The Contrecoeur marine terminal in Contrecoeur, Que. DP World's Canadian unit has struck an agreement with the Montreal Port Authority to build and run a new Contrecoeur container terminal.Christopher Katsarov/The Canadian Press
Global logistics giant DP World Ltd. has been tapped to build and run the Port of Montreal’s new Contrecoeur container terminal, expanding its Canadian operations as the federal government seeks to counter U.S. trade protectionism with new infrastructure investments.
DP World’s Canadian unit, a joint venture with pension-fund manager Caisse de dépôt et placement du Québec, struck a development agreement with the Montreal Port Authority that will see the company build Contrecoeur’s land-based operations and run the cargo facility for the next 40 years, according to a news release published Monday.
“This project is designed not only to meet the growing need for business diversification but also to create long-term value by supporting Canadian economic sovereignty as global trade evolves,” Port Authority chief executive officer Julie Gascon said in the release, calling the agreement with DP World a “decisive step.”
The federal government has come under intense pressure to improve Canada’s transportation and logistics infrastructure, hit in recent years by a series of disruptions ranging from protester blockades to wildfires and floods. Prime Minister Mark Carney has framed some of this effort in nation-building terms, vowing to shore up domestic shipping hubs and diversify Canada’s trade partnerships as the country deals with U.S. President Donald Trump’s high-tariff trade policies.
“We can’t control what other nations do, but we can control our destiny, so we’re focusing on what we can control and building our economic strength right here at home,” Mr. Carney said in Newfoundland on Monday.
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The Prime Minister said last month that his government will make investment announcements related to building new infrastructure for ports, including the Contrecoeur site as well as other ports in Churchill, Man., and on the East Coast. The investments are intended to bolster existing shipping capability and create new opportunities to export Canadian liquefied natural gas, critical metals and minerals.
The Liberal Party campaigned on promises to inject $5-billion into major trade projects, which it said could trigger as much as $10-billion in private-sector involvement. It recently passed legislation allowing certain projects to receive expedited approvals if they meet certain conditions.
The final financing package for Contrecoeur has yet to be hammered out.
Ottawa and Quebec have already pledged $150-million and $130-million respectively toward the estimated $1.6-billion project, pitched as a key piece of transportation infrastructure needed to serve markets in Quebec, Ontario and the U.S. Midwest. The Canada Infrastructure Bank has also committed a $300-million loan.
Additional public investments are possible, said Port Authority spokesperson Renée Larouche.
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Contrecoeur, located about 40 kilometres downstream from Montreal, would boost the port’s capacity by 1.15 million TEUs (20-foot equivalent units), to more than three million. Plans for the new terminal call for a 675-metre-wide docking platform with berths for two ships, eight loading cranes and a container storage yard.
The rapid rise in inflation and higher construction costs triggered a dramatic jump in the price tag for Contrecoeur compared with initial estimates, forcing a rethink of how the project will be executed.
The Port Authority is proceeding with a hybrid model that will see it carry out all of the project’s in-water work with the guidance of a specialized firm, including dock construction and dredging. DP World will do the work on land, including container yard and rail-line connection, and operate and maintain the terminal.
Last week, the Port Authority announced it finalized and submitted an application to the Department of Fisheries and Oceans for a permit required to complete the in-water work, part of the environmental assessment process. It expects to receive a response from federal authorities in the coming weeks.
One of the environmental issues identified is that the project area overlaps at least partially with the habitat of the copper redhorse fish, an endangered species. To attain regulatory clearance, the Port Authority is proposing a series of offset measures, including building dikes and breakwaters to support the planting of aquatic grass beds for the redhorse at Île aux Boeufs.
DP World is one of the planet’s biggest container-port operators, employing 100,000 people across six continents and handling 10 per cent of the world’s daily global trade, according to its website. In Canada, it runs facilities in Vancouver, Prince Rupert and Nanaimo, B.C., and in Saint John.