TransPod Launches Next Stage of Development of Ultra-High-Speed Tube Transportation in Alberta, Canada with $550M USD Finance
TransPod achieves critical industry milestone, becomes first tube-transportation company to confirm finance for a multibillion-dollar infrastructure project
Broughton Capital Group, in cooperation with CERIECO, have issued terms to provide a combined US$550M finance and Master EPC arrangement which will include significant involvement from Canadian contractors, to accelerate development of a TransPod Line between Edmonton and Calgary and drive economic growth in the region
EDMONTON, ALBERTA--(Business Wire / Korea Newswire) March 29, 2022 -- TransPod, the startup building the TransPod Line - a new ultra-high-speed transportation system, to disrupt and redefine commercial transportation - today announced the next phase of the multibillion-dollar infrastructure project in Alberta, Canada.
Broughton Capital Group (“BCG”), in cooperation with China-East Resources Import & Export Co. (“CERIECO”), have agreed in principle to provide a combined US$550M finance and Master EPC arrangement respectively to accelerate development of a TransPod Line between Edmonton and Calgary and drive economic growth in the region. An already-released feasibility study on the TransPod Line confirmed that this ultra-high-speed transportation project will create up to 140,000 jobs and add $19.2B to the region’s GDP throughout construction, and the Master EPC arrangement is expected to involve significant contribution from Canadian contractors.
“As the first and only company to confirm such finance for a multibillion-dollar tube-transportation infrastructure project, TransPod is proud of its commitment to driving growth in Alberta through true innovation and partnership,” said Sebastien Gendron, co-founder and CEO, TransPod. “The construction and operation of a TransPod Line will help Albertans move around easily, create new jobs, and facilitate investment into the region. With the confidence of our investors and the Government of Alberta, we will deliver on a joint vision of a progressive, sustainable, and growing economy.”
Key highlights from the Alberta TransPod feasibility study include the following:
· Substantial economic growth: The Alberta TransPod Line will add $19.2 billion (or 6.25 per cent) to the province’s GDP by the year 2030.
· Significant employment growth: The Alberta TransPod infrastructure project will create 15,600 jobs per year, totaling 140,000 jobs over nine years.
· Improved affordability for travellers: Riding TransPod will take 45 minutes from Calgary to Edmonton, at an estimated ticket cost of $90 CAD, compared to more than three hours spent driving or a plane ticket costing about $162.
· Reduction in carbon footprint: Over the course of a year, the expected ridership between Calgary and Edmonton will reduce CO2 emissions by 636,000 tonnes per year, or the equivalent of planting a forest four times bigger than Calgary.
“One of BCG’s strategic goals is to invest in innovative projects and our alignment with CERIECO for the TransPod project suits that objective strongly and bodes well for future projects. We are looking forward to moving this forward,” said Broughton Capital Group.
The next phases of the Alberta TransPod project are as follows:
· Short-term: Research and development; construction permit; environmental assessment; land acquisition (present-2024)
· Medium-term: Test track construction, high-speed tests, and certification (2023-2027)
· Long-term: Construction of a full inter-city line between Edmonton and Calgary (to begin in 2027)
“Our partnership with BCG and TransPod offers strong alignment of strategic goals, a complimentary approach to infrastructure development that we believe will add significant value across innovative projects in Canada,” said CERIECO.
To support regional job development and provide employee training for the TransPod Line in Alberta, TransPod has partnered with Building Trades of Alberta to leverage its regional expertise and partner network.
“TransPod is an exciting, game-changing leader for the future of green infrastructure and transportation in Canada and beyond,” said Terry Parker, Executive Director, Building Trades of Alberta. “Not only will it help Canada tackle its carbon goals, the Alberta TransPod project will create thousands of well-paying, community-supporting jobs for Alberta’s skilled trades workers, including those from Indigenous communities, women, new Canadians, and apprentices. The Building Trades of Alberta — and its more than 60,000 members — is ready and excited to be part of this project.”
Colliers Capital Markets, a subsidiary of Colliers International, acted as financial advisor to TransPod.
About TransPod Inc.
TransPod’s goal is to disrupt and redefine commercial transportation between major cities in developed and emerging markets. The startup was founded in 2015 to build the world’s leading tube-transportation system (the TransPod Line) to connect people, cities, and businesses with high-speed transportation that is affordable and environmentally sustainable. TransPod Inc. is headquartered in Toronto, Canada.
Visit www.transpod.com to learn more.
About Broughton Capital Group
Broughton Capital Group (BCG) is a UK based project finance funder, in which our specialism as arranger and provider of debt finance as senior lender, is with a focus on a variety of project sectors worldwide in both the public and private sectors. We are highly experienced with a first-class team internally and externally. As an alternative finance provider, we aim to provide finance solutions not always available in the conventional project finance market and as such we strive to be creative, flexible and competitive in the finance terms we can offer as lender.
Visit www.broughton-capital.com to learn more.
Established in 1993, CERIECO is a Chinese state-owned enterprise with projects in over 30 countries. CERIECO is a general EPC contractor with specializations in infrastructure and real- estate construction, and export credit finance. CERIECO operates in Canada under CERIECO Canada Corp.
Visit www.cerieco.com to learn more.
This is a news release distributed by Korea Newswire on behalf of this company.