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!Proceedings

CILTNA Pacific Chapter Gateway Series

Luncheon Meeting

Guest Speaker:

Mr. Craig Richmond

President and CEO, Vancouver Airport Authority

Tuesday, March 22, 2016

Terminal City Club - 837 W Hastings St., Vancouver, BC

Student reporter on Mr. Richmond’s Remarks and Q and A: Phil Allmark, UBC Sauder School of Business

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Contents

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Thank You to Our Luncheon Sponsors !

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Thank you to Sponsors of Students Attending

And

Paul Miller John Brown Joe Sulmona

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Biography of the Speaker: Mr. Craig Richmond

Craig Richmond is President & Chief Executive Officer of Vancouver Airport Authority. In the past, Craig held positions with Vantage Airport Group as CEO of six different airports in three different countries. From 1995-2006, Craig worked in a variety of operational roles for the Airport Authority including Vice President,

Operations. Craig Richmond began his role as President & CEO at Vancouver Airport Authority in July 2013, following a career in airport management. Richmond has an MBA from the University of Manitoba,

and has also served at home and abroad as a Canadian Armed Forces fighter pilot.

Source:!http://www.aviationleadership.com/speakers.html http://www.yvr.ca/en/about-yvr/leadership-and-accountability/board-of-directors

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Mr. Richmond’s Remarks

Reporters’ Note

Mr. Richmond spoke with slides or text for 40 minutes and answered questions for 25 more minutes. This report relies on an audio recording. Passages in “quotation marks” are verbatim. Parts of the speech have been supplemented by and checked against Mr. Rich-mond’s speaking notes. The report closely paraphrases the speaker’s remarks as delivered in the first person. The reporters have added: • topic headings shown in Table of Contents (above) • explanatory words in the remarks [in square brackets] and • footnotes with related facts in the speaker’s remarks. The speaker has reviewed the report. Errors and omissions remain the responsibility of the re-porters.

Moment of Silence for Belgium Before I begin I offer heartfelt condolences to the people of Belgium and all those affected by the terrorist attacks today. We are deeply saddened by an attack of this na-ture occurred in an airport, where after all people were very excited about heading of on an adventure and being welcomed by friends and family. And with that let’s just take a moment of silence for the people affected by to-day’s tragedy.

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Why Meetings Like This Are Important Thank you for being here today, I’m very pleased to have the opportunity to present to the Chartered Institute of Logistics and Transport. There are lots of faces and at some of these events I don’t know anybody, but here I know people at almost every table.

Two things for those of you who are students — why it’s important to have those contacts.

On the morning of 9/111, after those horrific events had been seen on television, after I had been called by the head of NORAD2, to say, “you have three aircraft heading for Vancouver, and we can’t contact them” I received a call from Mark Duncan [who is in the room today]. I knew Mark because of this kind of event [today] through the BC Aviation Council. He said, Craig there going to shut the airspace, and we want to take the airplanes and put them

1 Terror attacks on the US on September 11, 2001. 2 North American Aerospace Defense Command

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in Comox, what do you think? And I said, …well Comox has a runway open …… how many planes? Somewhere between 35 and 50, he said. This is the kind of decision-making that occurs between colleagues. I said take them to Vancouver, 5 minutes later the first ones were landing. It’s those kinds of contacts and that kind of personal knowledge that you never know when you might need when the chips are down.

On a lighter note for those of you in logistics, transport, aviation, marine, rail, a lot of people look at a glass of wa-ter and say it is half full, and some people say that glass is half empty, if you’re in this business you will say “well if I stick around I will be washing the glass.”

A Snapshot of YVR I’m here to provide a snapshot of YVR3 and get your in-put on what we can do to serve you better. I will touch on a few key aspects of YVR, including our recent develop-ments, and future goals. We have set time aside for questions at the end but there’s is one question I would like you to mull over during my presentation. What would you like to see at YVR in the future? Just hold that in your head and we will start here.

We run Canada’s second busiest airport at the authority. We have welcomed and directed 23 million passengers in a year. On a busy day we see 70,000 people, this past summer we received 80,000, put that in perspective, that’s busier than the Olympic departure day, for which we had four years to plan and a whole other terminal. As we passed 20 million passengers, it’s getting very busy. And that doesn’t include all the people who come out to

3 YVR is the three-letter IATA (International Air Transport As-sociation) code for Vancouver International Airport.

meet and greet, shop at the Designer Outlet centre, which is tens of thousands more people.

YVR is a positive and active community full of individuals who seek out opportunities for engagement, like you, we look at fresh ideas and ways to contribute. We are very diverse, we come from various backgrounds, various ethnicities, various affiliates, but we all work hard to move products and people around the world.

We are BC’s airport, providing world-class connections and amenities for our residents, and ensuring the best of BC’s products reach international markets on time.

The Airport Authority Model We are a community-based organization. Back in 1992, Vancouver airport authority took over management of the airport from transport Canada. What the airport authority is, is tough to explain. It is a unique model in the world; it is a not-for-profit company, also known as a non-share capital corporation. If our board of directors all resigned tomorrow, the authority would continue until new directors come along, and the board is made up of people from the community. Any money we make gets invested back into the airport. There is no profit motive per se. But we like to take that money because that’s what pays the bonds, that’s what pays the bills, but we don’t actually ever send any money away from the airport in terms of dividends or shares. That’s the only difference between, I’d say, IBM and us.

Our profit comes from a large range of sources, from ten-ant rent, from and integrator or freight forwarder, to sales of our immigration kiosks, airline fees, and the airport im-provement fee.

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As a sidebar: we have the highest proportion of non-aeronautical revenue, in other words not taken from the airlines, in terms of fees and charges, of any airport in Canada. Over 56% of our revenue is now from non-aeronautical sources. We’re a community contributor, we’re an economic generator, and we really try to be a good environmental steward. We are answerable to the public through our board.

So who flies through YVR? Who here has flow through YVR lately? [show of hands].

Well if you haven’t you will, and I’m not saying this be-cause any other reason that international travel is now woven into the fabric of the world. You can’t really do business, and you won’t really travel unless you’re flying.

YVR Master Plan Everyone has a unique experience at YVR, everyone counts, we’re here to listen to you, and I’m here to talk

about our master plan. This is a picture from our master plan, or the last one ten years ago. Every 10 years we update our plan to look out 20 years.

One of the places we seek feedback from the community is through our ongoing Master Plan process. We are re-quired to submit an updated 20-year land use plan every year to Transport Canada as part of our ground lease. It is a 2-year process looking at all the land we have and how we use it. Forecasting planned passenger growth and identifying trends in aviation set up the context for what we will need in the future in terms of runways, ter-minals, roads.

This plan just shows the blue, this is our airside, which is our beachfront property. Red is terminal, Yellow is asso-ciated, and so on. We also plan, as you can see there, we have got 2 places for potential future runways.

Ten years ago it really looked like that was that was in muck. Not so much anymore, we have seen an increase in size of aircraft such that we have actually decreased our number of takeoffs and landings over the past 10-15 years by almost 60,000-70,000 takeoffs and landings while increasing that actually number of passengers by 5 million, so its going exactly the right way in terms of sustainability. It is a two year process, by the way you can go to our website and put anything you want, we want to hear from you of what you would like to see.

We’re currently undertaking technical work on a variety of different work streams – from airside and airspace to ground access, environment, utilities and amenities. We actually are looking at where does our next terminal go. The terminal complex is only good up until 25 million passengers: we had 21 million this year, so we are, in simple math, 4 years away from being full. So actually in

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about 5 weeks I go in front of the board with what is the next terminal plan, where does that next terminal go. We have 57 options for different terminal designs that have now been narrowed down to one.

Funny thing about the master plan: last time we thought the number one issue facing us was going to be runway capacity, but now like the rest of the lower mainland we are finding this master plan are number one issue is go-ing to be ground access for the next 10-15 years.

Thank goodness for the Canada line: 20% of the people who go to the airport now to work or fly are using it. Just imagine what would happen if 20% more cars wanted to come to YVR over the Arthur Lang bridge. .

Airplanes for the Future How many of you have flown on the new Boeing 787 Dreamliner? Do you like it?

This aircraft is 20% to 25% more efficient than previous aircraft – it’s a great plane and I certainly recommend you try and get on one for your next flight to Asia. But back to why aircraft efficiency is important for you – it means re-duction in GHG emissions and fewer aircraft movements means less noise.

I haven’t flown the A350 yet, its very new, but I have flown about 8 or 9 trips on the 787. At first I was wonder-ing if the hype was sucking me in, but it actually is health-ier for passengers, faster, it’s quiet, it’s got that lovely lower pressure. I love that aircraft. That’s the kind of air-craft I think we are going to see in our master plan. We will see the A380 on a mention in a moment, but we don’t think that is going to be the mainstay. Because a lot of our routes are long and relatively thin as they say in terms of passengers, we think that the long, the big twins

787/777 and the A350 will be the airplanes that really take us into the future.

To give you some context on how all of our movements and population have changed I want to take you back to our first Master plan in 1946.

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It recommended that Metro Vancouver have 13 Airports including 2 to 3 Major airports with a regional population of 650,000 and 800,000 movements per year by 1966. 800,000! !Everybody would be flying around in his or her own personal seaplane. If you think air traffic control is tough now, imagine our roads lifted into the skies. Plane movements in 1966 were actually 100,000. They are now 300,000 with a population of 2.5 million. So no, we don’t all fly a personal mini plane to work every day.

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Ground Access Issues Since the last Master Plan the Canada Line has changed how people come to the airport. In 2009 (The year the Canada line opened) 6% of passengers took public tran-sit to come to the airport. That number jumped to 18% in 2014 and last year was almost 20% - thank goodness for that train.

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In the same years (2009 – 2010), the percentage of arri-vals by car has declined (includes private car, taxi and rented car) from 77% to 66% in 2014.

Traffic will continue to grow on Sea Island. We’ve done a preliminary ground access studies, how we balance this and how we work with TransLink is going to be really critical for us. This really worries me because there is no obvious answer. I can design the terminal, I can design the baggage system, but I have got to have people get-ting to the terminals. We already know certain routes

people wouldn’t want to take in the lower mainland now. We don’t want people to start thinking “well I don’t want to fly out of the airport its so hard to get there”. We’re cur-rently working on this now and we recognize that what-ever solutions we come up with we will need to coordi-nate with cities and business organizations like yours in how we manage that growth – how we balance for exam-ple the need for people and goods to get the airport and commuters going through the airport road system

Phase 1 of our Master Plan finished last fall; we had 2,600 surveys completed. Basically these are the asks so far:

• More flights and services to more places

• Increasing the green initiatives

• Adding more of a human touch

• Use technology to improve the passenger experience

I really believe it’s both of those last two. I think some-times we become enamored with technology and way-finding and sometimes you know you just have to put a person there. You watch the faces of people coming of an airplane into an airport for the first time. You know the app or the way finding or whatever is not going to do it, your going to have to have somebody there to say “you want to go that way.” I don’t think we are ready to move away from that.

The master plan looks out 20 years and works in concert with many short term plans that guide our strategy, busi-ness and capital planning. I will take you through some of the numbers that we are planning.

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In 2015, we developed a new Strategic Plan, with an am-bitious goal: 25 million passengers per year by 2020. We are on that path. We have added 1 million passengers every year for the past 3 years: it looks like another mil-lion this year.

It’s an ambitious target to add 1 million passengers, but interestingly the math just works. 5% growth at this num-ber now is about 1 million passengers and that’s what we are experiencing. Better than most in Canada right now, and no surprise there we should be better than most.

Our Strategic Plan has 4 key supporting objectives.

• “Creating a world-class connecting hub”

• “Delivering remarkable customer experiences “

• “Being a leader in sustainability”

• And “Building on our strong foundation”

Let’s look at those.

To become a world-class sustainable connecting hub we have to increase our core business—air services.

Lots of Flights Added Over Last Year Over the last year, we have added a lot of flights:

• Philippine Airlines, Manila to New York – with a stopo-ver at YVR

• Air France direct to Paris—the most requested desti-nation over the past 20 years by people in BC, by the way, I lost a bet on this one: I thought it would only for the first year be in the summer but it’s gone year round with its 90% load factor.

" Air Canada Rouge direct to Osaka, the only service in Canada

" China Eastern to Kunming, the gateway city of “Eternal Spring”

" Qantas direct to Sydney, Australia " Aeromexico, daily to Mexico City " WestJet non-stop service to Gatwick and Orlando " Air Transat to Rome—a first for YVR! " British Airways direct between Heathrow and YVR this

May on the Airbus A380—another first!

By the way there are only 8 cities in the world that fly the A380 and we are one of them.

" Air Canada daily direct to Brisbane, starting this June on the Dreamliner 787-900.

" And Air Canada direct to San Jose, San Diego, Chi-cago and even Dublin.

" And today just came back from announcing, Xiamen airlines will be starting to fly out of Vancouver on the 25th of July.

It’s remarkable, that means that Vancouver airport has 5 Chinese mainland carriers. We are the airport in all the Americas and Europe with the most mainland Chinese carriers. This shows the pacific gateway strategy has really taken off. I can tell you we are in talks with several others and there may be some more good news to come.

Jobs Impact That’s one part of it: the other is jobs.

Every single international flight that is daily injects $100 to $200 million into the economy and adds between 150-

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200 direct jobs. Some of those are at the airport but a lot of them are downtown.

That’s no surprise that anyone in the tourism industry: our best year in tourism in Vancouver, was last year: you couldn’t get a hotel in downtown Vancouver and they were maxing out the records. Why? Because we are bringing lots more people. Also it’s not just downtown Vancouver: it benefits the whole province. People head off on to Vancouver Island the head up the coast. They go in the interior; they take the rail up to Jasper. And they also support key industries such as tourism and trade.

Why do they come to Vancouver? It’s not the airport. Airports like to believe it’s the airport, but it’s not. It’s Vancouver: it’s pristine, it’s natural, it’s renowned, and it’s a cosmopolitan city. We have a diverse economy. The low Canadian dollar isn’t great for every industry; it sure entices travel to Canada for us.

Importance of Non-Aeronautical Revenue We’re also working hard to encourage airlines to do busi-ness here. Every 5 years we look at our fees and charges and just in January we started a new program called ConnectYVR. We dropped our average airline rates by 12%. The reason we can do that is the 56% non-aeronautical revenue, which allows us to drop our fees to the airlines. While that’s not the only reason an airline would connect through us— it may be second or third— it’s a contributing factor. We are now lower than our competitors in Seattle, Calgary, and San Francisco.

Air Cargo Targetted for Growth: Flying Crabs Another crucial growth area for us is cargo. In 2015, we handled 271,772 tonnes of cargo, up about 6% and the highest volume in over a decade. Though we are still

light on cargo- we should be over 1 million tones--we are working very hard to figure out how we can grow that. We have set up a new company to redevelop and manage the facilities of our Cargo Village.

We signed an agreement with Shanghai Pudong Airport to study the cold supply chain between our markets.

BC has a lot of great products that we currently ship overseas – for example, a lot of seafood—in particular, salmon, spot prawns, Dungeness crab and gooey duck clams are a big deal. There’s also stone-fruit, including cherries.

It’s fascinating to think about the example of sea food of why direct flights are so exciting. When you take a Dun-geness crab out of the water, you have got 26 hours be-fore it dies. That’s keeping it alive in a saline environ-ment. They just don’t live long. 26 hours between Van-couver and Shanghai is not long, but you can’t have very many foul-ups, at customs or elsewhere without having real problems.

I don’t know if you have been to Mexico City lately but it is a tremendous foodie city: it’s got some of the best res-taurants in the world. Before the flight started in Decem-ber, there’s no way they could have got BC fresh oysters, or spot prawns, or Dungeness crab. I just would trust that going through Dallas in 40 degrees in the summer is not conducive to connecting seafood: but now we put it in the belly of the airplane to arrive in Mexico City in 7 hours: it can go right to table. It’s amazing when you think about how having more direct flights can add to our cargo flights, and putting BC products around the world.

You have all probably heard the cherry story. You can go out in to the Okanagan and buy Bing cherries you know

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for X: they are worth 12X in Beijing, and so you can bet that BC fruit growers associations are very aware of that, and the cherry sales in BC have gone from 3 to 10 to 30 million dollars in a matter of a couple of years-just by hav-ing those supply chains.

Of course, the list doesn’t stop there. We encourage businesses to get in touch with us to learn more on those many other products. Circuit boards are now flowing through Vancouver at a high rate.

Pressing for Transit-Without-Visa If you’re going to be a hot airport you must make it easy for passengers to get through the airport.

In our terminal we have Canada customs and US cus-toms: in fact we have about 7 different ways to connect from the US through Canada, international, from Prince George through Canada to the US, from Shanghai through Canada to the US. Each one of them has a spe-cific process and specific security and customs but we have been doing that for 20 years. Our 20-year-old termi-nal is built to make all those weird transitions: t has started to pay off.

The reason Xiamen airlines came to us is because we got them added to the transit without visa program last year. So if you are a Chinese businessman in Xiamen and you have business in Dallas, you get an American visa and you don’t have to have one for Canada, just come through YVR and continue. Which is the way it works in most of the world: you only have to have a visa for your end country.

In Canada for a lot of places you have to have a visa, even if you are going to be in the airport for an hour and a half you have to get a visa for Canada, and that’s just a

barrier to travel, so we are working very hard to try and remove those kinds of barriers. To do this, we are push-ing for visa-free initiatives such as Transit Without Visa and the China Transit Program. These programs allow international travellers to connect through YVR without the need for a Canadian visa.

Last year, five new cities in Asia were added to the China Transit Program. This is a step in the right direction. Why?

Because expanded visa-free transit could open markets for everyone—whether it’s businesses selling BC spot prawns to restaurants in Sao Paulo or international stu-dents coming to our universities from China.

Best N.A. Airport: Seven Years Running To be a successful hub, we have to constantly improve the customer experience. In 2015, YVR received an 91% customer satisfaction rating. Last week we also received the Skytrax Award for Best Airport in North America—for an unprecedented seven years in a row.

And one more that surprised us: BC Business declared YVR BC’s third most loved brand.

Now we still shake our heads at that, at an airport where we loose your bags or you have to go through security. But it’s the brand: people love the brand. I go back to the very first board, with very far seeing architects and man-agement team that build something that is more than just an airport. Ever since then I think a lot of airports around the world have tried to emulate the idea of sense of place to greater or lesser success. I hear a lot of people from BC say, “oh I love coming back, I know I’m back in BC,” and I hear a lot from away say “oh it feels like the coast”.

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But you know more than that it’s the smiles if you look at how Skytrax and how it works. It’s actually more of a census than a survey. We don’t even know for how long they do it: somewhere between 9 and 6 months, 13 mil-lion people voting in 39 areas. You can’t game this.

There are other surveys that are 2 weeks long and they take a sample of 3000 people, this is basically how did you do for the whole year and what it really comes down to and what we look at carefully is the customer service. You can’t bottle it, if I knew how to I would be on a yacht somewhere.

It’s just everybody at the airport—not just in the airport authority, all 24,000 people—they try. I personally watched a guy in coveralls at the end of his shift (you can tell it’s the end because it’s six o’clock), walking to the Canada Line, seeing a family coming towards him speak-ing Dutch, a bit confused, stopping and walking them all the way down to the counter and put them in front of the KLM counter. At the end of his shift after 12 hours! He could easily have just ignored them but he didn’t do it. We have something called YVR stars where anybody from the airport can nominate anyone else for one of these stars. I nominated for him and he won one of these stars, and he wears it on his lapel, if he takes it off it’s a fire hazard!

We get everybody from the airport community together and the top 3 people who do incredible things win great prizes. That’s getting the community involved. This young man didn’t have to do that, but that’s the thing that you can imagine that family talks about when they go back to the Netherlands.

Accessibility We provide free wheelchairs for those who need them. We have a visual paging system, the very texture of the terminal—the carpet, the tile—signify different locations for people who have vision issues. We are a huge advo-cate of accessibility and we welcome anybody’s feedback on how to improve in that way.

And I’ve sat in a room with the community of the blind, can you imagine anything more courageous than getting on the Canada Line, going to the airport, going through all those processes, and flying to San Jose—and you’re blind. Anything we can do to make that journey easier is our duty.

Brighter, Less Utilitarian Improvements We keep updating the terminal. I don’t know if you have flown through the WestJet side opened up last year. There’s the beautiful rivers monument that symbolizes the Fraser and the Thompson: it includes new shops and services-just another example of trying to make the place a little bit brighter and a little bit non-utilitarian, and more of an interesting place to be.

By the way that the parts you see, the actual fixing of that old terminal way back in 1968, that’s where the main communications hub for the entire airport came in, and BC Tel had to take a guy out of retirement to figure out how to make it work. So that’s how far back, with a mini gas line went through there, underneath there, the main electrical lines, so you don’t see all the work that went on behind the scenes but that was a lot of work.

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High Speed Baggage Transfer We’re working towards finishing a new high-speed bag-gage system. In 2017, it will transfer bags to anywhere in the terminal to anywhere else in the terminal in under 30 minutes. Why is this important? Because if you are com-ing down from Prince George and you are going to Shanghai your bag has got to make it. With this new sys-tem the bags actually go in a bin and each bin has an RFID tag: we know exactly where your bag is. We want to be able to say “hold that plane” Mr. Smiths bag is 2 minutes away. That’s what happens in big hubs like Heathrow and Schiphol.

When we see a problem we try and fix it. A few years ago we realized that both Canadian and US customs were not going to get more staff, but we were having more passengers: we have all these counters that aren’t full of staff already, what can we do? A star offering that contributes to our revenue is BorderXpress. Created lo-

cally as a way to manage our long lineups at immigration by automating part of the immigration process. BorderX-press is now available at 25 locations in Canada, the US and the Caribbean. !

Could we build a kiosk? We could, so we worked with first the Canadian border services then with the US to build a kiosk. It’s actually become a line of business for us now. We have sold over 750 of these kiosks, to air-ports in North America in the Caribbean and our latest one GBX, which has facial recognition and we are ex-pecting to make our first sale in Europe very soon. Last year we won the airport innovation of the year award, for this boards best product. So think about that, all the best companies in the world the supply airports with stuff and little Vancouver won an award for our kiosks. And all that money goes back into running the airport.

Another way we contribute to the revenue around the air-port is by the newly opened retail outlet centre. We had a very busy first weekend with160, 000 visitors. Its some-where between one in two times better than expected, in terms of people going to that centre and income made off of that of course goes back into the airport.

Environmental Management Targets In 2014, we renewed our Environmental Management Plan. This includes some really big targets by 2020. We are going to reduce our greenhouse gas by 33%, reduce our waste by 50%, our potable water consumption by 30% and improve our ecosystem health.

Last year was the first year that we measured ourselves against these targets. The results are promising. It just shows what you can do when you really try. During our busy summer months, we reached a 50% diversion rate

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from compostable waste in our food courts. We were at almost nothing before and now in one season we got it up to 50%. Just shows you what you can do with a little education and a thing we call Waste Wars, which we in-volved all 48 of our food and beverage tenants, and they did an amazing job.

We also divert 97% of our construction waste from land-fill. 76% of the taxi fleet is hybrid or electric. We have energy-efficient LED lighting everywhere from on the air-field to into the terminal.

Sustainability is more than just environmental initiatives. We are always working hard to improve our external and internal relationships. We invested $900,000 dollars with local community organizations, including the Great Ca-nadian Shoreline Cleanup and the Explorer Tour pro-gram.

Community Presence We will expand our community presence this year, we participated in 72 festivals across BC and we send peo-ple out to give speeches like this. We go out to Terrace, Kamloops, to 100 Mile House. It’s really fun because first of all I think people are very happy to see a new face. I’m sure that in some of those places they get few external speakers. Also they realize we really value all of these feeder airports - we’re part of the airport system and eve-rybody who flies down from Kamloops and Kelowna and Penticton is part of a system, and we value that.

Runway Improvements We keep working on the physical aspects of the airport. What you see there is the Runway End Safety Area (RESA) for the South runway. These areas protect air-craft and passengers in the unlikely event of an overrun

or undershoot. I stress we prefer the pilots not use them, but they’re there. We are doing this in advance of federal regulations just because it’s the right thing to do, its not a cheap thing to do the south runway alone is $70 million.

We continually upgrade them. Last summer, we repaved a key taxiway, while also working on the runway on the South RESA. In fact, last summer we experienced our 100 busiest days ever. You can imagine the complexities of moving construction equipment and people onto the airfield at night, doing the work, and having everybody off by six in the morning and not even leaving a pebble, it was really brilliant work I commend them and the entire crew. We couldn’t do all this work without a completely engaged and innovative YVR team.

Safety: Fighting Complacency I’ve mentioned the customer service but I must talk about safety. It’s our most important core value, we start every board meeting, we start every management meeting, we start every tool box talk, talking about safety.

And of all the awards we got last year this one was the nearest and dearest to my heart: we received the award for the best Health & Safety Culture of any company in Canada, by occupational health and safety magazine. This means a lot to us, because we spend so much time on it.

As I always say to my staff, the biggest enemy of safety of course is complacency. Winning that award is almost an enemy to safety because your making them become complacent. Everyday is a new day, as we say the dice have no memory. Everyday you go into a situation whether you might be what we call lowest category in the office: you wouldn’t believe how many people have

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wrenched their back lifting two or three cases of paper. Or, you’re walking with your full flash gear on into a 10,000-volt room. You never want to be complacent. You cannot ever assume that everything is the way it was yesterday. That’s a tough thing to do, to eliminate com-placency out of your routine.

Wrap-Up That is our story, from growing our business, to managing environmental initiatives; we’re ensuring we operate a safe and reliable airport. We encourage the community to get involved in many different ways: we have our Envi-ronmental Advisory Committee, and our Aeronautical Noise Management Committee, and they represent very diverse interests. We report back to our cities. Once a year I go talk to the cities but there are always welcome to tell us if there is something they want. This presenta-

tion is a part of our program where we talk to the com-munity.

Our ambitious goals and plans really come down to one thing: we actually have only one mandate at the airport, besides having a safe and efficient and customer friendly airport—it’s to provide jobs and economic opportunity for the province of BC. Our future growth depends on each new and returning passenger. Our terminal improve-ments stem from that and from your feedback. So, you’ve heard me go on about the interesting things we’re doing. You’ve heard how I’ve said everyone counts, so I would like to hear your feedback now. Anything that you like about the airport anything you don’t like about the airport, I’m happy to hear and it’s all very useful feedback.

Thank you very much.

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Questions from the Audience and Answers by Mr. Richmond

Question from Pavil Yim, student in BCIT Aerospace campus Airport operation program.

What Other Airports Do You Admire? Since the aviation industry is expanding so rapidly and there are a lot of innovative airports overseas, personally do you admire any of these? Do they influence your vi-sion of the future at YVR? And also: competition across the border since 2007 since the last master plan—has that affected the new master plan coming up?

Answer: Yes, we do admire a lot of other airports, but one just got voted the best airport in the world, so one of the gold standards is Changi in Singapore. I admire their ability to just keep making things up. If something doesn’t work they just discard it and try again. You’ve got to have a pretty open mind. They have got something that now is possibly the weirdest but most loved feature in any airport that I know of: it’s a butterfly museum. So when you’re transferring and a bit stressed, you can walk through the butterfly museum. They land on you. Who would do that— put a butterfly museum in an airport? It just shows they are very imaginative.

There are two airports we are really aiming at because when we bumped up to the 20 million category, we now moved an entire weight class: we are now in the 20-30 million category in the world, so we’re best in North America, 14th in the world. We want to get into the top 10. We were 3rd in the world in our weight category, so we have our eyes set on Kansai and Zurich. We will be

going over there to see what it is they’re doing, and if there is anything we can steal—I mean copy from.

As far as cross-border competition goes, it’s a tough one because the US is a different country. Bellingham has their security paid for, the equivalent of NAV Canada, and the air traffic control paid for. They get $150 million in grants for both the terminal and runway. We are exactly the opposite: everybody who flies pays for everything un-der a user basis and government run system. Its really hard to compete, I have to say the Canadian dollar has put a big dent in Bellingham. I think Abbotsford was probably hurt a little bit more than Vancouver, in terms of what Bellingham has done, but also it’s just a different market. Its ultra low cost fares that fly out of there, to about four or five destinations. I can’t blame anybody who wants to take advantage of going to Vegas for the weekend: you can’t beat those prices, but eventually you’re going to want to go to Paris and you’ll come back to me.

Question from Jett Mannings, student at BCIT Marine Campus

Is Security Screening Adequate and Efficient? Do you feel the security screening procedures are ade-quate and efficient? If not what do you think about it, could you improve it?

Answer: Oh, boy: how much time do we have. I think they could be improved, I think something happened be-tween the times, again my good friend Mark Duncan was

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at CATSA4 and I was away for 7 years. When I came back it was just not working. This was the universal issue in the latest Canada Transportation Act review: was there something wrong with CATSA? I think the government has got the message, I think CATSA’s got it. I think we’re going to put together a working group to figure that out. We just cannot have inefficient, customer unfriendly screening in a world where lots of places do it faster and better. So I will leave it at that.

Question from Viny Liu, graduate from BCIT Airport Op-erations

How Will The Brussels Airport Attacks Affect YVR Operations?

Answer: You know we are more vigilant; we have more people on the floor. It just makes people feel better. There are a lot of things that happen behind the scenes, that I obviously can’t talk ab

Passengers shouldn’t notice anything (else). Certainly Transport Canada has not increased the threat level, so we are doing a lot of things on our own in conjunction with the RCMP, with security, customs and border protec-tion. Nothing done over the past year would be seen I would think.

As far as how do you keep moving forward how we move to get inside the top 10 in the world, we keep doing what we do very well, we keep innovating, we keep thinking of new ways to put people through the airport smoother and faster, you know my ideal in the future is this: you get out at the curb, you’ve checked in already on your watch or

4 Canadian Air Transport Security Authority

your iPad, and you come up and drop your bag on a belt. You don’t need a baggage tag, because we already know it’s your bag: you walk down a corridor and you head to shops. You’ve been screened and you don’t even know it.

I think we have to get back to that. That’s the way it used to be, all of this security has been added in the last four years. You used to be able to go down to the gate, put your wife or husband on a plane kiss them goodbye and walk back off. We could do that: the technology exists to do it and I think we should be thinking about new ways to do this. We shouldn’t be sucking the current paradigm: we need to shake it up and make it pleasant for people to fly.

(Security is) one of the most dreaded parts of aviation right now, its that interaction you know when you check-in and then you go through security. They’ve actually wired people up: their heart rate for check in and going through security is very high but once they get through it dies off again—and that’s even for people who are afraid to fly.

It’s much more stressful sometimes to go through secu-rity, but we’ve got to get past that, so that’s what we will do. Actually, with WestJet, our team has built this thing in the basement. It doesn’t look that good right now, so we will get some industrial design work on it, —but it is a self-tag bag drop. It’s very low to the ground, very safe, and interestingly uses high speed cameras and infrared to make sure nothing is on the belt that shouldn’t be there: all cobbled together by our engineers and our maintenance staff. That could be our next “kiosk” in a few years— maybe selling it around the world.

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Question from Raini Dam – BCIT International Business student

How Will the TTP Affect YVR? In terms of the TransPacific Trade Partnership that re-cently got signed, do you see any changes that could af-fect YVR in terms of operations or perhaps third parties that YVR deals with?

Answer: It’s a great question. We believe that when you open up free trade you should open up aviation, because the aviation bilaterals between countries are nothing more than trade agreements. So for example if you have free trade with Korea, which we do, we should have open skies with Korea, because that’s what free trade is all about. It just makes sense that as we have fewer and fewer barriers, we should have more and more access. There’s an interesting thing about air access, every time air access has opened up between governments we got more flights.

Follow-Up Question: Is there any challenges that could arise from the TTP or do you think there are just more opportunities?

Answer: I think there are more opportunities. There’s al-ways challenges: its challenging to have a million pas-sengers a year at the airport, because passengers are not normally distributed across the year: they come in June July August, and they’re not evenly distributed through those days. A million passengers a year equal a 30% increase in crunch, in check-in and screening. There are challenges but there the exact right kind of a chal-lenges we want how to move more people, more goods.

Question from Jackie Li, BCIT Student

Is There Enough Cargo Storage at YVR? You mentioned air cargo growth. After working in the air-port for a number of years I’ve noticed that there is insuf-ficient storage facility at YVR. Do you have plans to in-crease the single chain logistics and temporary storage space around the airport area? Having storage in Rich-mond is very pricey.

Answer: We are just gathering a lot of information from the freight forwarders and from people. I think there is a good chance for example when we expand the terminal the next time out to the west (that’s the last expansion arm) underneath that will be a very good place for an in-bond warehouse, where things can go tail to tail.

Because having to take that all the way back to Cargo Village is not very efficient. We’ve never done it before because we just haven’t seen the business case but I think we’re starting to see a business case—so that’s one example. There are a lot of other interesting things that have come out of this study. Did you know that most of the cargo truck on the island actually never ever touches aviation cargo? Most of the trucks you see on the island bring goods in by road and it goes out by road. That was a surprise to us: it’s actually not coming in by air. That’s adding to our ground congestion, so we have to think about that—not an easy thing to deal with. Also, is there anybody in this room that hasn’t bought anything from Amazon in the past month? That growth is just phe-nomenal: the growth of the integrators and packagers just defies belief. And if throw in Alibaba as well—millions of packages—so we see that only growing.

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Question from Scott Bennie, BCIT Student

What’s Happening With Aviation Fuel? What’s going on with the fuel, the aviation fuel? I travel over the Alex Fraser Bridge, and everyday I see trucks sending fuel to the airport. How will this work into your reduction in green house gases?

Answer: This is not our project: it’s a corporation called Vancouver Airport Fuel Facilities Corporation; they’re do-ing it. We are actually not supposed to be dealing with that, so we haven’t. They looked at all the options for more aviation fuel as we grow. The best option is to bring a tanker up the Fraser River and pipeline it to the airport. All of our team has looked at it in a dozen ways. Its gone through environmental studies and it is the best way we can do it. A lot of people said why don’t barges just come up close to the airport and do it there? That is doable but the waters are too shallow. People have said well why don’t you anchor off shore: well you’ve got to anchor way out because the flats go out 8 miles. It’s only five or six feet deep—very shallow, and then it drops off and you are right into shipping lanes.

Last month some said there should be a pipeline down to Cherry Point in Washington. But they are actually at ca-pacity, servicing Seattle and Portland. So our fuel would come up from Long Beach by tanker. So yes, that is a much more environmentally friendly way to do it than what they are doing now, which is in the summer 40 tanker trucks a day heading up the highway right to Richmond and the airport. Every time we grow it’s going to be more and more, so it’s controversial. I know and people in Richmond really have objections but it is the best way, it is safe all over the world, it’s proven to be

safe to do it that way. So we are on the side, and then asking the pipeline through our airport and they still have to go through some bumps. When will it occur it’s hard to say: it could be starting in the next year, starting con-struction t, or it may open later.

One of the things we are very keen on, we are just get-ting together is a biofuel project. We really want to reduce greenhouse gases and adding biofuel to the jet fuel seems to be an increasingly powerful way to do that.

Question from Allison Diamond, Pilot

What About South Terminal Access? You spoke to increasing the capacity of YVR with the size of the aircraft, the 787, how does that influence or how do you see that affects the south terminal?

Answer: I love the south terminal. For those of you not familiar with it, it’s a terminal in the quarter million pas-senger range. Passengers from there fly all over Van-couver Island, and up the coast. We think that there will always be a need for the relatively small propeller aircraft. That’s how people get here and get to the world. In fact we thought we might have to expand the south terminal a couple years ago, as we were getting so many chartered flights and 737’s up to Fort Mac. But that just died right off. It’s a natural thing to have some airlines start off at the south terminal, now move up to the main terminal. One thing people at the south terminal would like is a tunnel, so you can get back and forth very quickly to the main terminal—that’s the one problem. We used to, prior to 9/11, be able to take people through airside all the way up to the terminals. It was very quick and very predict-able, but now you run into traffic its not quick or predict-

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able. That is a problem but it’s insolvable under the cur-rent security conditions.

Question from Marian Robson, Chair, Pacific Chapter of the Chartered Institute of Transport and Logistics.

Visa-free transit through Canadian Airports? Question: How do you see visa-fee transit developing? It sounds like it’s improving but still very slow. And how do you see achieving higher growth for cargo?

Answer: On visa-free transfer I think we should do what the rest of the world does. Instead of taking China as an example and saying visa-free travel is OK from that city, that city, that city and that city, —just say (from/to all of) say China, Japan, Korea. That’s what most countries do. So instead of the way Canada runs it, i.e. we will give you these specific cities and these countries, most of the

world says these are the cities and countries you can’t have visa-free transit with. In other words with certain countries we don’t want passengers transiting through Vancouver without a visa (a relatively small number) but everyone else, go ahead. We are starting to get some traction, the new government seem open to it. Again I don’t know all the ideas I think its going to be a bunch of things.

(On the cargo question) one thing you have to realize is, unlike our marine colleagues or rail colleagues, air cargo either high value or time sensitive. So what you need is a high tech manufacturer in Vancouver airport if you want to see 5 million tones of cargo. We don’t really have that yet, but I think we are starting to get there. I think that’s part of why there hasn’t been as much demand. While we haven’t been doing as good a job as I think we could have, we are really keen to increase those numbers.

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Participant List Phil Allmark UBC Oscar Andres BCIT Robert Andriulaitis InterVISTAS Consulting Tom Appleton Conair Group Inc. Rob Ashton ILWU Canada Barry Marsden Conair Group Inc. John Beckett BCMEA Branko Bejo Securiguard Services Limited Scott Bennie BCIT Rob Beynon Operations Economics Inc. David Birnie Conair Group Inc.

Stefano Bolla Conair Group Inc. John L. Brown Retired Harvie Buitelaar Hatch Kenneth Burnett Miller Thompson LLP Lincoln Chan Hatch Eric Corcoran BCIT Aerospace Martin Crilly MLC Associates Kristian Cu Pardis Daneshyar Capilano University Mark Duncan Aeroedge Consulting Wayne Duzita Aeroterm

John Dymond BCIT Allison S. Dymond Erkhes Erdene-Servuud BCIT Aerospace Oksana Exell WESTAC Jonathan Fountain Stantec Bonnie Gee Chamber of Shipping of BC Niyamat Gill BCIT Aerospace Darc Gillespie BCIT Aerospace Mark Gordienko ILWU Canada Dick Hampton RFH Logistics Rita He UBC

Sarah Huang BCIT Airport Operations Brendon Hull DP World Rebecca Hyndes BCIT Yung Jae Shin BCIT Aerospace Collen Keane Cake Management Consulting Darcy Kernaghan Securiguard Services Limited Jarett Lalonde Global Public Affairs David Lam Macquarie Group Limited Douglas Larsson CLIA North West & Canada Colin Laughlan Laughlan Consulting Robert Lewis-Manning Chamber of Shipping of BC

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Angela Li, BCIT Jackie Li BCIT Kelly Lim Capilano University Bryan Lim BCIT Aerospace Viny Liu BCIT Aerospace Councillor Alexa Loo City of Richmond Stephen Majetic Freedom 55 Nazar Maletych Chamber of Shipping of BC Jett Mannings BCIT Maritime Institute Bruce McDonald Corporation of Delta Adam McKeown BCIT Maritime Institute Candace McKibbon BC Aviation Council

Ron McMillan BCIT - International Business Management Pro-gram Tyler Shymkiw City of Maple Ridge Melissa Mulcahy Texcan, Division of Sonepar Canada Inc. Ben Murray BCIT Maritime Institute Margaret Nadeau UBC Toni Nardi Representing Neptune Adrian Nelson Securiguard Services Limited Gregory Pinch Impark Craig Richmond Vancouver Airport Authority Marian Robson Global Public Affairs

Roya Salehzai Capilano University Karina Sangha Global Public Affairs Darleen Saxer Capilano University Azita Shafai Capilano University Sahir Shivji UBC Yuri Shulzhenko Nowadays Maritime Frank Siemens Landmark Transport Group Stanis Smith Stantec Joe Sulmona Sky Blue Sea Enterprises Ltd. Joyce Tang BCIT Daniel Thorpe Langara

Oddys Trillo DP World Heyden Vargas BCIT Navin Vidyadharan BCIT Aerospace Rainie Vu BCIT Carly Wignes CLIA North West & Canada David Willis BCIT Aerospace Greg Wirtz CLIA North West & Canada Tony Xu BCIT Wu Xu Secretary, Pacific Chapter Pavel Yim BCIT Aerospace Carol Zhang UBC

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The Organizers

CILTNA Pacific Chapter Executive

Marian Robson (Chair) Xu Wu (Secretary) Martin Crilly (Treasurer and co-reporter) George Adams Darryl Anderson David Colledge John Dymond Bonnie Gee Dick Hampton Tom Maville Jane McIvor Tony Nardi Gordon Payne Bob Wilds Chris Wellstood Kelly Couper (Admin Asst.)

Students and Faculty

Capilano University Azita Shafai (faculty coordinator)

BC Institute of Technology

John Dymond (faculty coordinator) Rebecca Hyndes (assistant, Proceedings)

BC Institute of Technology Marine Campus

Jeff Otto (faculty coordinator) Jett Mannings (questioner of speaker)

BC Institute of Technology Aerospace Tech-nology Campus

Cheryl Cahill, (Chief Instructor, Aviation Operations Program) Viny Liu (questioner of speaker) Pavel Yim (questioner of speaker)

University of BC

David Gillen (faculty) Phil Allmark (co-reporter) Margaret Nadeau (thanker of sponsors)