The future site of the Prairie Economic Gateway, an inland port, was photographed near Shepard east of Calgary on Thursday, September 14, 2017. The Shepard Development Corporation hopes to begin construction at the site in 2027. Brent Calver/Postmedia Photo by Brent Calver/Postmedia /Brent Calver/Postmedia

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A future “inland port” planned on the border of southeast Calgary and Rocky View County took a step forward Tuesday, with the two municipalities announcing a memorandum of understanding with the Canada Infrastructure Bank to accelerate the multibillion-dollar Prairie Economic Gateway project.

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Described as a “project acceleration MOU,” the agreement will help speed up the transition from engineering design to construction at the proposed trade and logistics hub, which will be built on farmland north of 114th Avenue S.E., near the Canadian Pacific Kansas City (CPKC) rail tracks.

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“This agreement with the Canada Infrastructure Bank is an important step toward finalizing the infrastructure investments needed to unlock new trade, logistics and industrial development, create jobs and strengthen Calgary’s competitiveness,” Mayor Jeromy Farkas said in a statement.

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“By working with our regional partners and the Canada Infrastructure Bank, we are building the foundation for sustainable long-term growth that benefits residents, businesses and the broader regional economy.”

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In a news release, the city said the MOU, while not legally binding, establishes a framework for the three parties to assess the commercial, technical and financial viability of the public off-site infrastructure needed to develop the inland port.

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The latest agreement builds on an earlier memorandum signed by the same three parties in early 2025, which set out to explore the Canada Infrastructure Bank’s potential participation in the project, the news release added.

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“The new agreement moves the work into a more detailed due diligence phase focused on the infrastructure, financing and delivery considerations needed before construction decisions can be made,” it said.

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A Canada Infrastructure Bank spokesperson said the federal Crown corporation is contributing $500,000 in project acceleration funding — a form of early lending to expedite due diligence and pre-construction activities.

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“As an adviser to Calgary and Rocky View County, we will support project analysis, a review of estimated costs and expected revenues, explore financing options, assess environmental, social and economic benefits,” the spokesperson said in an email.

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In addition to enabling more industrial development and activity, Prairie Economic Gateway will boost Canada’s east-west trade capability by leveraging CPKC’s existing rail network, which can now deliver product all the way to Mexico, thanks to the 2023 merger between Canadian Pacific and Kansas City Southern.