20.04.2025

"Manitoba's Churchill Port: A New Trade Frontier"

Manitoba may be smack dab in the middle of the country, but its premier wishes to remind Canadians it’s a maritime province

In a recent effort to redefine Manitoba's image, Premier Wab Kinew highlighted the province's maritime potential during the announcement of a joint $80-million investment in the Port of Churchill with Ottawa. Kinew remarked, "When you think of Manitoba, you think of the Prairies, you think of the bush, but did you know that you can get to saltwater as well?" This investment is part of a broader strategy to establish trade routes that bypass the United States, especially amidst ongoing trade tensions and tariff threats under U.S. President Donald Trump.

Located where the Churchill River meets Hudson Bay, Churchill is a rail-accessible deepwater port that could become a key export point for critical minerals, which are increasingly in demand worldwide. Chris Avery, chief executive of the Arctic Gateway Group (AGG) — a partnership of 41 First Nations and local communities — expressed optimism about the port's potential. Avery noted that in the previous year, 10,000 tonnes of zinc concentrate sourced from Manitoba were shipped out of Churchill, with plans to double this shipment volume in collaboration with Hudbay Minerals Inc.

The transformation of the Port of Churchill is also aimed at enhancing trade connections with Europe and other international markets. Kinew highlighted the importance of diversification, stating that while the U.S. remains a friend, Canada must secure alternative options. The announcement also included an agreement to import chemicals critical for Genesis Fertilizers' new Saskatchewan plant via Churchill, shifting reliance away from U.S. suppliers.

Experts agree that alternative trade routes are essential for resilient supply chains. Serasu Duran, a professor at the University of Calgary's Haskayne School of Business, pointed out that during the COVID-19 pandemic, port congestion was a key barrier to getting goods to customers. She emphasized that having alternate routes like Churchill is beneficial not just as a redundancy but as a way to create new trade channels, particularly for northern territories relying heavily on expensive air travel for supplies.

However, the port's viability is affected by climate change, which opens ice-free shipping lanes for longer periods but also introduces challenges such as thawing permafrost. Avery has mentioned that the AGG is working with researchers to explore extending the ice-free shipping season from four months to potentially five or six months. Nonetheless, they face challenges with the stability of the railway, which has been affected by flooding in the past and may require substantial investments to ensure its integrity.

Barry Prentice of the University of Manitoba's Transport Institute noted the economic benefits that could come from establishing a container facility at Churchill. Currently, containers arriving from Europe must travel long distances to reach the Prairies, incurring significant costs. He stated, "If you look at Churchill, it’s a very short route... There could be great savings there." However, to fully realize this potential, substantial investments in the railway infrastructure will be necessary, indicating that future funding requirements could reach into the billions.

Churchill's political and economic dynamics have shifted with local Indigenous communities now in control of the port and railway operations. Mayor Michael Spence articulated the pride felt by local communities in taking ownership of these assets, emphasizing the need to secure a sustainable future for both the region and the country. Avery also noted the transition to local governance has been a pivotal change, empowering those who directly rely on the port's functionality.

Ultimately, as the Port of Churchill develops, it aims not only to bolster Manitoba's economy but also to enhance Canada's overall trade resilience in an increasingly complex geopolitical landscape.