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Port of Québec announces deal with Hutchison Ports and CN Rail to develop new $775 Million container terminal
New port and terminal will handle latest generation of very large ships
The Québec Port Authority ("QPA") has announced the signing of a long-term commercial agreement with Hutchison Ports and CN (Canadian National Railway) to build and operate the new container terminal, known as project Laurentia (previously Beauport 2020).
The Laurentia plan would make the port the only facility in the St. Lawrence that could accommodate the new generations of very large ships. It also benefits from a direct railway and highway connection.
The deep-water container terminal project is currently under an environmental assessment process with the Canadian Environmental Assessment Agency.
The $775 million project will be financed primarily through the joint investment of the three partners. The QPA also has ongoing discussions with the federal and provincial governments to complete the financing.
QPA has said that the agreement stipulates that Hutchison Ports will build the most environmentally and technologically advanced cargo-handling facility in North America.
The new terminal facility will support hundreds of new jobs at full operations.
Hutchison Ports was selected after a competitive process in which QPA invited the leading international port operators to provide proposals to participate in the project. HSBC acted as QPA's sole strategic and financial advisor throughout the process.
This agreement increases Hutchison Ports' global network to 52 ports spanning 27 countries including the United Kingdom, Spain, Poland, Sweden, Germany, the Netherlands, Belgium, Australia, China, Pakistan, Egypt, Argentina, Mexico and Panama. Hutchison Ports handles close to 85 million TEU (twenty-foot equivalent unit) per year, representing approximately 11% of the global containerised cargo trade.
"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," commented Québec Port Authority's President and Chief Executive Officer, Mario Girard.
"We are pleased to partner with the Québec Port Authority and CN to develop the Québec container terminal. 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," said Eric Ip, Group Managing Director of Hutchison Ports.
"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," added JJ Ruest, President and Chief Executive Officer of CN.