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Globe and Mail
6 days ago
- Business
- Globe and Mail
Arctic Gateway Group says the Port of Churchill will help diversify Canada's trade links to other countries
Less than a year into his new job as CEO of Arctic Gateway Group, Chris Avery is finding himself overseeing what is quickly emerging as a critical cog in fighting the Trump-era trade war. AGG, which operates the Port of Churchill and the connecting Hudson Bay Railway (HBR) in northern Manitoba, strategically links Western Canada to Arctic waters and from there offers routes to Europe, South America and the Middle East. The company is aiming to become a vital link between Canada and emerging Arctic routes to help boost interprovincial and overseas trade and to reduce reliance on the United States. 'We're proud that we're part of the national solution … and are supporting our response to what's happening in the U.S.,' said Mr. Avery, who was named chief executive officer last July. 'I think it's really been a great wake-up call to say we need options and we can't be dependent on the U.S., even though they are our closest neighbor and our largest trading partner.' Stretching for 1,000 kilometres from The Pas in central Manitoba to Churchill on Hudson Bay's western shores, the HBR is also a lifeline for 33,000 people living in isolated areas with limited road access, said Hicham Ayoun, senior communications adviser at Transport Canada. The Port of Churchill, Canada's only deep-water Arctic port connected to mainland, ships goods such as critical minerals, construction equipment and agricultural and energy products to Southern Nunavut's Kivalliq region and the rest of the world. Mr. Avery said the Arctic trade route can slash global shipping times. 'The way that the sea lanes are set up and where the port is … allows you to reduce shipping days by upwards of two to three days, versus going to the East Coast or going through the Great Lakes and up the St Lawrence River and so on.' In a letter to Prime Minister Mark Carney in early May, Manitoba Premier Wab Kinew touted the crucial role the Port of Churchill can play in the Canadian economy and in Arctic security. The letter said the port is at the core of the One Canada Trade Corridor project, which is one of the five initiatives Manitoba is pitching to the federal government to expand Canada's energy exports and critical minerals development through newly constructed all-weather roads and rail links. HBR and Port of Churchill were previously operated by Denver-based Omnitrax Inc., beginning in 1997. But following a flood in May, 2017, the U.S. company refused to repair a stretch of rail, leading to a legal dispute with the Canadian government over responsibility for the costs. The impasse left Northern communities without rail service and facing skyrocketing prices for goods delivered by plane. The port and railway were returned to Canadian hands in August, 2018. A partnership of OneNorth – a group of 29 First Nations and 12 communities in Manitoba and Nunavut – and Fairfax Financial Holdings Ltd. acquired them from Omnitrax and commenced repairs, supported by federal funds. The Churchill community welcomed back the first train in November, 2018, after 18 months of shutdown. Fairfax left the partnership two years later, leaving OneNorth the sole owner of AGG, owned by a partnership of 29 First Nations and 12 communities in Manitoba and Nunavut, Mr. Avery said. 'Americans sitting in Denver really didn't care that Churchill or Indigenous communities in Northern Manitoba were cut off from the South. But our ownership group live and work in the communities … So they will ensure that the infrastructure is invested again in the future,' he said. Mr. Avery said the company currently employs 150 workers, with more opportunities expected as it expands its operations. The relaunch of the railway and the port have also strengthened the local economy, benefiting tourism and mining, and allowing people to 'live close to their communities … support their families, and have a good standard of living,' he said. AGG is still working to upgrade the infrastructure after decades of neglect by Omnitrax. AGG's updates have already reduced travel time by 10 per cent, a saving of three hours between The Pas and Churchill, according to the group's 2024 progress report. Mr. Avery noted that about 80 per cent of repairs for the HBR are complete. 'We've invested a lot of capital into the railway, so we're very much open for business now. The railway is probably in better condition than it's been for the past 25 years.' He added that AGG is currently focusing on upgrading and expanding the port, investing in repairing wharfs and decks and conducting analysis to understand how to accommodate larger vessels. The company marked a milestone in August with the first shipment of critical minerals from the port. This included around 10,000 tons of zinc concentrate from Snow Lake, Man., loaded onto the HBR and cargo vessels, and destined for Belgium. The group is building a new storage facility to ramp up critical mineral shipments, 'the first new building at the Port after decades of neglect,' according to the report. Mr. Avery said Europe is a critical minerals major market for AGG. The group plans to transport up to 20,000 tonnes of minerals this year, including potash for food production. New exports will also include sand used in new technologies such as solar panels. Construction equipment, trucks and building materials are instead on the list for Nunavut communities. The company also plans to make agricultural products a staple of its trade activities, and is currently conducting talks with several partners, Mr. Avery said. AGG signed recent agreements with Saskatchewan-based Invest Tisdale and Genesis Fertilizer to move grain and fertilizer products across Canada and expand their markets beyond the U.S. through the Arctic route. Mr. Avery also wants the port to serve Western farmers who are importing products such as phosphate from trading partners beyond the southeastern states of the U.S. to avoid tariffs imposed by Donald Trump. 'What the Port of Churchill and Hudson Bay railway offer is the ability for companies and Canadian farmers to import phosphates from North Africa or the Middle East to Churchill and from Churchill directly to the Western Canadian provinces and our farmers.' The group's future operations involve more than just commercial aspects. He said AGG is also talking with the Department of Defence about transporting supplies and goods to northern military bases through Churchill's airport. The CEO said Transport Canada operates the airport, but AGG has access to its facilities and infrastructure. The federal government announced in March it will invest $175-million over five years to support railway maintenance, enhance the port's security and operations, and encourage potential private investments with the group. 'It is a huge set of infrastructure that helps us assert our sovereignty in the North,' Mr. Avery said. 'These things that we're building are nation-building by nature and also generational by nature because it's not just for the next year or two, it means for our kids' generation and their kids' generation.'
National Observer
26-04-2025
- Business
- National Observer
Americans keep an eye on Arctic port revival in Churchill
A senior US diplomat had a low-key visit to Churchill, MB this month to learn about 'trade opportunities' for Canada's only rail-connected deep-sea Arctic port, a trade hub gaining strategic importance amid rising tensions with the United States. As Canada scrambles to respond to tariffs and annexation threats from US President Donald Trump, Churchill is at the centre of a proposed Arctic trade corridor to funnel western potash, grain, critical minerals and perhaps bitumen, from the west coast of Hudson Bay to new markets in Europe and elsewhere. It's a faster alternative route to Europe than the port of Montreal, providing ready access to South American markets, and the ability to bypass the Panama Canal — which the US now threatens to control. The aging, under-utilized seaport and its flood-prone rail line has garnered attention during a federal election campaign where Arctic sovereignty is among the key issues. Liberal Prime Minister Mark Carney has announced $175 million in investments over five years to support operations and maintenance of the Hudson Bay Railway and port, as well as invest more in northern defence. Conservative leader Pierre Polievre — who has championed Churchill as an 'Arctic gateway' — promises to accelerate expansion of the port and strengthen Canada's presence in the Arctic, including new icebreakers and a bolstered military presence. A revival of Canada's only deep-sea Arctic port is underway in Churchill, MB as the country seeks to diversify trade and protect its sovereignty in the north. The Americans (and Europeans) have noticed. Against this backdrop, the April 7 visit by Rebecca Molinoff, the US Consul in Winnipeg, raised eyebrows in the northern Manitoba town. She arrived in Churchill as part of a wider regional tour that included a stop at Thompson, MB, a nickel and copper mining hub. Molinoff and an aide met with Mayor Mike Spence, a local indigenous businessman and regional powerbroker who is also co-chair of Arctic Gateway Group, a First-Nations owned consortium of more than 20 northern communities that recently acquired the port and Hudson Bay railroad. 'She's aware that Canada is getting serious about investing in nation building,' Spence told Canada's National Observer. Molinoff was familiar with recently-announced resource deals by the port, as well as infrastructure investment plans by Canadian governments, Spence said. She mentioned potash specifically, he recalled, and the port's new agreement to start shipping Saskatchewan fertilizers to Europe starting this year. Strategic location The US Embassy in Ottawa confirmed the visit to Churchill, but it gave few details. 'Consul Molinoff recently visited Churchill … to learn more about the town's tourism, research, and trade opportunities,' embassy spokesperson Ariel Pollock said in an email. 'The visit underscored long standing bilateral ties between the United States and Manitoba.' Spence said he was 'not surprised' to see a US diplomat arrive unannounced in his town. 'Churchill is a strategic location. There was a US military base at Churchill going back to the 1940s, and there's still a big runway at the airport,' he said. David Cohen, a former US ambassador to Canada, visited Churchill three years ago, but Spence said the tone of discourse has changed since Trump's re-election and his desire to make Canada the 51st state. A week after the US consul's visit to Churchill, a European Union delegation including EU Ambassador Geneviève Tuts and diplomats from 18 European countries — including Spain, Belgium and Sweden — travelled to Winnipeg. They met Manitoba Premier Wab Kinew and discussed the potential for shipping critical minerals and "energy products" from Manitoba via Hudson Bay. Alberta Premier Danielle Smith has flagged Churchill as a potential western export route for Alberta bitumen. On the campaign trail, the Liberals and Conservatives have promised to speed up the review process to greenlight major national energy projects. Carney has also talked of using the Arctic as an export point to Europe for Canadian energy. With climate change making Canada's northwest passage ice-free sooner than previously thought — Churchill's current four-month summer shipping season could soon be extended to six with icebreakers, and the Arctic shipping route could be ice-free by the end of the century — Canadians are not the only ones taking notice. The potential unlocking of northern trade routes and access to untapped resources is drawing the interest of geopolitical rivals China and Russia. Moscow is developing a fleet of LNG transport ships with ice-breaking capability for Arctic trade. Melting permafrost Despite this attention, huge challenges face the expansion of shipping and rail traffic through Churchill. It will take enormous investment by governments and industry to bring the 1920s-era port to modern standards, not to mention a 1,300 km rail line that in its upper reaches runs through a flood-prone bog ecosystem that is prone to flooding and sinkholes from melting permafrost. Some experts say the upper portion of the rail line would have to be rebuilt on more solid ground to the west if Churchill was ever to seriously expand. At the same time, Churchill is a community of about 600 that swells to 900 each summer — a place that makes 90 per cent of its living from polar bears, beluga whales, and the 200-plus migratory bird species that frequent this biodiversity hotspot. Port jobs are welcome, but the prospects of more shipping traffic and even bitumen exports are causing many locals to question what the future may hold. Whoever forms the next federal government will need to decide how important it is for Canada to have a third oceanic shipping route — and whether it is willing to pay the billions it will take to make Manitoba a maritime province for real. In the coming weeks, journalist Christopher Pollon will deliver a series of stories from his recent reporting trip to Churchill. Christopher will explore the opportunities and challenges in building an Arctic Gateway through northern Manitoba, its role in the regional exploitation of critical minerals essential for a low-carbon economy, and what the infrastructure investments mean for an ecotourism industry also facing the impacts of climate change.
Yahoo
07-03-2025
- Business
- Yahoo
Saskatchewan-based fertilizer company wants to import ingredients through Port of Churchill
Manitoba's northern port has a new out-of-province partner as trade uncertainties with the United States linger. Saskatchewan-based Genesis Fertilizers is partnering with Arctic Gateway Group, the consortium of dozens of First Nations and Hudson Bay communities that owns and operates the Port of Churchill, leaders from both groups announced at a news conference Friday. Arctic Gateway and Genesis will look for international partners to source and import ingredients for nitrogen fertilizer, such as phosphate and ammonium sulphate, which are currently imported into Canada via the United States, a news release said. Jason Mann, CEO of Genesis, says tariff threats from the United States have been a "wake-up call" for Canadians, and everyone is looking for solutions. "We would have tried to do something with Churchill regardless of tariffs, because it just makes sense, but now it makes [even] more sense," he said at the news conference. "Churchill is critical infrastructure, and we need to use that port more, and we need to support it." Genesis's nitrogen plant plans to produce one million tonnes of fertilizer this year, which will require about 300,000 tonnes of phosphate, Mann said. "This is Canadian farmers trying to empower themselves to control their supply of fertilizer," he said. "We're in a global market, and we need to think globally." It's still too early to say how many shipments will be made through the partnership, he said. The port's short operational window in the summer also presents a challenge, but Mann believes Canada should be "an export powerhouse" of fertilizer. "Why can't we produce nitrogen fertilizer in Western Canada and send it out through Churchill to Europe?" The port and Hudson Bay Railway will allow Genesis to import products from other countries without having to go through the United States, Avery said. (Arctic Gateway Group) The news comes just days after Manitoba Premier Wab Kinew said he extended an invitation to Canada's other premiers to use Churchill's upcoming shipping season this summer to reach more international markets. Earlier this week, Arctic Gateway said it's working with HudBay Minerals to ship double the amount of critical minerals from the port it did last year. Chris Avery, Arctic Gateway's CEO, says more critical mineral storage facilities could be built in Churchill and other parts of northern Manitoba, such as Thompson, to hold phosphate and other materials for Genesis year-round. The port and Hudson Bay Railway will allow Genesis to import products from other countries without having to go through the United States, he said. "The geopolitical situation in Canada makes this far more interesting and far more topical."
CBC
03-03-2025
- Business
- CBC
Port of Churchill to double its critical mineral shipment capacity this year
Manitoba's northern port will ship double the amount of critical minerals it shipped last year, its ownership says. Arctic Gateway Group, a partnership of dozens of First Nation and Bayline communities that own and operate the Port of Churchill and the Hudson Bay Railway, say they plan to ship 20,000 tonnes of zinc concentrate via the port this year in partnership with Hudbay Minerals. Hundreds of train cars carried 10,000 tonnes of zinc concentrate to the port, where it was shipped last August, marking its first export shipment of a critical mineral in over two decades, the group said. There are also plans to triple the port's storage capacity for critical minerals to 30,000 tonnes, said Chris Avery, CEO of Arctic Gateway Group. "That will give us greater capacity to store critical minerals that will be carried out by the railway," he said. The federal and provincial governments announced nearly $80 million in new funding for the port and railway last month, which is intended to finish work on the railway and continue the redevelopment of the port. The port has seen renewed interest as U.S. President Donald Trump's threat of tariffs against Canadian goods prompted leaders to consider diversifying their trade partners beyond the States. However, Avery says the port's boosted capacity was in the works before Trump stepped back into the Oval Office.
CBC
05-02-2025
- Business
- CBC
Province, federal government team up to spend nearly $80 million on Churchill Port
The federal and Manitoba governments are putting more than $79 million into a railway and a port in the province's north. The money is to be used to finish work on the Hudson Bay Railway and to continue redevelopment of the Port of Churchill. The federal government committed $43 million to completing the restoration of the rail line, while the province has allocated $36.4 million to go toward restoring and replacing old infrastructure at the port. The rail line was shut down in 2017 by its then-owners, U.S.-based OmniTrax, after flooding washed out large sections of the tracks. Arctic Gateway Group, a consortium of northern and First Nation communities, took over ownership of the railway and the port in 2018 and relaunched service. Premier Wab Kinew says the project is helpful for the province's long-term economic security as Canada's trade relationship with the United States remains uncertain. "We have a pathway to get to the European Union. We have a pathway for those minerals that are going to power, not just the low-carbon economy, but also a lot of the defence needs around the world," Kinew told reporters at an announcement on Tuesday. A 25 per cent tariff on Canadian exports was set to come into effect the same day, but U.S. President Donald Trump decided to put a pause on it. Kinew acknowledged Canada and Manitoba have an important trading relationship with the U.S., but said this week's events demonstrate the need to find more exporting options. "This is about diversifying our markets," he said. "We're always going to be a good friend to the United States of America, and that's going to be a really big part of our economy but going forward into the future we need to be able to place some bets on some other options at the table." Grain is shipped to Europe through the rail line and the port, as are supplies to some communities in Nunavut. A deal was also made to start shipping critical minerals through the port. A shipment of critical minerals was sent out from the port last summer. The consortium expects to double the volume that will be shipped to international markets this shipping season. Terry Duguid, the federal minister for Prairies Economic Development Canada, said the money will help to keep northern communities connected, while positioning Manitoba as a key player in the global critical minerals market.
