Trade Diversification Corridors Fund

Trade Diversification Corridors Fund is sponsored by Transport Canada. The Trade Diversification Corridors Fund supports the infrastructure that enables Canadian trade.

Trade Diversification Corridors Fund applicant guide Trade Diversification Corridors Fund applicant guide This applicant’s guide explains how to apply for Stream 1, 2, and 3 funding. It includes information on who can apply, what expenses funding can cover and what you should include in your proposal. Part 1 - About the Trade Diversification Corridors Fund 1.

1 Description of the Program 1. 6 The application process Project proposal submission requirements 2. 3 Applicant information 2.

4 Project description and economic impact 2. 5 Project rationale and alignment with program goals 2. 6 Project scope and delivery method 2.

8 Funding sources and rationale 2. 9 Performance measurement strategy 2. 10 Indigenous consultation and evidence of support 2.

12 Legal, regulatory and other requirements and declarations How Transport Canada will evaluate your application Other federal government departments and their role in evaluating your application Annex A – Core Corridor Reference Maps and Descriptions Annex B – Eligible and Ineligible Expenditures Confirmation of Funding Sources Form Preliminary environmental review Part 1 - About the Trade Diversification Corridors Fund Transport Canada reserves the right to revise this applicant guide at any time.

Applicants are advised to consult the website regularly to ensure they are referencing the most up-to-date version. 1. 1 Description of the Program The $5 billion Trade Diversification Corridors Fund (TDCF) (2026-27 to 2031-32) provides funding to transportation infrastructure projects that help diversify Canada’s trade partners, create good jobs, and drive economic growth.

The TDCF is a federal funding program that helps catalyze investments, develop Canada’s core trade corridors and address transportation connectivity and capacity gaps in areas where growth is constrained. The core trade corridors are the Pacific, Prairies, Central, and Atlantic corridors.

The fund will build new trade infrastructure that connects Canada, including ports, railways, airports, highways, and other trade and logistics enabling infrastructure. This infrastructure will serve as the backbone to Canada’s trade and energy corridors, connect businesses to new market opportunities, and contribute to increased internal and international trade.

The Trade Diversification Corridors Fund is guided by the following overall program objectives: Increase corridors’ systems-based trade and transportation infrastructure capacity to support Canada’s trade agenda, including as it assists in to diversifying trade away from the United States (US) to other global markets; Address costly congestion that is hindering Canada’s economic growth; and Address trade-enabling transportation infrastructure gaps where there are deficits impeding national or regional growth.

While your project proposal should focus on demonstrating that your project meets the specific objectives and assessment criteria of Stream 1, 2, or 3, it should also consider how the project will help to achieve the overall program objectives, described above.

Funding under this program is achieved across three distinct funding streams: Stream 1 - Strengthening Canada’s Core Trade Corridors through a Systems-Based Approach An invitation-based approach targeting high impact projects that diversifies trade through Canada’s core trade corridors.

It will use a systems-based approach, which entails targeting opportunities where bundles of projects could be advanced as an integrated package to maximize trade diversification benefits. Only applicants specifically invited by Transport Canada (TC) may submit a mandatory expression of interest (EOI). The EOI must be submitted to TC by March 27, 2026, at 5:00 pm Eastern Time .

If they are successfully screened-in, applicants will be invited to submit a project proposal by June 26, 2026, at 5:00 pm Eastern Time .

Stream 2 - Unlocking New Opportunities and Connectivity through Collaborative Trade Corridor Solutions A targeted call for proposals seeking collaborative, multi-stakeholder solutions to resolve specific issues that are inhibiting Canada’s ability to grow and diversify trade through key trade corridors.

Applicants will be invited to submit project proposals to address one or more of the following issues: Enhancing intermodal capacity to increase trade with non-US markets, including potentially through inland ports. Optimizing existing transportation assets to enable trade diversification to non-US markets in the core trade corridors to support exports. Increasing transportation capacity for bulk commodity exports.

Applicants are not required to submit an EOI. They may submit a project proposal directly by July 31, 2026, at 5:00 pm Eastern Time . No formal invitation from TC is required.

Stream 3 - Supporting Regional Growth An open call for proposal that will target projects that address trade-enabling transportation infrastructure gaps that is impeding regional growth. Stream 3 will also prioritize projects seeking funding contributions of under $25 million. Applicants are not required to submit an EOI.

They may submit a project proposal directly by September 25, 2026, at 5:00 pm Eastern Time . No formal invitation from TC is required. The TDCF is seeking transportation infrastructure projects that can achieve timely progress and completion, priority may be given to applicants able to demonstrate that their project will be substantially completed by December 31, 2031.

We will consider your project’s timelines as we assess your proposal. Project proposal due date Assessment of project proposals Funding decisions, approval in principle letters and letters of regret Note: Dates above are subject to change.

Contributions may be made to recipients belonging to the following categories: Provinces and territories, including provincial and territorial Crown corporations Municipalities, local and regional governments Indigenous governments, tribal councils and other forms of regional government, nationally or regionally representative Indigenous organizations, and/or Indigenous development corporations Canadian not-for-profit and for-profit private sector organizations legally incorporated or registered in Canada Canada Port Authorities (subject to Canada Marine Act ) National Airports Systems Airport Authorities Only invited applicants will be considered under Stream 1.

A formal invitation from TC is not required to submit a project proposal for Streams 2 and 3. 1. 4.

2 Eligible locations and trade corridors A trade corridor is a geographically defined route or network that facilitates the efficient and resilient movement of goods, services, and people between production areas, domestic markets, and international trade markets. In Canada, there are key trade corridors that function with unique regional, operational and market dynamics, which include the Pacific, Prairies, Central, and Atlantic.

The North plays an important role in Canada’s Arctic sovereignty due to its location and the potential in creating opportunities for new trade routes and export capabilities. For all Streams, projects must be located in Canada. For Streams 1 and 2, the project must be located along/on one of Canada’s core trade corridors.

For more information on Canada’s core trade corridors, please refer to Annex A . 1. 4.

3 Eligible activities for contributions Contributions will be provided to TDCF projects that further one or more of the Program Objectives, to fund the following eligible activities as they relate to infrastructure projects: Capital Infrastructure Projects: Preparation (e.g., site preparation), construction, rehabilitation, improvement of transportation-related infrastructure assets, including transportation infrastructure asset related to prefeasibility and feasibility studies, engineering, planning and design work, and limited administrative costs.

Digital Infrastructure Projects: Acquisition, installation and deployment of technologies such as sensors, data collection and information sharing systems, supporting interoperability, and limited administrative costs. Engineering and design projects without a capital infrastructure component may also be considered eligible for funding. 1.

4. 4 Project start and end dates The project must be useable for its intended purpose no later than December 31, 2031. All final reports and project financial transactions on the part of the Government of Canada must be concluded by March 31, 2032.

Preference may be given to projects that are shovel-ready and ready to commence without delay after the signing of the Contribution Agreement. TC expects successful applicants to finalize and sign the contribution agreement within a reasonable delay (six to twelve months) of the approval-in-principle letter issued by TC to the recipient. 1.

5.

1 Maximum contributions To ensure that TDCF funding is used to unlock and leverage other investments, TC's maximum contribution will be up to a maximum of fifty per cent (50%) of the total eligible expenditures for a project, with the following exceptions: P3 projects where the maximum contribution will be up to thirty-three per cent (33%) of the total eligible expenditures; and Transportation projects in the Arctic and northern regions as defined by the Arctic and Northern Policy Framework, where the maximum contribution will be up to seventy-five percent (75%) of the total eligible expenditures.

“Arctic and northern regions” is defined as the geographic scope that includes Canada’s three territories (Yukon, Northwest Territories, Nunavut); the Nunavik region in Quebec; the Port of Churchill and related assets in northern Manitoba, and the northern extent of Labrador containing the Nunatsiavut region. The maximum federal contribution requested per project must not exceed $500 million.

The maximum level of total Canadian government funding (e.g., municipal, provincial, territorial, and federal) authorized by the TDCF’s terms and conditions will not exceed one hundred percent (100%) of a project’s total eligible expenditures. If the total amount of government assistance exceeds this limit, Canada will adjust its funding contribution so that the stacking limit is not exceeded.

In-kind contributions shall be measured and appraised at fair market value, must be approved in advance by Canada and reflected in the contribution agreement. 1. 5.

2 Eligible and ineligible expenditures Federal contributions will be provided to support eligible expenditures that are deemed, by the Minister of Transport or their delegated representative, to be reasonable and necessary for achieving the objectives and intended outcomes of the TDCF program. A detailed list of eligible and ineligible expenditures is provided in Annex B – Eligible and ineligible expenditures . 1.

5. 3 Contribution funding arrangements Funding under the TDCF will be provided through unconditionally repayable, conditionally repayable and non-repayable contributions. Contributions to projects that are expected to allow for profit generation will generally be either unconditionally or conditionally repayable.

The program may consider partially or fully non-repayable contributions under certain conditions. The table below outlines the types of contributions available through the TDCF program and the main considerations for determining the type of contribution to be offered. It is recommended that the applicant review and understand the funding categories outlined and how this may impact the applicant financially in future years.

The terms of all federal funding contributions will be outlined in a contribution agreement. For questions, please contact TC. DiversificationFund-FondsDiversification.

TC@tc. gc.

ca Contribution Funding Options Table Unconditionally repayable contribution Conditionally repayable contribution Non-repayable contribution Potential Recipients for illustrative purposes (see note below) Large for-profit organizations with strong financial capacity, e.g., an organization with a long history of generating large profits (e.g., Class I railways, large marine terminal operators) For profit organizations with more limited or uncertain financial capacity, for example a shorter history of profit generation or small or inconsistent profits (e.g., short line railways, small marine terminal operators or transload facilities) Public sector organizations with a commercial mandate (e.g., airport and port authorities) Governmental, non-profit, and Indigenous organizations Public sector organizations with a commercial mandate (e.g., airport and port authorities) Potential recipients in this category may be subject to constraints from raising capital Projects are revenue-generating, with benefits accruing primarily to the recipient Where a project is expected to generate revenue but is not anticipated to be profitable in the foreseeable future, the project may be considered for non-repayable contribution Projects are revenue-generating, with benefits accruing primarily to the recipient Where a project is expected to generate revenue but is not anticipated to be profitable in the foreseeable future, the project may be considered for non-repayable contribution Projects that are revenue-generating or non-revenue-generating and generate significant public benefit, with limited ability for the recipient to capture those benefits through other mechanisms like fees and tolls Examples of projects for illustrative purposes only A Class I railway constructing a second track to increase capacity on an existing rail line A small logistics company constructing a new transload facility An applicant constructing a rail overpass rather than an at-grade crossing, where the overpass entails higher capital cost but materially reduces congestion, safety risks, or network disruption Note: Organization status alone does not determine the type of repayability framework that will be applied and would be considered in conjunction with public benefits and expected profitability of the project.

Role of the Canada Infrastructure Bank (CIB) Budget 2025 increased the CIB’s available capital from $35 billion to $45 billion, strengthening its ability to support major infrastructure projects across Canada. The CIB works alongside federal funding programs by offering financing solutions—such as loans or investments—that help bring private sector funding into projects of national importance.

For projects with the potential to generate revenue, the CIB may provide financing that complements federal contributions. This approach helps stretch public dollars further, supports a mix of public and private investment, and increases the overall funding available for large, complex projects.

As part of the TDCF application process, all project submissions will first be reviewed by the CIB to determine whether they may be eligible for CIB financing. Transport Canada and the CIB will assess applications at the same time to streamline the review process. Some projects may receive a combination of CIB financing and TDCF funding.

If CIB financing is offered, the amount of TDCF funding may be adjusted accordingly. This coordinated approach ensures that applicants receive the most appropriate mix of funding and financing to support successful project delivery. For more information on the CIB, please visit: Canada Infrastructure Bank 1.

6 The application process Stream 1 is limited to organizations that have been formally invited by TC to submit an EOI. If they are successfully screened-in, applicants will be invited to submit a project proposal. Only invited organizations will be considered under Stream 1.

Under Streams 2 and 3, an EOI is not required. Applicants may submit a project proposal directly, and no invitation from TC is required. The EOI is a short submission that summarizes the proposed project and includes details on how the project relates to the objectives of Stream 1 and the TDCF program.

Submission of an EOI is a mandatory step under Stream 1 and designed to provide an opportunity for TC to validate the eligibility of a project. Applicants must submit the EOI through TC's TDCF online portal . Applicants must complete the EOI questionnaire form by answering questions about the proposed project.

Applicants cannot submit extra documentation with the EOI submission. TC will review and assess EOI submissions to determine whether projects can move forward to submit a project proposal.

There are three possible outcomes of the EOI review: ineligible projects will be screened out and applicants will receive a written response explaining the reasons the project was deemed ineligible applicants who submit eligible projects with satisfactory data supporting the objectives of Stream 1 will be invited to submit a project proposal applicants that submit eligible projects with incomplete data may be given the opportunity to provide more details and resubmit If you plan on submitting multiple projects, each individual project will need its own EOI submission.

The EOI must be submitted to TC by March 27, 2026 at 5:00 pm Eastern Time . 1. 6.

2 Submitting a project proposal During the evaluation stage, applicants may be required to provide any additional information that TC deems necessary to assess the eligibility and selection of the project proposal and to undertake due diligence, including information related to national security considerations.

Failure to provide requested information, including national security information, may result in the termination of the project proposal review or the rejection of an incomplete submission. TC will send confirmation of receipt within 10 business days of receiving your submission. Project proposals will be assessed by TC's cross-disciplinary review committee, which will make funding recommendations to the Minister of Transport.

Final funding decisions are made by the Minister of Transport. Applicants will be notified of the outcome by the TDCF team via email, once the evaluation process is complete. Checklist before submitting your project proposal Applicants should complete the Checklist to verify that their project proposal is complete and meets all submission requirements.

1. 6. 3 How to submit an EOI and project proposal To submit your EOI and project proposal, you will need a Government of Canada-issued GCKey to access the TDCF online application portal .

A GCKey is a unique electronic credential provided by the Government of Canada that allows you to communicate securely with online programs and services from the Government of Canada.

If you do not already have one, you can get a GCKey by taking the following steps: After opening the portal, clicking on “Continue to GCKey” will take you to the registration page Read and accept the GCKey’s Terms and Conditions of Use Create your username and password Create three security questions For more information and FAQs about GCKey, please visit the GCKey information page .

Once you have a GCKey, you can access the TDCF online application portal . If you experience difficulties submitting your EOI or project proposal through the TDCF online portal , please contact us for assistance: TC. DiversificationFund-FondsDiversification.

TC@tc. gc. ca Project proposal submission requirements Your funding application will be evaluated by TC’s assessment team based on its overall quality and individual merits.

Assessment will consider the strength and clarity of the project proposal, as well as the project’s demonstrated capacity to advance the objectives of Stream 1, 2, or 3 and the TDCF program. The project proposal may be written in English or in French. Submission length no longer than 50 pages .

Please include page numbers. Include project details in the main body of your project proposal. Include supporting information in Appendices.

Appendices are not considered part of the page limit. Do not include personal information, as defined in the Privacy Act . Follow the guidance below; use title headings provided.

This section includes information and guidance to complete the project proposal.

All project proposals must include a cover page containing the following information: Name of applicant organization applying for funding The executive summary should provide an overview of the proposed project and address the following elements: A summary of the project’s main goals and how they align with the program objectives and program streams A short description of the project including its location, project scope, major activities, and timelines The total project costs, total amount of federal funding requested from the Trade Diversification Corridor Fund, and all sources of funding for the project including the contributions made by other parties The project’s expected outcomes and benefits 2.

3 Applicant information The assessment will be based on the evidence provided by the applicant (mandate, expertise, resources [both human and financial] and partners/service providers); departmental experience and knowledge of applicant and/or similar organizations.

Your proposal should demonstrate and describe the applicants relevant experience and/or capacity to complete the project and undertake the activities carried out in the proposal.

Full legal name and legal status of applicant organization include mailing address, telephone number and email address (head office address must be located in Canada) registration number from federal, provincial or territorial business registry note: for-profit and not-for-profit applicant organizations must be legally incorporated or registered in Canada.

The eligible applicant category under the TDCF If another organization (third party) will manage the project: its full legal name and legal status mailing address, telephone number, and e-mail address (head office address must be located in Canada) its registration number from federal, provincial, or territorial business registry detailed explanation of why a third party (if applicable) will manage and implement the project Information on the designated project manager and key team members, including the following: describe the qualifications and experience of the team that will manage the project describe the mandate, role in the project and why it is best positioned to carry out the project activities The project's governance structure, including partners and their roles, including: where multiple partners are involved in a project, include support letters and/ or agreement(s) describing the specific contribution of each project partner legal name, address and contact information for each partner organization If your organization has received transportation infrastructure funding from TC in the past five years, either under its current or any previous business name, please provide the following for each project: the name of the project, and the Transport Canada program total amount of federal funding received whether the project was completed on time, on scope and on budget Strong proposals will demonstrate: the proponent or project team's long track record of successful project delivery, including information on similar previous projects completed including their timelines and costs; a clear link between the proponent's core mission and the proposed project; and a description of the proposed project's governance structure, including any partners, their role and how they would contribute to the project.

If you identify a third-party as the project authority following the Minister of Transport’s funding approval for your project, Transport Canada may need to reassess the third party’s ability to deliver the project. This can delay finalizing the Contribution Agreement for the project. If the finalization of the Contribution Agreement is delayed, your organization will be responsible for any related costs or project schedule delays.

Transport Canada may cancel funding if we determine that the third-party does not have the capacity to deliver the project. 2. 4 Project description and economic impact The assessment will be based on the project’s economic impact and the ability to start the project immediately upon the signing of a contribution agreement.

Your proposal should demonstrate and describe a quantifiable contribution to Gross Domestic Product (GDP), disaggregated by region and economic sector. Describe how the project will contribute to the creation of direct and indirect jobs in construction and in regular operation. Your proposal should also demonstrate a sufficient degree of readiness to implement the project in a timely manner.

Confirm and provide evidence that: detailed engineering and design has been completed, all required permits and regulatory approvals have been obtained, all affected Indigenous communities are supportive of the project and land access been secured. The province/territory and region where the project will be located Project location(s), including the start and end points (longitude and latitude) of each major part.

If there is more than one project location, please provide the GPS coordinates for each Project background – Land ownership and project status Confirm that the applicant owns the land on which project activities will occur, or has obtained the needed authorization to carry out the work at the proposed location (for example, a signed lease or confirmed access rights) include in your application proof of access to, lease rights, or ownership of the land if the land has not yet been secured, state who currently owns it and the timeline for obtaining ownership or lease or access rights, etc. Explain whether the proposed infrastructure will be for public or private use if the project activities include both public and private use, clearly describe which assets are public and which are private Describe the current conditions and issues the project will address explain how these issues will be addressed (for example, a new build, an expansion to existing infrastructure, rehabilitation, etc.) Describe any possible limitations (for example, seasonal limitations) to the use of the infrastructure Describe any work already completed Describe the current stage of the project (for example, early design feasibility, advanced design or shovel-ready) list of all the regulatory permits and approvals received list any permits and approvals still needed and include the expected timelines to obtain them environmental impact assessment Explain if the intent is to own, lease or sell the asset after it is built Has the project been referred to the Federal Major Projects Office?

confirm that detailed engineering and design is complete identify all required permits and regulatory approvals and confirm that all have either been obtained or have at least been applied for; identify all Indigenous communities affected by the project and confirm that all communities have either provided written consent for the project or have not expressed opposition to it proceeding; confirm that access to all required land has been secured; Identify a quantifiable contribution to GDP, disaggregated by region and economic sector; and explain how the project will deliver increased economic output, for example due to improved transportation access or efficiency, reduction in logistics costs, border delays, or shipping times or the streamlining of processes.

2. 5 Project rationale and alignment with program goals This is a key section, where applicants are to clearly describe how their projects meet TDCF Program objectives and Streams criteria.

Clearly explain how the project aligns with one or more of the TDCF program objectives: Increase corridors’ systems-based trade and transportation infrastructure capacity to support Canada’s trade agenda, including as it assists in to diversifying trade away from the US to other global markets; Address costly congestion that is hindering Canada’s economic growth; and Address trade-enabling transportation infrastructure gaps where there are deficits impeding national or regional growth.

The TDCF features three funding streams that work together to fund transportation infrastructure projects of strategic importance to achieving the programs objectives.

Each stream has its own specific requirements, as outlined below: Stream 1 - Strengthening Canada’s Core Trade Corridors through a Systems-Based Approach and Stream 2 – Unlocking Opportunities and Connectivity through Collaborative Trade Corridor Solution Assessment of the extent to which the project will result in additional volumes of trade (e.g., imports, exports, or both) with non-US markets.

This can include increasing existing or generating new trade flows between Canada and these markets. Proposals must demonstrate a clear link between their projects and enhanced trade flows through marine ports. Your proposal should demonstrate how the project will: Enhance transportation infrastructure to support increased trade with non-US markets through a core trade corridor.

Address costly congestion that is hindering Canada’s economic growth.

Clearly define a problem that constrains the growth of trade between Canada and global, non-US markets through a core trade corridor, and demonstrate with evidence how the project would address the problem; Identify the specific market(s) and commodities / goods with which trade flows will increase, and identify the expected annual increase in throughput capacity (Twenty-foot Equivalent Units and / or tonnes), and for brownfield infrastructure projects, identify the annual percentage increase of throughput resulting from the project; and Provide supporting evidence and / or rationale that market demand for additional throughput, resulting from the project to non-US markets, exists (e.g., agreements are in place to take additional throughput, trends from existing traffic patterns, etc.) Assessment of the extent to which the project presents an integrated, systems-based solution to corridor challenges, including multiple stakeholders.

Your proposals should demonstrate how the project will: Form part of an integrated, system-based solution that will create supply chain fluidity and coordination amongst stakeholders along a key trade corridor Improve trade flows and provide wide-ranging benefits for users along trade corridors, or improve connectivity to major corridors Clearly demonstrate with compelling evidence that the project will enable additional trade volumes to move with high fluidity in Canada, addressing any constraints to fluidity including first or last mile issues, interface challenges or mid-corridor bottlenecks, and that connectivity will be improved.

For greater clarity, the proposal could either include multiple projects that together expand capacity in the right parts of a corridor to enable the fluid movement of additional goods, or provide evidence that a single project on its own would be sufficient to allow the fluid movement of additional traffic through an integrated supply chain, for example letters from other supply chain partners confirming they have sufficient capacity to handle additional trade volumes without creating congestion Clearly demonstrate with compelling evidence that the project will benefit multiple stakeholders that use an identified trade corridor, for example shippers and transportation service providers.

Stream 3 – Support Regional Growth Assessment of the extent to which the project will result in additional volumes of trade (goods throughput, e.g., imports, exports, or both). This can include increasing existing or generating new trade flows. Assessment of the projects fiscal impact on the Government of Canada.

Your proposal should demonstrate how the projects will address trade-enabling transportation infrastructure gaps where there are deficits impeding regional growth. Describe how the project could advance with minimal financial support from the from the Government of Canada.

Clearly define a problem that constrains the regional trade growth and/or limits new trade opportunities that would be overcome by the project and demonstrate with evidence how the project would address the problem; Identify the specific market(s) and commodities/goods with which trade flows will increase, and identify the expected annual increase in throughput capacity (Twenty-foot Equivalent Units and/or tonnes), and for brownfield infrastructure projects, identify the annual percentage increase of throughput resulting from the project; Provide evidence that additional trade volumes will flow to non-US markets; Provide supporting evidence and / or rationale that market demand for additional throughput, resulting from the project to non-US markets, exists (e.g., agreements are in place to take additional throughput, trends from existing traffic patterns, etc.); and Require the lowest amounts of non-repayable federal funding, relative to total eligible costs, and for Stream 3 only, request less than $25 million.

2. 6 Project scope and delivery method The assessment will be based on the project’s work plan including whether all major project activities are clearly articulated, have reasonable timelines and would be expected to result in successful project completion. Your proposal should have a work plan that is complete, clearly defined and achievable in the timelines identified.

Describe how the project will be delivered, including: the major parts of the project construction phases, what each phase includes, and who will do the work explain the roles and responsibilities of all partners include maps, plans, or designs, if available.

For project design(s), include accompanying professional certification, as applicable summarize any concerns raised and actions taken or planned to address these concerns raised by Indigenous groups Complete Table 1 Project work schedule .

the project start date and expected completion date key milestones and major project activities, including timelines to get permits and approvals describe project dependencies, interdependencies or hurdles to implementing the project provide clear, detailed descriptions of all major project activities; provide realistic timelines for the completion of all project components and identify all interdependencies; and demonstrate clear linkages between all project activities and project expected outcomes.

The project should be substantially complete by December 31, 2031 . Please ensure that your project timelines reflect this deadline.