After 70 years of chinwagging about a multimodal port, the city’s getting very serious about the idea

As Algoma Steel braces for a massive layoff on Monday, Sault Ste. Marie city councillors will learn details of an all-out proposal to create almost 2,500 new jobs and significantly diversify the local economy.

It’s a $200-million plan involving 216 acres of waterfront industrial land that could grow to 950 acres.

“The concept of developing a port in Sault Ste. Marie has been discussed as far back as 1956,” says Tom Vair, the city’s chief administrative officer, in a report prepared for Mayor Matthew Shoemaker and ward councillors.

“As council is aware, staff have been advancing the port project as a key component of the community’s economic development initiatives,” Vair said.

The 2,488 new jobs would be created within five years.

Of those jobs, 796 would be direct, 1,000 induced jobs and 692 indirect positions.

Another 1,400 to 1,800 full-time-equivalent construction jobs would exist during the two years before the port is ready to start operations. 

The business plan calls for $134 million in annual personal income and $343 million in economic activity.

“A business case was completed in collaboration with HOPA (Hamilton Oshawa Port Authority). HOPA and a summary of this business case is being provided to council as an update on the project,” Vair said.

“To avoid any confusion, the name of the project has been adjusted to be the Port of Sault Ste. Marie. The port contemplated will be operated separately and apart from Algoma Steel, although Algoma Steel will have the ability to utilize the new port facilities under terms to be finalized.

“This initiative will link northern Ontario’s resource-rich industries with southern Ontario, Quebec and global markets, strengthening Canada’s supply chain resilience and driving economic transition.

Vair says the following sectors would be able to use a Sault Ste. Marie port and an associated trade corridor:


minerals and mining
forestry and value-added wood products
steelmaking
manufacturing
salt and aggregates
agriculture

“Throughout the development of the business case, there have been a number of discussions with industry partners and strong support expressed from organizations, Vair said. 

“Discussion with First Nations partners has begun and ongoing discussions will be held in the coming months.”

Elements of the $200-million plan include:


refurbished dock walls enabling two vessels to berth
cargo laydown space
security and safety systems
rail transload area
base infrastructure for tenant-ready leasable industrial space
rail access upgrades to the Algoma Central Railway

The plan allows for new shipping capacity for stockpiles of slag on Algoma Steel property, freeing up land for development use.

It could also support potential new rail and beam manufacturing at Algoma, and create winter seasonal storage and shipping for coils east of the Soo locks.

Further, it provide Tenaris and other local manufacturers with more laydown space and better transportation services to accommodate their growth plans.

The proposal would provide $26 million in provincial and local taxes, and $26 million in federal taxes.

Monday’s city council meeting will be livestreamed on SooToday starting at 5 p.m.