2010-11 annual report - centreport canada€¦ · $220 million by decreasing costs related to fuel,...
TRANSCRIPT
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Table of Contents
The Beginnings ….3
From the Chairperson & President ….4
CentrePort Canada Inc. ….5
Milestones in 2010-2011 ….6
Audited Financial Statements ….12
THE CENTREPORT CANADA
development was named one of the top 100 infrastructure projects in 2010 by the North
American Strategic Infrastructure Leadership
Forum
Annual Report 2010-11
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IT HAS BEEN AN EXCITING YEAR in the development of CentrePort Canada, with an increasing number of building cranes and bulldozers dotting the horizon of our 20,000-acre footprint. Construction is well underway on the new divided expressway, CentrePort Canada Way, and a flurry of new business activity is occurring within the two Brookside Boulevard industrial parks located on the CentrePort Canada footprint.
These two industrial parks, Brookside Business Park (CB Richard Ellis) and Brookside Industrial Park West (DTZ Barnicke), are among the early success stories of the CentrePort Canada development and an excellent indicator of the strong business interest in our inland port.
These parks are also prime examples of the flourishing partnerships that are underway at CentrePort Canada Inc., as we are working closely with CBRE, DTZ, Cushman & Wakefield, and Colliers International, and the Winnipeg Airports Authority to market the lands that are available for development. Our real estate partners have brought enthusiasm and experience to the table and are playing a key role in building the CentrePort Canada development for the future.
Partnership is our hallmark and we are eager to continue working with the private and public sector in the year ahead.
Kerry Hawkins Diane Gray Chairperson President and CEO
From the Chairperson & President
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CENTREPORT CANADA INC. began as a private-public sector partnership involving business, labour, educational institutions, the transportation industry, all levels of government and other community leaders. This partnership galvanized around a common vision – to establish a tri-modal inland port in Winnipeg as recommended by the Mayor’s Trade Council Report (March 2008).
The passage of the CentrePort Canada Act in 2008 established a private-sector-led Board with a mandate to develop, market and promote investment in Manitoba’s inland port. The Corporation’s inaugural Board of Directors was appointed shortly after and the Board soon developed CentrePort Canada Inc.’s policies, guidelines and procedures, including its current bylaws, code of ethics, conflict of interest guidelines, communications and other protocols.
The 15-member Board of Directors meets at least five times annually and includes nominees from the Business Council of Manitoba, Winnipeg and Manitoba Chambers of Commerce, Manitoba Trucking Association, Manitoba Federation of Labour, Winnipeg Airports Authority, Government of Canada, Province of Manitoba, City of Winnipeg, Rural Municipality of Rosser, Economic Development Winnipeg as well as four Directors at large.
The Corporation officially opened its doors in November 2009, a year that featured several important achievements for the CentrePort Canada development, including a $212-million federal and provincial government commitment to build the major expressway, CentrePort Canada Way, and the historic designation of CentrePort Canada Inc. as the first inland port in the country to offer single-window access to Foreign Trade Zone (FTZ) benefits and cost-savings programs such as duty deferral, sales tax relief and customs bonded warehouse status.
A Unique Partnership
BOARD OF DIRECTORS
KERRY HAWKINS, CHAIR DON STREUBER, VICE CHAIR
DAVID BARNARD RYAN CRAIG DAVID FUNG JOAN HARDY
EUGENE KOSTYRA CHRIS LORENC
ARTHUR MAURO TOM PAYNE JR. GORD PETERS
MAUREEN PRENDIVILLE BARRY REMPEL
BOB SILVER ROBERT ZIEGLER
CentrePort Canada Inc.
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GROUND WAS BROKEN ON CENTREPORT CANADA WAY in spring 2010 – a multi-year construction project that will modernize highway transportation within the inland port. CentrePort Canada Way (CCW) is a 10-kilometre, four-lane divided expressway that will better connect the inland port area to the Perimeter Highway and globally-important trade routes such as the Asia-Pacific Gateway and the Mid-Continent Trade and Transportation Corridor.
Over the life of the project, a cost-benefit analysis indicates that CCW is expected to create more than 3,000 person years of direct and spin-off employment; save truckers and motorists at least $220 million by decreasing costs related to fuel, accidents and time lost; and reduce greenhouse gas (GHG) emissions by nearly 600,000 tonnes and carbon monoxide by 1.5 million tonnes.
This major investment in improving transportation and cargo flows within Manitoba’s capital city and surrounding municipalities is one reason the CentrePort Canada development was selected as one of the top 100 infrastructure projects in North America in 2010 by the North American Strategic Infrastructure Leadership Forum. Hosted by CG/LA Infrastructure, the top 100 recognizes a project’s contribution to the long-term economic competitiveness of North America.
The CentrePort Canada development was also recognized as one of Canada’s top 100 infrastructure projects 2010 by ReNew Canada Magazine.
Federal Public Safety Minister Vic Toews,
Premier Greg Selinger, Mayor Sam Katz and
CentrePort Canada Inc. President and CEO Diane Gray announce funding for CentrePort Canada
Way in June 2010
Major Expressway Underway Milestones in 2010-2011
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First Business Plan Released
CENTREPORT CANADA INC. released its inaugural 2010-2011 Business Plan on June 9, 2010 outlining the Corporation’s activities in four key areas: business development, strategic partnerships, government relations, and marketing and communications. CentrePort Canada Inc. is required to publicly release an updated business plan each fiscal year and these reports can be found at www.CentrePortCanada.ca.
One of CentrePort Canada Inc.’s major focuses in 2010-2011 was working with the City of Winnipeg and Province of Manitoba on a detailed plan to extend phased-in servicing to the inland port area. The business plan includes a projection for 250-acres of new development within the first five years following the availability of water and wastewater servicing.
The recently-announced first phase is expected to cover an industrial area of 1,100 acres located north and south of Inkster Boulevard and west of Brookside Boulevard. This section of the inland port will also have easy access to the new divided expressway, CentrePort Canada Way.
To date, all of CentrePort Canada Inc.’s revenue has been jointly provided by the Province of Manitoba and Government of Canada via Economic Partnership Agreement (EPA) funding to support the Corporation with its start-up activities. The Corporation’s 2010-2011 Business Plan acknowledged the need for the entity to become financially self-sustaining over time.
Companies Are Coming
INVESTOR INTEREST IN THE CENTREPORT CANADA FOOTPRINT was strong in 2010-2011 with the Corporation welcoming development of 50 acres of prime industrial land located within the two Brookside Boulevard industrial parks.
CB Richard Ellis sold nine lots totaling 23 acres within the Brookside Business Park (north of Inkster Boulevard) while DTZ Barnicke sold two lots totaling 27 acres inside Brookside Industrial Park West (south of Inkster Boulevard). CentrePort Canada Inc. is working closely with several global real estate firms including DTZ Barnicke, CBRE, Cushman & Wakefield, Colliers International, and the Winnipeg Airports Authority to market the lands that are available for development, as well as the 645,000 sq ft of industrial space that is also available for sale or lease.
CENTREPORT CANADA INC. released its first-ever
business plan in spring 2010, targeting 250-acres of development in the five years following servicing
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Diane Gray, President and CEO of CentrePort Canada Inc., Chris Lerm, Regional Manager of Rosedale Transport, and
Robert Scaletta, sales associate at CB Richard Ellis announce new investments in Brookside Business Park
The Brookside Boulevard area is now a hive of construction activity with various companies building new or expanded facilities.
Companies include Rosedale Transport Ltd., JEH Windows and Doors, Cassidy Manufacturing, Kaycan Ltd., Oil Mart, Fort Garry Fire Trucks and Trailer Wizards.
These companies join more than 130 businesses that are already operating within the CentrePort Canada footprint, many of them in the transportation, logistics, warehousing, distribution and manufacturing sectors.
FTZ underway
CENTREPORT CANADA INC.’S “ONE-STOP SHOP” to help business access Foreign Trade Zone (FTZ) benefits opened for business in 2010 and began processing inquiries about FTZ programs such as duty deferral, sales tax exemptions and custom bonded warehousing. CentrePort Canada Inc. is the first and only inland port in the country to offer single-window access to federal FTZ benefits. The advantage of the “one-stop shop” is that the Corporation can help companies determine if FTZ benefits would work for them – a process that begins with one telephone call.
CentrePort Canada Inc. has also been playing a leading role in the national Foreign Trade Zone (FTZ) Coalition, which has been advocating for improvements to FTZ programming as a way to attract new and increased international investment to Canada.
In response to this advocacy work, the federal government has committed to reviewing the country’s FTZ policies and programs to make sure that they are internationally competitive, effectively marketed and administratively efficient. The FTZ Coalition will continue to work with the federal government on enhancements that will boost trade.
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Forging New Partnerships
BUILDING PARTNERSHIPS is an important part of the mandate of CentrePort Canada Inc. and several notable achievements were made in this regard in 2010-2011.
CentrePort Canada Inc. signed a collaboration agreement with Chongqing-Lianglu Free Trade Zone Area in China in May 2010. The event was witnessed by former Treasury Board President Stockwell Day during a trade mission that the minister led to China. Day was the minister responsible for the Asia-Pacific Gateway at the time.
The agreement with Chongqing-Lianglu focuses on exchanging best practices and market information; engaging in joint promotions that help increase awareness in both Canadian and Chinese markets; and sharing technology that will enhance the security, efficiency and environmental sustainability of goods moving along the supply chain.
CentrePort Canada Inc. also participated in Premier Greg Selinger’s September 2010 business and trade mission to China, which was followed by the Corporation hosting a visiting business delegation in Winnipeg in November.
CENTREPORT CANADA INC. also continued to work closely with key partners such as Yes! Winnipeg, Economic Development Winnipeg, Manitoba Trade and Investment, Agence nationale et international du Manitoba (ANIM), and Western Economic Diversification on initiatives aimed at attracting new business and increasing trade.
Activities ranged from working together on one-on-one business development opportunities, to taking a broader leadership role in several important conferences that took place in the fall of 2010 including Centrallia 2010, which brought more than 500 business leaders to Manitoba, and the Arctic Summit, which envisions Manitoba as the launching pad for greater trade with the north and other countries via Arctic and over-the-pole routes.
Former Treasury Board President Stockwell
Day witnesses signing of collaboration
agreement between CentrePort Canada Inc.
and Chongqing-Lianglu Free Trade
Zone Area in May 2010
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Building an Arctic Gateway
CENTREPORT CANADA INC. played a key role in the November 8 – 10, 2010 Arctic Summit hosted by the Province of Manitoba and the University of Winnipeg. The Summit explored the potential of increasing international trade through the Port of Churchill – Manitoba’s “Arctic Gateway” – by using over-the-pole air routes and marine/ rail routes which are becoming increasingly efficient due to new technology and infrastructure investments in Russia and China.
CentrePort Canada Inc. unveiled its vision at the Summit, which is best illustrated in a map (left) showing the Arctic/ polar air and rail/ marine routes to Russia, China and India.
Developing a true Arctic Gateway via the Port of Churchill has the potential to be an important differentiator for the CentrePort Canada development, which is at the hub of international trade corridors that extend in all four directions: north, south, east and west.
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2010-2011
Audited Financial Statements
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Management Report
THE ACCOMPANYING FINANCIAL STATEMENTS are the responsibility of the management of CentrePort Canada Inc. In Management’s opinion, the statements were properly prepared and submitted to Grant Thornton, chartered accountants, for an audit in accordance with Canadian generally accepted auditing standards.
Management is responsible for the integrity of the corporation’s financial statements and it will continue to fulfil its responsibility for financial reporting and for implementing internal controls as established by the Board of Directors and its Finance and Audit Committee.
Diane Gray Craig Halwachs President and CEO Finan cial Officer
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Independent Auditors’ Report
To the Board Members of CentrePort Canada Inc.
We have audited the accompanying financial statements of CentrePort Canada Inc., which comprise the statement of financial position as at March 31, 2011, the statements of operations and changes in net assets and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian generally accepted accounting principles, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the corporation’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the corporation’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of CentrePort Canada Inc. as at March 31, 2011, and the results of its operations and its cash flows for the year then ended in accordance with Canadian generally accepted accounting principles.
Winnipeg, Manitoba
June 10, 2011 Chartered Accountants
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CentrePort Canada Inc. Statements of Operations Periods Ended March 31 2011 2010 (Note 10) Revenue Economic Partnership Agreement $ 997,496 $ 506,011 Manitoba Business Development Fund - 110,000 Mission support - 85,818 Urban Development Agreement - 37,500 997,496 739,329 Expenses Advertising and promotion 10,359 10,843 Board member costs 232,069 56,721 Depreciation 35,787 16,693 Office 95,369 46,152 Professional services 41,542 188,530 Salaries and benefits 546,925 210,068 Travel 62,537 93,592 1,024,588 622,599 (Deficiency) excess of revenue over expenses $ (27,092) $ 116,730
*see accompanying notes to the financial statements
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CentrePort Canada Inc. Statement of Changes in Net Assets Periods Ended March 31 2011 2010 (Note 10) Invested in Unrestricted Capital Assets Total Total Net assets, beginning of year $ 16,888 $ 99,842 $ 116,730 $ - (Deficiency) of revenues over expenses (27,092) - (27,092) 116,730 Purchase of capital assets (8,695) 8,695 - - Depreciation of capital assets 35,787 (35,787) - - Net assets, end of year $ 16,888 $ 72,750 $ 89,638 $ 116,730
*see accompanying notes to the financial statements
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CentrePort Canada Inc. Statement of Financial Position March 31 2011 2010 Assets Current Cash $ 354,245 $ 153,079 Accounts receivable - 301,156 GST receivable 9,720 5,462 Prepaid expenses (Note 5) 15,872 15,887 379,837 475,584 Capital assets (Note 3) 72,750 99,842 $ 452,587 $ 575,426
Liabilities Current Accounts payable $ 34,844 $ 132,270 Accrued liabilities 5,611 32,837 Deferred revenue (Note 4) 322,494 293,589 362,949 458,696 Net Assets Unrestricted 16,888 16,888 Invested in capital assets 72,750 99,842 89,638 116,730 $ 452,587 $ 575,426
Commitments (Note 8) *see accompanying notes to the financial statements
On behalf of the Board Director Director
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CentrePort Canada Inc. Statement of Cash Flows Period Ended March 31 2011 2010
(Note 10) Increase (decrease) in cash and cash equivalents Operating (Deficiency) excess of revenues over expenses $ (27,092) $ 116,730 Depreciation 35,787 16,693 8,695 133,423 Change in non-cash operating Acco unts receivable 301,156 (301,156) GST receivable (4,258) (5,462) Prepai d expenses 15 (15,887) Payable and accruals (124,652) 165,107 Deferred revenue 28,905 293,589 209,861 269,614 Investing Purchase of capital assets (8,695) (116,535) Net increase in cash and cash equivalents 201,166 153,079 Cash and cash equivalents Beginning of year 153,079 - End of year $ 354,245 $ 153,079
*see accompanying notes to the financial statements
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CentrePort Canada Inc. Notes to the Financial Statements March 31, 2011 1. Nature of operations CentrePort Canada Inc. is a Manitoba corporation, without share capital and created by the CentrePort Canada Act (assented October 2008), which is committed to the development of a Manitoba inland port to serve as a transportation, trade, manufacturing, distribution warehousing and logistics centre. 2. Summary of significant accounting policies Basis of Accounting The Corporation’s financial statements are prepared in accordance with Generally Accepted Accounting Principles.
Revenue recognition The Corporation follows the deferral method of accounting for revenues from accountable grant funding where funds are recognized as revenue in the year in which the related expenditures are incurred. Other revenues are recognized in the year in which the related services are rendered.
Cash Cash is comprised of balances with the banks.
Capital assets and depreciation Capital assets are recorded at cost and depreciation is applied over the asset’s useful lives as follows: Computer equipment 3 years straight-line Furniture and furnishings 20% declining balance Leasehold improvements 3 years straight-line over lease term Telephone equipment 5 years straight-line Website development 3 years straight-line Half-year rule is applied in the period of acquisition.
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CentrePort Canada Inc. Notes to the Financial Statements March 31, 2011 2. Summary of significant accounting policies (continued) Financial instruments The Corporation’s financial instruments have been designated, classified and measured as follows: Financial statement Item Classification Measurement Cash Held for trading Fair value Receivables Loans and receivables Amortized cost Payables and accruals Other financial liabilities Amortized cost The carrying value of these financial instruments approximate fair value due to their immediate or short-term maturity.
Use of estimates The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue expenses during the period. Actual results could differ from those estimates. 3. Capital assets 2011 2010 Accumulated Net Net Cost Depreciation Book Value Book Value Computer equipment $ 28,852 $ 11,573 $ 17,279 $ 16,911 Furniture and furnishings 29,064 8,138 20,926 26,158 Leasehold improvements 55,808 27,904 27,904 46,507 Telephone equipment 4,370 1,311 3,059 3,933 Website development 7,136 3,554 3,582 6,333 $ 125,230 $ 52,480 $ 72,750 $ 99,842
4. Deferred contributions Deferred revenue relates to accountable grant funding received for expenses not incurred during the current year. This funding is carried forward to the next reporting period and will be recognized into revenue as the related expenditures are incurred. 2011 2010 Balance, beginning of year $ 293,589 $ - Add: amount received for the subsequent year 28,905 293,589 Balance, end of year $ 322,494 $ 293,589
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CentrePort Canada Inc. Notes to the Financial Statements March 31, 2011 5. Prepaid expenses 2011 2010 Prepaid expenses are comprised of: Insurance $ 6,572 $ 6,587 Security deposit on office lease 9,300 9,300 $ 15,872 $ 15,887
The security deposit is $83 per square meter. 6. Financial risk management Liquidity risk Liquidity risk is the risk that the Corporation cannot meet its financial obligations associated with financial liabilities in full. The main source of the Corporation’s liquidity is government funding and various grants used to finance the Corporation’s operations and is adequate to meet the Corporation’s financial obligations association with financial liabilities. Contractual cash outflows consist of accounts payable that are due within 1 year. Liquidity risk may arise from unanticipated expenditures in excess of the financial capability of the Corporation. It is management’s opinion that the Corporation is not exposed to significant liquidity risk from the financial instruments.
Interest risk Interest rate risk is the risk that changes in market interest rates may have an effect on the cash flows associated with some financial instruments, known as cash flow risk, or on the fair value of other financial instruments known as interest rate price risk. The Corporation is not exposed to interest rate cash flow risk as the Corporation does not have any short-term or long-term debt. The Corporation does not trade in financial instruments and is not exposed to interest rate price risk. Credit risk Credit risk arises from the possibility that entities that owe funds to the Corporation may experience financial difficulty and not be able to fulfil their commitment. The maximum exposure to credit risk is equal to the carrying value of the receivables.
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CentrePort Canada Inc. Notes to the Financial Statements March 31, 2011 7. Management of fund balances The Corporation manages net assets in order to safeguard its ability to continue as a going concern. The Corporation monitors net assets typically as part of the overall management of operations and is performed with the goal of enhancing the ability of the Corporation to fulfil its mandate. 8. Commitments CentrePort Canada Inc. has entered into a 3 year lease agreement for premises which expires September 30, 2012. The annual lease payments were suspended for the first year. The Corporation has also entered into a lease agreement for certain equipment. The lease expires November 30, 2012. Under the terms of the leases, minimum rental payments in each of the next two years are as follows: Premises Equipment Total 2012 39,266 4,114 43,380 2013 19,633 2,743 22,376 $ 58,899 $ 6,857 $ 65,756 9. Economic dependence The Corporation is economically dependent on funding from the federal and provincial governments. The Corporation is developing alternative sources of revenue to become self-sustaining. 10. Comparative figures The comparative figures are for the 15 month period beginning January 1, 2009. The operations of the corporation started in November 2009.
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CentrePort Canada Inc.
Kerry Hawkins, Chair, Board of Directors (204) 784-1307
Diane Gray, President and CEO (204) 784-1303
Alberto Velasco, Executive Director Business Development (204) 784-1305
Riva Harrison, Executive Director Marketing and Communications (204) 784-1304
General Office Inquiries (204) 784-1300
www.CentrePortCanada.ca
