The Montreal Port Authority’s (MPA) plan to build a new container terminal at Contrecœur has been given a boost following Canada Transport Minister, Pablo Rodriguez’s, announcement that CA$150M in funding would be available to the project via the government’s National Trade Corridors Fund.
“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,” said Geneviève Deschamps, interim president and CEO of the MPA. “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.”
In particular, the funding means that MPA will adopt a new business model for the development of the terminal. The so-called hybrid approach will involve the MPA taking over more of the responsibilities in carrying out the project. Specifically, it cancels the Design-Build-Finance-Operate-Maintain (DBFOM) procurement process launched in November 2021, which included both the terminal’s construction work (marine and land site) and its operation.
Under the revised model, the MPA will undertake all marine works, including dock construction and dredging, related to the project. A Design-Build model will be adopted with a specialised consultant assisting the MPA for the next nine to 12 months. At the end of this phase, the MPA will assign the project works according to its procurement processes, and will present an updated schedule for this component of the project works.
On the land side, works and operations will be carried out with a private partner, with the MPA planning to issue a Request for Proposals in early 2024. This will cover the construction of the container yard, administrative buildings, facilities and rail connection. This private partner will also operate and maintain the terminal under the DBFOM model.
“The new procurement process put forward will enable us to control risks, project works and costs more effectively in the current [trading] context,” said Deschamps. “The MPA teams are continuing their rigorous planning on the Port of Montreal’s major Contrecœur expansion project that is so crucial to keeping supply chains resilient.
The Contrecœur plan, the costs of which have soared, involves the MPA building a terminal with the capacity to process 1.15M TEU a year. In 2022, the port handled 14.4 Mt of containerised cargo, up 1.2% on the previous year and equivalent to 1.7M TEU.
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