aerial_6.jpg
Transportation, Supply Chain & Logistics

The Calgary Region is a transportation hub and intermodal distribution centre for western Canada.

Calgary Region supply chain logisitics transportation

 

Cost and service time benefits

Having your distribution centre in the Calgary Region allows you to provide service and reach customers at a lower cost and shorter travel time than than any other city in Western Canada.

 

Available & serviced land and logistics parks

The City of Calgary has nearly 12,000 hectares of industrial land supply, including more than 1,600 hectares of immediate and short-term land supply.

The City is serviced by three major industrial regions comprised of a network of industrial parks, intermodal facilities and on-airport logistics parks. Leasing rates for industrial space in Calgary remain lower than nearby cities, and land in the larger Calgary Region offers ample space for development at transportation nodes along major corridors.

Below are six sample developments situated along the north, south and eastern corridors along the CANA–MEX and Trans-Canada Highways outside the city limits: 

  1. The Town of Crossfield has a development with seven parcels of land at approximately three acres each.
  2. There are two private developments currently with lots available along the HWY 2 (CANAMEX Corridor) for T&L use in the City of Airdrie. They are the 80-acre Gateway Commerce Centre Industrial Park (Citiland Group) and the 211-acre Highland Business Park (Beedie Development Corporation).
  3. There are four development opportunities in the Okotoks area. Two developments in the Town of Strathmore also have shovel-ready lots available as of 2012. They are the Canal Crossing Development and Strathmore’s Industrial Park. Both parks are adjacent to the Trans-Canada Highway east of Calgary.
    • The Okotoks Business Park expansion area has shovel-ready lots for sale with excellent access and egress five minutes to the east via HWY 2 (CANAMEX Corridor).
    • Both Burnswest Corporation and Tri-Star Communities have private light industrial lots available for sale, lease and build to suit in the Southbank Business Park of Okotoks.
    • Larger affordable tracks of land are available for sale nearby in the Aldersyde Industrial Corridor area that lies between High River, AB and Okotoks, AB. This area, adjacent to CPR’s north/south line, has potential for rail-serviced lots.
  4. Two developments in City of Chestermere have shovel-ready lots available as of 2012. They are the TRUMAN DEVELOPMENT CORP. (9.04 acres) and Centron Group of Companies (248 acres). Both sites have excellent access to major highways, and Centron’s is adjacent to the Trans-Canada Highway east of Calgary.
Public transit

 

Calgary Transit

The Calgary Transit System is recognized as one of the most successful transit systems in the world, and is currently expanding to Calgary Region communities.

 

ROAM

ROAM is a local transit service in the Town of Banff.  It is the first municipality in Canada to have an all-hybrid electric transit fleet.  ROAM provides regional public transit service between Banff and Canmore.

 

ICE

Airdrie Transit is the City of Airdrie's public transportation system that includes local service and their Inner City Commuter Express (ICE). ICE is the Airdrie's transit system connecting Airdrie with Calgary. ICE offers two routes that provide easy access to downtown with transfers via Calgary Transit.

 

Rocky View Regional Handi Bus

The Rocky View Regional Handi Bus Society provides transit service to a several municipalities and areas within the Calgary Region.

An excellent business environment

Calgary is recognized as one of the most cost-effective places in western North America to establish a transportation and logistics hub.

Perhaps the best evidence of Calgary’s pro-business environment is the high level of investment transportation and logistics firms are making in Calgary – including the UPS cargo hub and the CN rail logistics park.

 

Low tax Rate:

Bringing your business to Calgary means taking advantage of lowest provincial corporate tax rate in Canada at 10 per cent including:

Combined federal/provincial corporate income tax rate at   

  • 25 per cent for general businesses
  • 14 per cent for small businesses
  • competitive corporate tax rate for manufacturers

There is also:

  • no inventory tax
  • no machinery and equipment tax
  • no payroll tax
  • 3 per cent small business tax rate
  • $500,000 small business income threshold

Investment is supported by an excellent quality of life, Alberta’s low tax rate (lowest in Canada) and head office status (114 firms) – which generates access to decision makers.

 

Links & reports

The Calgary Region Context and Competitive Advantage - Transportation & Logistics Report PDF

Calgary Economic Development transportation & Logistics sector profile

Transportation & logistics companies 

Major retailers like Wal-Mart, Costco, Rona, Shoppers Drug Mart, Canadian Tire, Safeway and Sears have selected Calgary as an integral part of their western distribution strategy. This is partly due to Alberta’s low tax regime, Calgary’s growing economy, its geographic location (i.e. centrally located in western Canada) and its well developed and evolving infrastructure. Their presence speaks to the sectors critical mass in the region.

Other examples include

  • Canadian Pacific Railway, one of six Class 1 railroads in North America;
  • Westjet, one of two pan-Canadian airlines; and
  • Mullen Group Ltd., one of Canada`s largest trucking providers,

All have their headquarters in the Calgary area.  Armstrong and Associates Inc. published a list of the Top 25 Global Logistics companies by 2006 revenue in the Global Logistics & Supply Chain Strategy magazine in May 2007. All of the top eight companies have a Calgary presence.

They are:   

DHL Supply Chain & Global Forwarding Panalpina, Inc.
Kuehne + Nagel C.H. Robinson Worldwide, Inc.            
DB Schenker Logistics Agility
UPS Supply Chain Solutions CEVA Logistics

A sample list of local notable T&L related companies:

Wal-Mart* DB Schenker
Canadian Tire CF Managing Movement*                
Sears XTL Transport*
Costco Canada* Cargill*
Assured Logistic (3PL for Amazon) CN*
Mullen Group Ltd* CPR
Palliser Lumber* FedEx
Whrilpool UPS
Lafarge Canada Inc* Purolator
Vanfax (Division of Belron Canada) Agrium Inc.*

The asterisk* in the list denotes a large presence outside the City of Calgary. For example, Mullen Group Ltd. is headquartered in Okotoks; Wal-Mart has a 300,000 square foot facility in Balzac; and CN has a 680 acre development in the Region. It should also be noted that Belron’s more common brands are Speedy Glass and Apple Auto Glass.

 

Road

The Region is intersected by Highway 1 (Trans Canada) – the world’s longest highway, and the 6,000 km CANAMEX Corridor (Highway 2) - a free trade corridor that extends from Alaska to Mexico.

This network minimizes the travel time to customers in western Canada, and is one of the main reasons why courier companies like FedEx, UPS and Purolator have large hubs located at the Calgary International Airport (YYC).

 

Rail

The Calgary Region is a major rail freight hub. Rail service is provided by both of Canada’s major railways (CP and CN), offering cargo access to markets in North America and abroad through the Ports of Vancouver and Prince Rupert. CPR and CN’s combined regional container traffic is approximately “330,000 20-foot equivalent units (TEUs) annually.”

CP is headquartered in Calgary, and its main line runs through the Calgary Region (East/West). CP opened a new intermodal facility in 1996.

In 2013, CN opened their 680-acre Calgary Logistics Park just northeast of Calgary.

 

Air

As one of Canada’s busiest airport, the Calgary International Airport is a major cargo hub, and is one of only three airports in Canada with direct flights to both Asia and Europe. With its extensive passenger and cargo connections to Canada, the U.S. and abroad, YYC contributes $6 billion in GDP to the regional economy. As an example of their growth, UPS opened a $30 million, 145,000 square foot cargo distribution facility in 2010.

The $2 billion Airport Development Plan (ADP) includes a new International Facilities (in service October 2015) and a new 14,000 foot runway (in service May 2014).  

 

Port

The Calgary Region sees a large share of activity from Canada’s busiest port, with 40 per cent of imports through Vancouver being distributed through Calgary. To support growth, over the 2009-2018 period, the City of Calgary is investing $3.5 billion in Calgary’s transportation infrastructure to keep Calgary connected.