Montreal Port Project Backed by Carney Sees Cost Rise to $1.7 Billion

(Bloomberg) -- The cost of a new Port of Montreal terminal that Canadian Prime Minister Mark Carney says is in the national interest has soared to C$2.3 billion ($1.7 billion), according to a cabinet minister. 

The Montreal Port Authority announced earlier this week that it signed a development agreement for the new Contrecoeur terminal with logistics giant DP World Ltd.’s Canadian unit. The project aims to boost the container-handling capacity of the region’s port by more than 50%.

Dominic LeBlanc, Canada’s minister responsible for trade with the US and intergovernmental affairs, revealed the latest cost estimate at a news conference Thursday. He also said some private equity investors have committed financing to the expansion.

Previously, the cost had been estimated to be C$1.6 billion, with C$580 million in support from the Canadian and Quebec governments, along with the state-owned Canada Infrastructure Bank. More federal funds could be invested, LeBlanc added.

“One of the reasons why this project is so important for the government of Canada is that it is a mix of private and public investment that will make a significant contribution to the GDP of the country,” LeBlanc said.

Julien Baudry, an executive with the Montreal Port Authority, explained the project has evolved to “meet today’s standards” with electrified and low-carbon equipment. 

“Obviously, this requires investment and will make us competitive,” he said. “There will be an update on the budget, but it’s still too early to confirm the financial package.”

LeBlanc made his appearance in Montreal to support the project. The new terminal was included in a list of projects announced Thursday that Carney’s government intends to expedite to boost Canada’s economy in response to US tariffs. The government also wants to speed construction of a major expansion of LNG Canada, a large-scale liquefied natural gas export project on the Pacific coast. 

These projects will be referred to a new “major projects office,” which will help achieve any remaining regulatory approvals and secure the necessary financing.

The Contrecoeur terminal is awaiting a final authorization by Canada’s Fisheries Department, and construction could start by the end of the month. The major projects office will simplify and fast-track the next steps, the port authority said.

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