Absorption 3.1 $ 10 · distribution/warehouse facilities distributing to BC? > Distribution from Calgary via rail to the intermodal terminal in BC > Large number of trucks from Calgary

Absorption

4.8MSF

New Supply

3.1MS F

Vacancy

1.7%Avg. Asking Rates

$10.23 PSF

2017 YEAR-END KEY PERFORMANCE INDICATORS

2nd Highest Annual Total

1.72% of Total Inventory 10 Year Low All Time High

ABSORPTION

360,000 SF4.8MSF in 2017

NEW SUPPLY

337,000 SF4.6MSF

Under Construction

VACANCY

1.6%AVG. ASKING RATES

$10.93 PSF

CONTINUED STRONG FUNDAMENTALS

Q1 2018

VANCOUVER | HISTORICAL INDUSTRIAL DEMAND

AVERAGE ANNUAL ABSORPTION HAS INCREASED 2.7 TIMES

2.9

1.8

-0.5

1.5 1.5

3.8

2.7

1.4

6.7

4.0

4.8

-1

0

1

2

3

4

5

6

7

8

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

Annu

al Ne

t Abs

orpt

ion (M

illion

Sq. F

t.)

1.9 MSF Av. 5.1 MSF Av.

Source: CBRE Research, Q4 2017; CBRE Economic Advisors, Q2 2017.

Source: CBRE Research, Q4 2017.

VACANCY AND ABSORPTION FORECAST

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

0

1,000,000

2,000,000

3,000,000

4,000,000

5,000,000

6,000,000

7,000,000

8,000,000

2010

2011

2012

2013

2014

2015

2016

2017

2018

F

2019

F

Absorption (SF) New Supply (SF) Vacancy (%)

"No Absorption" Forecast "Mid Absorption" Forecast*5-year average

"High Absorption" Forecast*3-year average

FORECAST

NORTH AMERICAN INDUSTRIAL | AVAILABILITY RATES

LOWEST AVAILABILITY RATES (MARKETS EXCEEDING 100MSF)

0%

1%

2%

3%

4%

5%

6%

7%

8%

Toro

nto

Vanc

ouve

r

Oran

ge Co

unty

Los A

ngele

s

Wat

erloo

Detro

it

Portl

and

Cincin

nati

Char

lotte

Oakla

nd

Milw

auke

e

Seat

tle

Salt

Lake

City

Cleve

land

Cent

ral N

ew Je

rsey

Las V

egas

Mont

real

Colu

mbu

s

Minn

eapo

lis/S

t. Pa

ul

Inla

nd Em

pire

Indi

anap

olis

St. L

ouis

Chica

go

Rich

mon

d

Miam

i

Avail

abili

ty Ra

te (%

)

Vancouver = 2nd Lowest

Source: CBRE Research, Q3 2017

Population

Growing at a rate of 115 people per day

Consumer Demand

Retail sales up 6.8% in 2017(a record high)

GDP Growth

Averaged 3.85% annually the past 4 years

METRO VANCOUVER ECONOMIC SNAPSHOT

CONTINUED STRONG FUNDAMENTALS

VANCOUVER INDUSTRIAL | TOP 20 LEASE TRANSACTIONS BY INDUSTRY

75% OF DEALS DRIVEN BY CONSUMER GOODS

14.8%

2.4%

31.3%

26.1%

17.8%

7.5%

3PL

Film

Food and Beverage

Furniture / Building Supplies

General Consumer Goods

Scientific & Technical

Source: CBRE Research, Q4 2017.

242 KSF 214 KSF 113 KSF 116 KSF 115 KSF 454 KSF 347 KSF 161 KSF 134 KSF 191 KSF 161 KSF

1,096K569KQ4 2018Q3 2018Q1 2018 Q2 2018

PITT MEADOWS

SURREY DELTA BURNABY DELTA TFN LANDS SURREY DELTA DELTA VANCOUVER ABBOTSFORD

GOLDEN EARS BP BUILDING

200

SOUTH SURREY BP BUILDING 1

BUCKINGHAM INDUSTRIAL

ESTATES

CRESCENT PHASE 2

DELTA LINK BC PHASE 1

DELTAPORT LOGISTICS

CENTRE

CAMPBELL HEIGHTS WEST BP

BUILDING 100 &200

DELTA LINK BUSINESS

PARK

DELTA LINK BC PHASE 2

IRONWORKS GATEWAY EAST BC

BUILDING 1

PRE-LEASED PRE-LEASED AVAILABLE PRE-SOLD PRE-SOLD AVAILABLE AVAILABLE AVAILABLE PRE-SOLD 68% PRE-SOLD PRE-LEASED

231K 352KTOTALSF

SPEC PROJECTS 100,000 SF OR GREATER

TENANTS ARE IN THE MARKET EARLY

$0.00

$200.00

$400.00

$600.00

$800.00

$1,000.00

$1,200.00

$1,400.00

$1,600.00

$1,800.00

3,700

3,750

3,800

3,850

3,900

3,950

4,000

2012

2013

2014

2015

2016

2017

2018

F

Thou

sand

s

Inve

ntor

y (Ac

res)

Inventory (Acres) *Land Cost ($/acre)*Parcel sizes ranging from 1.5-7 acresSource: CBRE Research, RealNet.

FORECAST

METRO VANCOUVER | INVENTORY AND PRICE ANALYSIS

STRATA PRICING ANALYSIS

SF $ PSF Total $ AnnualPMT

Annual PMT PSF

(+) 50 BPS

Brentwood 10,000 $425 $4,250,000 $212,038 $21.20 $22.13

NW Langley 10,000 $295 $2,950,000 $147,179 $14.71 $15.36

Mitchel Island 10,000 $320 $3,200,000 $159,652 $15.96 $16.66

Bridgeview 10,000 $330 $3,300,000 $164,641 $16.46 $17.18

CampbellHeights

10,000 $325 $3,250,000 $162,147 $16.21 $16.92

Not included• Closing Costs• Property Transfer Tax• Tenant Improvements (based on shell)

Assumptions• 30% Down Payment• 20 Year Amortization• 5 year Loan Term• 3.8% interest rate

DENSIFICATION OF INDUSTRIAL | SOUTH VANCOUVER

ACHIEVED = 0.83 FSR PROPOSED = 3.0 FSR

UNDER CONSTRUCTION = 1.41 FSR

8811 Laurel Street 8729 Aisne Street

8223 Sherbrooke Street

SEATTLE’S NEW URBAN INDUSTRIAL

METRO VANCOUVER INDUSTRIAL STATISTICS Q1 2018

OVERALL SUMMARY

Q1 2018 Vancouver Burnaby Richmond Tri-Cities/NW Delta/TFN Lands Surrey Langley

Maple Ridge/Pitt Meadows

Abbotsford NorthVancouver

MetroVancouver

Inventory 22,863,561 28,234,717 35,871,397 17,571,025 23,681,190 32,942,674 14,633,076 3,194,908 5,682,129 5,360,556 190,035,233

Availability Rate 2.6% 2.3% 2.1% 2.0% 3.3% 1.6% 2.5% 2.4% 3.5% 1.3% 2.3%

Vacancy Rate 1.7% 1.4% 1.7% 1.4% 2.3% 0.9% 2.1% 0.8% 1.6% 0.8% 1.6%

Vacant Inventory 397,722 384,934 622,338 243,489 552,128 290,337 304,927 24,909 92,027 41,066 2,953,877

Absorption (Q1 2018) -89,267 220,062 -30,224 29,952 -136,259 238,078 -63,079 160,670 56,476 -26,423 359,986

New Supply (Q1 2018) 4,963 0 0 0 0 332,076 0 0 0 0 337,039

Under Construction 423,072 545,237 286,000 249,773 *1,176,945 969,557 169,640 326,422 420,000 17,348 4,583,994

Average Net AskingLease Rate ($/sq. ft.)

$16.53 $11.84 $10.17 $11.06 $8.56 $9.03 $9.46 $8.75 $7.02 $17.59 $10.90

TMI ($/sq. ft.) $5.52 $4.14 $4.12 $4.28 $3.42 $3.40 $4.13 $2.23 $3.08 $5.76 $4.15

Gross Rental Rate ($/sq. ft.) $22.05 $15.98 $14.29 $15.34 $11.98 $12.43 $13.59 $10.98 $10.10 $23.35 $15.05

* 453,620 sq.ft. is being developed at the Tsawwassen First Nation Lands

METRO VANCOUVER INDUSTRIAL STATISTICS Q1 2018

EXISTING VACANT SPACE BY SIZE CATEGORY

City 0-5,0005,001-10,000

10,001-25,000

25,001-50,000

50,001-75,000

75,001-100,000

100,001+

Total (Sq.Ft.)

0-5,0005,001-10,000

10,001-25,000

25,001-50,000

51,001-75,000

75,001-100,000

100,000+

Abbotsford 11,495 26,211 54,321 - - - - 92,027 4 3 3 - - - -

Burnaby 12,370 29,738 48,230 33,383 - - 261,213 384,934 4 4 3 1 - - 2

Delta 14,946 6,868 66,038 152,867 - 76,780 234,629 552,128 5 1 4 4 - 1 1

Langley 22,234 79,070 126,453 77,170 - - - 304,927 7 11 8 2 - - -

Maple Ridge/Pitt Meadows 4,401 8,000 12,508 - - - - 24,909 1 1 1 - - - -

North Vancouver 20,504 20,562 - - - - - 41,066 8 3 - - - - -

Richmond 15,620 15,370 65,320 196,771 69,800 - 259,457 622,338 6 2 3 5 1 - 2

Surrey 35,894 38,769 70,713 80,904 64,057 - - 290,337 13 5 4 2 1 - -

Tri-Cities/New Westminster 21,047 21,527 125,398 75,517 - - - 243,489 8 3 8 2 - - -

Vancouver 90,462 61,929 128,763 116,568 - - - 397,722 36 8 8 3 - - -

Metro Vancouver Total (Sq.Ft.) 248,973 308,044 697,744 733,180 133,857 76,780 755,299 2,953,877 92 41 42 19 2 1 5

METRO VANCOUVER

Regional Supply and Demand Gap

May 10, 2018

TEAM

Pat PhillipsVice PresidentPersonal Real Estate CorporationVancouver, BC

Geoffrey ChartersAssociateVancouver, BC

OBJECTIVES

1. What factors are contributing to the lack of industrial supply?

2. What land is available in Calgary versus Vancouver?

3. Companies who have a significant distribution presence in Calgary from

which they service the Vancouver market

4. Companies who would like a larger presence in BC but have not found

a suitable site or building

OBJECTIVES

5. Why do companies leave the GVA?

6. Why are companies staying here, and what (if anything) do they

sacrifice?

7. How are companies who relocate to Calgary distribution/warehouse

facilities distributing to BC?

8. Tenant Facility Comparison


> Historically low vacancy rates

> Growth of e-commerce Internet-based sales from both store and non-store retailers rose

31% to $15.7 billion in 2017*

Require different building specs Larger square footage, higher employee count and parking

requirement, access to more labour

*Stats Canada

1. What factors are contributing to the lack of industrial supply?> Alternative uses outside of traditional industrial

Film $2.6 Billion in BC in 2017, an historical high

Recreational uses

Cannabis In Colorado, 63.4% of space used to grow cannabis is in warehouse

space.

Industrial strata


> Increase in Port traffic/container Shipping 10% increase in container traffic last year. 2,900,000 containers.

> Lack of highway infrastructure

> Severe lack of available development lands

Very few if any well located land sites for development,

especially for medium and larger uses (greater than 5

acre sites)

Land prices - doubled in Campbell Heights in the past 24

months; have risen greatly in every GVA market

2. What land is available in Calgary versus Vancouver?> Calgary – Currently available for development

90 acres

110 acres

200 acres

> Calgary – Upcoming land (18-24 months) 120 acres

700 acres

3. Companies who have a significant distribution presence in Calgary from which they service the Vancouver market

> Home Depot (were formerly in Delta)

> Lowe’s (can’t find suitable space)

> Canadian Tire (had a small warehouse in Langley previously)

> Acklands Grainger (moving at present)

> Whirlpool

4. Companies who would like a larger presence in BC but have not found a suitable site or building

> Walmart (have been looking for a long time)

> Sobeys

> Costco (would like to double their distribution)

> Lordco (also would like to at least double their distribution)

> Amazon (will be forced to leave Braid Road, their main facility)

> Loblaws (forced to renew T&T’s current distribution facilities after

looking at consolidation options)

5. Why do companies leave the GVA?

> They cannot find the space they require Extreme low vacancy, high land prices, multiple offers on almost

every industrial building in the market

> Labour availability The #1 issue facing our market – access to transit, labour, home

prices all major factors

General labourers are in high demand and very short supply

6. Why are companies staying here, and what (if anything) do they sacrifice?> Customers and business are BC based

> Access to seaports in Metro Vancouver

> Skilled labour based in Metro Vancouver

> Save on Foods example EV Logistics, 2 large facilities totaling 800,000 SF in Gloucester,

purchased a number of years ago (early 2000’s) and allow them

to keep distribution in Vancouver.

Very few or no options for other large companies to do the same

6. Why are companies staying here, and what (if anything) do they sacrifice?> Business Growth

Companies are forced to stay in non-ideal (smaller) facilities

because they cannot find suitable warehouses that allow for

growth – 3 examples for us this year alone

Limited new markets outside the GVA with Abbotsford and

Chilliwack also constrained

> Outsourcing distribution Though third party providers also close to full, especially in the

cold storage and food industries

6. Why are companies staying here, and what (if anything) do they sacrifice?

> Relocating to areas within the GVA but outside where they

would like to be Higher transportation costs

Lower access to labour

Loss of business efficiencies

7. How are companies who relocate to Calgary distribution/warehouse facilities distributing to BC?

> Distribution from Calgary via rail to the intermodal terminal in

BC

> Large number of trucks from Calgary to Vancouver

> Some use Vancouver’s seaports, ship to Calgary and then

back to Vancouver

> Large distribution hubs in Calgary and small distribution hubs

in BC – a model that will continue to grow

8. Tenant Facility Comparison

CALGARY:

Lowe’s

> – no current GVA distribution for Lowe’s business, though

Rona has a Surrey facility: Facility 1: 11900 18th Street NE 169,093 SF

Facility 2: 5543 72nd Avenue SE 140,890 SF

Facility 3: 1980 104th Avenue NE 377,275 SF

Sobeys 260199 High Plains Boulevard, Balzac, AB 1,310,620 SF

Canadian Tire

> Former Langley distribution 62,000 SF

Canadian Tire

> Calgary distribution 1,620,899 SF Facility 1: 5505 72nd Avenue SE 186,746 SF

Facility 2: 5855 A 68th Avenue SE 454,977 SF

Facility 3: 6333 114th Avenue SE 954,813 SF

Facility 4: 7155 64th Street SE 24,363 SF

Walmart

> Calgary distribution: 2,571,182 SF Facility 1: 261043 Range Road 292, Balzac 428,000 SF

Facility 2: 261039 Wagon Wheel Crescent, Balzac 387,000 SF

Facility 3: 4100 Westwinds Drive NE 302,156 SF

Facility 4: 3400 39th Avenue NE 1,201,060 SF

Facility 5: 5801 72nd Avenue SE 252,966 SF

Home Depot

> Former Delta distribution – closed and moved to Calgary

412,057 SF

Home Depot

> Calgary Distribution Facility 1: 10600 68th Street SE 425,000 SF

Facility 2: 10600 B 68th Street SE 640,000 SF

THANK YOU

Putting Industrial Land Use in Context

Industrial Lands Task Force

10 May 2018

Peter Hall

Urban Studies Program, SFU

Context – it’s not working

• Our over-specialized regional economy

• Technology will change things, but won’t save us

• The challenge of inequality

Our over-specialized regional economy

Technology will change things, but won’t save us

Village Voice 4 May 2016

The challenge of inequality

Trade-offs

• Scale: volume/mass vs flexibility/speed/convenience

• Integration: inter-regional vs intra-regional

• Spaces: highest and best vs the uncertain possible

NelsonRoad

No 8 Road

Portside Road

Blundell Road

No7 Road alignment

Westminster Highway

Coast 2000

Euro-Asia Transload

Adesa Public Auction

KingswoodIndustrial Estate

HBC Logistics

Lafarge Cement

Canfor and Simard-Westlink

Source: Google Earth

Inter-regional vs Intra-regional

Spaces:

- Old/cheap

- Accessible

- UnfilledRotterdam

Strategies: space for industrial uses

• Creating shared knowledge

• Port governance reform

• Regional industrial land revenue fair share

Creating shared knowledge

Port governance reform

Current Board

Federal appointee

Western provinces appointee

BC appointee

Municipal appointee

User nominee 1

User Nominee 2

User Nominee 3

User Nominee 4

User Nominee 5

User Nominee 6

User Nominee 7

Potential future Board

Federal appointee

Western provinces appointee

BC appointee

Burrard municipal appointee

Fraser municipal appointee

Coast Salish

appointee

User nominee 1

User Nominee 2

User Nominee 3

User Nominee 4

Port worker

nominee

Regional industrial land revenue fair shareVancouver, West Vancouver… could compensate Surrey, Delta, Richmond… tofund mitigation, buffers, active transport, strategic (waterfront) land acquisition, etc.

$352,000

$1,311,000

$879,000

$1,576,000

$1,294,000

$2,307,000

$3,716,000

$573,000$511,000

Tax based on total assessed value Revenue based on total industrial land area

White Rock

West Van.

Vancouver

Surrey

Richmond

Port Moody

Port Coquitlam

Pitt Meadows

DNV

CNV

New West.

Maple Ridge

Lions Bay

C Langley

D Langley

Delta

Coquitlam

Burnaby

Bowen Island

Belcarra

Anmore

Putting Industrial Land Use in Context

• Its not working• Over-specialization• Technology• Inequality

• Trade-offs• Scale• Integration• Spaces

• Strategies• Shared knowledge• Governance reform• Revenue-sharing

Metro Vancouver Industrial Lands Inventory

Heather McNellDIRECTOR OF REGIONAL PLANNING AND ELECTORAL AREA SERVICES

Industrial Lands Task Force – May 10, 2018

2

OUTLINE

• Purpose and Approach

• Report Components

• Inventory Results

• Key Findings

3

To provide a comprehensive

picture of the amount and type of

industrial land in the Metro

Vancouver region

PURPOSE

4

Who: Municipalities, agencies, developers, consultants

What: Land Quantity, Land Utilization,

and Change over time (2005 to 2010

and 2010-2015)

APPROACH

5

• Region, sub-region, and municipal

• Detailed and Consolidated land use

classifications

• Land use designation / zoning status

• Land ownership

• Site size

RESULTS BY…

• 11,331 hectares (28,000 acres) of land in Inventory

• 8,700 sites consolidated from 11,000 parcels

• 24 Detailed land use classifications; 7 Consolidated

• 9 geographic sub-regions

• 9,071 ha (22,414 ac) is ‘Developed’ (80%)

• 2,261 ha (5,586 ac) is ‘Vacant’ (20%)

6

SUMMARY

7

1. Conversion of industrial lands continues

2. Notable amount of industrial land used for non-industrial activities

3. Most industrial lands are designated and intended for long-term industrial use

4. Ongoing competing priorities for lands

5. Few available large sites for ‘trade enabling’ uses

KEY FINDINGS

8

CHANGE OVER TIME

1. Conversion land intended for industrial uses

Two sets of moving parts• ‘changes’ (additions and deletions)

in the total inventory• ‘absorption’ (lands within the

inventory that were developed or became vacant)

9

Lands Added and Removed 2010-2015


10

Change in Inventory 2005-2015H

ecta

res


11

Land Use Classifications

• 2005 and 2010 = ‘Developed’ and

‘Vacant’ categories only

• 2015 = 24 detailed land use

classifications

• Can be rolled up into 7 categories

• Gives a much clearer picture of

what is happening on the region’s

industrial land


12


Consolidated Land Use Classifications

13

Detailed Land Use Classifications


14


Consolidated Land Use Classifications


15

Regional and Municipal Designations

4. Competing priorities for lands

• 92% of the inventory has either an Industrial or Mixed Employment Metro 2040 designation

• 8% of Inventory has a General Urban regional designation (893 ha)

• About a third of those lands (266 ha) are in Urban Centres

• Removals from the inventory are mostly due to municipal policy changes

• Demonstrates a different municipal intent for those lands; supportive of other objectives – e.g. complete, compact communities and ongoing challenges of legitimate competing priorities for land

16

Regional and Municipal Designations

7. Few available large sites for ‘trade enabling’ logistics uses

17

‘Developed’ and ‘Vacant’ Lands

18

‘Vacant’ Lands by Site Size


19

KEY FINDINGS RECAP




4. Ongoing competing priorities for lands

5. Few available large sites for ‘trade enabling’ uses

THANK YOU

21

RESOURCE SLIDES

22

Municipal Designations and Zoning by SectorH

ecta

res

4. Competing priorities for lands

OCP Other; Zoning Industrial

OCP Industrial; Zoning Other

OCP Industrial; Zoning Industrial

23

Land Ownership

5. Short-term intensification potential limited on lands that are ‘fully utilized’


24

Types of ‘Vacant’ Lands


For ‘General Industrial’ lands, utilization defined as the approx. % of site covered by permanent improvements or clearly utilized).

1. Totally un-utilized (0-20%)

2. Predominantly or substantially un-utilized (20-40%)

3. Partially utilized (40-60%)

4. Predominantly or substantially utilized (60-80%)

5. Totally utilized (80-100%)

25

Utilization

26

Utilization


• Understand that utilization is only the first step in looking at intensification potential

• Some properties have ‘functionally obsolete’ buildings that mask the potential to intensify

• Metro Vancouver takes the long view – not wanting to impact current use, but looking to intensification potential in the future

27


Utilization

DIVISION MANAGER, GROWTH MANAGEMENTJames Stiver

Industrial Lands Strategy Task Force Meeting, May 10, 2018

Regional Industrial Lands Strategy (RILS)SCOPE OF WORK

Gord TychoSENIOR PLANNER, GROWTH MANAGEMENT

2

Context1. Industrial lands as an ongoing

regional issue

2. Part of Metro Vancouver portfolio (since 2005)

3. Part of Metro 2040 (since 2011)

4. Greater regional interest and concern

5. MVRD Board Chair struck Task Force to steer development of RILS

3

Issue Areas• Defining ‘industry’

• Changing nature of industry

• Effectiveness of current policies

• Best practices (intensification)

• Mixed use activities on employment lands

4

Issue Areas• Land value increasing

• Absorption rates increasing

• Rents increasing

• Vacancy rates declining

5

RILS ObjectivesCollaborative approach over next year and a half

1. Build a shared understanding of the challenges and issues associated with industrial lands.

2. Address knowledge gaps and establish a vision to meet the needs of a growing and evolving economy.

3. Identify actions to achieve the vision

6

RILS Output1. Report, with recommended actions

to achieve the vision – actions for multiple stakeholders

2. Range of topic areas, including:• ‘Issue’ areas• Policies to address land protection and

densification/ intensification• Land interfaces and buffers• Financial tools / levers• Governance

7

Work to Date1. Metro Vancouver, VFPA,

municipalities, brokerages, etc.• Industrial Lands Inventory - 2005, 2010,

2015• Quantifying value of trade-enabling lands• Intensification best practices• Types of regional industrial activities• Quantifying demand• Quarterly market activity reports• User surveys

8

The Present: Trends,

Inventory, Demand

Explore Opportunities

Strategy Development: Considering

Solutions

2018 2018 - 2019 2019

• Industrial economicimpact to the region.

• Industrial sectors’ challenges, requirements.

• Related regional initiatives (collaboration).

• Other regional approaches to industrial land strategies.

• Exploring best practices (intensification, mixed use, buffers, etc.).

• Changing nature of industry (tech):jobs/land

• Exploring options for our region.

• Engagement.• Developing Regional

Industrial Lands Strategy (RILS).

Phases, Research, and Timeline

9

Next Steps - Phase 1• May 10 - Task Force meeting

• Terms of Reference, Scope of Work• Continue current work:

• RFP’s for consultant studies, RPAC sessions

• June 21 – Task Force meeting• Phase 1 findings (regional initiatives)

• Sept 20 - Task Force meeting• Other Phase 1 findings (economic

value)

10

Budget1. RILS ($30,000); Industrial & Mixed

Employment Policy Review ($50,000)

2. Current work: RFPs for consultant studies, RPAC sessions

3. Task Force meeting – June 21*

*Re-assessment and potential request for additional funds

11

Final Comments• Draft Scope of Work

• Research Program• Work underway in region• Sector needs & challenges• Economic value• Activities on ‘general

industrial’ lands• Changing nature of

industry• Best practices

• Other?

Thank you

Documents

Absorption 3.1 $ 10 · distribution/warehouse facilities distributing to BC? > Distribution from Calgary via rail to the intermodal terminal in BC > Large number of trucks from Calgary