It was a good start to the year for the Montreal Port Authority’s Contrecoeur expansion project, with the issuance of the final missing federal approval.

As one of the firsts to be referred to the newly established Major Projects Office, the project stood out as a prime candidate for the Carney government’s regulatory fast-track legislation—particularly as it was one of the only ones with outstanding approvals.

But despite the focus on permitting, the project’s primary hurdle was never regulatory. Rather, as Major Projects Office head Dawn Farrell told a House committee last fall, the challenge for Contrecoeur lies almost entirely on the financing side.

“We are all done with our permits, so there is no need for acceleration at this time, but the Major Projects Office is still extremely important to us,” the CEO of the Montreal Port Authority, Julie Gascon, told iPolitics. 

She says having the special government agency pay special attention to the Contrecoeur expansion is crucial as the port authority enters the final stretch of talks with off-shore operator DP World and various financial entities.

“We’re quite advanced,” she said. “But I can’t really share details as we are in the middle of negotiations.” 

Gascon says she hopes she’ll be able to share more in the coming months, even suggesting a deal could be reached by fall. 

“The Major Projects Office is playing a key role to ensure we have the right tools, and the right financing solution,” she said. 

A complex financial package

Costs for the Contrecoeur expansion project recently ballooned to $2.3-billion, up considerably compared to the prepandemic estimate that hovered around the $800-million mark. 

So far, Quebec and Ottawa have both pitched some $150-million each, while the Canada Infrastructure Bank announced a $300-million loan. 

It’s unclear how much DP World will be investing, and what other federal coffers might open up in the near future. 

Major projects come with a big price tag – who will foot the bill?

When referring Contrecoeur to the Major Projects Office, Intergovernmental Affairs Minister Dominic LeBlanc said there were ongoing discussions to finalize the federal contribution to the project. 

This could come through financial entities including the Canada Infrastructure Bank, the Canada Growth Fund, or the Canadian Indigenous Loan Guarantee Program – all of whom have been tasked with working with the Major Projects Office in Budget 2025. 

Made a priority

Gascon says being referred to the Major Projects Office last fall was a game changer for the Montreal Port Authority. 

“It brought everybody together to focus on identifying the remaining issues, and finding solutions,” she said, adding she feels the project was prioritized by various federal departments. 

Site preparation work has already begun for the Contrecoeur expansion project.

The Montreal Port Authority has also begun work on proposed mitigation measures, like creating new habitats for wildlife threatened by the project, inclduing the Copper Redhorse, a highly endangered fish is endemic to Quebec.

But with the last remaining permit issued by the Department of Fisheries and Oceans, the Montreal Port Authority can now begin dredging the St. Lawrence river and build a dock. 

An environmental group is planning to challenge that federal authorization in court.

Trade to Europe, Asia increased significantly in 2025

The Contrecoeur expansion project is set to increase the Port of Montreal’s container handling capacity by approximately 60 per cent. 

The Port is not currently at capacity, but it anticipates growth in the coming years as Canada tries to diversify trade away from the U.S. 

Recent and informal trade data from 2025 suggest Montreal could be well positioned to capitalize on this trend: trade with the Mediterranean region increased 1.5 per cent, including a 44 per cent surge in trade with Morrocco driven by fruit imports. 

“Canadians are making that choice at the grocery store, they buy fruits and vegetables from anywhere else but the U.S.,” noted Gascon, who says that trend could accelerate into 2026 and 2027. 

Her main concern, as she met with Quebec business leaders at the local Chamber of Commerce last week, is room could run out at the Port of Montreal, forcing producers to ship through New York in a time of geopolitical uncertainty. 

“My biggest concern right now is not being able to deliver Contrecoeur in time for Quebecers and Canadians.”