Amid mixed traffic trends, leading ports of Canada’s East Coast are continuing to map infrastructure projects to boost market penetration. To a certain extent, the container gateways of Montreal, Halifax and Saint John are competing against each other while also striving to remain competitive against US Eastern Seaboard ports which have significantly increased capacity to accommodate the new generation of large containerships.
On the bulk side of the equation, worthy of special mention is the St. Lawrence Port of Sept-Iles, the premier iron ore gateway of North America, which has overtaken Montreal as Canada’s 2nd busiest port after Vancouver in terms of total cargo.
Port of Montreal
The Montreal Port Authority in 2023 inaugurated several major projects – notably the completion of phase 3 of rail capacity optimization, commissioning of the Vickers overpass in the Viau sector, and the Grand Quay tower. And earlier this month, the port kicked off structural work on its Pie-IX rail bridge rehabilitation project
But entering even more into focus today is the momentum on the biggest single infrastructure project in the port’s history – the construction of a container terminal with annual capacity of 1.15 million TEUs at Contrecoeur, some 25 miles downstream from Montreal on the St. Lawrence River.
The project includes the construction of a 675-metre dock for two berths to accommodate vessels of between 39,000 and 75,400 DWT. It also encompasses a seven-track classification yard, a container storage and handling area, an intermodal rail yard, rail and road accesses and a truck control area. With a rail line already in place, CN has teamed up with the Montreal Port Authority to integrate rail transport at the future terminal.
As far as financing is concerned, the federal government has allocated funding of C$150 million which adds to the C$300 million pledged by the Canada Infrastructure Bank and C$130 million from the Quebec government. The object of meticulous planning since the late 1980s, the cost of the expansion project has reportedly ballooned from an initial C$950 million to north of C$1.4 billion due to inflation and other factors.
Potential 2029 Start-up of Contrecoeur Project
In an interview, Paul Bird, MPA’s Chief Commercial Officer, outlined the several milestones that will be achieved in 2024 and 2025 to bring the massive undertaking to potential start-up of operations by 2029.
“Building it during a low cycle is the right time to build it,” he emphatically stated. “What could be perfect timing to build infrastructure is one of the greatest questions in the world. And if you want to be just reactive, well, you wait – until the market is exploding and the infrastructures will not be ready.”
“Yes,” Bird acknowledged, “things looked somewhat stagnant in 2023, but all (long-range) forecasts foresee an annual increase in volume of 3% and possibly higher at the Port of Montreal.”
Under such a scenario, Mr. Bird opined that existing capacity will not be able to meet demand by 2029. “So, the need for this infrastructure more than ever.”
In this connection, things are moving forward under a hybrid approach adopted last October after discussions with bidders did not lead to a result deemed satisfactory by the MPA. In this approach, land-side works (container yard, buildings, public utilities and rail connection) are to be carried out by a private partner. The latter will also be responsible for operating the terminal under a design, build, finance, operate and maintain (DBFOM) approach.
The in-water works (dock construction and dredging) will be undertaken by the MPA in a partnership agreement announced this past February with Pomerleau and Aecon. “At the end of the procurement process which closes on Q1 2025, we want a fixed cost price. We should have officially a contract signed between the MPA and Pomerleau-Aecon to start construction in the spring of 2025,” Mr. Bird shared.
On the landside, Mr. Bird indicated that various parties have currently responded to an international request for proposals which will also close off by the end of Q1 2025. “Both processes, therefore, finish at the same time in 2025.”
During the course of the interview, Mr. Bird underlined Contrecoeur’s future competitive contribution to what has been widely described as the Montreal Model.
“Our model is different. We are, in fact, a port of destination and not a port of call. Ships come full in and leave full out. On average, we handle 4,800 TEUs on a full-in, full-out ship compared to any port of call on the East Coast, whether it be New York/New Jersey, Halifax or Saint John. Even at NY/NJ, the average is 2,200 TEUs.
“In a world where you want to optimize strings which have the lowest carbon footprint, Montreal offers the deepest inland port bringing cargoes destined for the Quebec, Ontario and the Midwest markets. We are reducing footprint and gas emissions at the most efficient slot costs compared to doing things another way.”
On the environmental front, the port is working on compensation plans and mitigation measures to meet the several hundred conditions of the favourable 2021 decision received by the Impact Assessment Agency of Canada. Mr. Bird reports that the MPA has already completed most of the 367 conditions and 268 engagements. He feels “very confident the mitigation measures will protect all species going forward.”
In conclusion, Bird singled out the “green” significance of the Contrecoeur project. “Contrecoeur will be a 100% electrified terminal. It will be carbon neutral from day one. All ships will be able to connect to shore power.”
Port of Halifax
For the Port of Halifax, 2023 was a solid year in cargo and cruise activity. In his assessment of performance, Paul MacIsaac, Senior Vice-President, declared: “We welcomed more than 100 Ultra-Class vessels, and saw a return in cruise visits, but like other Canadian ports and ports around the world, we continue to navigate the effects of inflation, general consumer and economic weakness and geopolitical challenges that impact containerized cargo.”
Containerized cargo declined by just over 9% to 546,163 TEUs but was consistent within a five-year average level. Of special note: the port received 107 large containerships of 10,000 TEUs or greater. Total port-wide traffic increased to 9.9 million tons from 9.6 million tons in 2022.
“We worked with our partners to achieve solid results in 2023 and I’m proud of the work by everyone on our team at the Port to deliver exceptional service once again,” MacIsaac said. “With our partners at PSA Halifax, CN Rail, labour and trucking, and the framework set out in our 50-Year Plan, Halifax is well-positioned to capture opportunities as economies recover around the world, and to demonstrate the importance of planning for sustainability in all aspects of operations.”
Looking ahead to 2024, investment will continue in projects such as the extension at Ocean Terminals to provide more yard space for container operations at PSA, consolidation of breakbulk business at Richmond Terminals and the exploration of sustainable cruise ship expansion to Dartmouth that complements the surrounding community.
In May of this year, the port received the first four of eight electric rubber tyre gantry cranes (E-RTG) for terminal operator PSA Halifax’s Atlantic Hub. The final batch of four is slated to arrive later in 2024.
Port Saint John
At the Port Saint John, total traffic (mainly oil related) increased slightly to 27.9 million tons in 2023. But as a whole, 2023 proved to be a stellar year for the Bay of Fundy port with the completion of the West Side Modernization project and its performance as the sole Canadian port to show container cargo growth.
The port’s container traffic attained 153,000 TEUs in 2023 compared to just over 100,000 TEUs in 2022. Work was begun on enhancements to increase laydown area at the container terminal operated by DP World. The latter welcomed two additional post-Panamax cranes – boosting capacity to four cranes and the ability to handle more cargo quickly.
As a result of the upgrades, the port’s management foresees annual container-handling capacity advancing from 325,000 TEUs in 2023 to 800,000 TEUs by 2025.
Early this September, DP World and Port Saint John announced they will welcome two additional cranes to the terminal before the end of the year. The cranes will arrive from the Port of Virginia, joining the four existing cranes to bring the total number to six. They are expected to be operational in early 2025.
Port of Sept-Îles
For the Port of Sept-Îles, on the north shore of the St. Lawrence River, 2023 was characterized by impressive growth, with record cargo volume of 37 million tons. “More than ever, we are aware of the role we play in the heart of economic activity and community action,” declared Pierre D. Gagnon, CEO of the Port of Sept-Îles.
“We have reclaimed the second position among Canadian ports for annual activity volume, while reinforcing our status as the largest mineral port in North America,” added Gagnon who estimates total cargo could attain 40 million tons in 2024.
In this regard, he points to current interest from major steelmakers in high-purity iron from the Labrador Trough to accelerate decarbonization efforts in the iron industry.
Upcoming projects to boost cargo-handling capacity include a C$30 million refurbishment of the Monseigneur-Blanche terminal, one of five terminals at a vast, niche port which can accommodate the world’s largest bulk carriers transporting iron ore from Canada to European and Asian markets.
