Hutchison Ports has signed a long-term agreement with the Quebec Port Authority (QPA) and the Canadian National Railway to build and operate a new container terminal.
According to a statement, the Laurentia terminal will cost approximately US$775 million and will be financed primarily through the joint investment of the three partners.
Furthermore, the agreement stipulates that Hutchison Ports will build the most environmentally and technologically advanced cargo-handling facility in North America, which the operator describes as a “unique opportunity”.
Once completed, the Laurentia terminal will be the only deep-water facility in the St Lawrence River big enough to accommodate the new generation of very large ships.
Consequently, it will play a unique role in North America’s supply chain, as it will benefit from a direct railway and highway connection.
�� |GREAT ANNOUNCEMENT|
Today, we are more than proud to announce an agreement with Hutchison Ports and CN for the development of the new container terminal of $ 775M investments!
— Port de Québec (@PortQuebec) May 28, 2019
According to KPMG, the first phase of the construction will generate $500 million and create 1267 jobs a year.
Ultimately, the project is estimated to generate approximately $84 million and 800 jobs, 500 of which will be direct, in Quebec.
Eric Ip, Group Managing Director of Hutchison Ports, hailed the agreement and spoke of the potential it has for wider supply chain.
“We are pleased to partner with the Québec Port Authority and CN to develop the Québec container terminal,” he said.
“Québec City will become Hutchison Ports’ gateway to the East coast of North America. With its fully intermodal deep-water port, its strategic location to reach the Midwest market, and the strong support shown by the local authorities, the Québec project has all the attributes to be successful in this highly important market.”
A container ship traveling along the St Lawrence River, Canada
JJ Ruest, President and CEO of Canada Railway, also spoke: “In an economy driven by consumer spending derived freight, long haul supply chains need to be modern, cost effective and reliable.
“Hutchison is a world class container operator and we are confident that we are partnering with a group that can make the project a success.”
QPA’s CEO, Mario Giraud, had this to say: “We have chosen Hutchison Ports as it is a world-class operator, with customer-focused experience who shares our business vision regarding supply chain efficiency, innovation, safety and environmental concern.
“Today, through a joint venture with Hutchison Ports and CN, we are setting the stage for this project to become a North American success in terms of business and social acceptability not to mention a vector of economic development for Québec, allowing the St. Lawrence to gain additional growth and competitiveness with U.S. ports.”