The City of Sault Ste. Marie has hired the consulting team of KPMG and AECOM to navigate the first phase of an in-depth study on a proposed commercial harbour.
The Port of Algoma concept is a partnership between the city and Essar Steel Algoma to address aging infrastructure at the company’s private docking facilities and to set aside as much as 1,000 acres of land and new dock space for a regional port to handle cargo from outside shippers.
The city is billing it as a multimodal transportation initiative that will serve the entire “Great Lakes basin and beyond.”
KPMG-AECOM’s bid for $4.3 million was accepted over another bid by the team of Tetra Tech/Royal Haskonings at $4.9 million.
The study will involve researching the anticipated volume and market demand for the port, conducting infrastructure planning, environmental assessment, First Nation consultation, financial analysis, engineering and project management. A report is expected back before council by October.
A second phase will involve firming up port financing from the provincial and federal governments, and the private sector by March 2016. The estimated project price tag ranges between $120 million and $150 million.
If successful, the third phase of actual construction would begin with a year to a year-and-half until completion.
A Port of Algoma management team has been established and will be based at city hall with representation from Essar, city engineering and the economic development team.
“This is not the same harbour project that was talked about a few years ago,” CAO Joe Fratesi told city councillors on Feb. 9. “This is much bigger with much greater implications to Northern Ontario.”
