Prince George

The New Trans – Pacific Logistics 
Alternative
A Multi-Modal Region
The Perfect Storm

• Chinese labor costs are rising
• Shipping by air has seen substantial cost 
increases because of security
• Shipping by air has seen substantial cost 
increases because of fuel
• Asian firms are seeking to diversify 
distribution costs
• North American firms are exploring the 
repatriation of outsourced industry
The Business Case

• Fuel costs will continue to increase. While 
typically costs will flow to the shipper, controlling 
costs is critical.
• Time on the ground as well as in the air burns 
fuel and dollars.
• Backhaul remains a concern for North America to 
Asia flights
• Prince George and the logistics corridor offer 
real, potential solutions. 
Location

Prince George (YXS) is located in the heart of British

Columbia, in the West Coast region of Canada

– 325 air miles due Fairbanks

north of Vancouver Anchorage
– 1124 air miles Prince George

southeast of Vancouver

Anchorage
Port of Prince Rupert

• The shortest route to and from Asia

• Reduction in sailing time to Asia by
58hours and 722kms
• Direct rail service between Prince
Rupert and Memphis
• The Port is experiencing an
influx of business, and has
exceeded early traffic
estimates
CN Rail Service

• 2,400 ft pads 84,000 sq.ft warehouse in

Prince George
• High capacity double
stack line
• Additional rail
capacity available
Operational 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

Anchorage

Range 747- 400F

at 90% Load
Prince George
Range 747- 400F
at 90% Load
New York

Hong Kong
Aviation: The Strategic Plan
3 Phases
• Develop the Airport to accommodate technical
stop traffic
• Develop regional cargo flows to create backhaul
to Asia
• Develop origin and destination cargo operations
Phase I - Fueling Stop
Partnerships

ALLIED to address carrier handling requirements

SHELL to provide fuel

CUSTOMS to provide service 24/7

Phase 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
• Boeing­Certified Maintenance Support
• A­380 Capable Infrastructure
• 24/7 Operations
Runway Length – 3,475 m

• North end fueling provides more efficient fueling and aircraft

servicing 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.
Phase 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
Phase II, III - Cargo Development
Initiatives
• World ­ class handling
• 24 hour customs
• Expansion of domestic integrator service
• Logistics park development
Airport 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
Airport Logistics Park
Airport Logistics Park

First Phase – Under development

with Integrator facility
Airport Logistics Park

• Development Partnership – Regional and Federal

Government 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?
Airport Logistics Park

• Development Partnership - Airport Logistics

Task Force
– Local government, Economic Development
(Initiatives Prince George), Northern Trust
Private/Public Partnership to make
‘investment-ready’ project:
– Prospectus – Fall 2008
– Land assembly, zoning, servicing – 2008
• Serviced lots – 2009
WHY AVIATION
CAN WORK
The Bottom Line

• Prince George offers immediate and substantial savings 
per flight from the Pearl River Delta.
• There are no landing fees and no parking fees.
• There is reduced fuel burn with shorter taxi distances and 
time
• The only cost is for fuel purchased
Economics of YXS

Comparative B747-400 Tech Stop Estimated Costs – Airport Fees

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

ESTIMATED FEE SAVINGS - $525 PER TURN

ESTIMATED TAXI SAVINGS - $500 PER TURN
ESTIMATED SAVINGS ON THE GROUND - $1,025
Taxi Time Estimated Costs

ANCHORAGE PRINCE GEORGE

AVERAGE TAXI TIMES 20 min. 10 min.

FUEL BURN PER MIN. 747- 85 LBS. 85 LBS.

400 TWO ENGINES
TOTAL FUEL BURNED 1,700 LBS. 850 LBS.

TOTAL BASED ON $3.99 $1013.46 $506.73

U.S. DOLLARS

7.75 HKG PER U.S 7,904.99 3,952.49

DOLLAR
In Flight Fuel Burn Savings
Assumes U.S $3.99 per gallon and 7.75 HKD per dollar

HK > to 1000’s of Pounds Fuel SAVINGS

ANC YXS 1000s of lbs USD

CHICAGO 438.17 435.08 3.09 $1,372

NEW YORK 467.38 463.73 3.65 $1,621
CALGARY 453.97 451.13 2.84 $1,261
HOUSTON 463.20 454.18 9.02 $4,005
ATLANTA 469.46 464.37 5.09 $2,002
DALLAS 450.17 441.70 8.47 $3,761
MEMPHIS 463.70 456.48 7.32 $3,250
Estimated Savings
At U.S $3.99 per gallon and 7.75 HKD per dollar

HK > to 1000’s of Pounds Fuel SAVINGS

ANC YXS Turns 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 $5,811
MEMPHIS 463.70 456.48 $2,050 3,250 $5,300
Target 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
Synergies

• The logistics corridor development

• The regional mind-set and economic development
focus
• Regional roadway improvements
• Available property and the on-airport logistics park
development opportunity
• The presence of Purolator and other logistics firms
The Regional Logistics Dynamic

• Inter­modal link to the new deep­water port at Prince 
Rupert.
• Existing CN rail connection from the seaport to Prince 
George 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
 Prince George

THE FUTURE IS NOW.