Canadian federal government to provide up to C$150M in financial support for construction of new container terminal near Montreal, Quebec; goal to increase Port of Montreal's container capacity to meet growing cargo transportation demands

Sample article from our Government & Public Policy

October 11, 2023 (press release) –

The federal government of Canada is offering financial support for the development of a new container terminal in the vicinity of Montreal, Quebec. The primary objective of this project is to enhance the container-handling capacity of the Port of Montreal, thereby addressing the growing demands in cargo transportation. The announcement includes an investment of up to C$150 million (approximately US$110 million) from the National Trade Corridors Fund. This support complements the C$55 million (about US$40 million) previously pledged by the Government of Quebec in 2021 towards the expansion project of the Montreal Port Authority.

The Minister of Transport and Quebec Lieutenant, Pablo Rodriguez, expressed the significance of this initiative, emphasizing the Port of Montreal's pivotal role in Quebec's and Montreal's economies, as well as its importance within the national supply chain. The project is part of broader efforts by the government to fortify Canada's supply chain resilience, particularly in the wake of supply shortages and price fluctuations experienced during the pandemic.

The new terminal's construction plan encompasses the establishment of an approximately 2,200-foot dock, along with ship approach areas. It will be located in Contrecoeur, a city on the south bank of the St. Lawrence River, situated approximately 40 miles northeast of Montreal. The terminal will feature a rail network linked to the existing Canadian National Railway tracks, a railway transfer point, a freight transfer hub, road access, and a container handling yard. Upon completion, this expansion will augment the Port of Montreal's total capacity by 55 percent.

In 2021, the Port of Montreal's expansion project received approval from Canada's Minister of the Environment and Climate Change, enabling it to move forward. The port's management plans to adopt a hybrid approach for the project. They will act as the primary contractor for the marine work phase, which encompasses dock construction and dredging.

The next step in the project involves issuing a Request for Proposals in early 2024 to select a private partner to carry out the terminal's construction. This phase will encompass building the container yard, various facilities, and the rail connection. Upon its completion, the new terminal in Contrecoeur will have the capacity to handle up to 1.15 million containers annually.

It's worth noting that the Port of Montreal is the sole container terminal in Quebec and is the second-largest port in Canada. It serves as a diverse transshipment center for various types of goods, including containerized and non-containerized cargo, liquid bulk, dry bulk, and even features a cruise ship terminal.

 

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