Massive 750,000 sq. ft. food distribution terminal proposed for Metro Vancouver | Daily Hive

Proposal to build a 750,000 sq. ft. Metro Vancouver food distribution terminal could strengthen Canada's food security

Ontario Food Terminal in Toronto. (Ontario Food Terminal Board)

A major new facility for storing, processing, and distributing food is proposed for Metro Vancouver, with the aim of helping British Columbia producers get their products to more customers across Canada and overseas.

BC Food & Beverage (BCFB) — the industry association representing the province’s food and beverage manufacturers — announced today that it is advancing plans to build the Pacific Gateway Food Terminal.

The proposal calls for a building complex of about 750,000 sq. ft., constructed on roughly 50 acres. The association envisions a location with convenient access to the Port of Vancouver, Vancouver International Airport, Fraser Valley producers, and major transportation routes.

For contrast, that proposed total building floor area is about 60 per cent larger than the total functional convention and meeting space at the Vancouver Convention Centre. Moreover, 50 acres of land is equivalent to about one-third the size of Vancouver’s Hastings Park.

The existing Ontario Food Terminal in Toronto, spanning 1.74 million sq. ft. across 40 acres, is the largest facility of its kind in Canada and the third largest in North America.

You might also like:

However, the Metro Vancouver project remains in the early planning stages. BCFB is assessing whether the concept is viable and seeking feedback from businesses to determine what facilities and services are needed.

Its announcement did not identify a specific plot of land, estimated construction cost, confirmed funding, or a timeline for construction and opening.

Finding a large, suitable site next to major transportation routes — specifically major highways — and near the aforementioned regional logistics and transportation hubs could be highly challenging and expensive, given Metro Vancouver’s industrial land shortage. Earlier reports peg the project’s potential cost at about $700 million.

“The Pacific Gateway Food Terminal is about building the infrastructure our food system will need for the next generation,” said James Donaldson, the CEO of BC Food & Beverage, in a statement.

“British Columbia has extraordinary farmers, food manufacturers, seafood producers and entrepreneurs. This is an opportunity to give them the infrastructure needed to operate and grow at scale while strengthening Canada’s domestic food system.”

Ontario Food Terminal in Toronto. (Ontario Food Terminal Board)

The terminal would combine several activities at one location, including a wholesale market — where farmers and food manufacturers could connect with grocery retailers, restaurants, and other commercial buyers.

It would also provide refrigerated, frozen, and room-temperature storage, along with space to collect products from different suppliers and organize their onward delivery. Shared facilities would allow businesses to process and package food, while a proposed innovation centre would help small and medium-sized companies develop products and bring them to market.

The goal is to fill the existing major gaps and improve connections between existing operations.

BCFB notes that their concept responds to the current obstacles that can make it difficult and expensive for food businesses to expand. These include disconnected distribution networks, inefficient transportation arrangements, difficulty reaching buyers, and a shortage of processing and cold-storage facilities suited to businesses’ needs.

By bringing these services closer together, BCFB hopes to improve the movement of food from producers to customers — effectively, supporting a more reliable domestic food supply.

As part of its early planning work, the association is seeking input from farmers, food processors, seafood businesses, exporters, independent retailers, distributors, and food service operators.

Ontario Food Terminal in Toronto. (Ontario Food Terminal Board)

BCFB’s proposal comes as the Government of Canada prepares to open applications for a $1-billion fund intended to improve the movement of food across Canada and give independent grocers more options for buying products.

On Oct. 5, just two days before BCFB’s proposal announcement, federal minister of agriculture Heath MacDonald and federal minister of housing and infrastructure Gregor Robertson announced that applications for the Food Link Fund will open on Oct. 14 and close on Dec. 11, 2026. Organizations must first submit an expression of interest, with those whose projects fit the program’s goals invited to provide a full proposal.

The funding is part of the federal government’s broader $3.2-billion National Food Security Strategy, which was unveiled by Prime Minister Mark Carney in June 2026. That strategy sets out investments over 10 years aimed at strengthening Canada’s food supply and addressing costs throughout the journey from farms to consumers.

“Canadians deserve a food system that is reliable, efficient and affordable. Through the Food Terminal Fund, we are investing in the facilities that help move food more efficiently across Canada, strengthening regional supply chains, and improve access to fresh, affordable food,” said Robertson.

“By building modern food distribution infrastructure, we are helping create more resilient communities and supporting the goals of Canada’s National Food Security Strategy.”

The Food Link Fund has two streams. The Food Terminal Fund would help build or expand wholesale markets and distribution centres, giving producers places to sell their products and independent retailers more purchasing options outside the supply networks controlled by large grocery companies. The federal government notes that this could encourage competition and help make groceries more affordable.

The second stream, the Food Hub Program, would support smaller regional facilities that help producers prepare, store, and deliver food to customers. Potential projects include refrigerated storage, processing and packaging equipment, transportation, digital systems, and improvements to existing buildings. The program is intended to address gaps in these services, particularly in communities and markets with limited access to such infrastructure.

You might also like: