Cando Rail & Terminals secures $72m from CIB for terminal expansion

The Canada Infrastructure Bank (CIB) has finalised a C$100m ($72.3m) loan to Cando Rail & Terminals aimed at expanding its rail capacity at the Sturgeon Terminal in Alberta.

The Sturgeon Terminal, currently operating at full capacity, functions as a multi-purpose rail hub within the largest industrial area in Western Canada, Alberta’s Industrial Heartland, providing essential services.

These services include storage, staging, haulage, and transloading for Canadian goods destined for both domestic and international markets.

Its strategic location along the CN Railway network allows it to provide vital rail infrastructure and services to major industrial producers in Canada.

The CIB’s funding, which falls under the Trade and Transportation sector, will facilitate the development of a new Sturgeon West Terminal.

The new terminal will enhance the supply chain capacity for industrial production centres in Western Canada.

Construction is currently underway, with operations anticipated to commence in late 2026.

CIB CEO Ehren Cory said: “Expansion of the Sturgeon Terminal opens up more opportunities for Alberta businesses to connect their products to global markets.

“Building this infrastructure will create local jobs, help keep the Western Canadian economy competitive and expand supply chain capacity well into the future.”

The new terminal will introduce up to 3,700 additional railcar storage and staging spaces, including provisions for unit trains with Class 1 railways.

This expansion aims to enhance the movement of goods for local businesses to key ports, including Prince Rupert and Vancouver, thereby fostering trade and economic growth opportunities throughout Canada and North America.

Cando expects that the new terminal will generate approximately 50 full-time jobs once it becomes operational, adding to the existing 60 jobs supported by the current terminal.

The project is projected to contribute an estimated C$22.3m annually to the regional GDP.

Cando Rail & Terminals president and CEO Brian Cornick said: “Cando’s investment, combined with the financing from the CIB, will increase market access and allow industrial facilities in the Heartland to concentrate on their core business.

“World-class rail infrastructure will further enhance the competitiveness of Sturgeon County and Alberta’s Industrial Heartland for petrochemical, downstream energy, and heavy industrial investment.”

In 2022, TorQuest Partners and Alberta Investment Management Corporation (AIMCo) agreed to purchase a 100% equity holding in Cando Rail & Terminal.

In May this year, CN announced plans to invest C$2.1bn ($1.51bn) in rail infrastructure across Canada, targeting track maintenance and initiatives to improve capacity, support sustainable growth, and ensure safe goods transportation.

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