Logistics giant DP World will operate a new terminal near Montreal, a project aimed at boosting the container-handling capacity of the region’s port by more than 50%.

The Montreal Port Authority and DP World’s Canadian unit signed a development agreement for the new Contrecoeur terminal, according to a September 8 news release, confirming an earlier Bloomberg News report. 

DP World, one of the world’s largest operators of container ports, already operates five other port facilities in the country. DP World in Canada is 45% owned by the Caisse de Depot et Placement du Quebec.

The new terminal will sit on the St. Lawrence River, just northeast of the city of Montreal, Canada’s second-largest urban area. In-water works may start as soon as this month, pending a final authorization by Canada’s fisheries department. 

The project is expected to cost nearly C$1.6 billion ($1.2 billion) and has a target date for completion by 2030.

The Canadian and Quebec governments, along with the state-owned Canada Infrastructure Bank, have committed C$580 million to the project. The port authority and DP World will finance the rest.

Prime Minister Mark Carney has championed the Contrecoeur terminal as one of many projects that could help the country’s exporters ship to new markets and help offset the impact of US tariffs.

The Port of Montreal’s current capacity of 2.1 million containers annually may be fully reached by 2030, and the new terminal would be able to handle 1.15 million containers.