Ontario Invests $2.8M in Lake Superior Port Upgrades to Strengthen East-West Trade

THUNDER BAY — Ontario is investing more than $2.8 million in port infrastructure in Thunder Bay and Marathon as part of a broader push to strengthen domestic supply chains, expand east-west trade corridors and reduce reliance on U.S. markets.

Funding targets Thunder Bay and Marathon port facilities

The province announced June 16 that it is providing $2,804,955 through the Northern Ontario Heritage Fund Corporation for upgrades at the Port of Thunder Bay and the Peninsula Harbour Port Authority in Marathon.

Premier Doug Ford says the investment is part of Ontario’s effort to build a more competitive and self-reliant economy. “By expanding the Port of Thunder Bay and creating a new marine terminal in Marathon, we’re helping Northern Ontario ports increase cargo volumes to ship everything from grain and potash to components for pipelines and critical minerals from the Ring of Fire,” Ford said.

The Premier said the province will continue investing in Northern Ontario infrastructure to support local industries, businesses and workers while driving regional economic growth.

Thunder Bay receives funding for Keefer Terminal expansion

The Thunder Bay Port Authority is receiving $804,955 to expand the staging and storage area at Keefer Terminal by 10 acres.

The added space is intended to increase capacity for cargo such as wind turbine components, steel and oversized freight. The province says the expansion will help the port handle larger volumes, retain existing business and strengthen Thunder Bay’s role as a gateway for interprovincial and international trade.

In 2025, more than 10.7 million metric tonnes of cargo moved through the Port of Thunder Bay, including grain, potash and natural resources. The province says most of that cargo moved domestically or to international markets outside the United States.

Chris Heikkinen, CEO of the Port of Thunder Bay, said the funding will support expansion and efficiency improvements at Keefer Terminal. “Strategically located as the furthest inland port in Canada, this premier intermodal facility is a vital supply chain link serving western Canada and Northern Ontario,” Heikkinen said. “Expanding laydown capacity will enhance our ability to handle increased and more diversified cargo, supporting inbound opportunities and improving vessel availability for bulk exports.”

Marathon port project receives $2 million

The Peninsula Harbour Port Authority is receiving $2 million to repurpose unused commercial docks at the former Marathon Pulp mill site.

The project is intended to create a marine terminal capable of moving regional materials such as critical minerals, forest products, road salt and components for pipelines and wind turbines to southern Ontario and global markets.

The port authority was incorporated in November 2020 through an equal partnership between the Town of Marathon and Biigtigong Nishnaabeg First Nation. The province says the terminal is expected to be operational by late 2027.

Chief Duncan Michano of Biigtigong Nishnaabeg said the investment is significant for the First Nation and its partnership with Marathon.

“This project will allow our First Nation to continue to diversify our economic portfolio and create additional opportunities for partnerships within the region, the province and internationally,” Michano said.

Marathon Mayor Rick Dumas, who also serves as president of the Northwestern Ontario Municipal Association, said the project is aimed at unlocking regional economic potential.

“As the closest international port to the Ring of Fire, the port is positioned to support mining, forestry, renewable energy and other resource industries throughout the region,” Dumas said. He said upgrading the terminal to St. Lawrence Seaway standards would bring a former brownfield pulp mill site back into productive use while creating long-term employment and supporting economic sustainability for both Marathon and Biigtigong Nishnaabeg.

Province links ports to trade security and northern jobs

Northern Economic Development and Growth Minister George Pirie said the investments are meant to improve access to cost-efficient marine transportation for resource and industrial operations in Northwestern Ontario.

“We are helping these ports be better positioned to attract new cargo and expand existing business, reinforcing northwestern Ontario’s role as a competitive gateway for provincial, interprovincial and international trade,” Pirie said.

Transportation Minister Prabmeet Sarkaria said marine transportation is a major contributor to Ontario’s economy and plays a key role in moving goods across the province and country.

“Our strategic investments in marine infrastructure will strengthen our supply chains, support good-paying jobs for workers in Northern Ontario while attracting new investments and driving growth across the region,” Sarkaria said.

Thunder Bay—Atikokan MPP Kevin Holland said the projects will strengthen Northwestern Ontario’s position as a gateway for trade. “By expanding and modernizing our port facilities in Thunder Bay and Marathon, we are supporting good-paying jobs, improving supply chain resilience and ensuring our region can compete and grow in a changing global economy,” Holland said.

Thunder Bay’s transportation role remains central

Thunder Bay Mayor Ken Boshcoff said the city’s history is closely tied to trade and transportation. “Thunder Bay’s story has always been tied to the movement of goods and people across this country,” Boshcoff said. “This investment strengthens that legacy by enhancing trade and transportation connections at our port.”

Boshcoff said the port upgrades align with priorities in the city’s Smart Growth Action Plan, including growing the local economy, attracting investment and supporting business throughout Northwestern Ontario.

National political context

The announcement comes as governments across Canada continue to focus on supply-chain resilience, domestic trade and reducing exposure to international trade disruptions, including uncertainty tied to U.S. tariffs and market access.

For Ontario, the Lake Superior ports at Thunder Bay and Marathon are strategic because they connect Western Canada, Northern Ontario and the Great Lakes-St. Lawrence Seaway system. They also support resource sectors that are central to the regional economy, including mining, forestry, agriculture, manufacturing and renewable energy.

The province says it is prioritizing NOHFC investments that protect northern industries and jobs, mitigate trade disruptions and create new economic opportunities.

Ontario has also increased the NOHFC’s annual budget to $110 million, with an additional $30 million over three years. Since June 2018, the province says the fund has invested more than $1 billion in more than 8,600 projects, leveraging more than $3.3 billion and creating or sustaining more than 13,400 jobs.

Regional impact for Northwestern Ontario

For Thunder Bay, the investment reinforces the city’s role as a transportation and logistics hub for grain, potash, mining supplies, steel, project cargo and oversized industrial equipment.

For Marathon and Biigtigong Nishnaabeg, the port redevelopment could provide a new economic platform tied to mining, forestry, renewable energy and future Ring of Fire-related development.

The broader test will be whether port upgrades lead to sustained cargo growth, local employment, Indigenous economic participation and expanded northern supply chains rather than one-time construction activity.