Churchill railway, port redevelopment will open new trade routes for shipping minerals, grain globally: mayor

New fundingfor the repair of a northern railway and redevelopment of the Port of Churchill holds the promise of opening new trade routes for shipping Manitoba minerals, energy and agricultural products acrossthe globe.

That's according to northern, federal and provincial officials, who describedhow $60 million announced this week marks a shift in howCanada's only rail-accessible deepwater port on Arctic waters will be enhanced and managed by northern Manitoba communities.

"It's critical that decisions made in northern Manitoba, the vision, comes from northern Manitoba," Churchill Mayor Mike Spence said Friday at a joint news conference in the community, located about 1,000 kilometres north of Winnipeg.

"We will decide. Far too long communities like Bayline communities have been neglected. We are now strategically owners. There's no other model like it in Canada."

The federal and provincial governments are each chipping in$30 million to improve the Hudson Bay Railway the only ground-level link between Churchill and the rest of the provinceand start to redevelop the Port of Churchill.

CBC News first reported the fundingThursday, though federal and provincial officials travelled to Churchill to formally announce the commitment Friday.

Spence said Friday the developments will also create 60 to 70 jobs in the north.

Ambassadors from Iceland, Sweden, Finland, Norway and Denmark attended the announcement in Churchill to learn about opportunities for partnerships, said Dan Vandal, Liberal member of Parliamentfor Saint Boniface-Saint Vital.

Liberal MP Terry Duguid(Winnipeg South) called the redevelopment plans an example of economic reconciliation.

Premier Wab Kinew said thefunding will support capital investments for repairing and ongoing maintenance of the rail line.

The funds will also be put toward work on the portto ensure it is up to standard for shipping critical minerals and agricultural goods internationally, and to help explore new trade routes.

"There is a real desire to get goods to market here and there's going to be good-paying jobs created across the region, but also in the mining sector, the ag sector and so many of the other industries that stand to benefit here as well," Kinewsaid.

"For decades, Manitoba has just been a hub to let other provinces cash in on their investments, but now it's our turn as Manitobans."

Kinew said the port could be used to "cash in" on the export of low-carbon hydrogen power generated by Manitoba Hydro andcritical minerals developed in-province with a"higher respect for human rights, environmental standards and labour standards relative to any other jurisdiction in the world."

Arctic Gateway Group a partnership of dozens of First Nation and Bayline communities thatownand operatethe rail line reached an agreement inlate 2023 to send up to 20,000 tonnes of zinc concentrate mined by Hudbay Minerals Inc.

The first cruise ship in decades docked at the port last year and the region is expecting more traffic from that sector this year and next.

The improvements are also expected to help meet the rising demand for freight resupply. According to a joint news release from the provincial and federal government, Arctic Gateway has seen a 250 per cent increase in resupply exports since 2021.

Spence said Friday freight services are expected to expand this spring, with shipment of critical minerals expected to begin this summer.