Logistics Business Proposal by cpr42179

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    & Logistics
                makes sense in
Saskatoon Regional Economic Development Authority

                      Table of Contents

Transportation and Logistics Sector
       Overview ………………………………………………………………………………………………………..……..                1
       Location Advantage ……………………………………………………………………………………………….              2
       Operating Costs ……………………………………………………………………………………………………..              3
       Sector Business and Employment Overview …………………………………………………………..      4
Saskatoon Region
       The Economy ………………………………………………………………………………………………………….                 5
       Business Costs ………………………………………………………………………………………………………..              7
               Labour Costs ……………………………………………………………………………………………….            8
               Labour Availability ………………………………………………………………………………………         9
               Training ………………………………………………………………………………………………………             10
               Transportation ……………………………………………………………………………………………           13
               Utilities ……………………………………………………………………………………………………….           16
       Taxation …………………………………………………………………………………………………………………                 18
       Incentives ………………………………………………………………………………………………………………                19
       Tax Credits ……………………………………………………………………………………………………………..              20
       Financing ………………………………………………………………………………………………………………..               21
Relocate | Build | Expand
       Land ……………………………………………………………………………………………………………………….                  22
       Existing Facilities ……………………………………………………………………………………………………           23
Proximity to Markets ………………………………………………………………………………………………………..              24
Research and Development Facilities ……………………………………………………………………………….         25
Support for Business Development …………………………………………………………………………………..          26
       Contact Information ……………………………………………………………………………………………….            27
       Map of Region ………………………………………………………………………………………………………..              28

Transportation & Logistics makes sense in Saskatoon           Table of Contents

Industry Overview

The Saskatoon Region has experienced solid
                                                     Western Canada’s
                                                      fastest growing
growth over the last few years, and was the
fastest growing city in Canada in 2008. This has
created national and international interest for
employees and business alike.

The transportation and logistics sector plays an
important role in the regional economy. As
world demand for energy and food increase,
exports of Saskatchewan’s rich resource base of
potash, oil, natural gas, uranium, and agricul-
tural products will contribute to the long-term
success of the region. Saskatoon’s diverse
manufacturing sector produces a wide variety
of industrial and consumer products demanded
locally and internationally.

While exporting is an important part of the re-
gional economy, Saskatoon is uniquely posi-
tioned in North America as a central location for
import storage and distribution. With increased
activity in the Asian manufacturing sector, the
cost of shipping goods to North America will be
an important factor in future profitability. The
Ports of Vancouver and Prince Rupert are sig-
nificantly closer to Asia than the Port of Los An-
geles, and both ports connect to Saskatoon by
national rail and highway systems.

As a distribution centre, the Saskatoon region is
an excellent location. Rail and highway systems
connect the Saskatoon region to all points in          “This facility, we've actually re-named it the
North America. From Saskatoon, intermodal or           Midwest Distribution… the name
carload shipping can move goods throughout
                                                       speaks for itself because it's the middle of
North America quickly and efficiently.
                                                       where we have to go to. We can service
A central location, two intermodal facilities,         Northern Ontario, B.C. and the North, and
excellent infrastructure, competitive business         guess what, Saskatoon is almost dead centre.”
costs and a strong presence of transportation                                                 - Mike Conrad
companies and warehousing facilities is the rea-                   Distribution Manager, Maple Leaf Foods
son Transportation and Logistics makes sense in                                            May 6th, 2008

Transportation & Logistics makes sense in Saskatoon                                                 Page 1
                   The Saskatoon Region: A Distribution Centre
Location Advantage                                    Estimated Ground Transport Radius—Saskatoon
The location of distribution centers is an impor-
tant factor in supply chain management, as
transportation costs and shipping times impact
competitive advantage. Manufacturers and
retailers need to get products to market quickly
at the lowest possible cost, and the Saskatoon
region offers significant advantages for local,
national and international distribution.

Saskatoon’s location advantage stems from:
• Centrality that lends itself to efficient distri-
    bution of goods across North America.
    Virtually all of the continent can be reached
    via truck within 48 hours.
• Two national rail lines serve the Saskatoon
    region and connect to North American rail
    systems. Both companies have intermodal
    yards in the region, with area to grow.
• John G. Diefenbaker International Airport                 Ring                  Hours                Km / Miles
    connects Saskatoon to all major centres in               1                      10                 1000 / 620
    North America. Travel time ranges from
                                                             2                      24                 2000 / 1240
    one to twelve hours.
                                                             3                      48                 3000 / 1860

Distance to Port—Shanghai to North America
                                                                                              Shipping goods to and
                                                                                              from Asia is becoming
                                                                                              more important in
                                                                                              today’s      economy.
                                                                                              Compared to the Port
                                                                                              of Los Angeles, the
                                                                                              closer Canadian ports
                                                                                              create a savings of up
                                                                                              to 58 hours trans-
                                                                                              Pacific sailing time,
                                                                                              allowing vessels to
                                                                                              make more round-
                                                                                              trips per year. The
                                                                                              Saskatoon      region’s
                                                                                              unique position in
                                                                                              relation to these ports
                                                                                              makes it a cost effec-
                                                                                              tive, centralized loca-
                                                                                              tion for the distribu-
                                                                                              tion of goods through-
                                                                       Map courtesy CN Rail
                                                                                              out North America.

Transportation & Logistics makes sense in Saskatoon                                                            Page 2
                  The Saskatoon Region: A Distribution Centre
There are other significant reasons that the Saskatoon region is a centre for Transportation and Logistics besides
location. Low operating costs, a solid infrastructure, strong exports and healthy consumer demand due to a
growing western Canadian economy makes the Saskatoon region a logical choice.

Operating costs
According to the 2008 KPMG Competitive Alternatives report, the Saska-
toon region has the lowest operating costs of centres in northwestern
North America.
Business costs advantages stem from:
    • Low warehouse rental and construction rates;
    • Competitive business taxes compared to other North American
    • Labour and utility costs

As part of Canada’s Asia-Pacific Gateway, the Saskatoon region is an ideal
location for access to local, national and international markets. Many
transportation and logistics companies are located in the region, including
truck transport, warehousing, and logistics management companies.
    • Nearly 1,000 transportation and logistics companies operate in the
         Saskatoon region;
    • Two national rail lines with intermodal yards within the city limits
         (Canadian National Railway and Canadian Pacific Railway);
    • Four lane highway access to both the Trans-Canada Highway and
         Yellowhead Highway;
    • Recently upgraded airport serving over one million passengers per
    • Well planned road network creates short travel times (commute
         times at peak hours is 15 minutes);
    • Construction of a new bridge on the south side of Saskatoon will
         enhance truck traffic efficiency even further (scheduled comple-
         tion for 2012).
Importing / Exporting
Exporting Saskatchewan’s natural resources (potash, oil, natural gas, ura-
nium, and agricultural products) and manufactured goods (machinery,
metal products, chemicals, food) is important to the success of the region.
Saskatchewan’s export growth is expected to lead the country in 2008 with        85% of Saskatoon based
an increase of 13 per cent.
                                                                                  Manufacturing companies
A strong western Canadian economy is an attractive location for people and
business, and strong population and income growth has made Saskatche-                    export their products
wan the national leader in retail and wholesale sales growth. Supplying this
increased consumer demand from a central location such as Saskatoon is
creating cost advantages for local firms.

Transportation & Logistics makes sense in Saskatoon                                                         Page 3
              Transportation and Logistics Business and Employment Information
Over the past five years, the Saskatoon Region’s Transportation and Logistics sector has contributed to growth in
the local job market, creating over 450 new jobs. A majority of this growth is attributable to the Truck Transpor-
tation sub-sector. The Transportation and Logistics sector employs over 7,000 people, representing 8% of the
Saskatoon Region’s total employment. Local employment is dominated by the Truck Transportation sub-sector,
and is influenced by export demand in the mining, oil and gas, agricultural and manufacturing industries. Recent
increases in retail sales and construction have contributed to the lucrative import market, with more demand for
transportation, warehousing and logistics management in the region.

Over the past five years, the Transportation and Warehousing sector increased employment levels by 7 per cent.
Growth was lead by businesses offering Truck Transportation, as well as Courier and Messenger companies.
Overall, the total number of businesses in the Transportation and Warehousing sector grew by 89 since 2002,
representing a 9.7 per cent increase over the past five years.

Saskatoon Region Business Establishments and Number of Employees: 2007
                                                            Unknown      1      5   10    20    50    100     200
                                                              # of      to     to   to    to    to     to      to
                                        Employees   Total   Employees    4      9   19    49    99    199     499
Air Transportation                         585        12          6        0    0    2     1     1      1       1
Truck Transportation                     4,398       582       314      157    38   29    22    13      7       2
Transit and Ground Passenger Trans.        588       154       120       25     2    1     4     1      0       1
Support Activities for Transportation      625        91         42      22    10    7     8     2      0       0
Couriers and Messengers                    648       119         87      19     4    1     6     1      0       1
Warehousing and Storage                    293        35         12        6    7    5     5     0      0       0
All Transportation and Logistics         7,135       993       581      229    61    45    46    18      8       5

Transportation & Logistics makes sense in Saskatoon                                                          Page 4

                                          The Economy
GDP Growth—Canadian Cities—2008

                                                                                                 Saskatoon outperformed all major
                                                                                                 cities in Canada for GDP growth in
                                                                                                 2008, with an amazing 5.4 per cent
                                                                                                 increase. The strengthening of the
                                                                                                 economy is due to higher commodity
                                                                                                 prices for grain, potash and oil, as well
                                                                                                 as a burgeoning housing market.
                                                                                                 Saskatoon has consistently been one
                                                                                                 of Canada’s top five growing econo-
                                                                                                 mies this century.
GDP Growth by Sector—Saskatoon—2008 and 2009(forecast)
                                                                                                                New construction has
                                                                                                                had a significant effect
                                                                                                                on the regional econ-
                                                                                                                omy. The Finance, In-
                                                                                                                surance and Real Estate
                                                                                                                sector is one of the
                                                                                                                fastest growing sectors
                                                                                                                in the Saskatoon Re-

                                                                                                                Higher     commodity
                                                                                                                prices helped the Agri-
                                                                                                                culture, Mining, Oil &
                                                                                                                Gas sector post one of
                                                                                                                its highest gains in

Even with an increasing Canadian dollar and transportation costs, the Saskatoon Region’s Manufacturing sector
grew in 2008, as did the Transportation and Communication sector.

Retail Sales Growth—Saskatoon Historical and Forecast

                                                                              As new houses are completed, demand for consumer

                                                                              durables increased. The Saskatoon region experience
                                                                              double digit growth in retail sales for the past two years.

                                                                              Retail sales growth in the Saskatoon Region continues,
                                                                              with favourable forecasts for the next 4 years.

       2005   2006   2007   2008(f)   2009(f)   2010(f)   2011(f)   2012(f)

Transportation & Logistics makes sense in Saskatoon                                                                               Page 5

                                  The Economy
Saskatoon Region New Business Startups —2007                 Saskatoon Region Value of Building Permits
Construction                                       269
Professional, Scientific & Technical Services      140
Other Services                                     109
Retail Trade                                       100
Administrative & Support Services                  94
Accommodation & Food Services                      42
Finance, Insurance & Real Estate                   37
Wholesale Trade                                    34
Health Care & Social Assistance                    32        Saskatoon Region Housing Starts —2005 to 2007
Manufacturing                                      24
Transportation & Warehousing                       24
Educational Services                               20
Information & Cultural Industries                  15
Arts, Entertainment & Recreation                   15
Agriculture                                         1
Mining                                              1
Management of Companies                             1
Total                                              958

Saskatoon CMA Population (Historical and Forecast)

                                                                        The Saskatoon census metropolitan area
                                                                        (CMA) has a population of over 240,000
                                                                        people and is experiencing a steady popula-
                                                                        tion increase. Over the past five years,
                                                                        Saskatoon’s population increased by 2.7%.

Transportation & Logistics makes sense in Saskatoon                                                         Page 6

                                       Business Costs
Every two years, KPMG analyzes costs of locating businesses around the world. The Saskatoon Region has consis-
tently been a leader in the central and western part of Canada and United States. The 2008 study ranks Saska-
toon at the top of major western North American cities for lowest average and labour costs, and that places
Saskatoon as the lowest cost location in most of the industrialized countries in the world.

More information and data from this study is available at: www.competitivealternatives.com

KPMG Overall Business Cost Index—2008
    Canada            Cost Index United States                 Cost Index          Europe            Cost Index          Asia-Pacific          Cost Index
Saskatoon                96.7    Dallas                          97.3            Toulouse              101.8           Adelaide                  97.9
Winnipeg                   97.7        Houston                     99.4          Paris                  107.1          Melbourne                   99.4
Waterloo                   98.2        Salt Lake City            101.0           Utrecht                107.3          Sydney                    102.7
Montreal                   98.5        Phoenix                   102.1           Naples                 108.5          Fukuoka                   113.6
St. John’ s                99.5        Minneapolis               103.9           Manchester             113.3          Yokohama                  114.8
Edmonton                   99.9        Denver                    104.9           Frankfurt              121.1
Ottawa                     99.9        Seattle                   105.5           London                 129.3
Toronto                  101.5         Chicago                   106.5
Calgary                  102.0         Detroit                   106.8
Vancouver                104.2
Note: costs are expressed as an index, with the United States being assigned the baseline index of 100.0. A cost greater than 100.0 indicates a higher cost
than the U.S.

Business Costs Comparisons—Western North America

Transportation & Logistics makes sense in Saskatoon                                                                                                   Page 7

                                      Business Costs
Labour Costs
Historically, the Saskatoon Region has had lower wage rates than surrounding jurisdictions. This cost advantage
has made the region an attractive place for companies to locate and expand. KPMG ranks Saskatoon as the low-
est labour cost region in western North America.

Labour Costs Comparison

Employer Paid Benefits
Canadian Pension Plan                        4.95% (maximum $2,049.30)
Worker's Compensation                        1.69%
Employment Insurance                         2.42% 2.422% (maximum $995.44)
Paid Vacation                                3/52 Wage (4/52 after 10 years)
Statutory Holidays                           Saskatchewan employees are entitled to nine paid general holidays

Health Care Premiums                         $0
Payroll Taxes                                $0
Minimum Wage                                 $8.60
1)   Determined by federal law. The maximum employer and employee contribution to the plan for 2008 will be $2,049.30, and the
     maximum self-employed contribution will be $4,098.60. This is based on the maximum pensionable earnings of $44,900 minus a
     basic deducation of $3,500 times 4.95%.
2)   Maximum contribution of $995.44 is achieved at an annual salary of $41,100.
3)   Worker’s Compensation depends on the industry and experience rate (ie. In a business office it could be $0.24 – 1.02 per $100 of
     payroll.). The number given is the Saskatchewan Average.

Transportation & Logistics makes sense in Saskatoon                                                                                     Page 8

Labour Availability
The Saskatoon Region is known for its high quality labour force. The young median age (35.9) and strong popula-
tion growth (2.7%) is attractive to any company requiring a steady labour supply. In addition, a well educated
workforce proves the quality of employees that are available in Saskatoon.
Saskatoon CMA Historical Labour Data         2002        2003         2004         2005         2006       2007
Population Aged 15 - 64 (000s)                181.7      183.1        185.1        187.1        188.1       190.6
Labour Force (000s)                           124.8      128.1        128.6        133.2        133.2       140.7
Employment (000s)                             117.1      120.4        120.6        126.6        127.1       135.1
Full-Time (000s)                               93.3       95.2         93.7        101.9        103.3       110.4
Part-Time (000s)                               23.8       25.2         26.9         24.6         23.9        24.8
Unemployment (000s)                             7.7         7.7         8.0          6.6            6.1       5.6
Unemployment Rate (%)                           6.1        6.0          6.3          5.0          4.6         4.0
Participation Rate (%)                         68.7       69.9         69.5         71.2         70.8        73.8
Saskatoon CMA Educational Attainment (2006 Census)

                                                                      The Saskatoon Region has a well edu-
                                                                      cated workforce. Over 85% of all people
                                                                      aged 15 to 64 have a high school di-
                                                                      ploma, and more than 61% have some
                                                                      form of post-secondary education. The
                                                                      Saskatoon Region post-secondary system
                                                                      produces over 8,000 graduates per year.

                                                         Saskatoon CMA Demographics (2006 Census)

Saskatoon also boasts one of the youngest popula-
tion in Canada (median age of 35.9), as well as the
highest percentage of people 19 and under
(26.0%). This will help to guarantee the future la-
bour supply of Saskatoon continues to be strong.
This large contingent of young people clearly dem-
onstrates the attraction Saskatoon holds for Sas-
katchewan’s younger population.

Transportation & Logistics makes sense in Saskatoon                                                       Page 9

Training Programs
The federal and provincial governments offer attractive employment and training subsidies to help recent univer-
sity graduates and underemployed segments of the population.

Job Start/Future Skills
  • Work-based Training for the Unemployed—provides funding to employers to deliver on-the-job training for
    unemployed Saskatchewan residents that leads to permanent employment.
  • Work-based Training for the Employed—provides funding to Saskatchewan employers in the manufacturing,
    processing and agri-value sectors to retraining employees facing permanent layoff or employees moving
    from part-time to permanent full-time employment.
  • Bridging Program—provides funding to eligible applicants to deliver programs that will link individuals to
    employment, including assessment, career counseling, job readiness skills, academic upgrading, entry level
    skills, work experience, and employment related supports.
  • Community Works Program—provides funding assistance to community based organizations, municipalities,
    Indian Bands, tribal councils and Métis Nations of Saskatchewan to hire eligible employees in job creation
  • Updating Courses—provides cost-shared updating courses for designated trades or sub-trades.

Aboriginal Employment and Training Programs
 • Aboriginal Workforce Participation Initiative Employer Toolkit—is designed to provide quick access to infor-
   mation geared to Aboriginal employment.
 • Building Environmental Aboriginal Human Resources—matches Canadian employers in the environment
   sector with Aboriginal graduates. Qualified employers can access qualified candidates and wage subsidies of
   up to $8,000.
 • First Nations and Inuit Youth Work Experience Program— First Nation and Inuit governments and organiza-
   tions may submit project proposals to provide employment experience for Aboriginal youths in private and
   non-profit sector organizations.
 • First Nations and Inuit Student Summer Employment Opportunities Program—provides wage subsidies for
   short term work experience for First Nations and Inuit secondary and post-secondary students. The non-
   profit sector can receive a contribution of up to 100% of the applicable wage plus mandatory employment
   related costs, while the private sector can receive up to 50% of the applicable wage only.

Transportation & Logistics makes sense in Saskatoon                                                    Page 10

Training Programs

Youth Employment Strategy
  • Career Focus Program—offers funding to Canadian employers to provide career-related work experience for
    eligible youth. Employer receive a wage subsidy of $15 000 maximum per participant.
  • Skills Link Program—provides financing for a wide range of activities which can be tailored to meet individ-
    ual employment needs and career goal.
  • Canada Summer Jobs—provides funding for small businesses with 50 or fewer employees, public-sector em-
    ployers, and not-for-profit organizations for eligible youths.
  • Agri-Value Marketing Internship Program— funding to hire marketing interns for agri-value Small and Me-
    dium Sized Enterprises (SMEs). The program is designed to place students into agri-value companies in Sas-
    katchewan on a cost-shared basis. Funding is 50 % of the intern's monthly salary up to $1,500 per month.
  • Environmental Youth Corp.—designed to create a six to twelve month national or international environ-
    mental internship for post-secondary graduates. Environmental Careers Organization (ECO) Canada supplies
    a wage subsidy of up to $12,000.
  • Internship Program with Innovative Small and Medium Enterprises—provides financial assistance to Cana-
    dian small and medium enterprises (SMEs) for hiring post-secondary graduates to work on technical or tech-
    nology related projects.
  • NRCan Science and Technology Internship Program—helps employers hire recent graduates in science and
    engineering by partially funding salaries. Conditions apply.
  • Science Horizons Youth Internship Program—offers young scientists and post-secondary graduates hands-
    on experience working on environmental projects under mentorship of experienced scientists.
  • Young Canada Works—provides wage subsidies to help secondary and post-secondary students access sum-
    mer work experiences, and to provide internships for college and university graduates who need some assis-
    tance to enhance their skills and career prospects.

Programs to Assist People with Disabilities
  • Employability Assistance for People with Disabilities/Opportunities Fund for Persons with Disabilities—
    both provide funding to assist adults with disabilities to prepare for, secure and maintain employment. Vari-
    ous supports are offered, including training-on-the-job, vocational and work assessments, and psycho-
    educational assessments.

Transportation & Logistics makes sense in Saskatoon                                                      Page 11

Proximity to Technical Colleges
Saskatoon produces over 8,000 post-secondary graduates annually, which is an indication of the number of
well-educated young people eligible to enter the Saskatoon Region workforce each year.

The labour pool is significantly enhanced by the presence of a number of post-secondary institutions in Saska-
toon, notably the University of Saskatchewan with an annual enrolment of 20,000, and the Saskatchewan Insti-
tute of Applied Science and Technology (SIAST) Kelsey Campus, with annual enrolment of 4,000 students. The
city is also home to a number of business and trade schools. Large quantities of students are drawn to Saskatoon
from rural areas and smaller communities across Saskatchewan.

University of Saskatchewan (www.usask.ca)
The University of Saskatchewan (U of S) is a 13-college univer-                                      GRADUATES PER
sity with a wide range of undergraduate and graduate degree                 INSTITUTION NAME             YEAR
programs in natural and health sciences, engineering, agricul-      University of Saskatchewan           3650
ture, business, law, and the liberal arts. The U of S is the only
                                                                    Saskatchewan Institute of
university in Canada to house six life science colleges: Agricul-                                        1300
                                                                    Applied Science and Technology
ture, Dentistry, Medicine, Nursing, Pharmacy & Nutrition, and
Veterinary Medicine, as well as a major teaching hospital on        Career Campus                        300
the same campus.                                                    Saskatoon Business College           250
                                                                    Dumont Technical Institute           190
Saskatchewan Institute of Applied                                   Heinz Institute of Technology        190
Science and Technology (SIAST) (www.siast.sk.ca)                    CDI College of Business
SIAST is Saskatchewan's primary public institution for skills                                            100
                                                                    and Technology
training and technical education. SIAST offers 58 diploma and
certificate courses, as well as apprenticeship training, designed   Saskatchewan Indian Institute
to meet the specific needs of industry.                             of Technologies
                                                                    TOTAL GRADUATES PER YEAR             6090
Programs are offered in agriculture, applied/visual media, avia-
tion, basic education, business, community/human services, engineering technology, health services, hospitality/
food services, industrial/trades, natural resources, nursing, recreation/tourism, science and technology.

Other Technical and Business Colleges are located in the Saskatoon Region, specializing in programs in business,
trades and technology for people starting or continuing their education. One such college is the Saskatchewan
Institute of Indian Technologies (www.siit.sk.ca), which offers programs in health and community services, trades
and business management to Saskatchewan’s aboriginal people.

Transportation & Logistics makes sense in Saskatoon                                                        Page 12

Saskatoon is the commercial centre of Saskatchewan, and was identified as one of Canada’s “Hub Cities” by the
Conference Board of Canada. From its central location, the Saskatoon Region has excellent highway, air, and, rail
transportation links to markets throughout North America. With a metropolitan population of over 240,000,
Saskatoon is the largest urban centre in Saskatchewan and the nearby states of North Dakota and Montana.
Saskatoon follows Central Standard Time year round, ensuring excellent and efficient access to the widest range
of other North American time zones during normal working hours.

The Canadian National (CN) Railway and Canadian Pacific (CP) Railway lines connect Saskatoon to the world.
North American ports on the east coast, west cost and the Gulf of Mexico receive goods from Saskatoon. Both
rail service providers also have inter-modal container ports in Saskatoon, allowing goods to be moved from rail to
truck with ease.
Canadian National (CN) Rail Network                                  Rail Yard Locations in Saskatoon

                                                                                                           CP Rail Yards

                                                                           CN Rail Yards

Canadian Pacific (CP) Rail Network


                                                                                 For more information, visit:
                                                                                 Canadian National Railway
                                                                                 Canadian Pacific Railway


Transportation & Logistics makes sense in Saskatoon                                                             Page 13

Saskatoon provides an excellent and cost effective location for the distribution of manufactured goods to mar-
kets throughout North America and the world. Saskatoon lies at the junction of two of Canada’s major highway
systems: the Yellowhead, (Highway 16 from Winnipeg to Edmonton and west); and Highway 11, (a four-lane
highway with a direct connection to the Trans-Canada Highway at Regina). Both of these systems join the U.S.
Interstate system, through border crossings that serve both the Eastern and Western States. Saskatoon region
companies also benefit from a highly competitive warehousing and distribution market out of which operate over
140 trucking companies.

Oceanport Access
Saskatoon is uniquely positioned in Western Canada to take advantage of two west coast ocean ports: Vancouver
and Prince Rupert, as well as the East Cost ocean ports.

The Port of Vancouver, Canada’s Flagship Port, serves is Canada’s largest and busiest port, trading $53 billion in
goods with more than 100 trading economies annually, the Port of Vancouver offers access to intermodal con-
nections that extend across the continent. The Port of Vancouver is the most diversified port in North America
and ranks number one for export tonnage. In total, the port comprises 25 major marine cargo terminals that col-
lectively offer 67 berths, super post-Panamax capacity and extensive on–dock rail facilities.

Located in northern British Columbia, the Port of Prince Rupert is the deepest port on the west coast. Port facili-
ties include container, coal and grain terminals, with potash handling facilities in progress, and large tracts of land
for development potential. The Port of Prince Rupert boasts the shortest land-sea route from North America to
China. Located 700km/36 hours closer than Vancouver, and 1612km/68 hours closer than Los Angeles, it is
North America’s closest port to key Asian markets.

Transportation & Logistics makes sense in Saskatoon                                                           Page 14

Air Service (www.yxe.ca)
Operated by the Saskatoon Airport Authority, the Saskatoon John G.
Diefenbaker International Airport is located 10 minutes from the city cen-
tre. Recently upgraded, this spacious, modern facility serves over one
million passengers per year. The Saskatoon John G. Diefenbaker Interna-
tional Airport ranks among the top airports of its size in Canada in a na-
tional survey of customer satisfaction.

Air Carriers Servicing Saskatoon
     • Air Canada                                                    •        WestJet
     • United Airlines                                               •        Transwest Air
     • West Wind Aviation Inc.                                       •        Northwest Airlines Inc.
             Travel Times from Saskatoon                                                Driving            Flight
             Calgary                                                                  6 hr 10 min        1 hr 6 min
             Edmonton                                                                 5 hr 15 min              1 hr
             Montreal                                                                34 hr 45 min       4 hr 32 min
             Ottawa                                                                  33 hr 50 min       3 hr 15 min
             Regina                                                                   2 hr 35 min           45 min
             Toronto                                                                 29 hr 30 min        3 hr 7 min
             Vancouver                                                               16 hr 45 min       2 hr 10 min
             Winnipeg                                                                 8 hr 20 min       1 hr 14 min

             United States
             Chicago*                                                                21 hr 38 min        6 hr 3 min
             Dallas*                                                                  28 hr 5 min       6 hr 50 min
             Denver                                                                         18 hr       5 hr 20 min
             Los Angels*                                                                    28 hr       8 hr 30 min
             Las Vegas                                                               23 hr 30 min       6hr 30 min
             Minneapolis                                                                    15 hr       2 hr 30 min
             New York*                                                               33 hr 50 min       7 hr 30 min
             Salt Lake City*                                                         16 hr 55 min         10 hours
             San Francisco*                                                          26 hr 50 min       6 hr 20 min
             Seattle*                                                                      18 hrs          4 hours
             * - Includes time for connecting flights

             Sources: Driving Times — Google Maps based on 100km/h driving speed.
                      Flight Times — Times vary depending on provider and season.

Transportation & Logistics makes sense in Saskatoon                                                                   Page 15


Saskatchewan’s electricity generation and distribution network is owned by the provincial Crown corporation,
SaskPower, which generates, supplies and distributes electricity in the province.

SaskPower has a generating capacity of 3,206 megawatts (MW) from 16 generating facilities, including three coal-
fired base load facilities, four natural gas-fired facilities, seven hydroelectric facilities, and two wind power facili-
ties. An additional 449 MW is available through long-term power purchase agreements with independent power
producers, for a total available capacity of approximately 3,655 MW.

Natural Gas
SaskEnergy is the largest natural gas supplier in the province, with more than 336,000 residential, farm, commer-
cial and industrial customers throughout Saskatchewan. SaskEnergy purchases natural gas from independent
suppliers and transports it through a 65,000-kilometer distribution system to 92% of Saskatchewan communities.

SaskEnergy has operated one of the largest natural gas distribution networks in North America for over 45 years –
safely and reliably with some of the lowest costs. SaskEnergy has delivered the lowest provincial natural gas
rates in Canada four of the last five years. Natural gas continues to be the lowest cost fuel in Saskatchewan.

Telephone Providers
The largest telecommunications provider in the province is SaskTel, a provincial crown telecommunication corpo-
ration. SaskTel provides 425,000 residential and business customers with competitive voice, data, dial and high-
speed internet, wireless, digital television, and e-business solutions. Business and residential rates are nationally
competitive, and the SaskTel network is extremely reliable.

Saskatoon’s other large telephone and cellular providers include:
                                      • Shaw Cable • Rogers
                                      • Fido       • Telus

In addition to two major internet providers in Saskatoon (Sasktel and Shaw Cable), there are several other local
providers offering high-quality services to city residents. To promote business development in the city, the Sas-
katchewan Provincial Government sponsors free wireless internet access in popular locations around the city,
including the downtown business district.

Fiber Optics
In 1984, SaskTel completed construction of the world’s longest commercial fibre optics network, which covered
3,268 km to link fifty-two communities at a time when the previous longest fibre optics network had been less
than 10 km. Each strand of fibre optic cable could originally hold 672 telephone conversations or one video chan-
nel or 45 megabits of data per second; over the years this has increased a hundredfold. SaskTel’s investment in
fibre optic infrastructure, as well as research and development, has made Saskatchewan a leader in telecommu-
nications technology.

Transportation & Logistics makes sense in Saskatoon                                                             Page 16

The City of Saskatoon Water System provides safe reliable drinking water to a variety of customers. It serves over
90,000 residential customers, 6,000 industrial, commercial and institutional customers. In order to provide this
valuable resource to all these customers, the City of Saskatoon operates, maintains and enhances a world class
utility with a complex system of treatment plants, water mains, reservoirs and pump stations. Saskatoon’s water
service is very reliable, accessible, and economical.

The source for Saskatoon’s drinking water is the South Saskatchewan River, which flows through the city. The
Saskatoon Water Treatment Plant, which contains a laboratory accredited by the Standards Council of Canada,
conducts over 50,000 water quality tests a year, using state of the art equipment, to ensure that Saskatoon’s
drinking water is clean and safe.

The Saskatoon Wastewater Treatment Plant protects the people, property, and environment downstream from
Saskatoon along the South Saskatchewan River by collecting and treating wastewater from residences, schools,
hospitals, businesses, and industries. The Plant is designated as a Class 4 treatment facility, the highest level of
certification in Canada. The treatment of wastewater is regulated by rigid provincial and national standards.

Currently, the Plant processes on average 100 million litres of wastewater a day with a maximum capacity of 180
million litres per day; by 2016, it will receive an average of 120 million litres a day. To continue to protect the
environment by producing a clean, high quality effluent and to accommodate Saskatoon's growing population,
the Plant is expanding over the next seven years.

Waste Collection and Recycling
The City of Saskatoon is the primary agency responsible for residential waste collection in Saskatoon. The City
uses a predominantly automated waste collection system for collection from residential and commercial sites,
consisting of seventeen vehicles, one of which is dedicated to the collection of recyclables from depots. The City
of Saskatoon is one of several organizations providing collection service to commercial businesses. These busi-
nesses, such as Loras Disposal and WM (Waste Management) may contract with the City for service of privately-
owned or City-rented bins, or enter a contract with private haulers who provide bin rental and collection service.

Recycling facilities in Saskatoon accept newsprint, corrugated cardboard, mixed papers, tin cans, milk jugs and
cartons, and non-refillable beverage containers. The City also operates two windrow yard waste composting ar-
eas, in partnership with the Saskatchewan Waste Reduction Council (SWRC). The SWRC also provides collection
areas for recyclables including scrap metals; propane tanks; automotive batteries; automotive engine oil; filters
and containers; newspaper and cardboard; beverage containers; and leaves and grass. Residents can also drop
off white goods and appliances.

                                                               For information on utility rates, please refer to the
                                                                           appendix at the end of this document.

Transportation & Logistics makes sense in Saskatoon                                                          Page 17

       Provincial and State Tax Information and Comparisons—2007
                                                    Federal                BC                  AB                  SK                 MB                   ON                  PQ              NB              NS              PEI          NL
Corporate Income Tax
 General Rate (%)                                      19.5               11                   10                 12                   13                   14                11.4             13             16               16          14
 Mfg. & Proc. Rate (%)                                 19.5               11                   10               10-131                 13                   12                11.4             13             16               16           5
 Small Business Rate (%)                                11                3.5                  3                 4.5                   1                   5.5                 8               5               5              3.2           5
 Threshold ($'000)                                     400                400                 460                500                  400                  500                400             400             400             400          400
Capital Tax
 General (max %)                                         -                 -                     -                - 10              .2 - .4              0.2                   .36              .1          .2 - .4             -           -
 Financial Institutions (max %)                        1.25             .67—2                    -            .7 - 3.25               3                .45 - .68              .722              3             4                 5           4
Health Care Premiums
 Indiv./family(max) ($/month)                             -            54/108               44/88                    -                -                     75                  -                -               -               -           -
                                                                                                                                    2.15 -                                    2.7 -
 Employer Payroll Tax (max %)                             -                  -                   -                  -                4.3                  1.95                4.26              -               -               -          2-4
General Sales Tax (%)                                     5                  7                   -                  5                 7                    8                  7.53              8               8              103          8
Fuel Tax
 Gasoline (¢/litre)                                      10              14.54                 9                   15                11.5               14.7               15.24,6           10.7           15.56            15.89         16.56
 Diesel (¢/litre)                                        4                 15                  9                   15                11.5                14.3               16.2             16.9           15.4             20.2          16.5
 Aviation Fuel (¢/litre)                                 11               2.05                1.55                1.55               3.2                  2.7                 3               2.5            0.9              0.7           0.7
 Rail Diesel (¢/litre)                                   4                  3                 1.5                  15                6.3                  4.5                 3               4.3             -                -             -
Tobacco Tax ($/200 cigarettes)                           42              35.80                 37                 36.6               356                 24.7               20.6             23.56          33.04            34.9          36.06
Hotel Room Tax (%)                                       5                 87                  48                   7                 7                    5                  3                8              8               10             8
       1.    The general corporate tax rate is reduced by up to 3 points based on the share of a corporation's national manufacturing and processing income allocated to Saskatchewan.
       2.    The Quebec financial institutions capital tax includes the base rate of 0.98% and a compensatory tax of 0.25%.
       3.    These provinces apply their retail sales tax on the retail price of the good inclusive of GST.
       4.    An additional 6 ¢/L is imposed in the greater Vancouver area, 2.5 in Victoria, and 1.5 in Montreal.
       5.    Alberta & SK exempt all international flights from the aviation fuel tax. B.C. refunds the aviation fuel tax paid on fuel used in respect of international cargo shipments.
       6.    These provinces apply their retail sales tax on the retail price of the good inclusive of the particular excise tax.
       7.    Victoria and Vancouver impose an additional 2% hotel room tax.
       8.    Tourism Levy where money raised by levy is dedicated to tourism marketing and development.
       9.    This rate is based on a 11.5 cent per litre based rate and 10.7% of the average wholesale price and is recalculated on a monthly basis.
       10.   The general capital tax on new investment is 0.

                                                                                                                         United States Tax Rates
                                                                                                                                                                                          Mfg &                       Small
                                                                                                                                State                          General                  Processing                   Business3
                                                                                                                          Washington2                             n/a                       n/a                         n/a
                                                                                                                          Oregon                                  6.6                       6.6                         6.6
                                                                                                                          California                             8.84                      8.84                        8.84
                                                                                                                          North Dakota                              7                         7                        6.86
                                                                                                                          Montana                                6.75                      6.75                        6.75
                                                                                                                          Idaho                                   7.6                       7.6                         7.6
                                                                                                                          Colorado                               4.63                      4.63                        4.63
                                                                                                                          Utah                                      5                         5                           5
                                                                                                                          New Mexico                              7.6                       7.6                         4.8
                                                                                                                          Louisiana                                 8                         8                        6.97
                                                                                                                          Federal                                  35                      32.9                          34
                                                                                                                         1.     General corporate tax rate is reduced by up to 3 points based on share of corporation’s national mfg and
                                                                                                                                processing income allocated to Saskatchewan.
                                                                                                                         2.     Washington has a business occupation tax in lieu of an income tax, which is based on gross revenue
                                                                                                                                sales (0.471% to 1.5%) according to the type of business.
                                                                                                                         3.     State small business rate is the effective tax rate for US$365,000 (comparable to Saskatchewan
                                                                                                                                threshold of Cdn$430,000) U.S. federal small business rate is the effective rate for US$340,000
                                                                                                                                (comparable to Canadian federal threshold of Cdn$400,000).

       Transportation & Logistics makes sense in Saskatoon                                                                                                                                                              Page 18

Tax Incentives
The City of Saskatoon, surrounding towns and rural municipalities offers companies in targeted industrial sectors
significant tax abatement incentives to encourage expansion or location of operations, and facilitate long-term
skilled or semi-skilled job creation. The aim of the incentive is to create an attractive environment for new busi-
nesses that may be considering locating to another region; and also demonstrates a commitment to local indus-
try. Incentives include, but are not limited to, tax abatements, waiving of utility deposits, and exemptions or re-
ductions of prepaid servicing levies.

      Region                                                     Type of Incentive
Saskatoon (City)    •   Property taxes abatement on incremental portion of the property assessment for eligible busi-
                        nesses. (Year 1 – 100%; Year 2 – 80%; Year 3 – 70%; Year 4 – 60%; Year 5 – 50%).
                    •   Enterprise Zone—incentives are available within a specific area of Saskatoon.
Corman Park (RM)    •   Minimum $100,000 in construction value and creation of 5 new jobs.
                    •   Tax abatement is 100% for the first year, and decreases by 20% each year thereafter, until it is
                        reduced to 0% for the 6th year.
Aberdeen (RM)       •   Tax exemptions of three to five years.
                    •   Cost sharing for road improvements.
Blucher (RM)        •   5 years of full municipal and education property tax exemption.
                    •   Waived building permit fee if company meets eligibility requirements.
Langham (Town)      •   No taxes for the year of construction, other incentives are negotiated individually.
Martensville (Town) •   A tax exemption of up to five years based on investment amounts.

Osler (Town)        •   No discount in the year of construction (if started prior to July 1st); 25% discount in 2nd year; 50%
                        discount in 3rd year; 75% discount in 4th year.
Rosthern (Town)     •   Property taxes exemption on new construction portion of the property assessment, land pur-
                        chased or existing business expansion's square footage. (Year 1 – 100%; Year 2 – 67%; Year 3 –
                    •   Can negotiate the price of Town-owned land and any required municipal services (water and sewer
                        mains, service lines, street improvements, etc).
                    •   Exemptions can be transferred if sold within the exemption time period.
Warman (Town)       •   Assessment exemption applies to an existing building's increased assessed value as a result of new
                        construction and/or renovations.
                    •   100% municipal exemption for the first three (3) calendar years of operation.

Other Towns, Villages, and Rural Municipalities (RM) in the region also offer incentives to businesses. While
there is no specific policy, these municipalities respond very favourably to the needs of business, and incentives
are negotiated on an individual basis. These municipalities include the RMs of Dundurn, Great Bend, Rosthern
and Vanscoy; the Towns of Allan, Dalmeny, Delisle and Hague; and the Village of Borden.

                                                                        For maps and contact information, please refer
                                                                          to the appendix at the end of this document.

Transportation & Logistics makes sense in Saskatoon                                                                  Page 19

Tax Credits and Other Government Funding Programs
Federal Government
The Scientific Research and Experimental Development (SR&ED) Tax Credit is a federal tax incentive program to
encourage Canadian businesses of all sizes to conduct research and development that will lead to new, im-
proved, or technologically advanced products or processes. Claimants can apply for tax credits for expenditures
such as wages, materials, machinery, equipment, some overhead and SR&ED contracts.

The National Research Council Industrial Research Assistance Program (NRC-IRAP) pro-
vides technical and business advisory services, coupled with funding opportunities for Cana-   Did you know…
dian small and medium enterprises (SMEs). The program also offers networking opportuni-        NRC-PBI in Saskatoon
ties as well as partnerships and collaboration. The NRC-IRAP offers financial assistance for   is a major research
                                                                                               centre for plant bio-
research and development activities by:
                                                                                               sciences in Canada,
   • Providing funding contributions to Canadian SMEs interested in using technology to        with expertise in ge-
     commercialize services, products and processes for Canadian and international markets     nomics, metabolic
   • Investing, on a cost-shared basis, in research and in pre-competitive development tech-   pathways, gene ex-
     nical projects.                                                                           pression, genetic
   • Providing financial support indirectly through contributions to regional and national     transformation, struc-
     partner organizations that supply technical and research assistance to Canadian SMEs.     tured biology, and
   • Offering internship funding that enable SMEs to hire recent postsecondary graduates       natural product
     with the specific skills and expertise needed to advance innovative projects.

Provincial Government
The Manufacturing and Processing Investment Tax Credit (ITC) is available to manufacturing and processing cor-
porations. It is a refundable tax credit, designed to encourage plant and equipment investment. This income tax
credit applies as 5% of total capital cost of eligible new and used manufacturing and processing building, machin-
ery and equipment purchases, including installation costs.

Complementing the SR&ED tax credit is the Saskatchewan Research and Development Tax Credit. This tax credit
is equal to 15% of the qualifying research and development expenditures incurred in Saskatchewan. Operations
research, engineering, design, and computer programming are eligible if these activities support the research or
experimental design. The credit reduces corporate income taxes, and unused amounts may be carried forward
ten taxation years, or carried back three taxation years.

The Saskatchewan Market Assessment of Research and Technology (SMART) Program provides access to spe-
cialists in the emerging field of competitive intelligence. The SMART Program gives small- and medium-sized
businesses access to industry specialists who will find and analyze information on the marketplace and emerging
technologies in order to help companies make strategic business decisions. The company must be eligible for
NRC-IRAP funding and approved as a NRC-IRAP client; and have developed or be developing a new product, proc-
ess or system based on an innovative application of science and technology; or acquired technology, which is not
currently in use in Saskatchewan, from another company or university through a technology transfer process.

Transportation & Logistics makes sense in Saskatoon                                                         Page 20

Financing Options
Companies in the Saskatoon region have access to all the regional, national and international financial service
organizations, as well as the following national, provincial and local financing options:

Government of Canada (www.canadabusiness.ca)
Aboriginal Business Canada (ABC) provides support to Aboriginal entrepreneurs for a range of activities including
business planning, start-up, expansion and marketing.
Business Development Bank of Canada (BDC) is a financial institution offering flexible, long-term financing and
consulting to small and medium enterprises. BDC also offers venture capital and subordinate financing to high-
growth firms. The long-term loans can help businesses increase their working capital and purchase fixed assets.
The Canada Small Business Financing (CSBF) program can assist businesses in obtaining term loans of up to
$250,000 to help finance fixed asset needs. The loans are made directly by a qualified lender (chartered banks,
and most credit unions).
The Community Futures Development Corporation (CFDC) is a community and business development organiza-
tion delivering services such as local strategic economic planning, technical and advisory services to businesses,
loans to small and medium enterprises, self-employment assistance programs, and services targeted to youth
and entrepreneurs with disabilities.
Government of Saskatchewan
Investment Saskatchewan (www.investsask.com) is a provincial crown corporation that supports industry development
and expansion in sectors that support the province’s economic development strategy. Through its agent, Victoria
Park Capital (www.victoriaparkcapital.com), Investment Saskatchewan offers a wide variety of debt and equity instru-
ments and focuses on investments of $3 million or more.
The Entrepreneurial Foundation of Saskatchewan (www.efsk.ca) provides business advice, mentoring, and support
services to help existing and aspiring entrepreneurs develop investment ready business plans. Small businesses
recommended by the Entrepreneurial Foundation of Saskatchewan are eligible to receive up to $1 million in in-
vestment funding from the Saskatchewan Entrepreneurial Fund.
The First Nations and Métis Fund makes investments between $1 million and $3 million in new or expanding
businesses which are majority owned by First Nations or Métis people. Businesses must fall in Saskatchewan’s
key strategic growth sectors: value-added agriculture; advanced technology; energy; mining; forestry, manufac-
turing and Aboriginal-themed tourism
The Apex Investment Fund, a partnership formed between the Province and Saskatchewan’s credit unions,
makes investments of between $1 million and $4 million in new or expanding small or medium-sized businesses
in Saskatchewan, with an emphasis on projects in smaller cities and rural communities. Projects will be in Sas-
katchewan’s key strategic growth sectors: value-added agriculture; advanced technology; manufacturing; energy;
mining and forestry.
The Innovation Acceleration Initiative has an allocation of $2 million over four years with the goal of providing
modest funding that will accelerate technology commercialization. This will be achieved by the CIC entering into
collaborative agreements with Saskatchewan businesses and provincial academic and research institutions.
Independent Financiers
The Saskatchewan Angel Investor Network (SAINT) (www.saint.sk.ca) is a member-based group of investors who
have an interest in investing in early stage and growth-focused Saskatchewan companies. These investments
cover a broad range of industries, including technology, where there is potential to build sustainable and success-
ful businesses.

Transportation & Logistics makes sense in Saskatoon                                                        Page 21

                            Relocate | Build | Expand
Whether you are looking for an existing facility or land to build a new facility, the SREDA team is pleased to assist
you in contacting the people that can help you locate to the Saskatoon Region.

Industrial Land (Greenfield)                           Saskatoon Region Greenfield Industrial Land
The Saskatoon Region has many options for companies
locating new facilities. Depending on the necessity
and level of services (such as rail or large power re-
quirements), the region can offer a wide variety of
land to meet the needs of nearly any size of facility.
         Saskatoon Region Industrial Land Price
          (per acre; un-serviced and serviced)
City of Saskatoon              $160,000— $325,000
RM of Blucher                    $5,000— $10,000
RM of Corman Park               $85,000—$300,000
Town of Langham                 $15,000—$110,000
Town of Martensville                  $150,000
Town of Rosthern                   Please contact
Town of Warman                        $185,000
Prices updated: May 2008

Greenfield Development Charges
The City of Saskatoon is the only developer of fully serviced industrial land inside the city limits. Lot prices are
calculated using prices for land and services as approved by City Council, and prices quoted from the City of
Saskatoon Land Bank include servicing. Typically, those properties that have complete services (i.e. sewers, wa-
ter, utilities, curbs, and at least a gravel-based road with paving to be provided within a reasonable period) are
available for sale, and the purchaser is responsible for all private connections into the lot. Development charges
for un-serviced land that changes ownership privately are paid by the purchaser, and services are installed by the
City of Saskatoon.
Industrial land outside of the city limits is developed by private contractors, and may or may not be negotiated as
part of the purchase price.

Zoning and Permitting
The purpose of zoning is to separate different land uses to insure that all uses are compatible, common develop-
ment standards are used and that development does not unreasonably impose a burden upon its neighbours.
Building permits are required for new construction, additions, alterations, renovations, relocations, and repairs or
rehabilitation of a building or structure. Municipal governments oversee zoning and permitting in their respec-

Environmental Regulations
A number of government acts, regulations and agreements are in place to protect to Saskatoon Region environ-
ment. Depending on the sector in which a company operates, environmental laws are regulated by federal and/
or provincial governments. Environment Canada, Saskatchewan Environment, and local municipalities oversee
these laws to ensure people and companies conform to regional standards.

Transportation & Logistics makes sense in Saskatoon                                                         Page 22

                            Relocate | Build | Expand
Existing Facilities
Saskatoon (City) Overall Industrial Vacancy Rates

                                                              The Saskatoon Region’s industrial market is made up
                                                              of over 17,000,000 square feet. From 2003 to 2006,
                                                              virtually all available land has been absorbed through
                                                              new construction of approximately 825,000 square
                                                              feet .

                                                              Nonetheless, there are many available facilities in the
                                                              City of Saskatoon and surrounding towns and munici-
                                                              palities. Local development companies are also willing
                                                              to build or renovate to suit a companies needs.

Occupancy and Construction Costs                            Saskatoon (City) Industrial Market - Historical Sales Data
Rental rates on new construction are $7.00 to $10.00
per square foot, with rates more typically in the $4.00
to $7.00 per square foot range on existing product.

The bottom end of this range is set by larger ware-
house buildings with minimal office content, lower
quality buildings, and older buildings, with the top end
set by newer design-built warehouses which may in-
clude a fenced yard and upgraded office space. Loca-
tions with retail potential often generate rents above
this level.

There is over 6,000,000 square feet of office space in
                                                                           Asking Face Rate per      Operating Cost per
the City of Saskatoon, with 53% of the inventory lo-               Class       square foot              square foot
cated in the downtown core. On a city-wide basis, of-
fice vacancy decreased from the 6.1% in 2007 to the                  A        $12.00 - $16.00           $9.00 - $10.50
current estimate of 5.6%. Vacancy in the downtown
office market dropped by a full three percentage points,            AB        $10.00 - $14.00            $8.00 - $9.50
from 8.2% in January 2007 to 5.2%.
                                                                     B        $8.00 - $14.00             $7.00 - $9.00
Face rates in the suburban market tend to be at similar
levels as the central core buildings, primarily the $6.00            C         $5.00 - $8.00             $4.00 - $8.00
per square foot to $15.00 per square foot range.                                     Source: Brundson Junor Johnson Appraisals

Transportation & Logistics makes sense in Saskatoon                                                                  Page 23

Proximity to Markets
As energy costs increase, many companies are shifting purchasing habits to local markets to reduce transporta-
tion costs, and also looking for efficiencies when shipping goods to and from their location. The Saskatoon Re-
gion has many advantages for companies selling locally, as well as those importing and exporting goods.

Consumer Market
Located at the centre of western Canada, Saskatoon is strategically placed for companies selling goods within
Canada and around the world. Over three-hundred thousand consumers live within one hundred kilometres (62
miles) of the city of Saskatoon, and approximately 5 million people within 800 kilometres (500 miles). Western
Canada boasts over 9 million people and is growing quickly, due to a strong western Canadian economy.

From Saskatoon, goods can be transported via highway to Northern Ontario, Northern Canada, and Western Can-
ada within a few days. There are 10 million people within one day of Saskatoon, and more than 80 million within
a two day drive. The Saskatoon Region is also an excellent base for exporting, with highway access to the United
States, and rail access to two ocean ports. Over 85% of all manufacturing companies in the region ship goods
around the world.

Supplier Market
Importing supplies to produce goods in Saskatoon is essential, and the region benefits from strong highway, rail
and air infrastructure. For example, two national railways converge in Saskatoon, allowing companies choice
when shipping goods to the region. The Port of Prince Rupert in northern British Columbia is 36 hours closer to
Singapore than the Port of Vancouver, reducing shipping times and costs.

Raw Materials
Recent growth in the Saskatoon Region economy can be attributed to strong commod-           Did you know…
ity prices. These natural resources are readily available for local manufacturers to pro-   • Some of the world’s
duce goods, and is a leading reason that many companies look to the Saskatoon Re-               richest deposits of
gion for value added opportunities.                                                             potash,     the    main
                                                                                                ingredient in fertilizer,
                                                                                                are in Saskatchewan..
Saskatchewan has almost 50% of Canada’s arable land, and is a major producer and
exporter of pulse crops and livestock. These resources contribute to the large concen-      •   Over 30% of the
                                                                                                world's     supply     of
tration of successful food processing facilities in the Saskatoon Region.                       potash comes from
Mining is also an important part of the Saskatoon Region economy. Saskatchewan has          •   There are seven potash
a wealth of mineral resources, including potash, uranium, coal, gold, diamonds, oil and         mines in the Saskatoon
natural gas. Building materials such as sand and gravel are also products of the mining         Region.
industry.                                                                                   •   The head office of
                                                                                                PotashCorp,          the
                                                                                                world’s largest potash
                                                                                                mining company, is
                                                                                                located in Saskatoon.
                                                                                            •   There is enough potash
                                                                                                in Saskatchewan to
                                                                                                supply the world for
                                                                                                several hundred years.


Transportation & Logistics makes sense in Saskatoon                                                            Page 24

                            Business Development
Research and Development Facilities
Scientific research and development in Saskatoon is conducted principally
at the University of Saskatchewan and Innovation Place Research Park,             Did you know...
both of which house many of Canada’s finest research and development              Local scientists have research expertise
facilities.                                                                       in a wide range of industrial sectors,
Local, national and international companies utilize the synchrotron, bio-             • advanced materials
processing facilities, fermentation plants, as well as structural science and                           & manufacturing
telecommunication labs to increase competitiveness and reduce costs.                  •   aerospace & defence
This is complemented by local organizations assisting in the commerciali-             •   agricultural biotechnology
zation of new discoveries and processes.                                              •   chemicals
                                                                                      •   food science
Innovation Place Research Park (www.innovationplace.ca)                               •   forestry
Innovation Place is one of the most successful university-related research            •   health sciences
parks in North America. The park is situated on 80 acres adjacent to the              •   information &
University of Saskatchewan, and builds on the institution's strengths in                      communication technology
agriculture, information technology, and environmental and life sciences.             •   life sciences
Innovation Place is home to 150 clients, employing more than 2,700 peo-               •   mining
ple in 19 buildings across the park.                                                  •   natural resources
                                                                                                        & environment
Innovation Place is home to a range of new and value-added products,                  •   oil & gas
processes and technologies. It is a place where scientists and business pro-          •   pharmaceuticals
fessionals come together, where exploration and expertise go hand in                  •   plastics
hand, and where visionaries do more than dream -- they create.

The Canadian Light Source (CLS) Inc. Synchrotron (www.lightsource.ca)
The Canadian Light Source synchrotron is one of the largest scientific projects in Canada, and is used for scientific
research and for companies wishing to enhance their R&D capability. Producing light that is a million times
brighter than sunlight, the synchrotron is much like a microscope, allowing scientist to study and understand the
nature and structure of molecules and materials. Information obtained with a synchrotron can be used to help
design new drugs, examine the structure of surfaces for developing more effective motor oils, build more power-
ful computer chips, and help with clean-up of mining wastes, to name just a few applications.

  Did you know…
  The University of Saskatchewan boasts the first cobalt-60 unit for cancer treatment, the first commercially available
  genetically engineered animal vaccine, and the first Canadian experiment undertaken aboard a space shuttle.

Transportation & Logistics makes sense in Saskatoon                                                              Page 25

                           Business Development
Support for Product Development and Technology Transfer
Local, national and international businesses have access to contract research facilities at the University of Sas-
katchewan and a number of other support and product development agencies. Locating in the Saskatoon Region
has helped many companies improve their bottom line, as well as bring new inventions to the marketplace.

Agriculture and Life Sciences
Innovation Place Bio Processing Centre (www.innovationplace.com) provides toll or custom processing on a contract
basis for the natural health product, cosmetic, and agri-food industries. The plant has a wide range of wet proc-
essing equipment that is used to carry out extraction and/or fractionation of many different plant materials.
National Research Council Plant Biotechnology Institute (NRC-PBI) (www.pbi.nrc.ca) promotes and conducts col-
laborative plant biotechnology research with universities, government departments, and biotechnology compa-
nies. It assists with transferring research to produce development and commercialization, and provides training
for plant biotechnology scientists. The NRC/PBI Industry Partnership Facility is a 74,000 square foot expansion
built to house incubation and research equipment for start-up plant-science companies.
POS Pilot Plant Corporation (www.pos.ca) is a confidential research and development facility specializing in devel-
oping bio-processing solutions.
Saskatchewan Research Council (SRC) (www.src.sk.ca) houses the Fermentation Pilot Plant, GenServe Laboratories,
and Bova-Can Laboratories.
  • The Fermentation Pilot Plant focuses on the development, scale-up, optimization, and commercialization of
      new and existing products. SRC’s research professionals perform public and confidential contract research
      and development.
  • GenServe Laboratories offers DNA testing services to agricultural and biotechnology industries. The services
      include high throughput DNA testing of plants and DNA fingerprinting of crops, trees, and micro-organisms.
      The laboratory also develops new molecular testing technologies on a contract basis.
  • Bova-Can Laboratories provides diagnostic genetic services to the livestock industry. Its annual sales have
      reached $1.2 million.
Toxicology Centre (www.usask.ca/toxicology) focuses on studying the adverse effects of chemical and physical agents
on the aquatic system.
Vaccine and Infectious Disease Organization (VIDO) (www.vido.org) focuses on Did you know...
both human and animal vaccine research. VIDO also houses the International VIDO was recently awarded $5.6mil-
Vaccine Centre (InterVac), a $140 million vaccine research and development lion U.S. by the Bill & Melinda Gates
facility against diseases such as tuberculosis, West Nile virus and SARS.         Foundation to improve vaccines for
Food Science
The Saskatchewan Food Industry Development Centre (www.foodcentre.sk.ca) assists with research and develop-
ment of products, provides interim processing, and assists with regulations, marketing, distribution, and imple-
mentation of food quality assurance programs.
The U of S College of Agriculture’s Department of Applied Microbiology and Food Science (www.usask.ca) con-
ducts chemical, biological and processing studies of food products for development and quality improvements.

Mining and Communications Technology
Saskatchewan Structural Sciences Centre (SSSC) The SSSC (www.usask.ca/sssc) is an $11.4 million multi-disciplinary
research centre that complements the Canadian Light Source. It provides services for universities, government,
and private sector.
Telecommunications Research Laboratories (TRLabs) (www.trlabs.ca) is Canada’s largest not-for-profit telecommu-
nications research consortium. Its research is focused on data networking, network access, and network systems,
photonics, and wireless communication.

Transportation & Logistics makes sense in Saskatoon                                                         Page 26

                             Appendix— Contact Information

Saskatoon Regional Economic Development Authority
103 - 202 Fourth Avenue North
Saskatoon, SK S7K 0K1

Email: info@sreda.com
Phone: 306.664.0720
Toll-free: 1.800.706.1977
Fax: 306.244.5033

For assistance on locating businesses
in Saskatoon, please contact:
Sarah Marchildon
Manager, Business Attraction
Phone: (306) 664-0729
Fax: (306) 244-5033
Email: smarchildon@sreda.com

Regional Partners
    Regional Area         Administrator          Phone             Fax                      Email
RM of Aberdeen         Gary Dziadyk          (306) 253-4312   (306) 253-4445           rm373@sasktel.net
RM of Blucher          R. Doran Scott        (306) 257-3344   (306) 257-3303           rm343@sasktel.net
RM of Corman Park      Tammy Knuttila        (306) 242-9303   (306) 242-6965   tammy.knuttila@rmcormanpark.ca
RM of Dundurn          Vi Barna              (306) 492-2132   (306) 492-4758           rm314@sasktel.net
RM of Great Bend       Ken Tanchak           (306) 997-2101   (306) 997-2201           rm405@sasktel.net
RM of Rosthern         Jim Spriggs           (306) 232-4393   (306) 232-5321           rm403@sasktel.net
RM of Vanscoy          Shaun Antosh          (306) 668-2060   (306) 668-1338           rm345@sasktel.net
Town of Aberdeen       Susan Fehr            (306) 253-4311   (306) 253-4201        townaberdeen@sasktel.net
Town of Allan          Christine Dyck        (306) 257-3272   (306) 257-3337         townofallan@sasktel.net
Town of Dalmeny        Shelley Funk          (306) 254-2133   (306) 254-2142     dalmenytownoffice@sasktel.net
Town of Delisle        Mark Dubkowski        (306) 493-2242   (306) 493-2263           delisle@sasktel.net
Town of Dundurn        Sharon Miskolczi      (306) 492-2202   (306) 492-2030        town.dundurn@sasktel.net
Town of Hague          Deanna Braun          (306) 225-2155   (306) 225-4410         town.hague@sasktel.net
Town of Langham        Randy Sherstobitoff   (306) 283-4842   (306) 283-4772           admin@langham.ca
Town of Martensville   Bonnie Gorelitza      (306) 931-3763   (306) 931-3762    planningdirector@martensville.ca
Town of Osler          Sandra MacArthur      (306) 239-2155   (306) 239-2194         townofosler@yourlink.ca
Town of Rosthern       Nicole LaChance       (306) 232-4826   (306) 232-5638       townofrosthern@sasktel.net
Town of Waldheim       Chris Adams           (306) 945-2161   (306) 945-2360       town.waldheim@sasktel.net
Town of Warman         Ivan Gabrysh          (306) 933-2133   (306) 933-1987    ivan.townofwarman@sasktel.net
Village of Borden      Sandra Long           (306) 997-2134   (306) 997-2134           borden@sasktel.net

Transportation & Logistics makes sense in Saskatoon                                                       Page 27

                          Appendix— Contact Information

Saskatoon Regional Economic Development Authority

                                                          SREDA Member Town

Transportation & Logistics makes sense in Saskatoon                    Page 28
 For more information on this report and other economic information on the Saskatoon region, please contact:

                                 Saskatoon Regional Economic Development Authority
                                 103 - 202 Fourth Avenue North
                                 Saskatoon, SK S7K 0K1

                                 Email: info@sreda.com
                                 Phone: 306.664.0720
                                 Toll-free: 1.800.706.1977
                                 Fax: 306.244.5033

 The Saskatoon Regional Economic Development Authority (SREDA) Inc. promotes economic development
strategies that foster the attraction, retention, growth and expansion of opportunities in the Saskatoon Region.

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