A cargo terminal is being built at Windsor International Airport as part of a $19.9-million initiative announced Wednesday by the federal government.

The federal grant is for two collaborative projects at the airport and the University of Windsor.

The money will go towards establishing an Institute for Border Logistics and Security, which will include a facility at the university for research and a facility at the airport for testing new technologies in the logistics sector.

The projects are expected to create an estimated 105 jobs.

Officials say the construction of a multi-modal cargo terminal has the potential to create thousands of jobs down the road.  The airport signed a lease agreement with FedEx, adding weight to the logistics project.

"The Institute for Border Logistics and Security aligns directly with the University of Windsor's strengths and our location on a unique major international border," says University of Windsor president Alan Wildeman. "The IBLS will help our region pursue strategic opportunities that build on our location and that develop long-term expertise on border issues important to our region and our country."

Gary Goodyear, minister of state for the Federal Economic Development Agency for Southern Ontario , made the announcement Wednesday afternoon at Windsor airport.

“By investing in research for faster, safer ways to move goods and people across international borders, our government is not only helping to create high-quality jobs in Windsor, but we are also positioning this region to be a leader in the increasingly important field of border logistics and security,” says Goodyear.

Windsor Mayor Eddie Francis says the investment helps to ensure the city’s economic diversification strategy continues.

“Our region is positioned to be a key and critical hub of logistics, international trade and border security," says Francis.