Federal designation as a Foreign Trade Zone (FTZ) will help the Global Transportation Hub (GTH) “level the playing field” with competitors and attract more tenants to the 1,800-acre logistics, storage and distribution centre west of Regina, says Bryan Richards, president and CEO of the GTH.
“The potential for clients to be eligible for exemptions and duty deferrals and tariff deferrals is a significant addition to our unique value proposition,” Richard said in an interview Monday.
This puts us on a level playing field with other Canadian locations and global locations in this key area.”
On Monday, the province announced the federal government had approved GTH as an FTZ, a “federally authorized location where imported goods may be stored, processed or assembled without being subject to import duties.”
An FTZ gives companies in the import and export business the ability to reduce and eliminate trade barriers, such as tariffs, quotas and compliance costs, which lowers operating costs and gets goods to market faster and more efficiently.
Economy Minister Bill Boyd, minister responsible for the GTH, said in a press release that FTZ status “opens the door to additional market opportunities and foreign investors, which we expect will create more economic growth and jobs in Saskatchewan.
“Being declared an FTZ puts the GTH on a more level playing field with other global locations and showcases Saskatchewan as a more attractive trading partner.” The GTH is now one of only six regions in Canada granted FTZ status. In Western Canada, Winnipeg, Calgary, Edmonton and Vancouver all have FTZ status. “It’s just a competitive advantage from our perspective,” Richards said.
Established five years ago, the GTH has attracted $485 million in private investment and created nearly 800 jobs by clients, such as CP Rail, Loblaw Companies, Consolidated Fastfrate, Emterra and Saskatchewan Liquor and Gaming Corp. A self-governing inland port authority, the GTH is situated near the CP Rail main line and close to two major highways.