The Governments of Canada and New Brunswick will provide more than C$136m ($104m) in funding to modernise Port Saint John’s Westside terminals.
Of the estimated C$205m ($157m) port modernisation project, C$68.3m ($52m) will be provided each by the Government of Canada and the Province of New Brunswick.
The reaming cost of the project will be taken care of by Port Saint John.
New Brunswick premier Brian Gallant said: “The provincial and federal investment in the Port of Saint John will create thousands of jobs.
“It will also help ensure that New Brunswick businesses are able to export and import competitively.”
Under the modernisation plan, the Rodney and Navy Island terminals will be upgraded and consolidated in order to allow the port to accommodate larger vessels.
Additionally, new operational systems and technology will be installed to improve the cargo-handling capabilities of the port.
With this project, Port Saint John aims to support growth and meet increasing demand, as well as strengthening its position as a global shipping link.
The project also builds on Canada’s commitment to drive economic growth in Atlantic Canada through trade and investment.
Port Saint John, which is a year-round, deep water port, currently handles an average of 28 million tonnes of different cargo annually.
The port is connected to more than 350 ports around the world and is part of Canada's Atlantic Gateway to global marine markets.