Gateway Terminals signs 20-year lease for Port of Montreal’s Cast and Racine terminals

Montreal Gateway Terminals (MGT) has signed a 20-year lease with the Montreal Port Authority (MPA) to operate the Racine and Cast container terminals the longest lease ever signed by a stevedore at the North Atlantic port.

MGT, which is part of the CP Ships group, has also signed options to renew for two further ten-year periods.

Montreal is served by three of CP Ships’ container shipping businesses. Canada Maritime and Cast operate scheduled container services to and from Northern Europe and the Mediterranean. Lykes Lines operates a multi-purpose service to and from Africa every two weeks.

“The long lease goes hand-in-hand with a major investment program at the two terminals that saw US $7 million invested in terminal equipment last year alone,completing a five-year $50million investment program,” said Michel Beauregard, President of MGT. “These developments have substantially improved the efficiency of container services through the port”.

Terry Burrows, Senior Vice President, CP Ships with overall responsibility for Canada Maritime said: “One of the biggest selling points for Canada Maritime is that our services through Montreal offer the fastest route into the North American industrial heartland. This has helped Canada Maritime become one of the leaders in the North Atlantic trade. The new agreement gives us long-term stability which is essential if we are to continue to invest in Canada Maritime’s service product.

“A typical example of that ongoing investment and commitment to shippers in the North America – Europe trade is next year’s delivery of two new vessels into Route One of our Northern Service which calls weekly at Racine Terminal.”

While the surface area of the Cast terminal was 8.6 hectares in 1983, the year of its first lease, the terminal now covers 22 hectares. The surface area of the Racine Terminal was 10.7 hectares in 1978; it now measures 22.1 hectares.