The Government of Canada invests $254 million to support trade diversification and increase trade capacity in the Saint John Trade Corridor

SAINT JOHN, NB, Oct. 21, 2026 /CNW/ -- Canada is focused on what we can control: building a stronger, more independent, and more sustainable economy. Central to that is an integrated transportation network that supports the efficient and reliable movement of goods across the country and to international markets.

Today, the Honourable Steven MacKinnon, Minister of Transport and Leader of the Government in the House of Commons, announced an investment of up to $254 million through the Trade Diversification Corridors Fund to support the Saint John Trade Corridor project, in partnership with the Government of New Brunswick's Regional Development Corporation, the Saint John Port Authority, New Brunswick Southern Railway, and the New Brunswick Department of Transportation and Infrastructure. This investment will implement a series of targeted improvements to unlock the Port's potential, enabling it to handle between 850,000 and 1 million twenty-foot equivalent units annually along the Atlantic coast.

The Saint John Trade Corridor project will expand warehouse capacity, supporting higher-value cargo and lower dwell-times. Dredging and marine service upgrades will increase tidal windows, reduce tide-related delays, and accommodate larger vessels.

The project cements Saint John as a stronger, agile Atlantic Gateway. Combined with other recent investments in cold-chain infrastructure, Saint John will support discretionary and temperature-sensitive cargo, reinforce North–South trade links, and provide shippers with an additional routing option when other gateways face congestion or disruption.

Building on recent investments, including over $76 million through the National Trade Corridors Fund (NTCF), this project will improve port operations, strengthen rail connections, and reduce delays in moving goods. These improvements will help the Port of Saint John handle more cargo, attract new shipping services and business opportunities, and support job creation and economic growth in the region.

As Canada continues to unlock access to new global markets, today's investments will optimize port operations and develop trade-enabling transportation infrastructure that move our economy through the:  

• Expansion and upgrade of port warehouses.
• Establishment of a new Canada Border Services Agency (CBSA) container examination facility, staffed by a portion of the 1,000 newly recruited officers.
• Dredging and rehabilitation of marine infrastructure to improve operations, which will increase the number of high-water tidal windows by at least 30% for fully loaded vessels at deeper draughts and increase the safety and optimization of vessel movements.
• Stabilization of the Bayshore Rail Terminal shoreline to protect the only rail access to Port Saint John and safeguarding essential rail and port operations. The preservation of existing rail capacity and terminal functionality will support continued Port growth and trade activity.
• An upgrade of 103 km of New Brunswick Southern Railway track with continuously welded rail, which will deliver improvements to this rail corridor, including increasing mainline speed to 64 km/h, reducing freight transit times between Port Saint John and Class 1 railways, increasing freight capacity and fluidity to/from Port Saint John and increasing rail safety.
• Reconstruction of Simms Corner to separate rail and road traffic, improving safety and reducing delays.

Through this investment, this project will enhance regional connectivity, strengthen links to national and international trade corridors, and help build a more efficient and resilient transportation network.

This investment also advances priorities identified by the Atlantic Economic Panel, which highlighted Saint John's potential to grow as a major trade gateway. By expanding port capacity and strengthening rail connections, Canada is helping businesses move more goods to more markets.

Quotes

"Canada cannot take access to any single market for granted. By modernizing our transportation system, we are helping move goods more quickly, strengthening supply chains, attracting investment, and reinforcing Canada's position as a reliable trading partner. By expanding capacity in key corridors, we are making it easier and faster to move goods across Canada and to international markets. These investments are critical to a strong and competitive economy."

The Honourable Steven MacKinnon
Minister of Transport and Leader of the Government in the House of Commons

"New Brunswick has what the world wants, and we're investing in the infrastructure to get our goods to markets across Canada and around the world. This investment will help our businesses reach new customers, compete in global markets, and create good-paying jobs right here at home. By building on our strengths and strengthening the connections that move our economy forward, we're creating more opportunities for New Brunswickers."

The Honourable Susan Holt
Premier of New Brunswick

"Today is an historic day for Saint John, New Brunswick, and Canada. This project, which includes a federal contribution of $254 million, is a partnership between the federal and provincial governments, Port Saint John, and private-sector partners to expand trade, create good jobs, and drive growth. Our government is focused on diversifying trade and moving faster, and today, we're delivering by strengthening the entire Saint John region and province as one of Canada's key gateways to the world."

The Honourable Wayne Long
Secretary of State (Canada Revenue Agency and Financial Institutions)

Quick facts 

• Introduced in Budget 2025, the $5 billion Trade Diversification Corridors Fund will strengthen Canada's trade corridors and support long-term economic growth.
• The Government of Canada is committed to engaging Indigenous groups and upholding its duty to consult and, where appropriate, accommodate, consistent with section 35 of the Constitution Act, 1982. 
• The Atlantic Economic Panel was tasked with identifying transformational opportunities and developing independent, action-oriented recommendations to accelerate productivity, strengthen competitiveness and improve long-term prosperity across Atlantic Canada.

Associated links

• Trade Diversification Corridors Fund – Webpage
• Government of Canada introduces legislation to transform how Canada builds - Canada.ca
• One Canadian Economy - Canada.ca
• Atlantic Economic Panel 

Visit Transport Canada's website.

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SOURCE Transport Canada - Ottawa

Contacts: Marie-Justine Torres, Press Secretary and Senior Communications Advisor, Office of the Minister of Transport and Leader of the Government in the House of Commons, 613-327-5918, [email protected]; Media relations, Transport Canada, Ottawa, 613-993-0055, [email protected]