“Transformation of Thunder Bay’s Economy”

Transformation of Thunder Bay’s Economy

May, 2012

Presentation Overview

1. The Economy Pre-Recession

2. Forces that have Transformed Thunder Bay’s Economy

3. “Back to the Future” Old Economy Meets New Economy

4. Linkage to Western & Northern Canada Supply Chains

5. Waterfront Re-Development

6. Health / Medical / DNA / Information and Communications

Technology (ICT) Cluster

-1-

The Economy Pre-Recession

Countries Dealing With Dramatic Changes

Resources = Game Changer

Globe & Mail & Montreal Gazette

Recognizing an Exemplary Community Leader

Dr. Arthur V. Mauro

September 21, 2011, Thunder Bay

Born in Thunder Bay

Former CEO, Investors Group

Former Chancellor, U of M

Chancellor, Lakehead University

CEDC Strategic Plan

Thunder Bay is Creating

New Economic

Opportunities!

-2- Forces That Have Transformed Thunder Bay’s Economy

Economic Shift- Bayview Magazine, Spring 2011

Porter Airlines

Business… Following Demand

• Serving emerging markets

• (3) Flights, 2009/2010

• (5) Flights, 2011

• Service from “Bay Street” to

Thunder Bay

• Demand from Mining , Health

Sciences , Education & ICT

Thunder Bay International Airport

(Passenger Traffic Up >5% for 2011)

Thunder Bay

Building Permits (2000-2011)

-3-

“Back to the Future”

Old Economy Meets New Economy

Stampede! The Rise of the West and Canada’s

New Power Elite

“The West Starts at Wawa”

Gordon Pitts, Guest Speaker, April 30, 2010

“This is a Shift in Corporate Canada's Epicenter”

Globe and Mail, March 23, 2012

Gordon Pitts, Writer/Author, Globe and Mail

Shift in epicenter to Western Canada from the East

Becoming a vastly different Canada after 50 years

Current era is “dominated by China”

Current era is “dominated by commodities”

“Province’s Budgets get Lifeline from Resources”

Globe and Mail, March 22, 2012

Saskatchewan’s 2012-13 budget (oil & potash surplus)

Quebec’s mining sector to grow tenfold over next decade

Alberta predicting revenue “gusher” from oil sands ahead

“Mining Sector Leaves No Stone Unturned”

Globe and Mail, March 22, 2012

Companies recruiting for 100,000 new jobs in next decade

308,000 CDNs employed in mining in 2010

$8.4 billion paid in royalties to CDN governments in 2010

31% rise in value of mineral production in 2010

Source: Mining Association of Canada

The Mining Sector

Premier Gold, President Ewan Downie

Resource World Magazine – February 2009

HQ in Thunder Bay

Downey star of 2009 PDAC (TO) convention

The Mining Sector

“The Ring of Fire, PDAC, Toronto, March 2010”

Located 206 miles north of Nakina

One of Globe’s largest chromium

deposits

Critical to USA & China for steel

Back row, left to right: Mackenzie Watson, John Harvey, Richard Nemis

Front row, left to right: Neil Novak, Don Hoy

Infrastructure requires 54 bridges

to be built over 93 streams and

lakes.

Potentially (5) times the economic

impact of Sudbury Basin.

As BIG as the “Manhattan

Project”, WW II.

Anchored by chromium,

customers are USA, China, India.

Projected Economic Impact

Mining Sector in NWO (2013-2017)*

• 13 new mines

• Estimated life 7-30 years

• 671 Kilometers road construction

• 360 Kilometers rail construction

• 778 Kilometers transmission construction

• 848 Megawatts power (incl. FPF)

• 4,405 construction jobs

• 3,751 operational jobs

*Industry statistics compiled as at March 9, 2012, for CEDC

*Excludes expansion requirements of (5) existing mines

(Williams Mine, David Bell Mine, Musselwhite Mine, Red lake

Mine, Lac des Iles Mine), Excludes ROF job creation potential

-4- Linkage to Western & Northern Canada Supply Chains

Western Canada – Restore & Accelerate

Economic Linkages!

Dr. Arthur Mauro, Winnipeg Airports

Authority & CentrePort Canada Inc.

Barry Rempel, President & CEO Winnipeg

Airports Authority

Restore the historical business linkages

with Winnipeg & Western Canada!

Future is trade links with China & India

Improve linkages with CentrePort & West

Need for improved rail, road, port &

airport infrastructure

Commodity & Resource Readiness !

Thunder Bay Port Authority

2011 Cargo Statistics:

Total of 7.6 million tonnes

of shipments through port.

Grain remains major port

commodity accounting for

82% of total shipments

(approx. 6.3 million tonnes)

Coal represents 831,000

tonnes

389 vessel calls

Thunder Bay remains

largest grain port and only

potash load point on Great

Lakes

Potential from dismantling

of Canadian Wheat Board

New Infrastructure

Direct connections to rail

Largest export port on Seaway

Single customs clearance

No harbour maintenance tax

Project cargo gateway to the Oil Sands

Liebherr LHM 320 Mobile Harbour Crane

Oil sands Investment 2010-2035:

$2.1 trillion, 800,000+ new jobs

“The Outsiders”

Alberta Oil Magazine, March 2011

Serving Alberta & Saskatchewan

”When East Meets West”

Globe and Mail – March 3, 2012

• “Ontario has big part in Oil Sands work – as middleman”

• Oil Sands will generate $63 billion for Ontario companies in next 25 years

• 255 Ontario companies supply to Oil Sands

-5-

Waterfront Re-Development

“CEDC’s Vision - 2008”

Maximizing Waterfront Expenditures

Create An Education/ICT Cluster

Our “Forks Market”

1

2

3

Realizing the Vision – 2011: “Green Sprouts”

Fladgate Exploration Consulting Corporation

• In business for 4 years

• Started in 2007 with 4 employees

• Grown to 60+ geologists and

mining professionals

• Workforce from Guatemala, Chile, South

Africa, Ecuador, and Canada

Realizing the Vision - 2011: “Green Sprouts”

Mongolia Growth Group

• CFA, Chartered Financial Analyst

• Originally from Thunder Bay

• Co- founder of Mongolia Growth Group

• Chose Thunder Bay for its

affordability and educated labour

• Chose business location in James

Whalen Building because of its beauty

and history

-6-

Health / Medical / DNA /

Information and Communications Technology (ICT)

Cluster

Growing Health Sciences/Bioscience/R&D Sectors

Thunder Bay Regional

Health Sciences Centre

Emerging Health R & D Triangle

Winnipeg/Minneapolis/Thunder Bay

Growing Health Sciences/Bioscience/R&D Sectors

• Shroud of Christ, identity of Titanic

baby and unknown WWI soldier

analyzed by TBay DNA research

• Murder of Candace Derksen solved by

Mitochondrial DNA research expert,

Dr. Amarajit Chahal, Thunder Bay

• Strong cluster with SunnyBrook/MaRs

innovation • Tie into Winnipeg/ Minneapolis

Medical Alley

Tornado Medical Systems Grand Opening

James Whalen Technology Centre (May 11, 2011)

CEO, Dr. Stefan Larson

Collaboration with CEDC/TBRRI.

40 careers, scientists

Research in prostate, breast and

colorectal cancers

New Partnership Between TBRHSC and Cancer

Care Ontario (CCO) = More Jobs!

December 12, 2011

• Thunder Bay Regional Health Sciences Centre’s (TBRHSC) Cancer Program has been selected

by Cancer Care Ontario, an agency of the Ontario Government and the Government’s cancer

advisor, to host parts of its Quality Assurance Services Team in Information Technology

Development Services.

• The new partnership will mean new development and software testing opportunities in

information systems to ensure the quality of CCO solutions used within the cancer system. It

will also mean 6 new permanent jobs in Thunder Bay.

Canadian Manufacturers & Exporters – March 5, 2012

• Lakehead University & Gamma – Dynacare

Medical laboratories joining forces to build

DNA database to help law enforcement

agencies

• New company “MitoNorth” will be created,

federal governments contributing $338K of

$1.3M price tag

Hi-Tech Opportunities

New opportunities in

Medical Device

Development, Software

Development, Healthcare

Informatics and Molecular

Testing

Thank You!

For more information please contact:

Steve Demmings, CEO

Thunder Bay Community Economic Development Commission (CEDC)

P.O. Box 800

Thunder Bay, Ontario

CANADA P7C 5K4

General Office: 807 625-3960

Toll Free: 1-800-668-9360

Fax: 807 623-3962

Email: develop@thunderbay.ca

Website: www.ThunderBayCEDC.ca