Ontario Invests CA$2.8M in Thunder Bay-Marathon Ports

THUNDER BAY, Ontario – Ontario is investing CA$2.8 million through the Northern Ontario Heritage Fund Corporation (NOHFC) to enlarge port infrastructure at the Port of Thunder Bay and the Peninsula Harbour Port Authority in Marathon, officials announced in late June 2025. The Thunder Bay Port Authority will receive CA$804,955 to add 10 acres of laydown and storage space at Keefer Terminal, while the remaining CA$1,995,045 will fund upgrades at the Marathon facility, which recently corrected its rail affiliation from CN to Canadian Pacific Kansas City (CPKC).

How Is the Funding Structured?

The NOHFC grant is split into two tranches: CA$804,955 for the Keefer Terminal expansion at the Port of Thunder Bay, Canada’s most inland port, and roughly CA$1.995 million for the Peninsula Harbour Port Authority in Marathon. The Keefer Terminal expansion adds 10 acres of surfaced staging and storage area to handle increased and more diversified cargo. No completion timeline was disclosed, and the specific upgrades at the Marathon terminal were not detailed beyond their role in improving domestic east–west trade.

Key Funding Data

How Does This Compare to Similar Funding Programs?

The CA$2.8 million NOHFC investment is modest compared with the CA$33 million federal grant the Port of Thunder Bay received in 2021 through the National Trade Corridors Fund for Keefer Terminal’s rail infrastructure and storage yard (Source: Transport Canada, 2021). That earlier project added 28,000 m² of new hardstand and upgraded rail connections, far exceeding the 10‑acre expansion funded here. Within NOHFC’s own portfolio, smaller port‑related grants are common: the fund’s 2022 annual report lists several Northern Ontario marine infrastructure projects ranging from CA$500,000 to CA$2 million, placing this new allocation at the upper end of the fund’s typical support (Source: Ontario NOHFC, 2022). The timing aligns with a broader North American freight shift—rising trucking rates and fuel costs are pushing U.S. shippers toward intermodal rail, making inland port expansions like Keefer Terminal’s more critical for absorbing cross‑border and domestic volumes (Source: Wall Street Journal, June 2025).

Editor’s Analysis

Ontario’s targeted investment reflects a tactic of using small, provincial grants to incrementally build port resilience along the Great Lakes–St. Lawrence trade corridor. By clarifying that the Marathon terminal ties into CPKC, the province signals that it values the ability to route non‑U.S.‑dependent traffic through a Canadian‑controlled rail network—particularly relevant as U.S. intermodal rail demand surges. These upgrades, though individually small, stack on top of earlier federal largesse and come at a moment when inland ports are being repositioned as strategic nodes for east‑west Canadian supply chains instead of north‑south U.S. gateways.

FAQ

Q: Which railway serves the Marathon terminal?
A: The Marathon terminal connects to the Canadian Pacific Kansas City (CPKC) network, not Canadian National. The original article was corrected to reflect this, and the project is expected to enhance east‑west movements on CPKC’s transcontinental line.

Q: How much funding is going to the Marathon port specifically?
A: The total NOHFC grant is CA$2.8 million. CA$804,955 is allocated to Thunder Bay, leaving approximately CA$1,995,045 for the Peninsula Harbour Port Authority in Marathon; however, the province did not break down the Marathon portion in detail.

Q: When will the Keefer Terminal expansion be finished?
A: The Ontario government did not announce a completion date. Comparable Keefer Terminal upgrades funded in 2021 took roughly 18 months, but no official timeline was confirmed for this phase.