prince george trans pacific logistics alternative

8/14/2019 Prince George Trans Pacific Logistics Alternative

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Prince GeorgePrince GeorgeThe New Trans Pacific Logistics

Alternative


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A Multi-Modal RegionA Multi-Modal Region


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The Perfect StormThe Perfect Storm

Chinese labor costs are rising

Shipping by air has seen substantial costincreases because of security

Shipping by air has seen substantial costincreases because of fuel

Asian firms are seeking to diversify

distribution costs North American firms are exploring therepatriation of outsourced industry


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The Business CaseThe Business Case

Fuel costs will continue to increase. Whiletypically costs will flow to the shipper, controllingcosts is critical.

Time on the ground as well as in the air burnsfuel and dollars.

Backhaul remains a concern for North America toAsia flights

Prince George and the logistics corridor offerreal, potential solutions.


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LocationLocation

Prince George (YXS) is located in the heart of BritishColumbia, in the West Coast region of Canada

325 air miles duenorth of Vancouver

1124 air milessoutheast of

Anchorage

Anchorage

Fairbanks

Prince George

Vancouver

Anchorage

Fairbanks

Prince George

Vancouver


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Port of Prince RupertPort of Prince Rupert

The shortest route to and from Asia

Reduction in sailing time to Asia by58hours and 722kms

Direct rail service between PrinceRupert and Memphis

The Port is experiencing aninflux of business, and has

exceeded early trafficestimates


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2,400 ft pads 84,000 sq.ft warehouse inPrince George

High capacity double

stack line Additional railcapacity available

CN Rail ServiceCN Rail Service


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Operational Advantages By AirOperational Advantages By Air

YXS is on the Great Circle route between Asian and North America

The Airport is the ideal fuel stop alternative to Anchorage

Goods to and from Asia can be moved quicker without congestion

Faster turns lead to better aircraft utilization and savings

Hong Kong

Prince George

New York

Anchorage

Range 747- 400Fat 90% Load

Range 747- 400Fat 90% Load


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Aviation: The Strategic PlanAviation: The Strategic Plan

3 Phases3 Phases

Develop the Airport to accommodate technicalstop traffic

Develop regional cargo flows to create backhaul

to Asia Develop origin and destination cargo operations


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Phase I - Fueling StopPhase I - Fueling StopPartnershipsPartnerships

ALLIEDto address carrier handling requirements

SHELLto provide fuel

CUSTOMSto provide service 24/7


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Phase I - Fuel Stop InitiativesPhase I - Fuel Stop Initiatives

Runway 3,475 meters

CAT II Centerline Lighting

Dual Instrument Landing systems

Full Service Deicing and Fueling Pad World Class Aircraft Handling and Fueling

Boeing-Certified Maintenance Support

A-380 Capable Infrastructure 24/7 Operations


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Runway Length 3,475 mRunway Length 3,475 m

North end fueling provides more efficient fueling and aircraftservicing operations

Runway 15/33 3,475m long, complete with centre line lighting,high intensity edge lights, and CAT I approach lights for both RWY

33 and RWY 15.


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Phase II Cargo BackhaulPhase II Cargo Backhaul

Existing Integrator Presence

On-Airport Logistics Park

Multi-Modal Connectivity Improved Access to Highway Systems

Regional Trucking Initiative

Government Approved Transshipment Rights

Developing Cargo Interlining Capabilities


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Phase II, III - Cargo DevelopmentPhase II, III - Cargo DevelopmentInitiativesInitiatives

World - class handling

24 hour customs

Expansion of domestic integrator service

Logistics park development


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Airport Logistics ParkAirport Logistics Park

Key business advantages of Prince George

Geographic location

Available land

Educated workforce

Lower land costs

Green environment with abundant power

Sophisticated telecommunications capacity


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First Phase Under development

with Integrator facility


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Development Partnership Regional and FederalGovernment Support

Private/Public Partnership to create an investment-

ready project, stimulate investment and control costs 3,000 acres of unencumbered property adjacent to

the Airport

Emphasis on manufacturing products with logistics

priorities 100 acres of access to the aeronautical areas

Free Trade Zone?


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WHY AVIATIONWHY AVIATIONCAN WORKCAN WORK


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The Bottom LineThe Bottom Line

Prince George offers immediate and substantial savingsper flight from the Pearl River Delta.

There are no landing fees and no parking fees.

There is reduced fuel burn with shorter taxi distances andtime

The only cost is for fuel purchased


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Economics of YXSEconomics of YXS

ANCHORAGE PRINCE GEORGE

LANDING FEE $1.52 / 1,000lbs No Charge

FUEL FLOWAGE FEE $0.0059 / liter $0.0175 / liter

PARKING FEE $174.82 No Charge

TOTAL PER TURN $2,271.36 $1,750.00

Comparative B747-400 Tech Stop Estimated Costs Airport Fees

ESTIMATED FEE SAVINGS - $525 PER TURNESTIMATED TAXI SAVINGS - $500 PER TURN

ESTIMATED SAVINGS ON THE GROUND - $1,025


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Taxi Time Estimated CostsTaxi Time Estimated Costs

ANCHORAGE PRINCE GEORGE

AVERAGE TAXI TIMES 20 min. 10 min.

FUEL BURN PER MIN. 747-

400 TWO ENGINES

85 LBS. 85 LBS.

TOTAL FUEL BURNED 1,700 LBS. 850 LBS.

TOTAL BASED ON $3.99U.S. DOLLARS

$1013.46 $506.73

7.75 HKG PER U.SDOLLAR

7,904.99 3,952.49


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Estimated SavingsEstimated SavingsAt U.S $3.99 per gallon and 7.75 HKD per dollarAt U.S $3.99 per gallon and 7.75 HKD per dollar

HK > to 1000s of Pounds FuelANC YXS

SAVINGSTurns In Flight Total

In

CHICAGO 438.17 435.08 $2,050 1,372 $3,422

NEW YORK 467.38 463.73 $2,050 1,621 $3,671

CALGARY 453.97 451.13 $2,050 1,261 $3,311

HOUSTON 463.20 454.18 $2,050 4,005 $6,055

ATLANTA 469.46 464.37 $2,050 2,002 $4,052

DALLAS

450.17 441.70 $2,050 3,761 $5,811MEMPHIS 463.70 456.48 $2,050 3,250 $5,300


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Target Carrier Cargo FlightsTarget Carrier Cargo Flights

To ORD 3 x per week @ $3,422 per flight

Total Weekly Savings Est. $10.266

Total Annual Savings Est. $533,832


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SynergiesSynergies

The logistics corridor development

The regional mind-set and economic development

focus Regional roadway improvements

Available property and the on-airport logistics parkdevelopment opportunity

The presence of Purolator and other logistics firms


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TheThe RegionalRegional Logistics DynamicLogistics Dynamic

Inter-modal link to the new deep-water port at PrinceRupert.

Existing CN rail connection from the seaport to PrinceGeorge and from there to Chicago, Toronto, and

Memphis Municipal support along a 1,000 km corridor dedicated to

logistics

Improved roadway access to south and east bound

highways for trucking Federal and regional government support

Strong and focused local leadership


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THE FUTURE IS NOW.THE FUTURE IS NOW.

Prince GeorgePrince George

prince george trans pacific logistics alternative

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