Edmonton airport breaks ground on 50,000-sq-ft cargo facility

Edmonton International Airport (YEG) and Terracap Management have broken ground on a new 50,000-square-foot airside cargo facility in Canada, aimed at expanding the airport’s cargo handling capacity and supporting the growth of its logistics ecosystem.

Developed, owned and managed by Terracap, the facility will be located directly alongside Apron VIII, enabling the efficient movement of cargo between freighter aircraft and the warehouse. It is designed to handle time-sensitive shipments, including e-commerce, perishables, pharmaceuticals and aviation parts.

The project represents private-sector investment following public funding for transportation infrastructure. The Government of Canada has committed $118 million through the National Trade Corridors Fund towards the development of YEG’s International Cargo Hub (ICH) and associated infrastructure.

Spanning more than 2,000 acres of serviced development land, the ICH is intended to accommodate future cargo, logistics and trade-related projects. Terracap’s new facility is expected to complement the broader development and support the airport’s expanding role as a cargo and logistics hub.

Myron Keehn, President & CEO, Edmonton Airports, said, “Today’s groundbreaking is a great example of what happens when public investment creates the conditions for private investment. The International Cargo Hub is helping establish the infrastructure and connectivity needed to support long-term cargo growth at YEG, and we’re now seeing private-sector partners like Terracap respond with investments of their own. This facility will add new airside cargo capacity and strengthen the ecosystem we’re building here at Edmonton International Airport.”

Terracap currently operates approximately 100,000 square feet of airside cargo space at YEG, which is fully leased to major cargo operators, including Air Canada, Cargojet, DHL and Purolator.

Larry Krauss, Chief Executive Officer, Terracap Management, said, “Terracap Management is proud to partner once again with Edmonton International Airport on our third air cargo distribution facility. This new 50,000-square-foot building will provide tenants with efficient air cargo handling and distribution, connecting Edmonton businesses to markets across Canada and around the world. This investment reflects our continued confidence in Edmonton and YEG’s growing importance as a major North American air cargo and logistics hub. We are delighted to expand our longstanding partnership with the Airport Authority and contribute to Edmonton’s economic growth.”

Matt Jeneroux, Member of Parliament, Edmonton – Riverbend, said, “When the federal government invests in infrastructure that connects our businesses to the world, it helps create the conditions for private investment to follow. Terracap’s new cargo facility is a great example of how these partnerships can strengthen Edmonton’s role in global trade, support economic growth, and create new opportunities for Albertans.”

Headquartered in Toronto, Ontario, Terracap is a private equity real estate group with a portfolio valued at $2.4 billion. Founded in 1989, the company’s holdings span multi-residential properties, development land, retail, office, industrial and hotel assets.