The Saskatchewan government is cutting ties with the Global Transportation Hub (GTH).
In a Jan. 4 news release, Don Morgan, the minister responsible for the facility, confirmed that the province is “moving forward with the divestment of the GTH.”
The organization’s board of directors is in the process of hiring a third party consultant to lead the transition and “define a new governance structure for the GTH.”
“We believe the GTH plays a vital role in Saskatchewan’s export-oriented economy and will for many years to come,” Morgan said.
“However, the GTH will be in a better position to reach its full potential operated by the private sector.”
The Global Transportation Hub is an 1,800 acre inland logistics facility located west of Regina.
It was opened in 2009 but land sales at the hub have fallen short of expectations.
Between 2010-11 and 2017-18, the GTH projected land sales of nearly $100 million. However, actual land sales during that period were in the neighbourhood $65 million.
One of the hub’s largest sales involved SaskPower, another government-owned Crown corporation.
GTH debt is estimated at $40 million.
Operating and management expenses are estimated at more than $6 million annually.
During the transition to the private-sector, the interests of current GTH clients will remain a priority, Morgan said.
Key staff members working in operations, business, development, marketing and investment attraction will remain in place.
However, GTH president and chief executive officer Bryan Richards will not be involved in the transition, according to the government news release.
Richards is no longer with the GTH.
Matt Schroeder, currently serving as vice-president of finance, will take over duties as acting CEO.
The Global Transportation Hub Authority Act, the provincial legislation governing the GTH, will remain in place.