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5/26/2022
The Canadian government yesterday announced it will contribute CA$42 million toward two projects designed to improve supply-chain efficiency for Canadian shippers in Saint John and McAdam, New Brunswick.
The government will provide CA$21.2 million to fund a project to upgrade rail terminals in Saint John and McAdam. The New Brunswick Southern Railway, a subsidiary of J.D. Irving Ltd., will contribute the same amount, bringing the total investment in the project to CA$42.32 million.
In addition, the government will provide up to CA$21 million to the Saint John Port Authority to increase the cargo laydown capacity of the West Side Terminal to enhance its crane capabilities and handle wheeled cargo. As the applicant, the authority will contribute CA$4.2 million while the province of New Brunswick will provide CA$16.8 million, representing a total investment of CA$42 million.
"These two projects located in Saint John and McAdam represent major opportunities to increase capacity to import and export goods in and out of New Brunswick,” said Canadian Transport Minister Omar Alghabra in a press release.
Canadian Pacific officials praised the federal and province governments’ investments in additional capacity expansion at Port Saint John. The need for more capacity has been driven by CP’s return to Atlantic Canada through its acquisition of the Central Maine and Quebec Railway, which now connects Atlantic Canada to Montreal, Toronto and the U.S. Midwest.
"The funding will bring Port Saint John's capacity up to 800,000 [20-foot equivalent units], almost tripling the port's existing capacity," said CP President and CEO Keith Creel in a press release.
CP officials also praised the decision to invest in rail infrastructure along the New Brunswick Southern Railway, which serves as a critical link between Port Saint John and CP's North American rail network via the Central Maine and Quebec Railway.
"This strategic investment will help to improve the resiliency and competitiveness of Canada's export-driven supply chains and, combined with the increased competition generated by our return, help to transform Port Saint John into a truly global, premier trade gateway," Creel said.
The federal dollars will come from the National Trade Corridors Fund.