Montreal's Mirabel airport does not have enough space to expand its flagship air cargo business.
On Tuesday, the federal government and local airport authority sought to change that, announcing $107 million in funding to boost the airport's capacity for goods-handling and infrastructure.
Transport Minister Marc Garneau says the money will go toward building 20,000 square metres of warehouse space for air freight and logistics.
It will also fund an expansion to the main aircraft parking lot and upgrades to the neighbouring road network.
Ottawa will contribute $50 million to the infrastructure project and the Montreal airport authority will offer up $57 million.
Garneau says the goal is to beef up trade volumes, stimulate economic growth and create jobs.