I N D U S T R Y  -  T R A N S P O R T A T I O N  S E R V I C E S

Context

The transportation services sub-sector includes private and quasi-public sector entities, including railways, pipelines, airlines, port authorities, trucking companies and airport authorities. The geographic scale of Canada, population distribution, huge resource sector and strong trade ties with the U.S., Asia and Europe have given rise to a transportation industry that is highly developed, efficient and capable of supporting our growing economy. Combined with the publicly managed highway network, Canada is truly a nation defined by its transportation systems.

Drivers

As both a business and personal service, the transportation sub-sector is driven by growth in domestic business activity, exports and personal travel. The impacts of NAFTA, increased trade with Asia and the general prosperity in Canada have seen major new investments in rail systems, ports and airports. Private sector investment in highway and transit facilities is also gaining momentum, as governments gain familiarity and confidence in public-private partnerships. We are a trading nation … transportation system investment will continue to be driven by those demands, and the associated business/personal travel.

Outlook

Major investments in rail, port and airport facilities continue at a fast pace. More specialized facilities to handle bulk and containerized goods, capacity improvements, and new terminal and border crossing facilities will likely grow at a disproportionately faster pace than other sectors. Many of these will be in urban centres. Other facilities will be developed to serve resource frontier activities, requiring unique design and management approaches.

Changing Client Needs

Not only is the overall scale of investment in the transportation services industry growing, the size of individual projects is becoming much larger. Airport projects are measured in billions of dollars; rail and port improvements are multi-year programs. This requires technical consultants to be experts not only in the diverse design requirements, but also in project and program management. Similarly, transportation services providers are exposed to increased scrutiny by shareholders and regulators over their environmental performance, requiring a higher level of accountability to their investors and communities in which they operate. Often these non-core aspects of their operations are being “packaged” into long-term programs and outsourced to technical professionals. Dillon has kept pace with these changes, offering clients solid technical capabilities under advanced project and program management systems.