The Saskatchewan Association of Rural Municipalities (SARM) is pleased to hear the federal, Saskatchewan, and Manitoba governments, are investing a combined 262.5 million dollars into Arctic Gateway Group's (AGG) Port of Churchill and Hudson Bay Railway network.
Ottawa is contributing $180 million and Saskatchewan and Manitoba are contributing the remaining balance.
SARM said the combined investment "supports the modernization of a trade corridor that connects Prairie producers to global markets, expanding opportunities for Saskatchewan’s grain, potash, minerals, and energy exports."
"It's great news for the two provinces and the federal government for contributing to the growth of Canada." said Bill Huber, President of SARM.
SARM notes AGG "has already made substantial progress" with the Port and the rail way, including a second weekly freight train operating along the railway "following conductor training and hiring programs", a new critical mineral storage facility which "will triple Churchill's capacity for strategic resource shipments", and "new monitoring technology – including LiDAR, ground-penetrating radar, aerial drones, and AI-powered analytics – is enhancing reliability and safety."
Huber has heard that some parts of the rail line may need to be upgraded, in order to accommodate heavier rail cars.
"But when you take that much funding that's available now…that'll go a long way." he said.
The grain terminal in Churchill is not very big by today's standards, so Huber isn't sure if it will need to be expanded, or if a new one needs to be built.
However, he is hopeful that the use of icebreakers can extend the shipping season at the Port of Churchill.
"But I think as time goes on, and with this funding, things will continually improve. And it's a great opportunity to get some of our products to market to countries around the world at a little less expense when we can go through Churchill and to connect to other countries."
As government funding is being committed, "partnerships with Saskatchewan communities and industry are also taking shape", SARM said, point to a collaboration announced in September 2024 between the Town and R.M. of Tisdale – under Invest Tisdale – and AGG "to promote 'two-way rail traffic' that will boost local economic activity" and Genesis Fertilizers signing "a letter of intent to import 300,000 tonnes of phosphate annually through Churchill for blending at its Belle Plaine facility and distribution across the Prairies."
The federal government is also conducting a feasibility study into how infrastructure improvements could potentially attract more business to Churchill.
AGG has also partnered with Fednav, a Canadian shipping company, "to examine the operational requirements that would be necessary to support year-round shipping from the Port of Churchill. The work for this review is underway and is expected to be completed this summer." reads an AGG news release from February 20.
Huber notes the Port will be a topic of discussion at the SARM Annual Convention in Regina next month.
(With files from Doug Falconer, CJGX)
