CIB to loan $150 million for CANXPORT logistic project Phase 1
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- CIB helping to expand Canadian exports and resiliency in the supply chains that support trade with an investment in British Columbia's Port of Prince Rupert.
- Prince Rupert Port Authority is undertaking land development and construction of rail expansion in Phase 1 for an innovative export logistics hub.
- New facility to handle 6 million tonnes of cargo.
- Will provide significant economic and employment benefits to local First Nations and Indigenous-led businesses.
PRINCE RUPERT, BC, May 23, 2024 /CNW/ - The Canada Infrastructure Bank (CIB) has reached financial close on a $150 million loan to the Prince Rupert Port Authority (PRPA) for the first phase of a project to build CANXPORT. The new export logistics hub will expand capacity and capabilities for rail-to-container transloading of multiple export products at the Port of Prince Rupert, improve Canadian supply chains, and drive trade and economic growth.
Work has already begun to prepare one of Canada's busiest ports for the new facility, located a short distance from Fairview Container Terminal, which will provide access to capacity to improve the balance of import and export cargoes that will benefit the Port's broader intermodal business, driving local economic and employment benefits both directly and indirectly within the community.
The innovative facility will enable the efficient containerization of bulk commodities such as agricultural, forestry, and plastic resin products with room to expand and diversify to handle additional cargoes in the future. The project's scale, unit train capabilities, and integration into existing container terminal operations will facilitate substantial opportunities to exporters that enhance container supply chains and ways to reach international markets. The hub's initial annual capacity will be 400,000 twenty-foot equivalent units (containers).
Local Indigenous partners are involved in the development and operation of CANXPORT. The primary contract site development was awarded by PRPA to an Indigenous joint venture that includes Metlakatla First Nation, Lax Kw'alaams Band, Gitxaała Nation and IDL Projects Inc. Metlakatla and Lax Kw'alaams are also majority owners of Gat Leedm Logistics, the largest provider of truck drayage services within the Port, that will also support CANXPORT's operation. Following construction, CANXPORT's operations are expected to commence in Q3 2026.
Funding for Phase 2, which is expected to be approved later in 2024, will be used to help Ray-Mont Logistics to finance construction of the transloading facility and container storage yard.
Capital investment in CANXPORT is provided by PRPA, Ray-Mont Logistics, and Canadian National Railway Co. (CN). The Government of Canada and the Government of BC are also financial contributors to the project infrastructure.
This is the CIB's first investment in a Canadian port. The Port of Prince Rupert is a critical Canadian trade gateway that ships a diversified portfolio of cargoes through several intermodal, dry bulk and liquid bulk terminals. The Port is the closest North American west coast port to Asia-Pacific markets. The Port is also the deepest natural harbour in North America, is ice-free year-round, and is able to accommodate the largest vessels in the shipping trade.
Helping to expand Canadian exports by providing financing for the CANXPORT project is a key part of the Canada Infrastructure Bank's mandate. Our first port investment will increase exports by adding containerized shipments that will elevate the country's GDP and competitiveness while also supporting Indigenous communities in Prince Rupert.
Ehren Cory, CEO, Canada Infrastructure Bank
The Port of Prince Rupert is an important part of Canada's supply chain, serving as a vital gateway for trade. This investment in the CANXPORT project marks a significant step in enhancing marine shipping efficiency and reliability, ensuring smoother transportation of goods, and Canadians from coast to coast to coast will benefit.
The Honourable Pablo Rodriguez, Minister of Transport
This investment in the Port of Prince Rupert's expansion will improve Canada's export capabilities to the Asia-Pacific region, driving trade and economic growth. We're also looking forward to the incredible economic opportunities that the CANXPORT project will bring for Indigenous communities in Prince Rupert.
Parm Bains, Member of Parliament for Steveston—Richmond East, British Columbia, on behalf of the Honourable Sean Fraser, Minister of Housing, Infrastructure and Communities
The Canada Infrastructure Bank's historic investment in the Port of Prince Rupert's CANXPORT project will enable transloading and logistics services on an unprecedented scale and unlock significant competitive advantages for Canadian exporters. The facility is strategically located within the gateway's fully contained intermodal ecosystem, and supports the Prince Rupert Port Authority's commitment to realizing a vision of a competitive, resilient, sustainable port."
Shaun Stevenson, President & CEO, Prince Rupert Port Authority
The expansion at the Port of Prince Rupert will open new opportunities for B.C. companies to get their products to market. Our government's $25 million investment will support businesses and job growth right across the Province and keep our economy competitive.
Rob Fleming, B.C. Minister of Transportation and Infrastructure
CANXPORT represents a truly unique opportunity for Ray-Mont to offer our valued customers the best containerized export logistics solution in North America. The facility will offer over 50 acres of land with future expansion potential, three loop tracks each capable of handling 10,500' unit trains, and trucking on private roads allowing us to decarbonize and electrify our operations. Combined with the natural benefits of the Port of Prince Rupert, we will be able to offer unparalleled levels of productivity and supply chain resiliency for exporters.
Charles Raymond, President & CEO, Ray-Mont Logistics
CN is proud to support the expansion of the Port of Prince Rupert through our partnership in the CANXPORT project. This innovative export logistics hub will not only enhance Canada's supply chains and trade capabilities but also allow for growth opportunities for its partners and local communities, including Indigenous-led businesses. The Port of Prince Rupert is a key hub for many industries to access new markets and we are excited to share the benefits of this project with customers across CN's network.
Tracy Robinson, President & CEO, CN
SOURCE Canada Infrastructure Bank
Media Contacts: Canada Infrastructure Bank, [email protected], 416-347-3358; Prince Rupert Port Authority, [email protected]
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