Market Overview

Montreal Air Cargo Hub Mirabel Gets C$107 Million Boost

Share:
Montreal Air Cargo Hub Mirabel Gets C$107 Million Boost

Montreal–Mirabel International Airport will get C$107 in investments to improve air freight and logistics at the cargo-only facility, which also hosts a production site for the Airbus 220 aircraft.

Minister of Transport Marc Garneau announced the investment of C$50 million (a Canadian dollar equals US$0.75) from the federal government and C$57 million from the airport authority on September 3. It will fund improvements to the tarmac and road network, an increase in aircraft parking and the construction of a 215,000-square foot warehouse dedicated to air freight. 

While Mirabel's 88,000 metric tons accounted for just 6 percent of total Canadian air cargo volumes in 2018, it plays a vital role as hub for aerospace companies and their suppliers. Cargo carriers operating there include Fedex Co (NYSE: FDX), DHL, UPS Inc (NYSE: UPS), Purolator and Cargojet (CJT:TO).

Mirabel stopped handling passenger traffic in 2004. But it serves as the heart of Canada's aerospace industry, including Bombardier, Airbus (EADSF) and Bell. The Airbus 220 program has given a much-needed boost to an industry in long-term decline

Airbus has expanded its facilities at Mirabel, where it produces the A220 with the original developer, Bombardier. Airbus , which has more than 500 orders for the twin-jet aircraft, expanded production in Mobile, Alabama, to serve U.S. customers. 

As the aircraft's production ramps up, so will support activities. At the Paris Air Show in June, Bolloré Logistics Canada, J2 and Group Robert announced a partnership to support logistics and supply chain activities in the aerospace sector.

Image Sourced from Pixabay

Posted-In: air cargo Freight Freightwaves LogisticsNews Global Markets General

 

Related Articles (FDX + UPS)

View Comments and Join the Discussion!

These Are The Leveraged ETFs At Play When Trade War Worries Strike

Stocks Have Positive Tone As Overseas Tension Eases, With Positive United News Helping