Aecon Group Inc. (TSX: ARE) and Arctic Gateway Group signed a memorandum of understanding to collaborate on infrastructure development at the Port of Churchill and Hudson Bay Railway in Manitoba, according to a press release statement.

The partnership will focus on pursuing project opportunities related to the port and railway development, combining Aecon's construction expertise with Arctic Gateway Group's Indigenous and economic development leadership in northern Canada. The collaboration aims to maximize employment and training opportunities for Indigenous and northern communities.

Arctic Gateway Group owns and operates the Port of Churchill, described as Canada's only deep-water northern seaport with direct Atlantic Ocean access and continental rail network connection through the Hudson Bay Railway. The company's ownership includes 29 First Nations and 12 remote northern Manitoba communities.

"This partnership with Aecon will help supercharge Arctic Gateway's infrastructure planning, with proven expertise and advice from a major North American construction company," said Chris Avery, president and CEO of Arctic Gateway Group.

The agreement supports Arctic Gateway Group's plans to modernize the port with new terminals and year-round operations, while upgrading the Hudson Bay Railway to modern industrial weight standards for integration with Canada's class 1 rail network.

Jean-Louis Servranckx, president and CEO of Aecon, stated the collaboration brings "Aecon's multidisciplinary expertise to explore infrastructure solutions that support Indigenous-led development, economic reconciliation, trade diversification, access to new markets and Arctic security."

The memorandum establishes a framework for the companies to work together on infrastructure advancement while prioritizing Indigenous participation and community benefits in the development process.