BY Jacques Marcoux
Hard times and uncertainty often lead to new opportunities.
As economic ties with the U.S. come under strain, this is the mindset driving the rapid re-development of the infrastructure supporting the Port of Churchill — Canada’s only Arctic seaport serviced by rail.
“The time is now,” says Chris Avery, CEO of Arctic Gateway Group (AGG) which owns Hudson Bay Railway and the port itself, as well as other shipping infrastructure.
“This work comes at a critical moment for our country. The Port of Churchill and Hudson Bay railway are taking on a whole new strategic value for Canada, as Canada’s focus on Arctic sovereignty grows and the ability to move Western Canada’s vast resources to world markets faces new and unprecedented challenges,” says Avery.
Last February, the Manitoba government announced $36.4 million in funding to support rail and port enhancements. The government of Canada also committed $43 million, for a total $277 million in federal funds toward the project since 2018.
AGG is a partnership of 41 First Nation and Bayline communities in Manitoba. The port, originally built by the federal government, was sold to the U.S.-based company OmniTRAX in 1997. The port and the railway infrastructure then were sold to AGG in 2018, who have operated it ever since.
Avery, who was hired as CEO in July 2024, brings a wealth of experience in northern transportation. Previously, he was president and CEO of one of Canada’s major northern and Arctic airlines. He also oversaw commercial development and strategy as a vice-president with WestJet.
He says the rail line is now in its best condition in over a quarter century having recently completed 2.3 million feet of spot surfacing, replaced over 100,000 new railways ties, added over 1,600 rail cars worth of ballast and rehabilitated three bridges. In addition, AGG recently built a new port storage facility for storing critical minerals.
“Last summer the Port of Churchill exported its first ever shipment of critical minerals to international markets, specifically zinc concentrate mined in Snow Lake Manitoba,” says Avery.
This diversification is good news for Western Canada, as the majority of the throughput had historically been wheat and barley sales managed by the now-defunct Canadian Wheat Board. When the board’s marketing monopoly was stripped by Parliament in 2012, grain shipments through the Hudson Bay dried up after a peak of over 635,000 tons in 2010, according to Canada’s Grain Monitoring Program.
Economic uncertainty with America brings Arctic trade corridor into focus
As the current U.S. administration continues to threaten trade wars with its historical economic partners, Canada has been under significant pressure to find alternatives… and fast.
Our trade relationship with the U.S. has largely been forged as a result of our geography. They are Canada’s most important partner for international merchandise trade. According to Statistic Canada, in 2024 the combined value of imported and exported goods with the U.S. was over $1 trillion. That same year, nearly 76 percent of Canada’s total exports were shipped to our neighbours to the south.
While exports beyond the U.S. are a much smaller piece of the pie, trade data shows exports to other countries have risen in recent months. The largest increases were observed in exports to Germany (nuclear fuel and aircraft), Norway (nickel and scrap of metal), Japan (coal and copper) and Switzerland (aircraft), according to Statistics Canada.
AAG says it sees itself as a strategic partner increasing these numbers in 2025, as trade wars loom.
“This year, our critical mineral exports are set to double, and major mining operations in Manitoba have been clear that they see a long-term future in exporting from the Port of Churchill. This future also includes potash, grain, energy, northern resupply, and more,” says Avery.
“The investments being made today [..] set the stage for strong growth, reinforce Churchill’s place as a vital link in Canada’s supply chain, and create a strategic alternative for the vast resources of western Canada to reach global markets,” he added.
AGG says that shipping through the Arctic trade corridor provides more options, drives down prices, and offers shorter routes for Western Canadian businesses to major world markets. In addition to this, there is potential to increasingly become the go-to transporter for the re-supply of communities located in isolated northern regions, including twenty-five in Nunavut alone, according to AGG.
Hudson Bay infrastructure as strategic asset for Arctic Sovereignty
In December, Global Affairs Canada released its new Arctic Foreign Policy which states that “non-Arctic states, including China, are also seeking greater influence in the governance of the Arctic.”
The strategy calls for greater collaboration with its five nordic NATO allies and increased participation with Indigenous communities throughout the north. This includes supporting northern trade and export.
Avery believes this renewed focus on security is something AGG can help with.
“We’ve had good discussions with the federal government on this, including with officials from the Department of Defense,” he says.
He also points to the fact that Churchill benefits from one of the largest airport landing strips in northern Canada, dating back to the community’s Cold War history.
“The airport runway is capable of handling any transport aircraft and taken together with the port and rail infrastructure can help Canada assert our sovereignty and support northern defence,” he says.
Looking ahead
AGG says they are looking to triple their critical mineral storage capacity, among many other improvements for 2025, which has been attracting significant interest from the private sector, shippers, producers and industry in general.
“This year, our critical mineral exports are set to double, and major mining operations in Manitoba have been clear that they see a long-term future in exporting from the Port of Churchill,” says Avery.
A challenge for the Port of Churchill continues to be its relatively shorter shipping window due to ice conditions on the Hudson Bay. AGG says their season generally runs from July to November, however the impact of climate change is expected to increase this window over time.
The company says it’s currently working with university and government researchers to study the impact of global warming now and into the future. AGG has also held discussions with the federal government about the possibility of using ice-breakers to clear ice-blocked shipping routes.
Something that would be a “game-changer for our shipping” Avery says.
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