The Montreal Port Authority (MPA) welcomes the US$110 million contributed to the Contrecœur container terminal project under the National Trade Corridors Fund (NTCF) announced by Canada’s transport minister, Pablo Rodriguez.
This strategic investment will significantly improve the fluidity of Canada’s supply chain.
“This financial backing from the federal government sends a strong message about our large Contrecœur expansion project and the future of the logistics ecosystem in the St. Lawrence corridor,” stated Geneviève Deschamps, interim president and CEO of the MPA.
The federal government’s financial support highlights the strategic importance of the Contrecœur expansion project in view of the expected development in the container industry to satisfy the demands of importers, exporters, and consumers.
The expansion of the Port of Montreal’s activities at Contrecœur earned a favourable Decision Statement from Canada’s minister of the Environment and Climate Change in 2021, permitting the project to proceed.
Geneviève Deschamps further added, “It lets us embark on the next steps with confidence so that we can continue to play our vital role as a sustainable economic driver at the heart of the Quebec and Canadian economies.”
For this phase, which involves dock building and dredging, the MPA will serve as the primary contractor. A Design-Build method (DB model) will be used for project planning, with a specialized business assisting the MPA over the next 9 to 12 months.
Furthermore, the MPA will assign the project works according to its procurement methods at the end of this phase and will give an updated timetable for this component of the project works.
In early 2024, the MPA will launch a Request for Proposals to choose a private partner to construct the terminal (container yard, buildings, facilities, and rail link).
Under a DBFOM (Design-Build-Finance-Operate-Maintain) agreement, this private partner will also run and maintain the terminal. This component excludes the aforementioned water-based project works.
According to a statement, as a result, the DBFOM procurement process, which began in November 2021 and included both the terminal’s construction (marine and land site) and operation, has been cancelled to make way for this new approach of effectively completing the project, which is more suited to today’s reality.
Discussions with bidders did not result in an ideal outcome for the MPA after factoring in market trends such as interest rates and inflation, between the time the Request for Qualifications began in 2021 until now.
