TRANSPORTATION PROSPECTUS

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1 TRANSPORTATION PROSPECTUS RAIL HOURS 82FROM CHICAGO WEST RAIL HOURS FROM PRINCE RUPERT HOURS CLOSER TO ASIA THAN OTHER COAST PORTS TRUCK HOURS ACCESS TO NORTH AMERICAN MARKETS CONNECTED TO DOMESTIC & INTERNATIONAL MARKETS 1

2 Prince George, British Columbia is the largest city in the region and is growing at a faster rate than the national average. 2

3 Prince George: Offering Logistical Competitive Advantages Prince George, British Columbia, with a population of 74,003, is the largest city in the region of nearly 320,000 people that it serves. Its superior transportation connectivity to provincial, national and global markets through an international airport (YXS), a CN distribution centre, Highways 16 and 97 and the Port of Prince Rupert make the city a preferred location for expanding or establishing operations. Connected to Domestic and International Markets: 1 and 2 day access to Western North American and US Heartland markets 82 rail hours from Chicago 17 rail hours from Prince Rupert; 12 to 40 hours closer to Asia than other west coast marine ports 12 to 26 truck hours access to North American markets Only hours to any North American destination via air Features of Prince George: Prince George is a cost-effective base for distribution of products within the Asian and North American markets Close to major markets less fuel, no congestion costs 3,000 acres of available light industrial land adjacent to the airport Low serviced land costs Lowest combined federal and provincial tax rates in Canada - 26% A trained and skilled workforce that is enhanced by training offered at the main campuses of the University of Northern British Columbia (UNBC) and the College of New Caledonia (CNC) A diverse population that includes a number of established and growing immigrant communities Canada is the most fiscally stable of G7 nations Economic Incentives: Federal and provincial government investment in the Prince George Airport and ongoing support within the Asia-Pacific Gateway Strategy Competitiveness Consulting Rebate (Northern Development Initiative Trust) - up to 50% to a yearly maximum of $30,000 on consulting projects Low business costs (water, gas, electricity, telecommunications) BC Trade Investment Representatives across Asia-Pacific USA Anchorage Prince Rupert Sacramento Yukon Vancouver Portland San Francisco San Diego Whitehorse British Columbia Prince George Prince George Airport (YXS) Reno Los Angeles Northwestern Territories Fort St. John Spokane Las Vegas Alberta Edmonton Kamloops Calgary Salt Lake Phoenix Yellowknife Saskatchewan Saskatoon Regina Denver Albuquerque Nunavut CANADA Manitoba Winnipeg UNITED STATES OF AMERICA Sioux City Omaha Kansas City Dallas Minneapolis Memphis Ontario Thunder Bay St. Louis Chicago Hearst Sault Ste. Marie Detroit Cincinnati Nashville Atlanta Jackson Quebec Toronto Quebec City Montreal Ottawa Pittsburgh P.E.I. New Brunswick Nova S Moncton Halifax Boston New York Washington Newfoundland and Labrador S 3

4 Shortest and Most Cost-Effective Route to North America Port of Prince Rupert Advantages: Closest North American Port to Asia: Up to three days closer than other West Coast ports from Asia s major port cities. Direct connection to CN s North American network: Flattest rail grade through the Rocky Mountains. Deepest natural harbour in North America: Channel depth of 35m, terminal berth depths of 17m. Safe and simple ocean access: 2 hours transit through piloted waters. Port of Prince Rupert Terminals: Fairview Container Terminal: One of North America s fastest growing intermodal terminals. Delivers fast, reliable service connecting Asian markets with Central Canada and US Midwest. (Capacity: 850,000 TEUs, growing to 1.3 million TEUS)) Ridley Coal Terminal: World leader in the handling of bulk metallurgical coal, thermal coal and petroleum coke. (Capacity: 18 million tonnes) Prince Rupert Grain Terminal: Most efficient grain terminal on Canada s west coast. Handles bulk grains like wheat, canola and barley. (Capacity: 7 million tonnes) Westview Wood Pellet Terminal: First purpose-built bulk wood pellet export facility in North America. (Capacity: 1.3 million tonnes) 58 Hour Advantage vs. LAX/LGB 4

5 CN Intermodal: Prince George Distribution Centre Geographic Facts Prince George is located in an area of significant forest product production including lumber, wood pulp, newsprint and container board. This makes it a strategic location for supply of containerized products for export to Asia via the Port of Prince Rupert. The distribution centre is co-located inside the CN Intermodal yard, allowing for in-park movement of containers and significantly reducing drayage and handling costs for customers. Shipping via Port of Prince Rupert cuts up to 58 hours off the traditional sailing time between the west coast and Asia. Key Services Product transfer / Cross-docking Container loading / Unloading Inventory management Outside and covered storage Trucking and delivery services Products handled: Lumber, panel, pulp, consumer goods Type of railcars handled: Centerbeams, flatcars, boxcars Railcar spots: 40 Trackmobile is available on site. Storage: 84,000 square feet warehouse 15 acres outside storage Security: fenced 5

6 Prince George Airport Authority Cargo/Logistics Prince George is located in the centre of Northern British Columbia, Canada. It is strategically located on the Great Circle Route between Eastern North America and Asia. Objective: Develop Prince George as an air logistics gateway to North America, a main competitor to Anchorage for the Pacific refueling business, and a maintenance base (MRO) for aircraft overhaul checks and modifications. A) Develop an air logistics hub by investing in on-airport and off-airport lands that connect road, rail, and air between Asia and North American markets. B) Develop a logistics network connecting road, rail, ocean and air that optimizes time and cost to market. Land Available for Lease at the Prince George International Airport HIGHWAY 16 CARGO FACILITY Technical Data 3,490 metres (11,450 ft.) Runway CAT 1 ILS with High Intensity Lighting CAT 2 Centreline LED Lighting 25,000 sq.ft. cargo warehouse (9,400 sq.ft. available) HIGHWAY 97A Competitive Advantages 158,503 USG (600,000 L) common fuel storage onsite Low costs Short aircraft taxi distances No slot controls 24/7 operations Only hours to any North American destination via air Airport incentive program available BOUNDARY ROAD TERMINAL Land Development Opportunities The Prince George Airport (YXS) is adjacent to the 860 ha (2,125 acres) Global Logistics Park. Direct access from the park lands to the airport can be negotiated. Multipurpose Airside General Aviation Airside Cargo TO HIGHWAY 97 On Airport Development 283 HA (700 acres) of available land 5 to 10 parcels Low airport land lease rates Long term lease capabilities All property lies within airport security parameters Airport and non-airport related development opportunities include cargo logistics development, hangars, flight school operations, aerospace and multi-purpose land Major highway throughput connecting major road feeder service 6

7 PRINCE GEORGE GLOBAL LOGISTICS PARK DISTANCE TO CN WORLDWIDE INTERMODAL FACILITY = 3000m (3.0km) BOEING ROAD PRINCE GEORGE GLOBAL LOGISTICS PARK PHASE 1 DISTANCE TO HIGHWAY 16 = 600m (0.6km) BOEING ROAD DEVELOPMENT AREA WITH ON AIR ACCESS 12.85Ha ac. PHASE 3 DEVELOPMENT WITH ROAD ACCESS TO AIR-SIDE 25.54Ha ac. GUNN ROAD WAREHOUSE FUEL FARM PHASE 1 DEVELOPMENT WITH NON-AERONAUTICAL ACCESS (UNDER CONSTRUCTION) PROPOSED ROAD AND SERVICING FUTURE CONTINENTAL WAY CONNECTOR FUTURE EXPANSION DISTANCE TO HIGHWAY 97 = 5185m (5.2km) PHASE 2 PHASE 1 FUTURE BOUNDARY ROAD CONNECTOR FUTURE PHASE 3 FUTURE ROAD AIRPORT BOUNDARY FUTURE AIRSIDE ROAD ACCESS LANDSIDE DOCKING AND CIRCULATION FREIGHT TERMINAL STAGING EXISTING APRON FUTURE APRON EXPANSION EXISTING APRON FUTURE APRON EXPANSION EXISTING RUNWAY 3490m (11,450ft) EXISTING ROAD AIRPORT BOUNDARY FUTURE EXPANSION The Most Cost-Effective Point for Distributing Products in the North American Economy Phase 1 Phase 1 consists of approximately 10.25ha subdivided into 8 light industrial lots ranging in size and price and located adjacent to the Prince George Airport. Ultimately the Prince George Global Logistics Park (PGGLP) will Encompass 860ha. Phase 1 Development Opportunities There are an initial eight (8) Phase I industrial lots available at this time, ranging in size from 0.96 to 1.98 ha (2.37 to 4.88 acres). The asking price for these lots is currently $778, per ha ($315, per acre). Serviced Lots Include: Roads - curb and gutter asphalt pavement surface complete with street lighting, bicycle lanes, sidewalks, and landscaped boulevards Underground Water, Sanitary Sewer, and Storm Sewer services provided by the City of Prince George Gas distribution provided by FortisBC Possible geothermal heating provided by Fortis Utilities Underground 25kv 3 phase power provided by BC Hydro Underground Telecommunication provided by Telus Possible fibre optic service provided by Telus Underground cable service provided by Shaw Cable Many Operational Opportunities: Distribution centres Assembly, packaging and value-added activity Inspection, relabelling, repackaging, long-term storage, destruction, sorting, testing Light manufacturing 7

8 PRINCE GEORGE LOBAL LOGISTICS PARK AT HIGHWAY 97 SOUTH 11 LOT INDUSTRIAL SUBDIVISION INLAND KENWORTH BLOCK B PLAN EPP6472 DL 748 PARCEL ID: BOUNDARY ROAD BLOCK C PLAN 2TU1940 DL 748 PARCEL ID: HIGHWAY 97 HAPPY TRAILS RV PCL PLAN DL 748 & 750 PARCEL ID: Phase A erviced Lots Include: 8 10 Roads lots available - curb and ($315,000 gutter per asphalt acre) pavement Serviced surface Lots complete Include: with street lighting, bicycle lanes, sidewalks, and landscaped boulevards At Underground Highway 97 South Water, Sanitary Sewer, and Roads Storm - curb Sewer and gutter services asphalt provided pavement by surface the City complete of Prince with George street lighting, bicycle lanes, Gas distribution provided by FortisBC sidewalks, and landscaped boulevards Underground Water, Sanitary Sewer, and Storm Sewer services provided by the City of Prince George Underground 25kv - 3 phase power provided Gas distribution by BC Hydro provided by FortisBC Underground telecommunication provided Underground by Telus25kv 3 phase power provided by BC Hydro Possible fiber optic service provided by Underground Telus Telecommunication provided by Telus Possible fibre optic service provided by Telus Underground cable service provided by Underground Shaw Cable cable service provided by Shaw Cable

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10 Prince Rupert Port Authority CN Prince George Airport Authority CN Intermodal Facility City of Prince George - Economic Development (CPG) is the municipally owned economic development corporation for the City of Prince George. Together with regional partners, CPG works toward ensuring the continuing strength of the local economy by facilitating the retention and expansion of existing businesses, attracting businesses to expand and diversify the economy, advocating for increased workforce capacity, and marketing the City of Prince George to attract new businesses and residents. The Prince George Airport Authority (YXS) provides leadership as a regional economic driver and a gateway for passengers and cargo by providing exceptional customer services and facilities. The airport s strategic location, and the fourth longest commercial runway in Canada allows aircrafts to use YXS for tech stop services in order to reach final destinations without deviation. The airport is focused on delivering World Class Service at savings that flow to a carrier s bottom line. The Prince George Global Logistics Park (PGGLP), the Prince George Airport Authority (YXS), and City of Prince George - Economic Development share a common goal to see the development and growth of the air cargo and logistics industry in Prince George. YXS will carry out airside activities, and PGGLP the groundside. 10

11 Prince George s superior transportation connectivity to provincial, national and global markets make the city a preferred location for expanding or establishing operations.

12 City of Prince George - Economic Development 1100 Patricia Blvd. Prince George, British Columbia, Canada V2L 3V9 Tel