – that are still largely untapped. China has a

large rare-earth mine, as does California. Demand is strong.

But unlike the oil situation, there is no risk of a shortage.PHO

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DRAWING ATTENTION TO OUR MINING POTENTIALAlain Liard takes a realistic view of the Plan Nord. "Except

for a few existing projects, such as iron mining in the

Fermont-Schefferville area, projects in Québec's Far North

are still hypothetical and demand colossal investment

to start up.

"With an investment of $100 million, we can think about

a small mine in Abitibi," he continues. "But it will cost much

more in the Far North. Metal showings are discovered

during the first stages of geological exploration in that

vast, largely unexplored territory. It then takes years of

further exploration to open a mine. The opening of new

mines will require extensive infrastructure: roads, a railway,

buildings, etc. One single mine calls for several billions of

dollars to produce a tonne of ore. Given these conditions,

the deposits that could be tapped will have to be very

large or very rich to be cost-effective.


MINING INDUSTRY

"MINING INVESTMENT HAD ALL BUT DRIED

UP BEFORE 2000. THE DEMAND, ESPECIALLY

THE CHINESE AND INDIAN DEMAND FOR

IRON, IS NOW EXERTING STRONG PRESSURE

ON THE MARKETS. THE GLOBAL

CORPORATIONS ARE SEARCHING FOR ALTER-

NATIVE SOURCES OF SUPPLY."– Alain Liard

The Plan Nord for developingNorthern Québec > $821 million for transportation infrastructure

> $370 million for other infrastructure, i.e. housing, health, education, culture and creation of parks and protected areas

> $382 million for social housing, health and education measures

> $52 million for canvassing for foreign investment and administering the Société du Plan Nord

> $500 million advance to Investissement Québec for equity participation in projects to come

Source : Nicolas Bégin, Media Relations, Communications Branch, Department of Natural Resources and Wildlife

"We are in a mining boom, and the

world market for metals is growing.

Populations the world over are

seeking to raise their standard of

living to the level enjoyed by

Americans and Europeans. Québec

is in a strong position. For example,

the apatite being mined in Sept-Îles

provides the phosphate used in

making fertilizers, in strong demand

for producing food for a fast-

growing world population."

Alain Liard, general manager and

secretary of the Ordre des géologues

du Québec, comments: "Mining investment had all but

dried up before 2000. The demand, especially the Chinese

and Indian demand for iron, is now exerting strong

pressure on the markets. The global corporations are

searching for alternative sources of supply. Although not

all our iron deposits have been tapped, we have known

about them since the 1950s."

MICHEL JÉBRAKGeology professorUniversité du Québec à Montréal (UQAM)

ALAIN LIARDGeneral manager and secretaryOrdre des géologues du Québec


"We work at the interface with the

financial community," Mr. Dorion points

out. "Obtaining building permits, nego-

tiating with First Nations, project fun-

ding, legal compliance, environmental

agreements and the fiscal side of finan-

cial structures are all areas requiring

legal expertise."

Together with Suzanne Durand, of

the Université du Québec en Abitibi-

Témiscamingue (UQAT), Michel Jébrak

is also co director of the UQAT-UQAM

Chair in Mining Entrepreneurship. "There

are more and more students in programs

associated with mining development, owing especially

to the opportunities for very well paying jobs.

"The Plan Nord is a timely development in the mining

exploration sector. The sky's the limit for Québec,"

Mr. Jébrak concludes.


Expected spinoffs from the Plan Nord over the next 25 years> $80 billion or more in private and public investment

> $47 billion for renewable energy development

> $33 billion for investment in the mining and public infrastructure (roads, airports, etc.)

> $14 billion in tax revenue for the government

> Average of 20,000 jobs created or maintained each year

> $162 billion: anticipated impact of these investments on Québec's gross domestic product

Source : Nicolas Bégin, Media Relations, Communications Branch, Department of Natural Resources and Wildlife

"The Plan Nord has the advantage of calling attention to

our mining potential, but investment decisions are made

largely in financial circles far from Québec. Creating

wealth here at home requires using the resources on our

territory."

As far as the Plan Nord is concerned, Québec's approach

to mining must fit the global economic context. "What we

know about geology indicates that the Northern Québec

subsoil contains metals that are currently in demand on

the markets. But we need to watch our timing," Mr. Jébrak

cautions. "It may take 10 to 15 years from the time a

metal is needed to the time it is produced. Prices right

now are high, not only for rare earths and lithium, but

for more conventional metals such as iron and copper.

In addition to connecting with global demand, we'll have

to think about adding value to extraction operations by

processing raw materials here at home."

ALL OF QUÉBEC BENEFITSFor the Québec government, the success of the Plan Nord

does not stop at mining exploration. It also involves sus-

tainable development. "This is an exemplary project,"

states Nicolas Bégin, with the Communications Branch of

the Department of Natural Resources and Wildlife. It will

include energy, mining, forest, bio-food, tourist and

transportation development; wildlife enhancement;

environmental protection, and the conservation of biolo-

gical diversity. It will promote development for the benefit

of the communities concerned and all Québec, with

regard for cultures and identities. The Plan Nord is a

mega-project that will create jobs and wealth benefitting

all Quebecers for the next 25 years."

Alain Liard foresees considerable economic benefits in

the south from large projects in the north. "Engineering

firms will have a lot of their plates, as will mining OEMs,

specialized Québec manufacturers. The workforce will

come from all over Québec."

Marc Dorion, lawyer with McCarthy Tétrault, sees things

the same way. "The direct spinoffs associated with mining

exploration will have tremendous infrastructure implica-

tions, requiring the construction of roads, a railway, a port,

electric power transmission lines and fibre-optic facilities,

for instance. Attorneys will be involved at all stages of

the project.

Me MARC DORIONLawyerMcCarthy Tétrault


montréal economic powerhouse 2012

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