ASIA-PACIFIC GATEWAY AND CORRIDOR INITIATIVE
PROJECTS FUNDED UNDER THE FEDERAL RESPONSE
TO THE MOUNTAIN PINE BEETLE INFESTATION

The Asia-Pacific Gateway and Corridor is a network of transportation infrastructure including B.C.'s Lower Mainland and Prince Rupert ports, their principal road and rail connections stretching across Western Canada and south to the United States, key border crossings, and major Canadian airports. The network serves all of Canada, and the Asia-Pacific Gateway and Corridor Initiative (APGCI) aims to take advantage of Canada's strategic location, at the crossroads between the North American marketplace and the booming economies of Asia.

On October 11, 2006, Prime Minister Harper announced the APGCI with an initial investment of $591 million. A further commitment of $410 million was made in Budget 2007, bringing total federal funding for the Initiative to more than $1 billion. The APGCI is a long-term effort, focusing on infrastructure, policy, governance and operational issues together in one multi-modal, system-based, public-private strategy.

Through the Federal Response to the Mountain Pine Beetle Infestation, an investment of $44 million is being made towards APGCI-related surface transportation projects with the goal of enhancing the economic base of impacted communities through economic development and infrastructure projects aimed at encouraging the long-term stability and diversification of economic activity in these communities.

In an era of rapidly moving and integrated global supply chains, policies and investments must consider entire transportation systems—systems that connect, for example, Asia with North America's economic heartland. In this context, making the right investments anywhere along the system benefits all who rely on it, and not just those in jurisdictions where dollars are invested.

The Government of Canada's contributions to APGCI projects will improve the transportation system by:

• increasing transportation capacity;
• reducing congestion at key locations for Asia-Pacific trade;
• improving connections between modes; and
• enhancing its efficiency, safety and security.

The Government of Canada's investments will continue to promote increased investments by the private sector and other public sector partners to ensure efficient and seamless connections between the various modes of transportation and improve traffic flows for international cargo.

PROJECTS FUNDED UNDER THE FEDERAL RESPONSE TO THE MOUNTAIN PINE BEETLE INFESTATION

The following projects will be implemented through cost-shared contribution agreements with the proponents. The federal contribution to all of the projects is conditional on all partners providing agreed funding and meeting all applicable federal and provincial requirements, including environmental assessments, regulatory approvals, completion of due diligence, contribution agreements and final federal project approvals:

1. Smithers Grade Separation
Location: Smithers, B.C.
Proponent: Canadian National Railway (CN)
Total Project Cost: $6.0 million
APGCI contribution: $2.75 million

Description: The Town of Smithers is located on the CN rail line serving the Port of Prince Rupert. In order to fully realize the design capacity of Prince Rupert's new container terminal, scheduled to open this fall, sidings along this rail corridor are being lengthened to accommodate trains up to 12,000 feet long. As part of this capacity upgrade program, a grade separation is required to accommodate this length of train at Smithers. Options will be considered for the exact location of a new grade separation to help mitigate road/rail issues.

2. Terrace Grade Separation
Location: Terrace, B.C.
Proponent: Canadian National Railway (CN)
Total Project Cost: $9.0 million
APGCI contribution: $4.25 million

Description: The City of Terrace is located on the CN rail line serving the Port of Prince Rupert. In order to fully realize the design capacity of Prince Rupert's' new container terminal, scheduled to open this fall, sidings along this rail corridor are being lengthened to accommodate trains up to 12,000 feet long. As part of this capacity upgrade program, a grade separation is required to accommodate this length of train at Terrace. Options will be considered for the exact location of a new grade separation to help mitigate road/rail issues.

3. Ashcroft Grade Separation
Location: Ashcroft, B.C.
Proponent: Canadian Pacific Railway (CPR)
Total Project Cost: $10 million
APGCI contribution: $5 million

Description: The Village of Ashcroft is located on the CPR rail line to the British Columbia Lower Mainland. In order to accommodate a more efficient rail siding in Ashcroft, CPR has identified the need for a grade separation. A grade separation would enable full use of the siding, improve truck/local traffic flow through the area, help CPR to attract businesses in the Ashcroft area, and enable CPR to provide more permanent employment and construction jobs to area residents. Highway 97C crosses the rail line at-grade and provides access to lands slated for future development. Options are being considered for the exact location of a new grade separation.

July 2007