What is to be Done with the Port of Churchill?

bill barilko

Senate Member
Mar 4, 2009
6,034
579
113
Vancouver-by-the-Sea
A messy situation with all the usual suspects-foreign corporations on the gubmint teat, hillbilly locals facing another season on welfare, the brutal fact is that northern Canada doesn't nearly pay it's way/never has and never will in the lifetime of anyone posting here.

Apologies for posting such a lousy article it reads like it was written by a high school student and is about as informative


What the closure of an Arctic seaport in Manitoba could mean for Canada
Closure of Canada's only deepwater mainland Arctic port may pose a sovereignty problem


The Port of Churchill is Canada's only rail-accessible deepwater port on Arctic waters

It's always a big deal when a small town loses its largest employer. But Churchill, Man., is not just any town — and its port is not just any business.

The Port of Churchill is the only deepwater link between Canada's Arctic waters and its railroad network. Or at least it was before Monday, when Denver-based OmniTrax shut it down, offering little warning and even less in the way of an explanation.

Port of Churchill layoffs 'came out of nowhere,' says town's mayor
The closure stunned the town of about 750, where roughly one in 10 people are employed by the port at some point of the year. The shockwave then rippled down the 1,300-kilometre Hudson Bay Railway through railroad communities like The Pas, Man., before fanning out into the grain fields of northwestern Manitoba and northern Saskatchewan.

The closure of this port, however, is not just a regional economic calamity, like a shuttered pulp and paper mill or under-capacity fish-processing plant.

At a time when climate change is opening up the Arctic Ocean to shipping, and powerful nations like Russia and China pose new threats to Canada's sovereignty, the viability of the only deepwater port connected to the nation's transportation network is no small matter.

'Once it's gone, it's gone'

While the Port of Churchill has struggled economically since its inception, it remains an asset of strategic importance to Canada, even if Ottawa no longer owns it.

"It's actually a real attribute to have a port with a connection to the North American rail grid in the north," said Hugh Stephens, an executive fellow with the University of Calgary's School of Public Policy and a trade expert.

While he questions whether grain shipments will ever make the Port of Churchill profitable, he suggested it may be foolish to scrap the Hudson Bay coastline port at a time when other nations are casting their gaze on the Arctic Ocean.

"There could be an argument to maintain it," said Stephens, speaking in a telephone interview from Toronto. "Once it's gone, it's gone, and that's the real concern.

"Now, if it's not economically viable as a grain-shipping port, before you blow the whole thing up, have a long, hard look at what the strategic value could be."

While climate change already has had a noticeable effect on Arctic waters, the reduction in thickness and prevalence of Arctic sea ice has yet to spark a northern shipping boom.

Container ships are not yet common in Canada's Northwest Passage, which nations such as China view as international waters. Shipping traffic on its far more navigable Russian counterpart, the Northern Sea Route, has actually diminished thanks to soft economic conditions, Stephens said.

Factors such as insurance rates, the size of shipping containers and the economy all have a more noticeable effect on shipping than the presence of sea ice, he added, noting that even completely ice-free Arctic summers would only extend the Hudson Bay shipping season by only a few weeks.

But the economics of Arctic shipping haven't stopped Russia from developing a series of rail-accessible Arctic ports. It also hasn't prevented China and the U.S. from exploring the concept of Arctic shipping, either, probably as a prelude to ocean-floor resource extraction.

Canada has been slow to bolster its own Arctic presence, even though the former Harper government made Arctic sovereignty a priority. Nanisivik, a deepwater military port on the north side of Baffin Island, was announced in 2007 but won't be finished until 2018. Plans to build an icebreaker capable of plowing through multi-year sea ice have also been delayed.

Whether the Trudeau government sees the Port of Churchill as a strategic asset is unknown, as the Liberal government in Ottawa took more than 24 hours to issue a brief statement about the closure.

At the same time, municipal and provincial politicians — as well as opposition MPs — condemned the surprise move by OmniTrax, which declined to utter a peep about the port's closure for more than 24 hours after it informed employees they were being laid off.

'We could have grown it so much better'

It may have been a mistake for the Chrétien government to sell the Port of Churchill to a private interest in 1997, said Dan Mazier, president of Keystone Agricultural Producers, an organization that represents Manitoba farmers.

"We could have grown it so much better," he opined, referring to public stewardship of the port.

Before the sudden closure, OmniTrax was in the midst of selling the port, along with the Hudson Bay Railway, to several northern Manitoba First Nations.

In some ways, not much has changed at Churchill since the 18th century, when the Hudson's Bay Company spent decades building Prince of Wales Fort across the mouth of the Churchill River — only to see the trading post fail to muster up the expected business with the Cree, Dene and Inuit locals. The fort was surrendered to the French navy without firing a single shot in defence.

The grain-shipping port only wound up at Churchill after a First World War-era plan to build the port down the coast, at the mouth of the Nelson River, collapsed in what was then a national scandal.

The port finally opened at the start of the Depression and never met expectations. It was overshadowed at Churchill by a Cold War-era airbase which helped enlarge the town's population to more than 6,000 people before it, too, was decommissioned and dismantled.

Churchill is also home to a defunct rocket range, an offshore shipwreck, the decaying fuselage of a crashed plane and the eerie foundations of a dismantled village built for a group of forcibly relocated Dene.

Residents of the town hope the Port of Churchill doesn't join the long and haunting list of decaying machines, buildings and infrastructure projects at the edge of Hudson Bay.
 

darkbeaver

the universe is electric
Jan 26, 2006
41,035
201
63
RR1 Distopia 666 Discordia
tHAT'S WHAT i WANT, my brother works up there till the freeze You can pick that iron mine I got a chun k of that ore a tank can be cooked out of that stuff in three steps, I can provide the details coordinates whatevwer, we are recruting young vibrant Canadians like you

Veery rich fifty tons of tank fior five thousand tons of ore bearng the whole -lace is magnetic.

The Neoiceage is who I represent, global warming will freeze you solid.

If you want to go to sea you will want to go with my brother, all seven of them, my brother hast never lost a ship, they won't sink if he's aboard.
 

petros

The Central Scrutinizer
Nov 21, 2008
117,617
14,358
113
Low Earth Orbit
2 Reasons

The problem that plagued the rail line from day one is the muskeg and frost. They can only carry heavy freight and grain in winter. The grain is limited to aluminum grain cars.

That rail line abutts my property.

With WCB toast and Harper selling off Canadian Grain Car Crown Corp cars, farmers can't afford to privately sell to Asia or Europe over the closer logical polar route. I get a lower payout but cheaper freight selling top grade 2 row malt grade barley in Nor Am.

A contract with SABMiller who make Snow beer would be nice because they'd buy it all at a set price before seed hits the ground.

Then there are moron companies that thought global warming would open the northwest passage year round. They can't afford the ice breaker fees to move their Dauphin MB grown bales of hemp and hemp seed oil.

Will Justin save them?
 

bill barilko

Senate Member
Mar 4, 2009
6,034
579
113
Vancouver-by-the-Sea
Yet another US corporation getting rich off Canadian gov't largesse everything else is window dressing and larger & larger bills to be paid by You Know Who

Deal reached between Manitoba groups, Omnitrax for ownership of Churchill rail line

Agreement in principle still needs legal issues sorted before repairs to tracks damaged by flooding last year

The tracks have sat flood-damaged and idle for more than a year, but now a tentative deal has been struck to bring ownership of the Port of Churchill and the rail line to the northern Manitoba community on the shore of Hudson Bay back into Canadian hands.

Two groups representing northern communities and First Nations — One North and Missinippi Rail LP — joined forces with Fairfax Financial Holdings and now have an agreement in principle to buy the beleaguered assets from American company Omnitrax, the federal government announced Wednesday afternoon.

Fairfax, a Toronto-based investment company, announced last November it would partner with One North and Missinippi Rail in an effort to buy Omnitrax's northern Manitoba assets.

The recently formed buying group consists of Fairfax Financial Holdings, AGT Food and Ingredients, Missinippi Rail Limited Partnership and One North, the Wednesday release said. Missinippi and One North will operate together as Missinippi Rail Partners.

The arrangement includes the participation of 30 First Nations and 11 non-First Nation communities in northern Manitoba and seven Kivalliq communities in western Nunavut, along with Fairfax and AGT, the government said.

Specifics of the deal, including the financial details and a timeline, were not announced Wednesday.

Fairfax president Paul Rivett and Omnitrax owner Pat Broe negotiated the agreement, but there are a number of legal issues to complete before the sale is finalized.

A statement sent by Omnitrax Canada on behalf of president Merv Tweed called the agreement the "best outcome for all stakeholders."

"We are very pleased to see an agreement in place that will ensure the long-term operations of the rail line," the statement reads. Omnitrax looks forward to "a smooth transition of ownership."

The agreement has been a long time coming for Churchill mayor and One North co-chair Mike Spence. He's been lobbying for a deal since Omnitrax began cutting rail service to his community nearly two years ago.

"This is an historic partnership involving Indigenous and northern communities with industry leaders that now positions the Port of Churchill as an Arctic gateway for future prosperity."

"The people of northern Manitoba have long understood the value of the rail line," natural resources minister and Manitoba MP Jim Carr said in the government's statement.

"This agreement in principle allows those most affected to have a direct stake in the future and long-term interests of their communities."

Ottawa took Omnitrax to court over its refusal to repair the tracks last year, but later removed Omnitrax Inc. from its statement of claim.

The rail line to Churchill was washed out by a flood in May 2017.

Denver-based Omnitrax refused to repair the tracks, saying it couldn't afford the cost and had been trying to sell the northern port and rail line.

The company estimated the cost of repairs at between $40 million and $60 million.

Residents along the line and in Churchill, a town of 900 approximately 1,000 kilometres north of Winnipeg, have faced increasing costs for all sorts of commodities, including heating fuel and gasoline.

Prime Minister Justin Trudeau said last year it was Omnitrax's responsibility to do the work and get the line open. The federal government offered subsidies to northern residents to help with rising costs.


Wednesday's announcement also has significance for First Nations along the rail route.

"Bold investments into much needed infrastructure will create long-term socioeconomic growth for the North," wrote Opaskwayak Cree Nation Onekanew Chief Christian Sinclair, who is also a co-chair of the One North group.

"We see immediate opportunities to support the success and growth of the business, creating opportunities for OCN and for all of our partners in northern Manitoba."

Manitoba Premier Brian Pallister said in a written statement he was "very pleased" to see the agreement and praised the work of the federal government and the consortium in reaching it.

"Obviously we need to understand the details of this agreement more fully," the statement reads.

Pallister reiterated the government's support for Churchill and said the province will continue to work with northern communities, the new partnership and the federal government.

A firm timeline on when work crews can get on the rail tracks and start repairs must wait until some of the legal issues are worked out between the consortium and Omnitrax.
 

Curious Cdn

Hall of Fame Member
Feb 22, 2015
37,070
8
36
Why doesn't the Navy make that port their Northern base instead of building at Nanisivik.
 

bill barilko

Senate Member
Mar 4, 2009
6,034
579
113
Vancouver-by-the-Sea
Let the bells ring out and the banners fly-the Gubmint Teat is Back!!

Churchill residents rejoice as rail service gets back on track

1st rail cars in over a year arrived in northern community Wednesday night


Hudson Bay Railway locomotives travelled the repaired track to Churchill Wednesday night, for the first time in nearly a year and a half.

Residents of Churchill have taken to the streets to celebrate after the federal government announced full passenger and freight rail service should be restored to the northern Manitoba community by the end of the month.

Prime Minister Justin Trudeau made the announcement at the Port of Churchill this morning, as hundreds of residents gathered for a street party to celebrate the arrival last night of the first train into Churchill in 18 months.

"Churchill, as Canada's only Arctic deep water port, is something I'm very optimistic about," Trudeau said.

"Supporting the North is of fundamental importance to the future of Canada."

he announcement is part of a $117-million commitment the federal government is making to resurrect both the rail line and Canada's only deep water Arctic port.

For the last 20 years, the port has struggled in the face short shipping seasons, changing agricultural markets and indifferent ownership.

Many here say the deal is critical to save the northern community and others in the Arctic that rely on it.

"It's a really good day, when we heard the train whistles going, it felt just like the good old days," said millwright Kim Kushniryk, who works on and off at the port.

She's looking forward to finally having steady work when next year's shipping season starts.
"Food and fuel has gone up, everything has gone up and up wages never increased," Kushniryk said.

Churchill has been without rail service since May 2017, when record flooding washed out portions of the approximately 400-kilometre track leading to Hudson Bay in 20 different places. That made the town of 800 on the Manitoba shore of Hudson Bay a fly-in only community.

Denver-based owner Omni-Trax balked at paying repairs, originally estimated at $60 million, and held out for a sale.

https://www.cbc.ca/news/canada/manitoba/churchill-rail-service-returns-november-1.4887333
 

Mowich

Hall of Fame Member
Dec 25, 2005
16,649
998
113
76
Eagle Creek
Great news. I do hope that any future problems with the rail line will be dealt with promptly, considering we (Canadians) now own the line.
 

Curious Cdn

Hall of Fame Member
Feb 22, 2015
37,070
8
36
Great news. I do hope that any future problems with the rail line will be dealt with promptly, considering we (Canadians) now own the line.
Agreed.

If Canadians are going to claim the North as our own, we have to put our money where our mouths are and do something positive to support the North, now and then.
 

JamesBondo

House Member
Mar 3, 2012
4,158
37
48
Agreed.
If Canadians are going to claim the North as our own, we have to put our money where our mouths are and do something positive to support the North, now and then.

What are you saying here? are you saying that Canada doesn't do anything positive to support the North?
 

Curious Cdn

Hall of Fame Member
Feb 22, 2015
37,070
8
36
What are you saying here? are you saying that Canada doesn't do anything positive to support the North?
Not bloody much ... not a quarter of what the Russians do in their North. They are there to stay, though but most Canadians just think "What's in it for ME?!"
 

Bar Sinister

Executive Branch Member
Jan 17, 2010
8,252
19
38
Edmonton
Given that it may soon be ice free all year, why not use it to ship goods from the Prairies, especially since BC has become so unreliable.
 

petros

The Central Scrutinizer
Nov 21, 2008
117,617
14,358
113
Low Earth Orbit
Ice free all year? It won't be sunless for 3 months any longer?

Perhaps you should start selling Coppertone to Inuit for those bright and balmy days at the beach in January.

You'll make a killing.