Montreal Port Authority

Terminal careThe ÔÇ£newÔÇØ president and CEO of the Montreal Port Authority, Patrice Pelletier, has a vision for the future, which he shares with Gary Toushek. The Montreal Port Authority (MPA) operates the worldÔÇÖs largest inland port year round, covering a 25-kilometer (15.5-mile) spread on the St. Lawrence Seaway. The MPA operates its own 100-km rail network, providing direct access to berths, and is linked to two major railways (Canadian National and Canadian Pacific) and a highway system.  It also operates a grain terminal and a marine passenger terminal that includes cruise ships. Its other terminals are operated by private stevedoring firms. In 2007 MPA handled 1.36 million TEU (twenty-foot equivalent units) containers. Through its activities, MPA calculates that it generates 18,200 jobs in the community and $1.5 billion in economic spin-offs beyond its own self-sufficiency as a crown corporation.The ÔÇ£newÔÇØ president and CEO, Patrice PelletierÔÇöhe jokes that after seven months, thatÔÇÖs how heÔÇÖs still referred toÔÇöhas returned to Montreal after a 25-year absence. With a civil engineering background, heÔÇÖs most recently been president of a division at a military aerospace contractor, L-3 SPAR Aerospace, and prior to that he was president of a turnkey projects division at Bombardier. Today he leads a team of 25 managers and 330 employees, and he has developed a management style to suit his situation. ÔÇ£Overall as a manager, strategy and vision are important to me, but implementing it without getting returns is not very satisfying,ÔÇØ he says. ÔÇ£Therefore, I canÔÇÖt just articulate my strategy and vision and expect people to do it; I want to participate in it to ensure that people understand it and can relate to it. WhatÔÇÖs changed in my management style over the years is my ability to delegate, because once you have developed, explained and shared your vision and people believe in it, you can accomplish many more things.ÔÇØEven with 25 managers, Pelletier doesnÔÇÖt think the MPA is top-heavy. ÔÇ£A ratio of one to thirteen?ÔÇØ he says. ÔÇ£I think weÔÇÖre actually very slim in terms of management. The point is to have a relationship with clients, from stevedoring to real estate and maritime clients. Security is a priority, the environment is a responsibility, as is the community, grain, containers, bulk, wood pulp, and so on. WeÔÇÖre a self-financed, independent crown corporation with relationships with clients, the community, and all levels of government, so the complexity of this organization is intriguing. We are adding key core competencies to meet our challenges, such as sustainable development, strategy and government relations. My responsibility is to grow the port and increase its socio-economic impact on Montreal, on Quebec, and on Canada.ÔÇØ Pelletier cites three important ÔÇ£pillarsÔÇØ or departments that he manages. The first is operations, ÔÇ£which will establish the cooperation required in terms of different types of products and services. For example, for shipping containers we have to deal with three stevedoring companies; for bulk shipping we deal with several other stevedoring companies. ThereÔÇÖs also geomatics and engineering; our security service staff collaborate with various levels of policeÔÇöcity, provincial, RCMPÔÇöand customs officials to address a wide range of security issues; the grain terminal; the cruise terminal; and the rail network that we operate to interchange with CN and CP.ÔÇØ The second department is growth and development, with two main aspects: one relates to marketing and development of MPA products, such as bulk, containers and cruise ships; the other is economic analysis. The third department relates to the more traditional functions and services, including HR, finance, IT, procurement, continuous improvement and real estate. ÔÇ£We have over 200 leases to manage; some are for the maritime sector, others are related to other businesses,ÔÇØ says Pelletier. ÔÇ£We have the equivalent of a lean initiative for procurement, and so on.ÔÇØ Prior to being hired, Pelletier was asked for his vision for MPA, and he articulated one that was centered on growth and infrastructure, public and private financing, and sustainable development. The plan is now termed ÔÇ£Vision 2020,ÔÇØ which would necessitate the investment of $2.5 billion to increase the portÔÇÖs capacity and develop new markets by 2020, while creating $3.4 billion annually in value-added spin-offs and 41,400 related jobs. It begins with optimizing the current infrastructure to increase operational efficiency and immediately expand the portÔÇÖs capacity. Then the existing sites will be redeveloped for optimum bulk and container storage. Next, the infrastructure will be expanded in east-end Montreal and Contrecoeur. ÔÇ£We have to decide with our partners whether to develop both sites or just one of them.ÔÇØ The final phase will enable MPA to increase its capacity to 4.5 million large containers. HeÔÇÖs also proposing the transformation of the Alexandra Pier, which docks cruise ships with thousands of passengers each year, into a ÔÇ£recreational and tourism, artistic and cultural hubÔÇØ at a cost of $150 million.ÔÇ£The question is, how will I put Vision 2020 together? The underlying aspect is a sustainable development management philosophy,ÔÇØ says Pelletier. ÔÇ£We have to change our management system, our decision support system. In our case, we have two mandates. One is to be profitable and self-sustaining, and the second is to promote trade and ensure that we have clear socio-economic benefits for the region. I needed to change the way we decide things, so I brought in the notion that the only way I can capture this is to make our decisions relative to our future based on the pillars of sustainable development.ÔÇØ ÔÇ£For example,ÔÇØ Pelletier continues, ÔÇ£when I look at expansionsÔÇöwhich are the most complex decisions to make, and we know the alternativesÔÇöI have to find a balance between the socio-economic impact and the environmental impact. Perhaps one solution has more negative impact on the environment but has higher value for society and the economy, versus another solution that will have less impact on the environment but more on the economy and less on society. So the key for me is finding that equilibrium. I could make the decision by myself, but IÔÇÖm convinced that in years to come, the organization that can bring together these elements into their decision-making process will be successful. The consequences of this plan are huge.ÔÇØ┬á PelletierÔÇÖs goal is to develop a harmonious relationship between the port and the city to ensure that port activities are better integrated into their immediate environment in geographical, economic, social and cultural terms.┬á