Ottawa accelerates Montreal port's project, drawing investors and sparking economic debate
A dramatic surge in the cost of the Port of Montreal’s Contrecœur terminal expansion—now estimated at $2.3bn—signals a major shift in the scale and ambition of Canadian infrastructure investment.
This is according to Dominic LeBlanc, Canada’s minister responsible for trade with the United States and intergovernmental affairs.
The Montreal Port Authority (MPA) has formalized a development agreement with DP World Ltd.’s Canadian unit, aiming to boost the port’s container-handling capacity by over 50 percent, as reported by Bloomberg.
The expansion, which will create capacity for 1.15 million containers, is part of a broader federal push to expedite high-priority infrastructure projects through the newly established Major Projects Office (MPO), as outlined by Prime Minister Mark Carney.
Carney emphasized that the project is designed to diversify commerce, open new markets, and reduce costs for Canadian businesses.
LeBlanc stated that the project’s financing now includes commitments from private equity investors, with the possibility of additional federal funds.
The previous estimate of $1.6bn included $580m in support from the Canadian and Quebec governments and the Canada Infrastructure Bank.
LeBlanc described the initiative as a blend of private and public investment that will make a significant contribution to Canada’s GDP.
The project’s timeline is accelerating, with construction expected to begin by the end of the month, pending final authorization from the Department of Fisheries and Oceans (DFO).
The MPO is tasked with streamlining regulatory approvals and securing the necessary permits, as reported by CBC News.
The MPA’s Julien Baudry noted that while construction on land can proceed, work in the water will require the DFO’s permit.
Environmental and community concerns remain prominent.
The expansion will affect habitats of two endangered species protected under the Species at Risk Act, and a Quebec environmental group has filed a lawsuit challenging the constitutionality of the federal fast-track process.
In 2021, the Impact Assessment Agency of Canada concluded that the project was unlikely to have a significant adverse environmental impact, but imposed over 150 conditions.
