Hong Kong’s Hutchison Ports is to build and operate a new container terminal at the Canadian port of Quebec, it has been confirmed.
The Quebec Port Authority (QPA) said it had signed a long-term commercial agreement with the Li Ka Shing-backed entity as well as Canadian National Railway.
To be known as project Laurentia, previously Beauport 2020, the $775m project will be financed primarily through the joint investment of the three partners.
Hutchison Ports was said to have been selected after a competitive process in which QPA invited the leading international port operators to provide proposals to participate in the project.
“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,” said QPA chief executive Mario Girard.
“Today, through a joint venture with Hutchison Ports and CN, we are setting the stage for this project to become a North American success…allowing the St Lawrence to gain additional growth and competitiveness with US ports.”
HSBC is said to have acted as QPA’s sole strategic and financial advisor throughout the process.
Hutchison Ports handles close to 85mteu per year across 52 ports, representing about 11% of the global containerised cargo trade.
“Quebec City will become Hutchison Ports’ gateway to the East coast of North America,” said Eric Ip, group managing director of Hutchison Ports.
“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.”
“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.”
The deep-water container terminal project is currently under an environmental assessment process with the Canadian Environmental Assessment Agency.
“We believe the Quebec Port Authority has been seeking partners for several months to help build the new terminal which is expected to add 500,000-teu of annual through-put capacity and allow the port to handle ships over 8,000-teu,” said Deutsche Bank transport analyst Amit Mehrotra.
“This would give Quebec an important advantage over neighboring port of Montreal which can only handle ships carrying up to 5,000-teu.”
