Province revs CentrePort South engine Stefanson makes $40-M commitment to transportation trade hub project developer expects to bring ‘massive economic prosperity’ By: Gabrielle Piché Posted: 11:54 AM CDT Friday, Oct. 21, 2022

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RM OF ROSSER — CentrePort South — which government officials tout as an economic powerhouse for Manitoba — is getting a boost of up to $40 million from the province.

“This project… will put Manitoba on the world map as a transportation trade hub,” Premier Heather Stefanson said at a news conference Friday.

CentrePort South spans northwest Winnipeg and is bordered by the Perimeter Highway, Route 90 and CentrePort North. It needs $60 million to cover water and sewer service infrastructure for new development.

The City of Winnipeg had committed $20 million in its 2022 budget, contingent on infrastructure funding from other levels of government.

On Friday, Stefanson announced Manitoba would invest up to $40 million. However, she’s calling on Ottawa to kick in $20 million to lessen the province’s load.

“We continue to urge the federal government to make an equal contribution to this very critical project,” Stefanson said.

CentrePort South could increase Manitoba’s gross domestic product by nearly $1 billion, Stefanson said. Approximately 2,500 acres within Winnipeg are available for development, including 500 acres of residential land.

New buildings could cover about four million square feet, according to Martin McGarry, CEO of development firm MMI Asset Management.

The site, which is part of North America’s largest tri-modal inland port, will create thousands of jobs and lead to “massive economic prosperity,” McGarry said.

“We’ve been waiting long enough (for this),” he said, adding he’s been working on the project for about 12 years.

He said government funding has been the biggest hurdle, and applauded Stefanson’s government for being “able to land the plane.”

Construction should begin within the next 18 months, McGarry said, estimating development could take up to 20 years to complete.

“I’m sure there’ll be a diverse… investment from businesses,” said mayoral candidate Scott Gillingham, who worked to secure funding for CentrePort South during his eight years on city council.

The agriculture and transportation sectors are among those that could thrive in CentrePort, he noted.

“(This) will open up the City of Winnipeg’s… economy,” he said. “It’s key to having service lands available.”

The city has few employment lands left, said Diane Gray, CentrePort Canada’s founding president. She ended her role Friday to become the president of Prairies Economic Development Canada, a federal government economic development agency.

“These are highly desirable, highly visible lands,” Gray said.

CentrePort South businesses are closer to James Richardson International Airport — which is inside the area — Gray noted. They’ll have access to major truck and rail lines, including CentrePort Canada Way and the CentrePort Canada Rail Park.

The development plans include homes for approximately 12,000 people in St. James between CentrePort Canada Way and Saskatchewan Avenue.

It’s likely the first new housing in that Winnipeg community since the 1970s, Gray said.

“Those new residents will be able to attend school in St. James, use the community centres, things like that that the aging population hasn’t particularly taken advantage of,” she said.

Residential development will stay outside the airport’s noise exposure zone, she said. The builds will draw employers considering their workers’ housing needs, Gray added.

“Today’s announcement… was absolutely necessary to get these… lands developed,” she said.

Developers previously couldn’t give potential tenants construction timelines because there wasn’t enough funding for the infrastructure.

The servicing infrastructure’s total cost is about $120 million. Private investors will foot half the bill.

Bison Transport has already claimed 30 acres of CentrePort South’s land.

“It’s essentially a parking pad for trucks and trailers right now,” Gray said, adding the company is waiting for servicing.

Meantime, CentrePort North is booming. The Rural Municipality of Rosser has issued building permits for nearly $60 million in construction in the area this year.

Currently, 600,000 square feet of construction is underway.

CentrePort Canada spans 20,000 acres in Winnipeg and Rosser.

“(This is) probably the first development that we’re thinking of in terms of regional economic development, not just City of Winnipeg or the RM of Rosser,” said Winnipeg Chamber of Commerce president Loren Remillard.

He called Friday’s announcement “fantastic news” and pointed to a lack of shovel-ready land in the city.

“(This is) perhaps the single greatest economic development opportunity we have in the Winnipeg region,” he said. “(It could) put Winnipeg back on the map for so many site selectors that maybe had passed on Winnipeg.”

Work is set to begin on CentrePort Canada Rail Park in the spring. The park will span 665 acres near a junction of Canadian Pacific and CN rail lines.

— With files from Joyanne Pursaga

gabrielle.piche@winnipegfreepress.com