TRANSPORTATION PROSPECTUS

RAIL HOURS 82FROM CHICAGO RAIL HOURS FROM 17PRINCE RUPERT

HOURS CLOSER TO ASIA THAN OTHER 12-40 WEST COAST PORTS

TRUCK HOURS ACCESS TO NORTH 12-26 AMERICAN MARKETS

CONNECTED TO DOMESTIC & INTERNATIONAL MARKETS

1 Prince George, is the largest city in the region “and is growing at a faster rate than the national average. ”

2 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 (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: Economic Incentives: • 1 and 2 day access to Western North American and • Federal and provincial government investment in the Prince George US Heartland markets Airport and ongoing support within the Asia-Pacific Gateway Strategy • 82 rail hours from Chicago • Competitiveness Consulting Rebate (Northern Development Initiative • 17 rail hours from Prince Rupert; 12 to 40 hours closer to Asia Trust) - up to 50% to a yearly maximum of $30,000 on consulting than other west coast marine ports projects • 12 to 26 truck hours access to North American markets • Low business costs (water, gas, electricity, telecommunications)

Railroad • Only hours to any North American destination via air • BC Trade Investment Representatives across Asia-PacificHighways 16 & 97 Prince George Airport (YXS) Shipping

Features of Prince George: USA

• Prince George is a cost-effective base for distribution of products Anchorage

within the Asian and North American markets Yukon

Northwestern Nunavut Territories • Close to major markets – less fuel, no congestion costs Yellowknife

• 3,000 acres of available light industrial land adjacent to the airport Newfoundland British and Labrador Columbia Fort St. John Prince Rupert • Low serviced land costs St. John’s Prince George Manitoba Prince George Airport (YXS) • Lowest combined federal and provincial tax rates in Canada - 26% Saskatchewan Quebec P.E.I. New Saskatoon Ontario Brunswick Nova Scotia • A trained and skilled workforce that is enhanced by training offered Hearst Quebec City Moncton Halifax Calgary Regina Winnipeg Thunder Bay Montreal at the main campuses of the University of Northern British Columbia Spokane Sault Ste. Marie Ottawa Portland Boston UNITED STATES Minneapolis Toronto (UNBC) and the College of New Caledonia (CNC) OF AMERICA New York Sioux City Detroit Pittsburgh • A diverse population that includes a number of established and Salt Lake Chicago Omaha Sacramento Reno Washington Cincinnati growing immigrant communities Denver Kansas City San Francisco St. Louis Las Vegas • Canada is the most fiscally stable of G7 nations Nashville Los Angeles Memphis Albuquerque Atlanta San Diego Phoenix Dallas Jackson Mobile New Orleans Chihuahua Jackonsville San Antonio Houston

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

58 Hour Advantage vs. LAX/LGB

4 CN Intermodal: Prince George Distribution Centre Geographic Facts Key Services • Prince George is located in an area of significant forest product production including lumber, • Product transfer / Cross-docking wood pulp, newsprint and container board. This makes it a strategic location for supply of • Container loading / Unloading containerized products for export to Asia via the Port of Prince Rupert. • Inventory management • The distribution centre is co-located inside the CN Intermodal yard, allowing for in-park movement • Outside and covered storage of containers and significantly reducing drayage and handling costs for customers. • Trucking and delivery services • Products handled: Lumber, panel, pulp, • Shipping via Port of Prince Rupert cuts up to 58 hours off the traditional sailing time between consumer goods the west coast and Asia. • 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 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: Land Available for Lease at the Develop Prince George as an air logistics gateway to North America, a main competitor PrinceLand Available George for International Lease at the Prince Airport George Airport to Anchorage for the Pacific refueling business, and a maintenance base (MRO) for aircraft overhaul checks and modifications. HIGHWAY 16 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 CARGO FACILITY time and cost to market. Technical Data • 3,490 metres (11,450 ft.) • 25,000 sq.ft. cargo warehouse (9,400 • CAT 1 ILS with High Intensity Lighting sq.ft. available) • CAT 2 Centreline LED Lighting HIGHWAY 97A

Competitive Advantages TERMINAL • 158,503 USG (600,000 L) common • 24/7 operations

fuel storage onsite • Only hours to any North American BOUNDARY ROAD • Low costs destination via air • Short aircraft taxi distances • Airport incentive program available • No slot controls

Multipurpose Land Development Opportunities Airside General Aviation The Prince George Airport (YXS) is adjacent to the 860 ha (2,125 acres) Global Airside Cargo

Logistics Park. Direct access from the park lands to the airport can be negotiated. TO HIGHWAY 97

On Airport Development • 283 HA (700 acres) of available land • All property lies within airport security parameters • 5 to 10 parcels • Airport and non-airport related development opportunities include cargo logistics development, • Low airport land lease rates hangars, flight school operations, aerospace and multi-purpose land • Long term lease capabilities • Major highway throughput connecting major road feeder service

6 DISTANCE TO CN WORLDWIDE BOEING ROAD INTERMODAL FACILITY PRINCE GEORGE GLOBAL LOGISTICS PARK = 3000m (3.0km)

DISTANCE TO PRINCE GEORGE GLOBAL LOGISTICS PARK HIGHWAY 16 = 600m (0.6km) PHASE 1 BOEING ROAD

DEVELOPMENT AREA WITH ON AIR ACCESS 12.85Ha. 31.75ac. PHASE 3 DEVELOPMENT WITH ROAD ACCESS TO AIR-SIDE 25.54Ha. 63.10ac. PHASE 1 DEVELOPMENT WITH GUNN ROAD NON-AERONAUTICAL ACCESS (UNDER CONSTRUCTION) FUEL WAREHOUSE FARM PROPOSED ROAD AND SERVICING

EXISTING APRON FUTURE EXPANSION FUTURE APRON EXPANSION EXISTING APRON EXISTING RUNWAY 3490m (11,450ft)

EXISTING ROAD FUTURE CONTINENTAL WAY CONNECTOR FUTURE

PHASE 2 AIRPORT BOUNDARY AIRPORT

PHASE 1 FUTURE AIRSIDE ROAD ACCESS

FUTURE ROAD

BOUNDARY ROAD CONNECTOR LANDSIDE DOCKING AND CIRCULATION FREIGHT STAGING FUTURE TERMINAL FUTURE DISTANCE TO APRON HIGHWAY 97 EXPANSION = 5185m (5.2km) PHASE 3

FUTURE AIRPORT BOUNDARY EXPANSION

The Most Cost-Effective Point for Distributing Products in the North American Economy

Phase 1 Serviced Lots Include: Phase 1 consists of approximately 10.25ha subdivided into 8 light • Roads - curb and gutter asphalt pavement surface complete with industrial lots ranging in size and price and located adjacent to the street lighting, bicycle lanes, sidewalks, and landscaped boulevards Prince George Airport. Ultimately the Prince George Global Logistics • Underground Water, Sanitary Sewer, and Storm Sewer services Park (PGGLP) will Encompass 860ha. provided by the City of Prince George • Gas distribution provided by FortisBC Phase 1 Development Opportunities • Possible geothermal heating provided by Fortis Utilities There are an initial eight (8) Phase I industrial lots available at this time, • Underground 25kv – 3 phase power provided by BC Hydro ranging in size from 0.96 to 1.98 ha (2.37 to 4.88 acres). The asking • Underground Telecommunication provided by Telus price for these lots is currently $778,354.00 per ha ($315,000.00 per • Possible fibre optic service provided by Telus acre). • 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 PRINCE GEORGE AT HIGHWAY 97 SOUTH GLOBAL 11 LOT INDUSTRIAL SUBDIVISION LOGISTICS PARK

BOUNDARY ROAD BLOCK C INLAND KENWORTH PLAN 2TU1940 BLOCK B DL 748 PLAN EPP6472 PARCEL ID: 027488101 DL 748 PARCEL ID: 024129607

HIGHWAY 97 HAPPY TRAILS RV PCL 1 32973 PLAN 32973 DL 748 & 750 PARCEL ID: 011091428

ServicedPhase Lots Include: A  • 10Roads lots available - curb and($315,000 gutter perasphalt acre) pavementServiced surface Lots complete Include: with street lighting, bicycle lanes, sidewalks, and landscaped boulevards  • AtUnderground Highway 97 South Water, Sanitary Sewer,• and Roads Storm - curb Sewer and gutter services asphalt provided pavement by surfacethe City complete of Prince with George street lighting, bicycle lanes, sidewalks, and landscaped boulevards  Gas distribution provided by FortisBC • 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 Telus 25kv – 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 8

Contact Harry Backlin, Team Power House Realty Tel: 250-562-8952 e-mail [email protected] 9 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 Prince George’s superior transportation connectivity “to provincial, national and global markets make the city a preferred location for expanding or establishing operations.” City of Prince George - Economic Development 1100 Patricia Blvd. | Prince George, British Columbia, Canada V2L 3V9 Tel. 250.561.7633 www.investprincegeorge.ca