Saint John is getting a long-awaited barge terminal to serve the industrial fabrication sector, thanks to federal and provincial funding announced on Tuesday.

The new barge terminal will be located at Saint John's Spruce Lake industrial park. (Saint John Industrial Parks Ltd.) while Saint John Industrial Parks Ltd.'s board has set aside $1.5 million. ACOA and the province are each contributing $3 million to the facility, which will be located at the Spruce Lake Industrial Park,while Saint John Industrial Parks Ltd.'s board has set aside $1.5 million.

The project will enable manufacturers to prefabricate over-size sections of buildings, refineries and mines that are too large to be moved by road or rail and transport them by waterways.

Construction is expected to begin within the next 45 days and take about eight months to complete.

"Investing in this facility in Lorneville will allow New Brunswick fabricating companies to bid on large construction projects throughout Atlantic Canada and the eastern United States," Premier Brian Gallant said in a statement.

"This will help spur economic growth and create well-paying jobs in the fabrication industry," Gallant said.

450 jobs expected by 2020

About 175 full-time jobs are expected "right off the hop," based on the two fabrication shops currently in the park, said Brian Irving, general manager of Saint John Industrial Parks Ltd.

"We've modeled that out over the next five years and expect to add a few other players in the industry. So looking downstream, we're looking at 430, 40, 50 jobs by 2020-21," said Irving.

"It means a lot of jobs. And it's jobs that are well-paying jobs. So it means a lot of money in the community. A lot of real wealth."

The barge terminal will also help attract new tenants to the industrial park and grow the city's tax base, said Lois Vincent, president of the industrial parks board of directors of Saint John Industrial Parks Ltd.

The $7.5-million project includes the construction of an access road, a concrete laydown area and a wharf bulkhead.

The idea for a barge terminal has been discussed since the 1970s.

Saint John MP Rodney Weston and Mayor Mel Norton also attended the announcement, held at Lorneville Mechanical Contractors.