CANADA’S PACIFIC GATEWAY

The Port City of Prince Rupert, on British Columbia’s northwest coast is a key component of Canada’s Pacific Gateway Strategy. Prince Rupert is the western terminus of the Northern Gateway Transportation Corridor that provides Asian shippers with a direct, uncongested corridor to eastern North American markets.

Canada’s Pacific Gateway is a strong commitment by government and industry partners to make British Columbia’s ports in Prince Rupert and Vancouver the preferred gateway for Asia-Pacific trade. This commitment builds on Canada’s longstanding and strong cultural and economic ties with Asia. Today, Canada’s Pacific Gateway is an integrated, secure and reliable transportation network that includes world-class airports, seaports, railways, roadways and border crossings, bringing Canada and the North American market to Asia and the world.

THE PORT CITY OF PRINCE RUPERT

The Port City of Prince Rupert is where the breath taking scenery of the north coast of British Columbia combines with first-class recreational attractions, state-of-the-art transportation and telecommunication infrastructure, abundant natural resources, and countless business development opportunities related to port development and an expanding transportation and logistics sector. Prince Rupert is also a welcoming, friendly, safe and affordable place to live and raise a family. Together these attributes make Prince Rupert an ideal place to live, work, invest and play.

The Port of Price Rupert enjoys many strategic advantages that translate into competitive advantages for companies interested in doing business here, including:

The closest port to Asia on the west coast of North America – up to 3 days closer than U.S. west coast ports

Superior uncongested rail and road connections between Prince Rupert and the rest of the North American continent, resulting in superior cargo transit times America’s mid-west.

The deepest natural, ice-free harbour in North America, able to accommodate the largest of container vessels

Safe, sheltered and unfettered access to and from international shipping lanes

Significant capacity for growth

4

THE HISTORY OF TRANSPORTATION IN THE AREA

Prince Rupert’s magnificent 14-mile harbour, located 550 miles north of Vancouver, BC, is one of the deepest, natural, ice-free harbours in the world. Long before European explorers arrived on the Northwest Coast, this area was one of the most densely populated areas of North America. The City of Prince Rupert lies at the heart of the traditional territory of the Tsimshian First Nation. This territory is bordered by the traditional lands of the Gitxsan, Nisga'a, Haida and Heiltsuk people, many of whom today make their home in Prince Rupert as well as in their traditional communities along the coast. For countless generations the Tsimshian people had engaged in trade activity by sea, river and land routes.

The Northwest Coast came to European attention during the Age of Discovery, when Spain, England and Russia all competed to expand their influence on the Pacific coast, but it was the fur trade that brought Europeans into direct and lasting contact with the First Nations of the coast.

By the end of the 19th century, fishing had become a major industry on the North Coast and dozens of cannery villages sprang up throughout the region to take advantage of the rich salmon runs of the Skeena and Nass rivers. The selection of Prince Rupert as the terminus of the Grand Trunk Pacific Railway in 1904, and the arrival of the first surveyors to the future site of Prince Rupert in 1906, marked the birth of the Port City of Prince Rupert. The location of this port provided the shortest shipping route between North America and the Orient.

During World War II, as the most Northerly railhead on the continent of North America, Prince Rupert served as a port of embarkation for the war in the Aleutians and the Pacific. Extensive facilities were built to handle the movement of American and Canadian troops and materiel that moved through Prince Rupert. During the war, the Skeena Highway between Prince Rupert and the City of Terrace was constructed, opening on March 16, 1942.

Access to Prince Rupert was further improved in the 1960s by the opening of the Digby Island Airport and the Alaska and B.C. Ferries terminals. Port development began in earnest with the opening of the Fairview Terminal breakbulk facility in 1977, followed by two terminals on the adjacent Ridley Industrial Park: Ridley Terminals Inc. in 1984 and Prince Rupert Grain in 1985. The Port of Prince Rupert entered the cruise business in 2004 with the opening of Northland Cruise Terminal, becoming a port of call for the Alaska cruise market. Fairview Terminal was converted to a dedicated intermodal container terminal in 2007.

5

THE TRANSPORTATION SECTOR TODAY

Today the Port of Prince Rupert is increasingly at the centre of a global trade corridor that connects Asia and North America. The rapid increase in the movement of goods and resources between the continents led to the creation of a modern container facility. The Prince Rupert Fairview Container Terminal began operations in the fall of 2007 and with this milestone was born a new high-speed, congestion-free trade corridor between Asia and North America.

The Port of Prince Rupert is strategically located directly on the Great Circle shipping route, and serves as the point of entry to the Northwest Transportation Corridor – a highly efficient road and rail network linking the rapidly growing Asian economies to North America’s consumer heartland. With modern high-throughput terminals and development properties available to support the growth of transportation-related industry, the Port of Prince Rupert offers many competitive advantages to shippers and producers who require reliability, speed and efficiency to move their cargoes.

The Port of Prince Rupert is supported by a range of transportation and logistics services. This is an important sector of the local, regional and national economies, one that is expected to grow rapidly as the Port expands.

6

BUILDING ON OUR SUCCESS

Containerization has quickly evolved into the primary mode of shipping cargo globally, and Prince Rupert is well positioned to take full advantage of the business opportunities that this trend represents. The 500,000-TEU Prince Rupert Container Terminal is one of the most efficient facilities on the continent. The new terminal has opened an Asia-North America high-speed gateway, the first transpacific trade corridor to be created in a hundred years. Expansion of the Fairview Container Terminal and the creation of new opportunities for transportation related industrial activity mark the next phase of development potential at the Port of Prince Rupert. The Ridley Industrial Park, a 405 ha industrial site featuring prime industrial oceanfront property, deepwater berthing, easy and safe access to international shipping lanes, and linked directly to CN’s uncongested Class 1 rail mainlines to major North American hubs, is but one available property with enormous potential for development. Other properties include South Kaien, Coast, and Lelu Islands. These properties represent almost 1000 acres of land that is available for a variety of complementary business activity including logistics clusters, short sea shipping, bulk terminals, shipyard and marine activities, container transfer terminals, and barge and heavy lift terminals.

The Port City of Prince Rupert is poised to undergo substantial growth and economic expansion. Businesses that establish operations in the Prince Rupert area and in communities along the Northern Transportation Corridor will benefit from the transformational infrastructure being created as a result of this new express gateway anchored by the Prince Rupert Port.

7

CONTAINER TERMINAL

FAIRVIEW CONTAINER TERMINAL – PHASE 1

This 59 acre container terminal is one of the first dedicated intermodal (ship to rail) container terminal in North America, with a designed capacity to move 500,000 TEUs (Twenty Foot Equivalent Units) per year. It is uniquely designed to efficiently handle the largest concentration of intermodal rail business. The terminal was completed in September 2007 and commenced operations with the arrival of COSCO’s Antwerp on October 31, 2007. Maher Terminals of New Jersey, one of the world’s largest independent multi-user container terminal operators, has a 30-year agreement with the Prince Rupert Port Authority to operate this new facility.

SPECIFICATIONS

98+% marine-to-rail intermodal

Design capacity: 500,000 TEU

360 metre (1,181 ft) container quay

17.0 metre berth depth (low tide)

3 Ultra Post Panamax cranes

Container yard capacity: 9,430 TEU (4 high)

Reefer stacks with 72 plugs

7 working tracks (3,810 metres, 12,500 ft), 6 storage tracks (2,255 metres, 7,400 ft)

4 radiation scanning portals; on-site VACIS screening

8

COMMODITY TERMINALS

The Port of Prince Rupert's terminals are among the most modern and best-equipped in Canada, offering fast, efficient service for loading products. Prince Rupert Grain Ltd. is a high-throughput grain terminal for exporting Canada Wheat Board grains such as wheat and barley. Ridley Terminals Inc. is a highly efficient bulk terminal handling export coal, petroleum coke and wood pellets from Western Canada. Both facilities have additional capacity to increase their throughputs. Our deep water, ice-free port ensures year-round operations and direct access to North Pacific shipping lanes. Prince Rupert’s commodity terminals are serviced by Canadian National Railway (CN).

PRINCE RUPERT GRAIN TERMINAL

With capacity to ship in excess of seven million tonnes a year, Prince Rupert Grain's modern terminal has the highest throughput of any grain-cleaning elevator in Canada. Its eight shipping bins and three tower-mounted loading spouts can load up to 4,000 tonnes of wheat or barley an hour. Using state-of-the-art technology, grain can be cleaned as fast as it is unloaded from rail cars. Designed to clean to export standards two primary commodities - wheat and barley, the Prince Rupert Grain Terminal also processes by-products such as grain screening pellets, feed screenings, mixed feed oats and associated commodities.

SPECIFICATIONS

Total terminal rail trackage of 17 kilometres

Storage capacity (wheat equivalent) of 202,000 tonnes

Annual design throughput of seven million tonnes

A single berth handles ships up to 145,000 DWT

Water depth of 14.5 metres (47.6 ft)

Loading rate of 4,000 tonnes per hour

9

RIDLEY TERMINALS INC

Ridley Terminals Inc., a federal crown corporation, owns and operates the most advanced coal unload and loading terminal of its kind, making it a world leader in the efficient and reliable movement of coal from unit trains onto ships. This 55 hectare terminal loads metallurgical and thermal coal, petroleum coke, wood pellets, at the rate of 9,000 tonnes per hour and has the potential to ship other products such as sulphur. It is a highly efficient and automated facility incorporating advanced technology that protects the environment while maintaining an annual shipping capacity of 12 million tonnes.

SPECIFICATIONS

With its berth-side depth of 22 metres (72 ft), Ridley Terminals Inc. can readily handle VLCC vessels of 250,000 DWT.

Annual shipping capacity of 12 million tonnes

On site storage for 1.2 million tonnes

Tandem rotary dumper tips 65 cars per hour without uncoupling, equal to an unloading rate of 6,000 tonnes per hour.

Ships load up to 9,000 tonnes per hour

Berthing dolphins of 150 meters (492 ft).

Mooring dolphins of 370 meters (1,214 ft).

Moors vessels of 325 meters (1,066 ft) LOA. 50-meters beam. 22-meters draft. 250,000 dwt.

Two quadrant slewing ship loaders with a loading rate capacity of 4,500 TPH each. Able to load vessels to a maximum height of 34 meters above LLW.

10

RAIL CONNECTIVITY

CANADIAN NATIONAL RAILWAY

CN’s rail network connects Prince Rupert to the North American continent. The northern mainline from Prince Rupert is free of any urban congestion. The rail line tracks along open valley bottoms and has the lowest grade (<1%) of any railroad across the Rocky Mountains. As a result, CN can run much longer and faster trains that use less fuel and experience fewer weather-related interruptions. In addition, the CN line has significant capacity to accommodate large increases in cargo traffic.

CN Rail has a mainline that runs between the Port of Prince Rupert and Valemount, BC where the mainline joins the CN mainline from Vancouver. Prince Rupert is the export point for vast reserves of western Canadian metallurgical and thermal coal as well as grain, wood products, chemicals and containers. CN’s outstanding on-time delivery record and the Port of Prince Rupert’s throughput capabilities have resulted in unprecedented single-line connections for customers shipping products between Prince Rupert and distribution centres across Canada, the U.S. and into Mexico.

CN NORTH AMERICAN RAIL MAP

11

HIGHWAY NETWORK

The Yellowhead Highway Corridor, Canada’s second major highway, stretches 3,500 kms across Western Canada, from Masset on Haida Gwaii through Prince Rupert to Winnipeg, Manitoba, where it connects to the Transcanada Highway.

HIGHWAY DISTANCES

NORTHERN BC HIGHWAYS MAP

Metro Area Distance (Km’s)

Prince George 719

Kamloops 1,002

Edmonton 1,239

Vancouver 1,457

Calgary 1,498

Victoria 1,503

Seattle 1,614

Portland 1,893

12

NORTHERN COORIDOR SPECIFICATIONS

Commercial Vehicle

Without Permit

Specifications

Maximum Width 2.59 meters

Maximum Height 4.15meters

Maximum Vehicle Weights

Super B 63,500 kgs

Single Axel 9,100 kgs

Tandem Axel 17,000 kgs

Tridem Axel 24,000 kgs

Commercial Vehicle

With Permit

Specifications

Maximum Width 4.4 meters

Maximum Height 4.72 meters

Maximum Vehicle Weights

Super B 64,000 kgs

Single Axel 9,100 kgs

Tandem Axel 23,000 kgs

Tridem Axel 29,000 kgs

OVERHEAD CLEARANCE

Yellowhead Highway 16 from BC Border to Prince Rupert Clearance (meters)

Khyex River Bridge 5.95m

Kitsequcla Overpass 5.7m

Tete Jaune underpass 4.96m

Highway 37 from Hwy 16 North to Yukon Border

Bell Irving River Bridge #2 5.74m

Devil Creek Bridge 5.74m

Highway 37 from Hwy 16 South to Kitimat

Williams Creek Bridge 4.97m

Hirsch Creek Bridge 4.72m

Kitimat River Bridge 5.08m

Highway 37A from Hwy 37 To Stewart

No Clearances are needed

13

ADDITIONAL TRANSPORTATION AND LOGISTICS SERVICES

The Port of Prince Rupert is home to a variety of businesses and services that support the movement of people and goods. As the Port expands in the coming years, these supporting services will expand in number and scope, creating opportunities for

new investment.

MAHER TERMINALS

Maher Terminals provides loading and unloading services for containers and transfer from ship to rail. Maher facilitates trade with eastern Canada and the American Midwest by providing efficient service to the global container industry.

CONTAINER TRANSLOADING AND STUFFING

Transloading and de-stuffing services are available in bonded and non-bonded warehouses in support of import activity. Services are also currently being provided in support of a variety of raw material exports, including raw logs, aluminum, packaged lumber, scrap steel and paper and capacity exists for more such export activity. A number of fish and seafood processors operate out of Prince Rupert – this is a growing activity on the north coast.

CONTAINER INSPECTION

The Port of Prince Rupert is home to a state of the art Canada Customs bonded inspection facility.

TRUCKING

Several local container drayage companies provide service to the Port and medium and long haul trucking services are also available as are bonded trucking carriers with national and international (North America) reach.

REFUELLING

Bulk fuel services are available for truck and rail traffic. Marine diesel is available by request in any quantity. No bunkering capacity is currently available

REFRIGERATION SERVICES

Refrigerated cold storage warehousing is available and a refrigerated machine technician available to service marine containers. Maher Terminals offers 72 reefer plugs (440 volt).

MECHANICAL / FABRICATION / REPAIR

Experienced local marine fabrication and repair businesses provide a wide range of services.

TUG AND BARGE SERVICES

Vessel docking tug services, including tractor tugs service the Port. Coastal barging and log towing services are also available.

RAIL SERVICES

There are daily scheduled arrivals and departures between Prince Rupert and North American destinations serviced by CN Rail.

14

PASSENGER TRANSPORTATION

While the opening and expansion of the Fairview Container Terminal has attracted considerable worldwide attention, there is also a wide range of transportation-related businesses and activities moving people and goods that call Prince Rupert home. These include a cruise ship terminal, grain and coal terminals, the Prince Rupert Airport, and a host of supporting services drawn to the Port of Prince Rupert and connected to the continent by a first class air, marine, rail and road network.

NORTHLAND CRUISE TERMINAL: FIRST CLASS CRUISE FACILITIES

The Northland Cruise Terminal, constructed in 2004, is accommodating a growing number of large cruise ships calling on Prince Rupert as part of the Alaska cruise program. In 2007, nearly 100,000 passengers disembarked in Prince Rupert to explore ‘where the wilderness begins’. Atlin Terminal is the Port Authority's small ship cruise terminal, located in the eclectic Cow Bay area of Prince Rupert's waterfront.

Accommodates vessels up to 300 metres (984 ft) long and with 15 metre (49 ft) draft

8 mooring/breasting dolphins, floating dock mid-ship

Floating boarding system indexed to tide range

4,000 sq. Ft. Terminal

On-site customs clearance

Close to downtown and amenities

VIA RAIL

The Skeena, a three times weekly passenger rail service that connects Prince Rupert with Prince George and Jasper, is operated by Via Rail. This service takes two days and requires an overnight hotel stay in Prince George. The route ends in Jasper and connects passengers with VIA's The Canadian, which runs between Toronto and Vancouver.

15

BUS SERVICES

The City of Prince Rupert has seven local bus routes with service to all sections of the city and the Village of Port Edward. Greyhound Bus Lines offers daily service between Prince Rupert and Prince George, with connections to points north, south and east.

PRINCE RUPERT AIRPORT

Prince Rupert Airport (YPR/CYPR) is located on Digby Island at an elevation of 35 metres (116 ft) above sea level. The airport consists of one 1,829 metre (6,000 ft) runway, one passenger terminal, and two aircraft stands. Access to the airport is typically achieved by a bus connection that departs from one location in downtown Prince Rupert and travels to Digby Island by ferry.

The airport is served by Air Canada and Hawkair from Vancouver International Airport (YVR). Daily flights carry cargo, mail and travellers. The Prince Rupert Airport is strategically located mid-way between mainland Alaska and continental United States.

Prince Rupert Airport

Hub Status Commercial

Hours of Operation 8:00am-10:00pm

Customs Point of Entry Yes (By appointment)

Foreign Trade Zone No

Full Instrumentation Yes

No. of Runways 1

Runway Length 1,829 m

Carriers Air Canada, Hawk Air

Weekly Non-Stop Flights 28

OTHER AIR SERVICES

Prince Rupert is also served by the Prince Rupert/Seal Cove Water Aerodrome and a seaplane facility with regularly scheduled flights serving a range of charter needs, including sightseeing, fly in fishing trips, and flights to nearby villages and remote locations. The Seal Cove helidrome is home to several private helicopter companies.

BC FERRIES

BC Ferries offers year-round passenger and vehicle service to and from Prince Rupert. These modern ferries are equipped with passenger lounges with large viewing windows, outdoor observation areas, food service, cabins, and souvenir shops.

The BC Inside Passage Route travels between Prince Rupert and Port Hardy, located on the northern tip of Vancouver Island. It is a 15 hour scenic day-time journey in the summer and a 20 hour journey in the winter. The Queen Charlotte Islands Route is a six to seven hour trip from Prince Rupert to Skidegate on the Queen Charlotte Islands.

ALASKA MARINE HIGHWAY FERRIES

The Alaska Marine Highway Ferries (ASHS) is a ferry service operated by the government of the U.S. State of Alaska that provides regular connections between Prince Rupert and ports in Southeast Alaska. This marine highway system has been operating year-round for over thirty years, with regular passenger, vehicle and freight service to thirty Alaskan communities and Bellingham, Washington.

16

LOCAL FERRY TRAFFIC

The Digby Island Ferry service is operated by the City of Prince Rupert and connects the Prince Rupert Airport on Digby Island with downtown Prince Rupert. The Spirit of Lax Kw'alaams is owned and operated by the nearby First Nations Community of Lax Kw’alaams and connects the community to the City of Prince Rupert.

FOR FURTHER INFORMATION

As the Fairview Container Terminal and related port activity expands, Prince Rupert's strategic position as the gateway to the Northern Transportation Corridor will result in investment opportunities for local and international companies. Contact us at the Prince Rupert and Port Edward Economic Development Corporation for more information.

Prince Rupert and Port Edward Economic Development Corporation

424 – 3rd Ave. West, Prince Rupert, B.C. V8J 1L7

Phone: 250-627-5138

www.predc.ca

Prince Rupert and Port Edward Economic Development Corporation

424 – 3rd Ave. West, Prince Rupert, B.C. V8J 1L7

Phone: 250-627-5138 www.predc.ca

Northern Development Initiative Trust

Contact for information on financial incentives for manufacturing companies

Invest BC

Contact for investor site selection and expansion services.

www.northerndevelopment.bc.ca www.investbc.com