Termont Terminal at the Port of Montreal
On the container shipping scene, in particular, at Canada’s east coast ports, Montreal clearly has the wind in its sails, Halifax is soldiering on to capitalize on its deep waters, and Saint John is seeking to bolster its status as a relatively small player by pitching for significant capacity expansion to accommodate larger vessels. Apart from consolidating existing markets and developing new markets, a common denominator is the exploration of potential enhanced maritime trade opportunities offered by congestion issues in US ports.
Coming off a record year in total cargo (30.4 million metric tones) and container throughput (1.4 million TEUs), the Port of Montreal, a big factor in the North Atlantic container trade, has entered 2015 almost like a roaring lion – on both the traffic and infrastructure fronts.
Despite the harsh winter and heavy ice conditions on the St. Lawrence River, the growth pattern was continuing unabated in the early months of this year. The global carriers calling at Montreal specially equip their vessels with ice-reinforced hulls.
“All our markets are up, including in the Midwest,” reported Tony Boemi, vice-president growth and development for the Montreal Port Authority.
“With the low Canadian dollar, exports are increasing to Europe, the Mediterranean and Asia,” Boemi told AJOT.
In January, the port received federal government funding of nearly C$44 million in support of infrastructure development projects estimated at C$132 million for boosting container-handling capacity in the Viau sector, deepening vessel berths, and improving truck traffic flows.
Subsequently, Termont Montreal Inc. terminal, a joint venture of Logistec Corporation and Cerescorp, signed a long-term lease in late March with the Port of Montreal to operate the new Viau container terminal. The biggest customer of Termont, MSC is a key partner in the Viau project scheduled to open in the fall of 2016.
Montreal Capacity Heading Towards 2 Million TEUs
The redeveloped site will include a full-service berth for container vessels, two post-Panamax cranes, a modern automated truck-marshalling yard, an intermodal service using on-terminal rail operations, and a high-density container yard. Upon completion, the Viau terminal will boost the Port of Montreal’s capacity to 2.1 million TEUs.
Commented Madeleine Paquin, president of Logistec: “The new Viau terminal will provide Termont with the additional space it needs to deliver quick turnaround times and efficient cargo-handling services to the Port of Montreal’s current and future customers, and thus support MSC as it continues to grow its services through the Port of Montreal.”
In another important development in March for the future of the Port of Montreal, a Canadian consortium led by Fiera Axium Infrastructure announced the purchase of Montreal Gateway Terminals (MGT) – largest container operator in Montreal – from Morgan Stanley Infrastructure Partners (see separate report on page 2).
Meanwhile, at the Port of Halifax, a current major focus is to develop a stronger distribution network, affirms George Malec, vice-president of business development and operations. “This is supported by over $100 million in infrastructure investment since 2011 that is being used to develop trade. We see opportunities on the horizon with CETA (Canada-European Union free trade agreement) and the overall move to larger vessels.”
Last year, the Nova Scotia deep-water port saw its container volume advance by 8.6%, which translated into 400,000 TEUs. Completed deepening of the berths at the two container terminals means the port can handle the largest container ships calling on the east coast.
Good news also came this past February when Eimskip decided to increase the number of annual calls it makes at Halterm Container Terminal from 13 to 31. Originating in Reykjavik, Eimskip vessels then travel to Argentia, Newfoundland, and Halifax before going to Portland, Maine in a shortsea connection increasing shipper options for the US and Europe.
Saint John Eyes Bigger Box Role
”For its part, the Port of Saint John submitted a C$205 million application to the federal Building Canada Fund, National Infrastructure Component, to upgrade its container facilities over the next seven years to meet demand. The Port and the New Brunswick government would participate in the proposed partnership.
“Our container traffic has almost doubled since 2012,” says Jim Quinn, President and CEO of Port Saint John. “To continue competing and growing on the world stage a terminal upgrade is required to accommodate larger vessels and to have the handling capability required to service modern fleets.”
In recent years, the port’s mainly north-south container orientation with Latin America, through notably Tropical Shipping, has broadened to wider global markets thanks to the arrival of Mediterranean Shipping Services (MSC). Several decades ago, Saint John’s container business was hit hard by the departure of various Far East carriers. Last year marked the first full year of MSC calling Saint John, and carrier increased its presence last spring with additional vessels calling at Rodney Container Terminal.
“We all have been working hard with stakeholders, our province and our local MP Rodney Weston to get the port back on the map,” says Quinn. “We have doubled our container traffic, going from an average of 45,000 TEU’s in the past decade to almost 90,000 TEU’s in 2014, with projections to be over 100,000 TEU’s in 2015. We also know that US ports are becoming more and more congested.”
With shippers and receivers looking for eastern seaboard options, Quinn feels that the Port of Saint John can be part of the solution once its facilities are upgraded to handle the larger box ships.
