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Canadian Airports Receive $77M Government Funding for Cargo Infrastructure Enhancement

Image: Canadian North

Transport Canada is injecting a total of $77 million into the enhancement of cargo infrastructure at major airports in Toronto and Ottawa. The financial support is being allocated from the National Trade Corridors Fund, a competitive and merit-based initiative aimed at advancing transportation infrastructure to bolster both domestic and international trade.

The focal point of this investment is Toronto Pearson International Airport, which is set to receive $69 million for the development of a cutting-edge cargo terminal on its southern side. Additionally, a dedicated parking apron tailored for freighters will be built on the northern end of the airport. This strategic expansion is part of the Greater Toronto Airport Authority’s plan, initially unveiled in November, to transform an underutilized office building into an airside cargo complex. The initiative holds the potential to generate up to 150 permanent jobs while contributing positively to the local economy.

Toronto Pearson Airport is a critical global and domestic cargo gateway, evidenced by a robust 16.3% increase in air cargo throughput during 2022, reaching a staggering 530,000 tons. The airport’s record year for cargo movement was in 2018, when it handled 614,000 tons of goods, according to its annual report. Looking forward, the airport authority anticipates the continuation of e-commerce growth and is committed to creating the necessary infrastructure to cater to burgeoning demand. As part of its 20-year master plan published in 2017, the airport’s projected capacity could potentially reach one million tons of cargo by 2037, without the need for facility expansion, provided that productivity enhancements, particularly streamlining the movement of shipments from passenger aircraft to non-adjacent handling facilities, are effectively implemented.

Concurrently, Canadian North, an airline specializing in cargo deliveries to Arctic regions via passenger and freighter aircraft, recently unveiled plans to double the size of its cargo terminal at Ottawa International Airport. Transport Canada is stepping in to share the $16.3 million cost of this expansion, which aims to meet the rising shipping demands for online shopping and essential goods in northern communities. The enlarged facility will centralize various operational sites, introduce an expanded truck loading area to reduce waiting times, incorporate energy-efficient refrigeration and freezer rooms, and leverage state-of-the-art tracking tools for timely deliveries of critical items such as food and medication.

Pablo Rodriguez, Canada’s newly appointed Minister of Transport, visited Canadian North as one of his initial official duties to announce an $8.2 million grant for this project. Rodriguez expressed that this expansion will play a pivotal role in seamlessly connecting different transportation modes, ultimately fostering economic growth and resilience in the face of evolving challenges.

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