Open for Business

• The statutory corporate income tax rate in Canada is 33% lower than that of the U.S.

• Overall business costs in Canada are more than 7% lower than the U.S.

45,0 • Canada has the least procedures for establishing a 40,0 new business among G7 countries. 35,0 30,0 • Canada is first country in the G20 to make itself a 25,0 tariff-free zone for manufacturers by eliminating 20,0 tariffs on the import of machinery, equipment and 15,0 industrial inputs. 10,0 5,0 • R&D-intensive sectors in Canada enjoy the lowest 0,0 costs in the G-7 – 16% lower than in the U.S.

• Publicly funded healthcare is a cost saving for employers. Source: KPMG Corporate Tax Rates Table, 2014 • Comprehensive Economic and Trade Agreement between Canada and the EU. 2 Competitive Development

• According to KPMG, has the lowest overall business costs of major cities within the U.S. Midwest, and (includes all major business expenses including taxes).

• offers the lowest published hydro electricity rates for large-power customers in .

• Cost advantage comes predominantly from land, labour, and utilities/power cost savings.

3

Source: KPMG 2014 Competitive Alternatives At the Hub of Key Gateways

Winnipeg is connected to important global markets: • Asia Pacific Gateway - of Vancouver, Delta and Prince Rupert

• Great Lakes/ St. Lawrence Seaway - Thunder Bay

• Quebec-Ontario Gateway - Trans Canada Corridor - Windsor/Detroit

• NAFTA Gateway - Mid-Continent Corridor - Eastern USA Seaboard - Mexico

• Atlantic Gateway - Halifax and Montreal Ports

• Arctic Gateway - Air Polar Routes - Marine Polar Routes 4 Title

Canada’s Centre for Global Trade

• CentrePort Canada, located in Winnipeg, Manitoba, offers ~8,100 hectares of high-quality industrial land, adjacent to a major urban centre and the Canada-US border, with on-site access to tri-modal transportation options. - By comparison, Paris is ~ 10,540 ha, Brussels is ~ 16,140 ha, Amsterdam is ~21,900 ha, Munich is ~31,043 ha, and Berlin is ~89,180 ha.

• CentrePort Canada Inc. is building an integrated logistics and infrastructure platform to attract trade oriented business.

• CentrePort offers prime industrial land, with greenfield, existing, or build-to-suit options available. 5 Location, Location, Location

• Master planning approach to developing the 8,100 hectare tri-modal inland .

• Anchored by the James Armstrong Richardson International Airport.

• Adjacent to trade corridors connecting east, west, north and south.

• Only one hour from the Canada-U.S. border crossing.

• “Live, Work, Play, Learn” development.

6 Tri-Modal

• Only major Canadian city on the • Major trucking centre with • 24/7 international airport #1 in prairies served by 3 continental 1,000+ for-hire trucking Canada for dedicated freighter class I railways: CN, CP, BNSF. companies, only 1 hour from aircraft movements. the Canada-U.S. border. • Construction beginning on a • CentrePort Canada Way • 9 p.m. cut off for overnight common-use rail facility and expressway allows for 5 minutes parcel delivery to major . Will allow rail to 90 km/h. Canadian cities by noon next intensive businesses to access 3 day. • ~$1 billion in supporting class I carriers from a single highway infrastructure recently location. 7 announced. CentrePort Canada Rail Park

8 Title

Canada’s Foreign Trade Zone

• CentrePort provides companies with single-window access to federal FTZ programs.

• Companies importing goods from countries where Canada does not have a free trade agreement may be eligible for: - Duty Deferral - Sales Tax Relief - Customs Bonded Warehouse

• Programs defer taxes and duties until a product is moved to market.

9 Industry Leaders at CentrePort

10 Canada’s Agribusiness Hub

• 11% to 27% lower site costs, compared to Minneapolis, Chicago, Kansas City and Dallas (based on modelling for an agribusiness).

• CentrePort offers plentiful space for large agribusiness investments; and provides break-bulk for ag products from the southeast U.S. and Central/South America.

• Access to three class I railways provides businesses with increased competition and the ability to better negotiate rates ($7-9 per tonne) and service standards.

• Low traffic congestion, efficient truck routes that facilitate “5 minutes to 55 MPH” for moving cargo, and quick and easy access to an international airport.

• Manitoba’s significant and diverse agricultural base provides support and expertise for a variety of agribusiness activities.

• Strong post-secondary institutions provide skilled labour specializing in a variety of agribusiness fields; and the number of days lost due to work stoppages are 17 times lower than the national average.

11 Canada’s Agribusiness Hub

• “Grains Custer of Excellence” assists with market development, research, and standards. Includes Cereals Canada, Canadian International Grains Institute, Canadian Grain Commission, and Cereals Research Centre.

• Centre for agribusiness R&D: Genome Prairie, Canadian Centre for Agri-Food Research in Health & Medicine, Richardson Centre for Functional Foods & Nutraceuticals, and the Food Development Centre.

• 5 of Canada’s largest grain companies are headquartered in Manitoba: Pioneer Grain (Richardson International), Cargill Canada, Parrish and Heimbecker, Paterson GlobalFoods, and G3 Canada.

12 Canada’s Agribusiness Hub

• Within Canada, Manitoba produces: - More then 25% of national pork processing. - 14% of agricultural equipment manufacturing. - 10% of grain and oilseed processing.

• Manitoba is also Canada’s largest exporter of agricultural equipment manufacturing (36% in 2014).

• MacDon Industries, headquartered at CentrePort with 900,000 SF of facilities, is a leading manufacturing of harvesting equipment, exporting to 30+ countries with more than 700 dealers worldwide.

• Grains product development: with 40+ years delivering programs to partners in 115 countries, the Canadian International Grains Institute provides a one-stop shop of technical expertise, support, applied research and customizable agricultural training.

13 Canada’s Agribusiness Hub

• Winnipeg is a leading North American cluster for bioactive (functional) foods and natural health products.

• With a significant supply of biofibres (wheat, flax, hemp straw), Manitoba is on its way to becoming a Canadian leader in biofibre processing and manufacturing. - Manitoba has greater agricultural productivity and yields per acre than other Prairie Provinces.

• World-renowned Composites Innovation Centre conducts research and develops composite materials for manufacturing industries. - CIC’s Fibre City Initiative is developing technology for blending plant fibres with different characteristics to meet customer specifications.

14 Incentives

• CentrePort offers business a single window opportunity to work with governments to tailor incentives to meet the needs of an individual company.

• Growing Forward 2: until 2018, $35 million per year invested in marketing development, assurance systems, innovation, and infrastructure.

• Manufacturing Investment Tax Credit for new or used buildings, machinery and equipment.

• Manitoba Commercialization Support for Business provides financial assistance for product development, commercialization, and market development.

• Industry Workforce Development (IWD) offsets costs of investing in skills training.

• Other incentives include funding for secured loan or loan guarantee assistance (MIOP); and small business venture capital tax credit.

• Tax increment financing (TIF) for large scale development at CentrePort.

• 0% small business corporate income tax (provincial).

15 Five Year Horizon

• Almost 80 hectares of greenfield development by 40 companies in the past three years.

• Additional servicing in 2016 will accelerate development opportunities.

• Operational common use rail facility in 2016/2017.

• Continued growth expected. - Up to 120 hectares of new industrial development over the next 5 years including large acreage sites and direct rail served facilities.

- New business park on 25 hectares.

- Residential community on 200 hectares, expected to include 3,300 residential units housing 8,000+ residents. 10-15 year build-out.

16 Canada’s Centre for Global Trade

CONTACTS: Diane Gray President and CEO [email protected]

Russ Hanson Executive Director, Business Development & Sales [email protected]

Jorge Acevedo International Business Development Consultant [email protected]

1.204.784.1300 www.centreportcanada.ca 17