Warren Kaeding MLA November Report from the Legislature

Nov 30, 2017

Global Transportation Hub update.

Financial viability

Unlike traditional land developers, the GTH was not designed to be a for-profit enterprise; this is an infrastructure designed to support trade for generations to come.

The self-governing inland port is already a success with twelve clients signed on, helping create jobs and new types of business opportunities for Saskatchewan.

The GTH is admired by its industry peers who understand that logistics parks take 25-30 years to reach full maturation.

Finances

The GTH budget is based on current scans and historical progress - challenging economic conditions have made it difficult for GTH to meet its sales goals; however, it's balance sheet remains strong with an equity position of just under $23 million last fiscal.

The GTH does not draw funding from the general revenue fund; operations are funded by land sales and taxation.

During its early years, the GTH had tremendous success creating unrealistic annual growth expectations.

  • 2015 - $5.8 million surplus
  • 2014 - $18.2 million surplus
  • 2013 - $236 thousand surplus

Over the last 5 years, the GTH has sold 329 acres of land generating $62 million.

The GTH has invested $42 million into its infrastructure to supports its current and future clients.

Economic impact

Private sector investment in the GTH has topped $485 million.

Over 860 fulltime jobs have been realized at the GTH while employment during construction has created 1,800 jobs.

4,800 trucks move in and out of the GTH every week.

Over $17 million generated in incremental diesel fuel tax and $15.2 million in provincial personal income tax.

Business development activities

The GTH's business development activities are very aggressive with ongoing discussions underway with more than 40 qualified prospects.

Over the past five years, the GTH has interacted with companies and organizations in 52 countries.