"This important strategic infrastructure investment will create jobs and long-term economic growth for the port city, the Fundy region and our entire province," Brian Gallant, premier of New Brunswick said, adding that the project was expected to increase exports from the province.
The Port of Saint John authority will also contribute $68.3 million along with the same amount from the federal government. The investment will be focused on upgrading the Rodney and Navy Island terminals and allowing larger vessels to dock at the port.
"We now have the federal government who's committed. We have the province committed. So we have all the money lined up," Jim Quinn, chief executive of Saint John Port Authority said.
The project will see the main channel deepened by 1.6 metres to 10 metres draught and the creation of a 10 acre multipurpose yard. The upgrade will also include approximately 25 acres of terminal access roads, stevedoring operations, lay-down areas for break-bulk and trans-loading and cargo-consolidation warehouses.
As the largest year-round, deep water port in New Brunswick, the site handles around 28 million tonnes of cargo per year. It is a key part of Canada's Atlantic Gateway to global marine markets which has been actively supported by government investment in recent years.
The Federal Gateways and Border Crossings Fund has allocated $2.1 billion to increase Canadian trade via three Gateway initiatives focused on Asia-Pacific, Atlantic, and Continental corridors.