(Ottawa and Montreal) The Port of Montreal Authority (MPA) is far from the only one stamping its foot on the Trudeau administration’s slowness in confirming that it will invest in the Contrecoeur port terminal project. Even business people are getting impatient. And that impatience extends beyond Quebec’s borders.
Posted at 6:00 am
The Toronto Region Board of Trade joins the voice of the Conseil du patronat du Québec and the Manufacturiers et Exportateurs du Québec in urging the Trudeau government to immediately announce that it supports funding for the industrial container terminal project in Contrecoeur, a request that the APM has been trying to move forward for months.
Contrecœur’s financial lineup was turned upside down by inflation. Result: The original invoice is no longer valid. The MPA makes an urgent appeal to Ottawa to ensure this project, deemed essential to the supply chain in Montreal and the east of the country, sees the light of day.
“Efficient movement of goods is critical to Toronto and Southern Ontario, home to 40% of Canada’s manufacturing base. The Port of Montreal expansion is welcomed by Toronto as an important first step in addressing the competition and congestion issues we face,” said Janet De Silva, president and CEO of the Toronto Region Board of Trade, in an email la press.
Ms. De Silva’s comments unequivocally show that Ontario and Quebec share the same appreciation of the importance of this project to the country’s economy and supply chain. Almost 30% of goods that land in Ontario pass through the Port of Montreal.
In a speech he delivered to the Montreal Metropolitan Chamber of Commerce this week, MPA President and CEO Martin Imbleau addressed the issue of rapprochement with Ontario.
What’s interesting is that Ontario just woke up and said to itself, ‘We, we don’t have a port, we need the Port of Montreal, and when we look to the generations to come, we’re worried about capacity.
Martin Imbleau, President and CEO of the APM
“They just said to themselves, ‘We’re going to develop our own maritime strategy.’ My teams and I met with representatives from the Ontario Department of Transportation and we will help them develop their maritime strategy,” Mr. Imbleau also noted.
Last month, Quebec awarded the MPA an additional $75 million to carry out the project. But Ottawa is slow to announce its colors. Talks between PAM leaders and the Trudeau government are ongoing. According to our information, a sum of around 150 million is the focus of the negotiations. We had hoped for an announcement in the last federal budget, which was presented on March 28th. But the disappointment was there. Treasury Secretary Chrystia Freeland announced no money in her budget.
According to Mr Imbleau, an agreement needs to be reached by the end of the month for the project to get underway as planned towards the end of the year.
PHOTO ALAIN ROBERGE, LA PRESS ARCHIVE
Martin Imbleau, President and CEO of the Port of Montreal Authority
“The schedule must be met because in 2027 we will reach maximum capacity,” said the President and CEO of APM on Tuesday.
The Inflation Effect
The Contrecœur project, which is set to see the light of day in the Montreal suburbs, will cost more than the previously mentioned estimate of 750 to 950 million. Mr Imbleau declined to quantify the order of cost overruns, which he attributes to inflationary pressures. Along with the funding, the MPA is still awaiting the green light from the federal government to enter the critical habitat of the endangered copper red horse.
By releasing a new envelope in its budget presented last month, the Legault government is backing the project with 130 million. The Canada Infrastructure Bank (CIB) must also offer 300 million loans. The APM and its private partner – who should be selected over the summer – will finalize the financial arrangements.
The financial support from the Trudeau government, combined with the additional efforts made by Quebec, would allow the impact of inflation to be absorbed, according to Mr Imbleau.
According to the President of the Conseil du patronat du Québec, Karl Blackburn, the Contrecœur project is crucial at a time when great efforts are being made to consolidate the supply chain on the North American continent and when we are trying to eliminate any dependency to reduce authority from regimes like China and Russia.
“Supply chains have been badly affected in recent years. But we know that they are important for the vitality and growth of our economy. The Contrecœur project is critical to our supply chains, particularly in Quebec. And such projects take a long time. We find it difficult to explain the slow progress of the file on the part of the federal government,” he said.
Manufacturers and Exporters of Quebec President and CEO Véronique Proulx agrees. “We took part in the consultations on Contrecœur. This project is important. And it is important that the federal government increases the pace and financially supports the Port of Montreal for this project. If this project is delayed, it will affect our supply chains,” she said.
PHOTO MARTIN CHAMBERLAND, ARCHIVE LA PRESSE
For many business observers, the Contrecœur project is necessary to solidify the supply chain in eastern Canada.
Jacques Roy, Professor of Transportation Management at HEC Montréal, believes time is running out for all stakeholders involved in this dossier.
“Container traffic in Montreal is increasing. Of course, you shouldn’t wait until full capacity has been reached to start the project. We are within the normal horizon in which we should start this work,” he analyzed.
He also said he was surprised to see the delays in the financial settlement and federal government involvement. “The short answer is yes. It seems like a pretty natural project to me. It’s right in federal court. I’m surprised he hasn’t answered the call yet. Ports don’t have much leeway to go to market and fund themselves. »
Learn more
1.15 million number of twenty-foot equivalent (TEU) containers that the Contrecœur terminal is expected to handle annually
SOURCE: MONTREAL PORT AUTHORITY