As congestion and limited industrial land put pressure on traditional West Coast gateways, the Calgary region is emerging as an increasingly strategic place to move, make and distribute goods. Prairie Economic Gateway (PEG) is poised to take that advantage to another level.
The approximately 2,200-acre rail-served industrial development, immediately southeast of Calgary, is a collaboration between the City of Calgary and Rocky View County. The City projects the initiative could generate more than $7 billion in economic activity and create more than 30,000 jobs over the next 10 to 12 years.
For the Calgary region, the opportunity goes beyond a new industrial park. PEG could add significant capacity to Western Canada’s supply chain while giving companies more options to manufacture, process, store and move goods from the Calgary region to markets across North America and around the world.
Why does Prairie Economic Gateway matter for Calgary and Western Canadian trade?
Calgary already sits at the intersection of major road, rail and air corridors and serves as an inland port for Western Canada. From the PEG lands, 50 million people are accessible by rail or truck within 24 hours, while Calgary International Airport connects the region to global destinations within 48 hours.
However, PEG adds something increasingly valuable to that network — room to grow.
“PEG has the potential to be a major catalyst for the Calgary region's economy,” said Ryan Hughes, Director, Real Estate, Investor Experience at Calgary Economic Development.
“It creates more opportunity for local business expansion, strengthens our connections to markets across North America and supports our ability to attract new investment.”
The project also creates another option for companies facing congestion and limited space around coastal ports. By shifting more manufacturing, processing, storage and distribution inland while maintaining rail connections to seaports, PEG could help make supply chains more efficient and resilient.
How will Prairie Economic Gateway connect Calgary to global markets?
At the centre of the opportunity is direct access to CPKC’s Class 1 rail network, which connects Canada, the United States and Mexico.
Following CP’s merger with Kansas City Southern to form CPKC, Western Canadian shippers gained a continuous rail route south, reducing the need for multiple transfers on some shipments and improving access to markets across the continent.
“The opportunity is available serviced industrial land with rail access to a Class 1 rail line that gets you access to global markets,” said Ryan Riddell, Vice President of Shepard Development Corporation.
PEG also connects into major road corridors including the Trans-Canada Highway, Highway 2 and Stoney Trail, with Calgary International Airport nearby. Lands within the Gateway have also received CPKC Gold Tier designation.
Together, those connections give companies more options to reach North American and international markets without needing to locate directly in a constrained coastal market.
What industries could benefit from Prairie Economic Gateway?
The first major development within PEG is the 1,300-acre Shepard Logistics Centre, owned and being developed by Shepard Development Corporation.
Its scale creates opportunities for industrial users whose land and transportation requirements can be difficult to accommodate in more established markets.
Manufacturing, agribusiness and food processing, cold storage, energy and logistics are among the sectors positioned to benefit. The City has also identified opportunities to expand trade in Alberta-made goods including agricultural products, chemicals, plastics, temperature-controlled goods and metals.
“A lot of the opportunities that we’re seeing aren’t from existing businesses within the Calgary region,” Riddell said.
“They’re businesses that want to set up shop here in Western Canada.”
For existing Calgary businesses, that new investment could also mean more customers, suppliers and activity across local supply chains.
“It could significantly increase the customer base for local businesses,” Hughes said.
When will Prairie Economic Gateway be ready for businesses?
Calgary and Rocky View County are moving forward with detailed planning and engineering to service the area, including roads, water, wastewater and stormwater infrastructure. Commercial-readiness work is expected to progress through the latter part of this decade.
For prospective investors, that does not mean waiting. Riddell said Shepard has already advanced planning and engineering for its first phase and is positioned to move quickly as supporting infrastructure comes online.
“We’re ready to go when we have a clear picture of when that infrastructure will be in place,” he said.
Under the current development schedule, Shepard is targeting potential land deals in 2029, with early occupancy possible in 2029 or 2030.
Major industrial projects can take years to move through site selection, design, permitting and construction. Companies considering future Western Canadian operations can begin assessing the opportunity now and planning alongside the Gateway’s development.
How can prospective investors get started?
Companies interested in PEG can begin conversations now. Shepard Development Corporation can work with prospective users on land requirements, site configuration, development milestones and rail integration.
Calgary Economic Development can help investors assess how PEG fits their growth plans, compare opportunities across the Calgary region and connect them with Shepard Development Corporation, CPKC and municipal partners.
For Calgary, the opportunity is clear: more room for industry to grow, more resilient routes to market and another major advantage in connecting Western Canada to customers around the world.
Learn more about Calgary's Transportation and Logistics sector and its growing role in global trading networks.