Renewables, Rail Propel Quebec to $482 Million in Project Starts in First-Quarter 2015

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Researched by Industrial Info Resources (Sugar Land, Texas)--An aggressive push for renewable energy and updates to two major rail systems are driving much of Quebec's project starts in first-quarter 2015. According to Industrial Info's database, the province is looking at $481.7 million in total investment value (TIV) for the kickoffs. Almost 90% of the total is attributed to three industries: Power, Pulp, Paper & Wood, and Industrial Manufacturing.

Click on the image at right for a graph detailing planned first-quarter 2015 project kickoffs in Quebec by industry.

The Power Industry leads all others with $225 million worth of projects that are set to kick off in Quebec in the first quarter of 2015, one of the largest of which is Northland Power Incorporated's (TSX:NPI) (Toronto, Ontario) $50 million construction of the Frampton Windfarm near Quebec City. Northland plans to build 12 Enercon E-82 wind turbine generator sets, each with a capacity of 2 megawatts. Borea Construction (Quebec City) is performing turn-key services on the project, which is expected to be completed toward the end of the year.

The Pulp, Paper & Wood Industry comes in second place with $120 million in TIV ready to kick off in Quebec, all of which is attributed to Tembec Incorporated's (Montreal) second-phase expansion of its pulp mill in Temiscaming. The project involves equipment modifications and replacements to boost production of specialty cellulose pulp from 160,000 to 195,000 metric tons per year. Poyry (Montreal) is performing engineering services for the expansion. The project is expected to be completed early in the fourth quarter of 2016.

All $85 million of the Industrial Manufacturing Industry's TIV is attributed to two freight rail projects: Canadian National Railway Company's (NYSE:CNI) (Saint-Laurent, Quebec) $43 million and Canadian Pacific Railway's (NYSE:CP) (Lachine, Quebec) $42 million overhauls of their province-wide systems, which will include upgrades, modifications and rehabilitation work on tracks, intermodal terminals, rail yards, hump yards, sidings, transloading facilities and automotive distribution facilities. Both projects are expected to be completed in December.

Of the $481.7 million in total investment value for projects expected to kick off in Quebec in the first quarter, an overwhelming majority--$450 million--is attached to projects currently in the engineering stages. About $27 million worth are in the planning stages, where plenty of factors still could increase, decrease or totally eliminate the expected spending, and $5 million worth already is in the early construction stages.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.