Port of Montreal signs agreement with Pomerleau and Aecon to design in-water works for reluctant expansion project

28 February 2024

Montreal, February 28, 2024 – The Montreal Port Authority (MPA) is pleased to announce that it has entered into an agreement with Constructeurs Terminal de Contrecœur Grand Projet (CTCGP), composed of Pomerleau and Aecon, to design the in-water works for its Contrecœur expansion project using a collaborative design-build (“collaborative DB”) approach.

Thomas Clochard, Julie Gascon and Philippe Adam — From left to right, Thomas Clochard, Executive Vice President, Civil and Nuclear Energy, Aecon Group Inc.; Julie Gascon, President and CEO, Montreal Port Authority; Philippe Adam, President and CEO, Pomerleau.

Last October, APM indicated that it would use a hybrid approach to the design and construction of its expansion project. Under this approach, land-based work will be carried out by a private partner, while in-water work (including dock construction and dredging) will be the responsibility of APM, with the support of partners. In the last few days, APM has signed an agreement with CTCGP to develop the design for this latest component.

COLLABORATIVE AGREEMENT MODEL

Under the Collaborative CC approach, the contractor (in this case, CTCGP) and prime contractor (in this case, APM) work closely together throughout the development phase to finalize the project design, until an estimated schedule and cost for the work are obtained. This approach, increasingly used for major infrastructure projects, offers advantages in terms of efficiency and coordination, while providing greater predictability and risk management for all parties, particularly in terms of costs and deadlines. CTCGP was chosen for its partners’ expertise and experience in infrastructure and transportation, as well as in collaborative CC-type approaches.

QUOTES

“We are very pleased to announce this partnership with Pomerleau and Aecon, grouped within CTCGP, for the planning of the in-water works for our expansion project in Contrecoeur. The close collaboration between these two renowned companies, combined with our innovative collaborative design-build approach, reinforces our commitment to the efficiency, coordination and success of this forward-looking project. We look forward to realizing this ambitious vision for the future of Canada’s supply chains, and to better serving our businesses and our community,” said Julie Gascon, President and CEO of APM.

“We are proud to be part of the Port of Montreal’s expansion project in Contrecoeur, which will enable APM to realize its innovative vision for the country’s shipping industry. We applaud the use of the collaborative design-build model, which prioritizes transparency and teamwork between prime contractor and designer, and ensures better planning and sound risk management. Together, with the APM team and our partners, we will leverage our know-how and experience in creating world-class port infrastructures,” says Philippe Adam, President and CEO of Pomerleau.

“The in-water work is an important part of the realization of the new Contrecœur terminal, which will provide Eastern Canada’s largest container port with increased capacity that will contribute to continued economic growth in Quebec and Canada,” said Jean-Louis Servranckx, President and CEO of Aecon Group Inc. “We look forward to applying our experience of this collaborative mode of project delivery and complex civil infrastructure construction to this vital project with our customer and partner.”

“The Port of Montreal plays a key role in ensuring that Canadians get the goods they need, when they need them, at a price they can afford. Our investment in this project will strengthen our supply chain, and I’m delighted with this important milestone,” said the Honourable Pablo Rodriguez, Minister of Transport and Quebec Lieutenant.

“Thehistory of Quebec’s economic development is intimately linked with that of the development of our St. Lawrence River. Our government firmly believes in this, which is why we have invested over $130 million in the Port of Montreal’s Contrecoeur terminal. We welcome the Port’s progress and will continue to support its activities,” said Geneviève Guilbault, Deputy Premier of Québec and Minister of Transport and Sustainable Mobility.

A PROJECT FOR THE FUTURE

Against a backdrop of anticipated growth in the container sector, the Port of Montreal has reached a new milestone in the progress of its expansion project, which calls for the construction of a new container terminal in the municipality of Contrecoeur. Connected to major rail and highway routes, the new terminal will eventually add annual capacity equivalent to 60% of the containers handled in Montreal, to meet the needs of importers, exporters and consumers in Quebec and Eastern Canada.

Of strategic importance to the future of the country’s supply chains, the project received a positive Record of Decision in 2021 from Canada’s Minister of the Environment and Climate Change. It is supported by the Government of Canada ($150 million) and the Government of Quebec ($130 million).

NEXT STEPS

The planning of the in-water work with CTCGP, including cost assessment and scheduling, will therefore take place over the next 12 months. At the end of this phase, APM aims to award the dock construction and dredging work according to its procurement processes, and will present an updated schedule for completion.

Land-based work is also currently being planned. By the summer of 2024, APM will launch an international invitational call for proposals to select a private partner to handle the terminal’s land-based construction (container yard, buildings and utilities, and rail connection). This private partner will also operate and maintain the terminal under a CCFEE approach (construction, design, financing, maintenance and operation). A schedule for land-based work should also be unveiled once the outcome of the call for tenders is known, also within the next 12 months or so.

At the same time, APM is developing the compensation plans, follow-up programs and mitigation measures required to meet the conditions of the declaration of favourable decision received for the project. The compensation plans and follow-up programs, which are developed in collaboration with experts, are forwarded to the Canadian Impact Assessment Agency (CEAA) in their final version and subsequently made public, in accordance with established procedure.

ABOUT THE PORT OF MONTREAL

Operated by the Montreal Port Authority (MPA), the Port of Montreal is the largest container port in Eastern Canada, and a diversified transshipment center handling all types of cargo: containerized and non-containerized, liquid bulk and dry bulk. The only container port in Quebec, it is a destination port served by the world’s major shipping lines. It is also an intermodal hub, with a service offering that is unique in North America, with its own rail network directly on the platforms, linked to the two pan-Canadian rail networks. APM also operates a cruise terminal and a port interpretation center.

APM integrates economic, social and environmental considerations into its business processes. This commitment is framed in a sustainable development policy, whose guiding principles are involvement, cooperation and transparency. Port activity supports some 590,000 jobs and nearly $93.5 billion in economic activity in Canada.

ABOUT THE PORT OF MONTREAL’S RELUCTANT EXPANSION

Located in an industrial zone, the Contrecœur land reserve, acquired by the Montreal Port Authority over 30 years ago, has been the subject of rigorous, concerted planning to support the development of the logistics chain in Quebec and Eastern Canada. With the support of the Infrastructure Bank of Canada, the Government of Canada and the Government of Quebec, the Port of Montreal and its private partners plan to build a new, state-of-the-art container terminal to eventually handle 1.15 million containers (TEU). Conveniently located at the heart of the main consumer, importer and exporter base in Quebec and Eastern Canada, close to major rail and highway routes, the expansion of the Port of Montreal to Contrecœur will consolidate local strengths to effectively meet tomorrow’s needs. This project will strengthen the world-class logistics hub in the heart of the St. Lawrence Valley.

ABOUT POMERLEAU

Pomerleau is one of Canada’s largest construction companies, with nearly
5 billion in revenues. The company specializes in the building, infrastructure and civil engineering sectors, and carries out major projects in alternative modes. With its own research and development laboratory, Pomerleau integrates innovation into the majority of its projects, and builds sustainably to create the living environments of tomorrow. Its Borea subsidiary delivers around half of the country’s renewable construction projects, and the ITC Construction group, acquired by Pomerleau in 2022, is the largest residential construction company in western Canada. It also owns Pomerleau Capital, an infrastructure investment and financing subsidiary. Founded over 60 years ago, Pomerleau employs 5,000 people at more than 200 sites from coast to coast. The company has been recognized as one of Canada’s Top 100 Employers since 2020 and one of Deloitte’s Best Managed Companies. www.pomerleau.ca

ABOUT AECON

Aecon Group Inc. (TSX: ARE) is a Canadian construction and infrastructure development company with global expertise. Aecon provides integrated solutions to private and public sector clients through its Construction business unit in the civil construction, urban transit, nuclear power, utilities and industrial sectors, as well as project development, financing, investment and management services through its Concessions business unit. Join our virtual community on X, LinkedIn, Facebook and Instagram @AeconGroupInc.

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