Calgary Region: An Inland Port
Calgary has a more resilient economy than many people believe. Yes, Calgary’s key economic engine is oil and gas, but over the past 10 years, our economy has diversified quite significantly.
Calgary is a major education center with seven post-secondary schools – University of Calgary, Mount Royal University, Southern Alberta Institute of Technology, Alberta College of Art and Design, Bow Valley College, St. Mary’s University and Ambrose College.
Calgary is a major medical centre with Foothills Medical Centre, Rockyview Hospital, Peter Lougheed Hospital, South Campus Wellness Centre, Alberta Children’s Hospital and University of Calgary Medical School.
Calgary’s growth and development as a major education and medical centre is likely less of a surprise than the fact that the Calgary region is now one of North America’s major inland ports. An inland port is a specialized facility that allows for efficient transfer of goods via both trucks and rail using standard shipping containers across a specific region.
The purple areas indicate Calgary's industrial lands which are a low density land-use, but critical to the city's economic diversification. (source: City of Calgary website)
This image illustrates the influence on development having a major airport within the city boundaries has on development. (source: City of Calgary website)
Top 7 things you should know about the Calgary Region Inland Port:
#7 Economic Impact
Transportation and logistics industries employ over 76,000 Calgarians in 4,966 businesses and have a Gross Domestic Product of $4.79 billion. Add in manufacturing and you add another 47,100 employees, 1,830 businesses and $6.72 billion in GDP. There are 70% more Calgarians employed in these three related sectors than in the Energy sector. (Source: Calgary Economic Development)
#6 Truck Advantage
Calgary sits at the epicenter of major east/west/north/south highway routes, connecting not only eastern and western Canada but also northern Canada with the United States and Mexico (through the CANAMEX corridor).
Within one truck’s day drive of Calgary, (13 hours being a trucker’s standard day) you can access a market in excess of 18 million people. Extend that to a 24-hour day and you can access over 50 million people.
One of many distribution centres in Calgary with trucks loading and unloading goods to be truck to destinations across western Canada. (photo credit: Peak Aerials)
#5 Education
Secondary and post-secondary school systems in Calgary are increasing their focus on providing essential learnings in transportation supply chain and logistics. The U of C’s Haskayne School of Business, Mount Royal University, SAIT Polytechnic and Bow Valley College all provide or are developing courses that support the multiple entry level positions in Supply Chain Management, Distribution, Warehousing and Transportation. Why? Because it is estimated there will be demand for over 5,000 more jobs in these sectors due to growth over the next 10 years.
As well, Calgary’s Van Horne Institute is recognized internationally as a leader in public policy, education and research in transportation, supply chain, logistics and regulated industries.
#4 Rail Advantage
CN Rail's Calgary Logistic Park
The Calgary Region is home to two major intermodal operations. CP Rail not only has their headquarters in Calgary, but they also built a state-of-the-art facility in 1999 on a 100-acre site in Dufferin Industrial Park. In 2013, they averaged 550 to 800 trucks a day and an average monthly volume of 15,000 handlings a month.
CN Rail opened its new $200 million Calgary Logistics Park in January 2013 just outside the city limits in Conrich with 680 acres for future development. The Park has great connections to not only Vancouver and eastern Canada, but also to the port of Prince Rupert BC, which is advantageous for access to the lucrative Far East market.
Collectively, the two intermodal sites handled 822,000 containers in 2014, which is more than the Port of Prince Rupert, which for an inland port, is very significant.
Calgary has excellent connectivity to eight international seaports by rail and truck - Vancouver, Seattle, Tacoma, Prince Rupert, Houston, Galveston, Montreal and Halifax.
Calgary rail yard. (photo credit: Peak Aerials)
#3 Airport Advantage
Calgary International Airport (YYC) is located on a 21-square kilometer tract of land with 142,398 square meters of terminal buildings. Four runways can handle the largest planes in the world today as well as the anticipated next generation of planes. It is a hub for Canada’s two largest airlines – West Jet and Air Canada.
Calgary International Airport continues to expand its capacity for both passenger and cargo traffic.
Calgary International airport in the late '70s.
YYC is also a connecting hub for cargo services between North America, Asia and Europe. As well, it one of only two airports in Canada that offer cargo and passenger service to both Europe and Asia. From YYC, you can access almost any point in the world either directly or with only one stop.
In 2014, over 128,000 tonnes of cargo were shipped through the Calgary Airport, a 5.5% increase over 2013. YYC, with its three million square feet of warehouse space on airport land, has more than any other Canadian airport.
YYC is also Canada’s third busiest passenger airport - 200 flights per day travel to 78 non-stop destinations.
With YYC having over 24,000 jobs on airport land and being responsible for creating 48,000 jobs across the city, it . contributes $8.28 billion to Calgary’s economy each year (Source: Calgary International Airport Authority).
This Google Earth map shows how the Calgary International Airport has become a hub for both warehouse and housing development. Northeast Calgary is a booming airport city, similar to Richmond in British Columbia and Mississauga in Ontario. The northeast now has more hotel rooms than downtown.
#2 Mega Distribution Hubs
Calgary has attracted several major distribution hubs - Costco, Walmart, Loblaws, Sears, Canadian Tire Group, Marks’ Work Warehouse, Forzani Group, Canada Safeway, Gordon Foods Service, Sysco and the soon-to-open, one million square foot Home Depot facility - to supply Western Canada.
Warehouse space in use at the end of 2014 was about 120 million square feet, up from 75 million in 1990 – a 60% increase over 14 years.
#1 Vision/Collaboration
The Calgary Region has a shared vision to capitalize on the region’s potential as a major distribution hub/inland port. A strong collaborative approach exists between Calgary Economic Development, the Calgary Regional Partnership, The Calgary Logistics Council, Calgary Airport Authority and the Van Horne Institute.
The region is strategically planning for long-term requirements 50 years out, including a second ring road. Already, the visioning and collaboration has resulted in the creation of the “High Wide Corridor to accommodate larger oversized truck loads across the Province.
Last Word
Many Calgarians have little or no appreciation for what happens east of the Deerfoot Divide. Ward 3 in the north and Ward 12 in the southeast are Calgary’s two fastest growing wards at 8.5% and 9.3% respectively – three times the city’s average. It is no wonder Calgary’s fastest growing communities are in the NE and SE quadrants and developers like Brookfield Residential creating new mini-downtowns in the south (SETON) and the north (Livingston).
Too often Calgary’s urban sprawl critics assume Calgary’s massive footprint is because of the demand for single-family residential development and that the major roads and interchanges are for downtown commuters. This assumption is wrong as only 20% of those who live in the ‘burbs work downtown. Warehousing, logistics and manufacturing require large amounts of land for massive one-story buildings. The expansion of Calgary’s roads and interchanges is directly linked to Calgary’s expanding manufacturing, distribution and logistic sectors, our new and growing economic engines and a key part of Calgary’s 21st century DNA.
It’s high time we realize Calgary is no longer a one-horse town; perhaps our new moniker should be the “City of Trains, Planes and Trucks!”
An edited version of this blog appeared in the Calgary Herald, May 2, 2012 titled: "Calgary region is an inland port."
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