Crowded field of container projects on Canada’s East Coast

Montreal’s Contrecoeur Terminal

With container volumes rising in recent years and potential capacity problems on the horizon, the Port of Montreal is counting on a planned new terminal at Contrecoeur, 25 miles downstream on the south shore of the St. Lawrence River, to meet future demands. It would represent the sixth container facility at Canada’s leading East Coast port. The Canada Infrastructure Bank (CIB) recently announced it will work with the Montreal Port Authority (MPA) to advance the development of a new box facility at Contrecoeur that would boost the port’s capacity from 2.1 million TEUs to 3.5 million TEUs. It would represent the CIB’s first participation in the trade and transportation sector. 

Due to draft limitations on the St. Lawrence River on the channels leading to Montreal, what is termed the Montreal Model is built on handling vessels with capacities of up to 6,000 TEUs rather than the Ultra Large Containerships. “What is striking about Montreal is the full discharge and load,” Slack recalled.

The container project is valued at C$750 million (US$ 570 million). The terminal would have a maximum annual capacity of 1.15 million TEUs upon hoped-for completion in 2023.

A Memorandum of Understanding indicated that CIB and MPA will work on the financial structuring of the proposed terminal. Due diligence will include planning and pre-procurement activities for the design, the construction, the financing, the operation and the maintenance of the terminal. CIB’s work could lead to an investment – not yet guaranteed - in the venture.

Sylvie Vachon, President and CEO of the Montreal Port Authority feels that the proposed terminal’s case is bolstered by the fact that it is not located in an urban area and is well connected to rail and highway networks.

With cargo growth rates forecast in the high single digits this year and with all sectors exceeding expectations since 2017, Tony Boemi VP growth and development, says expanding capacity through the proposed Contrecoeur terminal “is reaching critical status.”

The addition of a new service with the Mediterranean and two new carriers (Hamburg Sud and Cosco) has fueled this growth.

The port’s two major terminal operators, Montreal Gateway Terminals Partnership and Termont Montreal (part of the Logistec group), are expected to become involved either jointly or separately in the Contrecoeur undertaking.

On the important regulatory environmental front, the Port of Montreal answered this past spring a first round of questions from the Canadian Environmental Assessment Agency.

“We are waiting for a second round of questions and complementary requests and we will strive this fall to reply as quickly as possible,” port spokesperson Mélanie Nadeau told AJOT.