Cash infusion to boost Churchill development plans

The federal and Manitoba governments have jointly made a $60 million grant to the Arctic Gateway Group for development in Churchill, Manitoba.

This combined funding will finish work on the Hudson Bay Railway, start to redevelop the Port of Churchill, and further benefit the communities and sectors of the economy that depend on the Arctic Gateway Group’s operations. The Arctic Gateway Group is a partnership of 41 First Nation and Bayline communities in Manitoba.

The Hudson Bay Railway, owned and operated by the Arctic Gateway Group, is the only year-round, all-weather mode of transportation for both passenger and freight traffic to access several northern Manitoba communities. The rail line is essential for supply chains, local food security, and regional connectivity.

The investment builds on the Government of Canada’s and Manitoba’s previous commitments to restore critical rail service to Churchill and surrounding communities. The Hudson Bay Railway is the backbone of the region, serving remote and Indigenous communities, and linking the Port of Churchill as the only deep-water Arctic port connected to the North American surface transportation network. The Port is positioned to import and export commodities, critical minerals, and natural resource products through the Arctic and to the world.

“Investing in transportation services in northern Manitoba is a priority for our government, and we’re very pleased to be partnering with Indigenous Nations and the federal government to ensure the Hudson Bay Railway remains a safe and reliable transportation route. This investment will create jobs, advance our critical mineral strategy, and help us work toward our net-zero targets,” said Lisa Naylor, Manitoba minister of transportation and infrastructure.

In 2018, the federal government committed to the repair and maintenance of the Hudson Bay Railway. This saw the creation of the Arctic Gateway Group and the acquisition of the Hudson Bay Railway, Port of Churchill, and Marine Tank Farm. In 2022, a collaboration between the Government of Canada and Province of Manitoba further ensured the railway remained operational for all who benefit from its use.

Over the last two construction seasons, repair and maintenance work on the line replaced over 8.9 percent (166,000) of rail ties, resurfaced two million feet (610 kilometres) of track, upgraded and repaired over 10 bridges, and installed fresh ballast rock on 23 percent of the track between The Pas and Churchill, Manitoba.

Manitoba is home to 29 of the 31 critical minerals that have been identified as essential to the net-zero transition. As a gateway to the Arctic, the Hudson Bay Railway and Port of Churchill are important national assets to facilitate northern economic development and reconciliation in partnership with Indigenous Peoples.

“The government partnerships we have established allow us to invest and upgrade the Hudson Bay Railway where the level of service and reliability is now being achieved. Additionally, we can turn our attention on expansion and opportunities through re-development of the Port of Churchill,” said Mike Spence, Mayor of Churchill, and Chair of the Arctic Gateway Group Board of Directors.

“As an Indigenous and community-owned company, we recognize the importance of this northern infrastructure corridor and will continue to partner with industry, our strategic partners in the Kivalliq region of Nunavut and governments. This is a significant announcement for our region, for Manitoba and for Canada.”

Since 2021 Arctic Gateway Group (AGG) has seen a 250 percent increase in re-supply exports through the Port that enables AGG to announce twice-weekly freight service starting this spring. Further strategic partnerships and important relationships with the Kivalliq region of Nunavut continue to advance.

In 2023 The Port of Churchill saw the return of its first cruise ship in decades as hundreds of international tourists arrived creating additional economic benefits to the region. AGG anticipates additional cruise ships during the 2024 and 2025 seasons.

Earlier this winter, Arctic Gateway Group announced an agreement with Hudbay Minerals Inc. for the re-establishment of a northern trade critical minerals supply route that will see zinc concentrate shipped out of the Port in 2024.