Minister Garneau’s appearance before the Standing Committee on Transport, Infrastructure and Communities (TRAN) on Main Estimates 2020-21 and Supplementary Estimates (B), 2020-21 held on November 5, 2020

10. LAURENTIA TERMINAL PROJECT AT THE PORT OF QUEBEC

LAURENTIA TERMINAL PROJECT AT THE PORT OF QUEBEC

LOCATION: QUEBEC CITY, QC

ISSUE/SOURCE: RECENT MEDIA ARTICLES RAISED QUESTIONS REGARDING THE FEDERAL GOVERNMENT FUNDING ROLE, ITS ENVIRONMENTAL ASSESSMENT PROCESS, AND THE INVESTMENT CANADA ACT ASSESSMENT.

 

  • PROJET LAURENTIA : RÉGIS LABEAUME CRITIQUE LA LENTEUR DU FÉDÉRAL (1ER SEPTEMBRE 2020).
  • LE PROJET LAURENTIA DÉTRUIRAIT LE SITE DE REPRODUCTION DU BAR RAYÉ À BEAUPORT (9 SEPTEMBRE 2020).
  • LA CHINE INQUIÈTE AU PORT DE QUÉBEC : DES CRAINTES POUR LA SÉCURITÉ NATIONALE (15 OCTOBRE 2020).
    • PROCESSUS D’ÉVALUATION EN COURS SELON OTTAWA (15 OCTOBRE 2020). DATE: OCTOBER 22, 2020 Suggested Responses  
  • The government is committed to regional economic development and focuses on projects that allow for export growth, while ensuring the protection of our environment.  
  • Canadian Port authorities are autonomous entities that conduct operations independently from the federal government and on a commercial basis.
  • The Laurentia Project is currently under review for funding under the National Trade Corridors Fund (NTCF).  
  • The NTCF is a merit-based competitive program that help to strengthen the efficiency and resilience of transportation assets that are critical for Canada’s continued success in global trade and commerce. The Laurentia project will be assessed against these criteria. IF PRESSED ON THE ENVIRONMENTAL ASSESSMENT:
  • The Impact Agency of Canada is drafting its preliminary Environmental Assessment report and anticipates holding public consultations between mid-November and mid-December 2020.  
  • The deadline for the Minister of Environment and Climate Change’s decision statement on the Environmental Assessment report is February 17, 2021.
  • The NTCF review process will take into consideration the potential economic impacts of this project on our trade corridors, as well as the outcomes of the environmental assessment.   IF PRESSED ON WHY FUNDING WAS PROVIDED TO THE MONTREAL AUTHORITY AND NOT THE QUEBEC PORT AUTHORITY: •  The Montreal Port Authority has pursued financing solutions with the Canada Infrastructure Bank, while the Quebec Port Authority has advanced a financing proposal through the National Trade Corridors Fund.   •  In December 2019, the Canada Infrastructure Bank announced a $300 million loan to the Montreal Port Authority’s terminal expansion project at Contrecoeur. The financing commitment is conditional to the successful completion of the environmental assessment.   
  • It is for project proponents to determine which funding arrangement best suits their objectives.  

BACKGROUND INFORMATION

  • In December 2017, the Quebec Port Authority (QPA) announced its intention to implement a new container terminal. The total cost of the project is evaluated at $775M. The project would extend the existing wharf in the Beauport sector by 610 metres in deep water.  
  • The 31.7 hectare project would include the construction of a new wharf with a berth, a back wharf (17 hectares) and a retaining dike. The project also includes the construction of railway tracks and road accesses, as well as the redevelopment of part of the Port of Québec's existing land, including the recreation and tourism zone.  
  • In May 2019, QPA announced a commercial agreement with Hutchison Ports and the Canadian National (CN) to finance the project. The agreement has a value of $505M and includes the construction and operation of an automated container terminal with a potential capacity of 700 000 TEUs.  
  • The QPA is requesting a contribution of $180M, with a 50‑50% federal and provincial share of the funding.
  • In September 2020, the mayor of Quebec publicly requested federal funding for the Laurentia project. He also raised concerns with what he perceived as favoritism towards the Port of Montreal’s Contrecoeur project.  
  • The Agency is drafting its preliminary Environmental Assessment report and anticipates holding public consultations between mid-November and mid-December 2020.  
  • The deadline for the Minister of Environment and Climate Change’s decision statement on the Environmental Assessment report is February 17, 2021.