Canadian Federal Court Halts CN Milton Intermodal Terminal Project
Written by Stephen C. Host
A CN train is viewed passing the Milton Intermodal Terminal construction site in July 2023 as crews work to extend the "CN Ash" control point in preparation for the Terminal. The train pictured is CN delivering a new Siemens Venture trainset to VIA Rail in Montreal. (Caption and Photograph Courtesy of Stephen C. Host)
CN has been handed a setback in the construction of the Milton Intermodal Terminal, following a March 1 decision by the Canadian Federal Court.
The C$250 million terminal was initially approved Jan. 21 2021, and that decision set out 325 conditions for acceptance and approval by Federal Parliamentary Cabinet, which would make it the most stringently regulated intermodal logistics hub in Canada.
The facility—including a rail yard with more than 12 miles of track—would be built in “a provincially designated significant employment zone,” on 400 of the 1,000 acres of land owned by CN east of Tremaine Road and south of Britannia Road in Milton, and adjacent to CN’s Halton Subdivision.
According to the Class I railroad, major project components include an administration building, maintenance garage for terminal equipment and areas for short-term container storage; realignment and extension of the existing main line; a 1.7-kilometer (1-mile) truck entrance road and queuing area on CN property; an employee entrance off Tremaine Road; an underpass at Lower Base Line “to maintain traffic flow and facilitate east-west passage for all vehicles including emergency vehicles”; berms and barriers in strategic locations, planted with native Ontario vegetation “to blend with the surrounding environment and reduce off-site noise and visual effects”; and a stormwater management system “designed to capture and treat all terminal water runoff.”
Almost immediately after the 2021 decision, CN began preparatory work: demolishing structures, extending and relocating tracks, building on-site infrastructure, and grade separating a local roadway. Expected to open by September 2026, according to a CN March 2023 construction schedule, the Canadian Federal Court decision effectively rejects the Federal Cabinet’s approval of the project and sends it back to the federal government for re-evaluation.
Key to the decision was the “direct adverse environmental effects on health” that were found to not be considered by the Federal Cabinet, plus the Minister of Environment and Climate Change in the January 2021 approval failed to make public any documents, justification or reasons related to the direct adverse environmental effects.
CN on March 4 released the following statement on the court ruling: “While still reviewing a federal court’s decision related to the Milton Logistics Hub, CN is reiterating its commitment to the Milton Logistics Hub. The project is a critical piece of infrastructure in Canada’s busiest and fastest growing region, where new capacity is needed to meet the growing demand for goods. The Milton Logistics Hub will not only benefit Ontario, but further strengthen the Canadian economy and its strategic advantages. Authorization to build the project was subject to Canada’s most extensive environmental review process resulting in an approval including 325 conditions designed to protect both the community and the environment.” The railroad noted that the Greater Toronto and Hamilton Area “is one of Canada’s fastest growing regions and the Milton Logistics Hub is critical to handle the growing demand for household goods, consumer products, and other necessities of day-to-day life.”
“Consumers and Canadian businesses from coast to coast to coast rely on CN’s network to access goods at home and around the world,” said Doug MacDonald, CN Executive Vice President and Chief Marketing Officer. “The Canadian government has stated its commitment to addressing supply chain issues and improving Canada’s transportation system to make life more affordable for Canadians, this project is fundamental to that effort.”
The aim of the terminal, which has been planned for the past 25 years, is to relieve congestion at the nearby Brampton Intermodal Terminal, which has no room to expand. Milton is a growing suburban town that over the past 25 years has been quickly developing large swaths of farmland for residential housing, inching ever closer to the long-planned CN terminal lands. With CN publicly beginning terminal plans in 2001, and Milton approving the re-zoning of farmland for housing, the battle was set a long time ago.
With thousands of homes occupied and more being built within eyesight of the terminal lands, Milton’s newest residents will be watching from their bedroom windows to see if CN stops construction. CN and its lawyers will go back to the Federal Cabinet for re-evaluation of the project to obtain the approvals required to satisfy the court’s ruling. It’s likely that if re-approved, the Cabinet will add more conditions to the 325 already set. One such condition approved in 2021 was for CN to use Tier 4 locomotives at the terminal, but it’s noted that aside from road-haul locomotives, CN does not own any Tier 4 switching locomotives as of 2024.
