The Port of Churchill, which includes the northern-most grain export terminal in Canada, and the railroad that serves it are for sale, says the Western Producer. Located on Hudson Bay, Churchill is the only Arctic seaport in Canada. OmniTrax Canada said high operating costs and a plunge in grain shipments this year sparked its decision to sell. Grain shipments through the port fell below 200,000 tonnes, compared to 500,000 tonnes in an average year.
OmniTrax president Merv Tweed told Western Producer that a number of potential buyers have expressed interest in the properties. If a deal cannot be reached, OnmiTrax will explore options that include closure of the port and the railroad. Churchill is an export outlet for northern Manitoba and Saskatchewan.
Tweed said more support was needed from the national and provincial governments, according to the Manitoba Cooperator. In a radio interview, he likened the railway to a utility serving communities in northern Manitoba and said it should be treated that way. Ottawa has offered a $9-a-tonne subsidy to exporters to use Churchill since 2012, and the provincial government has helped pay to dredge the harbor.
The port has limited storage capacity and its main customer for years was the Canadian Wheat Board. Global warming has already extended Churchill’s three-month shipping season, which is expected to lengthen in coming years, but also makes the railway built on permafrost less stable as the ground softens, said the Cooperator.