Business

Port of Churchill expansion could transform Canada’s economy

Published: 

(Jasna Baric / CTV News graphics)

Manitoba may be in the middle of the country, but it is a Maritime province.

On the shores of Hudson Bay sits Churchill – a strategic port town in the northeastern part of the province.

Churchill is known for its polar bear sightings in the winter — also known as the ‘Polar Bear Capital of the World’ — and many flock up in the summer to witness the beluga whales that swim along the shores near town.

But it’s also home to the only deep-water seaport in Northern Canada that is connected by land, through the rail line, to the rest of the country.

What is the Port of Churchill?

Port of Churchill exterior (Alex Karpa, CTV News)

The port is owned and operated by Arctic Gateway Group (ACC), an Indigenous and community-owned Manitoba company.

It handles commodities like critical minerals and serves as a vital link for northern communities and trade through the Arctic.

The conversation around revitalizing the Port of Churchill has been brewing for years.

Chris Avery, the President and CEO of ACC, says opening Churchill to the rest of the world will not only diversify trade but will assert Canada’s dominance in the Arctic.

“I expect this to be a major port in Canada,” he said. “Now we’re really putting investments back into the infrastructure.”

Canada-U.S. trade tensions sparked renewed interest in the Port of Churchill earlier this year.

Manitoba Premier Wab Kinew has previously said that the port could be a good option to boost trade with Europe.

‘We’re very much open for business’

Port of Churchill Inside the Port of Churchill (Alex Karpa, CTV News)

The port began shipping critical minerals, like zinc concentrate, to Europe last year. It has now been serving the European continent for two years now, and Avery expects that demand to grow over the coming years.

New infrastructure has tripled the amount of space to store these goods, which is being shipped out to global markets.

Avery says expanding infrastructure at the port can only grow trade for the northern Manitoba port.

“It’s about talking with our customers, the mining community, whether it’s for critical minerals, other bulk material, to other things like potash,” he said. “It’s about understanding how much they want to ship and what facilities they need to accommodate those needs.”

Avery says it’s not just about shipping goods to Europe from Churchill, but to the Middle East, Africa and even South America.

Port of Churchill needs development: feds

Prime Minister Mark Carney recently announced his first wave of nations-buildings project, which includes the expansion of the LNG Canada liquid natural gas pipeline in B.C., and a nuclear power project in Ontario.

But the Port of Churchill was absent from the list.

Discussions around the Port of Churchill, and investing in other major projects across the country, is Ottawa’s thinking for strengthening trade partnerships, and bringing stability to Canada’s economy, amidst trade and tariff threats from the U.S.

Ottawa said that upgrading the port is still of interest, but the plan needs more development.

‘It’s our time to be an integral part’

Port of Churchill Train unloading cargo at the Port of Churchill (Alex Karpa / CTV News)

Churchill Mayor Michael Spence says he is hearing that the Port of Churchill could be part of Ottawa’s second tier nations-building project list.

He says it would be a huge win for not just the community, but for the entire northern region if that becomes reality.

“It’s been a work in progress; it’s been a long-haul,” he said. “We believe by being selected, we could make a huge different in the economy as a whole.”

Increased conversations about revitalizing the Arctic is welcoming news for northern residents like Spence.

He says the interest from the federal and provincial governments is due to the strategic location and the infrastructure that is already in place.

And the potential of what could come is exciting for Spence.

“It’s going to mean jobs, it’s going to mean stability, it’s going to mean future, and again, not only for Churchill, but for the entire region,” he said. “It gives us an opportunity to prosper and play role in developing Canada.”

As to what the revitalization of the port looks like down the road, it’s a question that Spence is still trying to figure out.

“There is going to be a process where there is going to be engagement and consultation in terms of what it could look like,” he said. “It’s not going to happen quick, in terms of talking roads or energy. These are things that will take time and there is a process to identify where that goes.”

‘A sense of optimism’

Port of Churchill Rail line leading to the Port of Churchill (Alex Karpa, CTV News)

Churchill resident Joe Stover is of the same mindset as Spence.

While the conversations around the port are enticing, he says there is still a lot of work to be done.

“I was relieved to see that we weren’t actually on the first wave of projects,” he said. “There is so much to figure out in terms of the impact of what a project like this will have on our community.”

Stover has lived most of his life in Churchill. He says he remembers the days when the town was bustling due to the port’s operation.

He even worked at the port for over a decade. He says there are a few things he would like to see done in terms of the ‘revitalization’ conversation.

He says it starts with bringing back the grain program.

“We have the infrastructure for grain, and we’ve had that for almost 95 years,” he said. “Anything just to make the port ready for any all sorts of bulk shipments. There’s lots that Churchill could do the meet its potential down there.”

‘Climate change is a tail wind for us’: Avery

Polar bear A polar bear walks along rocks, Tuesday, Aug. 6, 2024, near Churchill, Manitoba. (AP Photo/Joshua A. Bickel)

The port currently operates on a four-month schedule, but Chris Avery, the President and CEO of Arctic Gateway Group, says shipping lanes through the Hudson Bay could be open for up to six months without ice breakers.

He says getting year-around shipping lanes through the Hudson Bay is of the utmost importance.

“It’s a huge advantage for Canada and it provides a great option for Canadian exports to global markets,” he said.

Avery says any conversation regarding revitalization around the Port of Churchill should come with consultation by Indigenous groups and northern communities.

Related: