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MergeGlobal, a consulting
practice specializing in developing business strategy for companies in
the Global Transportation and Logistics industries, forecasted in 2001
that if currently available there would be a need for 200 heavy lift air
vehicles. In late 2005, Millennium Airship Inc. produced a marketing
study for Lockheed Martin�s Advanced Programs division. The study
covered Canada, Alaskan, and Russian documenting the problems with
today�s transportation systems in reaching their northern areas, which
contain huge amounts of oil, minerals, timber and other resources. The
ability to reach now unreachable oil deposits alone should make a hybrid
vehicle a necessity. If these oil fields were in operation, Canada and
the United States would not have to depend on oil from off shore
sources. To satisfy known requirements, the study indicates that on the
low side they would need 285 to 1380 equivalent Fifty (50) Ton lift air
ships.
The Asian study presents the same result, but for different reasons. The
Chinese economy is growing about 7% per year and the need for the
movement of both raw materials and finished goods remains high. The
customer�s goal is to double the Gross Domestic Product (GDP) by 2020.
To accomplish this goal, the transportation system will have to keep
pace. The customer is spending large sums on highways, railroads, and
new, smaller airports in the outer regions. But there will be a
limitation on the operating of large cargo air vehicle, because of the
runway requirements. To satisfy both the mainland and international
needs, there will be a requirement for heavy lift air vehicles. In the
long term, air ships will be needed to fulfill the same requirement as
Canada in extracting oil and minerals from the far north, plus the
planned settlement and development of the western frontier. Although the
number of air ships required is not fully quantified, it would probably
be not unlike the Canadian northern and Russian north requirements.
These market studies fully support the immediate need for large capacity
carrying hybrid heavy-lift air vehicles. The next phase should include
documenting the cargo types, distances to travel, number of specific
lifting capacity vehicles, the various financial arrangements necessary
to support this program, the specific costs and revenues, and the
regulations and country specific requirements needed to be satisfied.
The need for a hybrid air vehicle has been documented to satisfy known
requirements. It is also known that such an air vehicle will spurn many
new areas of transportation not yet defined.
Taken together, these factors and results portray a demanding customer
base for intra and intercontinental cargo transportation. This
transportation system must have high and consistent levels of on-time
delivery and lower costs that are routinely required to enable today's
and tomorrow�s sophisticated global supply chains to operate effectively
in high tech, perishables, strategic resources and other key product
segments. In order to capitalize on the immediate need for hybrid heavy
lift air vehicle, the furtherance of the market studies, as well as
initiating the commercial design effort and the planning for the
manufacture, delivery, operations, maintenance and overhaul of these air
vehicles should commence immediately.

An Inventory of
Possibilities: The Potential for Hybrid Air vehicle in Canada
Introduction
Canada is an immense country with large tracts of inaccessible remote
wilderness. Lack of accessibility across long distances has preserved
its natural beauty, but inhibits most resource development. The
construction of single purpose, low traffic density roads through
pristine landscapes is challenging from a cost prospective, while the
barriers to environmental approval may be insurmountable.
Hybrid air vehicle represent a unique solution to many of the
transportation challenges affecting Canadian economic and northern
development. In some cases commercial development is simply impossible
without a commercial means of transporting fuel and mine supplies in,
and ore concentrates out. Further, any transportation solution must be
environmentally respectful. Typically, single purpose resource
development roads that transect environmental sensitive lands are not a
very palatable solution. Traditional lifestyles are being challenged by
the encroachment of southern ideas and rapid changes to social and
environmental norms.
HHLAV vehicles represent the most logical transportation
technology that has any realistic chance of unlocking the riches of the
north and providing a sustainable foundation from which northern people
can enter a modern economic world. In some cases, conventional
transportation options, such as winter roads, can provide a stop-gap,
but climate change is challenging their use. Moreover, these modes are
often costly, environmentally disruptive as well as unreliable. For
example, the billion dollar diamond mines in the North West Territories
depend on a twelve week winter road season to move their entire annual
fuel and bulk mine supplies. The consequences and impacts of not being
able to re-supply the mine during this critical period could be
financially catastrophic.
The hardships caused to remote communities when they are not able to
obtain necessary construction materials and heating fuel supplies are
hard to imagine. In the south, a delay by the builder might mean a month
before a new home buyer can take possession. In the north, in what is
already a housing crisis situation, this means a whole year�s wait.
Consider the aboriginal land claim issues confronting energy and mineral
developers. In some cases, it is simply negotiating an impact-benefit to
gain access to a right of way through their land. However, traditional
peoples may not be willing, at any price, to grant access, if roads are
the only option. If a commercially viable means to fly over this same
land and leave it undisturbed were available, the problem would diminish
greatly. Hybrid air vehicle provide an elegant solution to many of the
challenges listed above and the best hope for allowing the North to
reach its economic potential.
Historically roads have been viewed as a public good and paid for by
governments. More recently, industries are being asked to build private
roads because the government is no longer willing to shoulder this
responsibility. The result often is that the resource remains
undeveloped because of this stalemate on road financing. Roads and
railways have been the only viable technologies for land based bulk
transportation. The advent of heavy lift hybrid air vehicle brings a
third option. More importantly, in the case of this new hybrid
technology, the vehicle is the infrastructure. Problems of ground
disturbance and infrastructure financing disappear because hybrids can
carry payloads large enough to offer an economically viable option to
conventional transportation.
This report examines the major resource sectors in Canada and presents an
inventory of possible transportation applications where hybrid air
vehicle can be the enabling technology that allows specific resource
development projects to proceed. Further the analysis also explores
other social applications such as re-supply to northern remote community
and emergency response, such as forest fires. In the conclusion, the
applications are summarized and some opportunity rankings are provided.

Perspective Setting
Former Prime Minister Mackenzie King encapsulated the economic problem of
providing infrastructure to develop the remote parts of Canada, �If some
countries have too much history, we have too much geography.� The
Canadian population has always been too small, relative to the financial
demand, to construct and maintain all-weather roads or railway lines to
most parts of the country. Moreover, the construction of surface
infrastructure is difficult in Canada�s northern regions. The rugged
terrain, environmental concerns and the complications posed by the need
to deal with muskeg and permafrost make road construction very
expensive.
Transportation challenges discourage investment in industry, limit
employment prospects and increase the cost of living. Without an
efficient and economic means of transport, the natural resource
opportunities in the North remain unreachable. High freight rates
inflate the cost of inputs and limit the selection of consumer goods
available. Often, Canadians living in the North are cut off from public
services that are taken for granted in the rest of the country. These
socio-economic disparities are greatest in the remote communities that
have no all-weather road access.
The North is served best by air transport. The distances are vast, the
infrastructure costs of air transport are low, and the service is
available year round. The technological challenge is the volume of goods
that can be moved economically by small airplanes. If the operating
costs of air transport could be reduced, the socio-economic benefits
would be significant. It is for this reason that the development of a
new generation of cargo carrying hybrid air vehicle presents such an
appealing opportunity for the North.
The following inventory of possibilities is explored and specific
projects are presented in more detail. It is equally important to
recognize that these projects are the ones that are known today. As with
every major technology innovation, successful introduction represents
only a starting point. Technology is a catalyst for evolving further
applications once the potential becomes understood. Therefore, it is
reasonable to expect that hybrid air vehicle will ignite new exploration
and development as it unlocks otherwise inaccessible areas by providing
a new viable option.

Click on diagram for
information on each subject.
Market Prospects
The potential market for hybrid air
vehicle in Canada is difficult to estimate because the reduction in
transportation costs and ability to access new areas will create its own
dynamic and generate new demand. In addition, the size of hybrid air
vehicle will have a bearing on their applications. Smaller hybrids will
be used for short haul markets, while larger hybrids will be able to
undertake long haul missions. Similarly, larger hybrids will be able to
offer the capacity to open larger scale mining operations that the
smaller hybrids cannot serve. In order to develop an estimate of demand,
a standardized unit is needed.
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