Sarnia Harbour is expected to turn a $125,000 profit in its first year under city jurisdiction.
Ottawa provided the city with $8.56-million when it divested operation and upkeep of the harbour in March of last year.
Economic Development Director Peter Hungerford says the money will be used to improve services, infrastructure and invest revenue in a reserve fund to be used when federal funding runs out.
Hungerford says that will provide a security of long-term power. He says funding will also be used to do some dredging next year.