The idea of turning Sault Ste. Marie into a transportation or trade hub has been around for more than 100 years.

Strategically located in the heart of the Great Lakes, in the centre of Canada and in close proximity to the Midwest, Sault Ste. Marie was created as a trading post.

And over the past century, the city has been mainly industry-focused, with its port locations at the city's western edge, already well utilized to ship product and materials in and out of Sault Ste. Marie and area.

Developing A Port of Algoma, which would have direct access to rail, road and barge connectivity and utilize the expertise of Essar Ports management, could create vast regional economic potential.

The historical value of Sault Ste. Marie's strategic location is not lost on Anshumali Dwivedi, chief executive officer of the Port of Algoma.

Dwivedi has only been in Sault Ste. Marie for a year but, as an expert on port development, he already sees the economic development potential.

And to Dwivedi, that development, with the existing Essar ports, has already begun.

Last September, all three levels of government contributed to what was billed as a $5.34-million "game changer" for the economic growth of Sault Ste. Marie by contributing funds to a business case and project planning and preparing for the expansion of a regional harbour, to be called the Port of Algoma.

The project, one of the largest industrial transportation developments undertaken by the private sector in Northern Ontario and the Great Lakes region in decades, is believed to have an economic impact across the North and, potentially, even on markets abroad.

This is the third major study being completed that focuses on developing Sault Ste. Marie as a significant cargo and container port. The probe will include an analysis of traffic and business interest and look at value-added opportunities in the forestry, steel and aggregate sectors.

It will show how the port will be an economical enabler in various markets and study supply chain needs and shipping distances.

It will also delve into opportunities of developing the 440 acres of industrial land around with value-added businesses that will create synergies with the port.

And it will ultimately help businesses compare the costs of transportation between water and road.

It's expected the study and its recommendations will be completed by year end and help the Port of Algoma and the Sault Ste. Marie Economic Development Corp., determine where it should focus its energies.

The difference with this study is that the Port now has a champion - direct from Essar Ports, India's second largest private-sector ports company - that is already active in seeing the local port develop to its full potential.

The Port of Algoma, established as a stand-alone company under Essar Ports, is focused to grow its capabilities as a major company.

When Dwivedi first arrived in Sault Ste. Marie from Essar Ports, the "local talk" was to develop a small, one-dock, public port and dedicate the rest of the port facilities to Essar Steel and its future needs.

But Dwivedi is experienced with Essar Ports. He knows that Essar Ports boasts a 120-million tonne operating capacity and is still growing. The India-based company is expected to reach 350-million tonnes in an emerging geography with its most recent assets, and the ports are described as "the most modern they can get," he said.

"When I came here, one of the things that struck me was that in North America, they move move at their own pace. It's not what you see in China or India where they are doing much more and growing their economies more rapidly," Dwivedi said in a recent interview with The Sault Star.

Dwivedi's goal is to modernize and grow the Port of Algoma over the next five to 10 years, and he vows that can be done by modernizing the port and the infrastructure around it and showing businesses the true cost savings of doing business by water instead of roads.

As it stands today, Essar Port is already the fifth largest port on the Canadian side of the Great Lakes. It sees 550 ships dock annually, handling five million tonnes of cargo.

With the Great Lakes serving as an economic engine valued at more than $5 trillion, and a significant port in the city's front yard, opportunity knocks, said Dan Hollingsworth, executive director of business development at the Sault's Economic Development Corp.

"And when you consider that we already have an operating port here, this project is really about redevelopment and renewal for increased capacity and increased opportunity," he said.

Sault Ste. Marie can become a major trading centre again. All major areas of trade around the world have ports and the rest of the economy builds around them.

While growth takes time, it can be done, Dwivedi said.

"It's not going to happen overnight, but if you build it, they will come."

The Essar Port project isn't about creating something new. It's about refurbishing and modernizing something that has been there for decades. It's about taking time to talk to industries and businesses of all sizes and show them how transportation across the Great Lakes can save money and help their businesses grow.

It's about increasing cargo in and out of the region, developing nearby industrial land and, perhaps, even attracting new industry from other countries.

Dwivedi said the initial plan for a public port was small scale, narrowly looking at smaller, more direct cargo opportunities that would add a bit of traffic to a public port.

From his vantage point, he sees a much larger, modernized port, looking further into the future and into the needs of Essar Steel Algoma, Tenaris and other regional industries.

"The main change here is that instead of using one small part (of the area) as a public port, combine it and Essar as one large public asset dock. Essar Steel would be the anchor and Tenaris will bring in some of the volumes and other not-so-large users will continue or begin to use the port," he said.

Dwivedi said the plan will see the infrastructure renewal take place in a manner that will allow for a broader base user group, without duplicating the infrastructure that already exists.

And that's something that governments always like to fund.

"You make it into an efficient operation and grow the user base, making an integrated model where you can justify the capital investment much better," he said.

Essar Steel already has plans to ramp up its products to eight or nine million tonnes per year but the existing infrastructure won't allow that to happen without major upgrades occurring.

"Water is still the cheapest mode of transportation, followed by rail, and then road," he said. "This port is needed."

Dwivedi read previous studies and has examined current cargo trends, but decided it was time to "cast a wider net."

Partnering with the EDC, Port of Algoma has been able to knock on doors of more than 70 types of companies throughout the region, presented them with data that shows how water transportation is more efficient and better economically.

Hollingsworth said there has been a lot of leg work into identifying groups, potential partners and companies that may use the port for business in the future and establishing connections with them.

"The one thing we realized in Northern Ontario is that the vision is somewhat limited and people only look locally or sometimes regionally," he said. "Everyone was happy going the trucking distance, but in terms of logistics, there are more opportunities, especially for medium or long distances where rail or water are more efficient and economical."

The problem is that many companies have not considered the logistics of waterway travel because there was no modern infrastructure or dock available, he said.

"Swinging the logistics takes time but the initial response has been good," he said.

Forestry, aggregate and, of course, steel, are expected to be the largest industries to use the ports.

But smaller, local industries, like SIS, Green For Life and GP Flakeboard, have already been approached. Steps to contact companies as far as Sudbury and to new contacts through the Great Lakes Economic Forum in Chicago have been made.

"The port is just a gate. It is an enabler. It's early days but it is shaping up," Dwivedi said.

The project will still come with some logistical challenges currently being examined.

The Great Lakes-St. Lawrence Seaway transportation system only runs for nine to 10 months a year, with a shutdown of about two months, dependent on winter weather conditions.

International travel and trade for many companies and industries also plays a role in the decision-making process.

But the expertise or service offered through Port of Algoma also serves to help companies find shipping solutions and use an integrated process to ship materials or goods, store goods or cargo on site or transport them elsewhere.

Dwivedi is confident solutions can be found for the problems.

Dwivedi said Essar Ports ultimate goal is generating business.

"It's in our interest the infrastructure goes up and that will generate business in the regional economy," he said.

Dwivedi wants to await the consultant's final business plan before discussing next steps.

He admits the project won't materialize overnight but he anticipates a short-, medium- and long-term potential plan to be unveiled in the future, providing higher levels of government and their funding agencies the peg they need to fund a modernization plan.

"It's not happening tomorrow morning, but it is definitely going to happen after tomorrow morning," he said.

http://www.saultstar.com/2015/06/13/port-of-algoma-plan-shows-promise