Manitoba pitches in to look for new owner for Port of Churchill
Karen Pauls | CBC News | Posted: December 2, 2015 10:38 PM | Last Updated: December 2, 2015
Province working with current owner, OmniTrax, and has also asked Ottawa for help
The Manitoba government is working with Denver-based OmniTrax to find a new owner for the Port of Churchill and accompanying Hudson Bay Line.
OmniTrax is "talking with other organizations" to sell both the port and railroad, spokesman Ron Margulis confirmed Wednesday.
He wouldn't say if those organizations are public or private, but he added an announcement is "imminent," possibly as early as tomorrow.
Manitoba's Minister of Infrastructure and Transportation, Steve Ashton, met with his federal counterpart, Marc Garneau, in Ottawa today.
Churchill was a priority in the discussions, Ashton said.
"Churchill is critical. It's a strategic trade corridor. It's the only arctic deep water seaport," he said. "The future for Churchill involves further investments and increasing the scope of those investments — not just focusing on the short-term nature."
"I believe OmniTrax is serious about looking for a new owner and I do believe there's huge potential if the federal and provincial governments are prepared to be there. We are. I can't speak for the federal government but I'm optimistic following the discussions we had today," Ashton said.
While Churchill has been primarily a grain port until now, he said there are new opportunities to move everything from military helicopters to consumer goods, and commodities such as potash.
There is also potential to further develop Churchill as a science hub for climate change studies, a marine observatory and a Northern Studies program.
Given his background as an astronaut, Ashton said Garneau was also interested in Churchill's history as a rocket research range for the Canadian and U.S. militaries.
Meanwhile, the Manitoba government said it has already had unsolicited interest from potential investors, including groups involving Manitoba First Nations, Mexican companies and even groups from India, Ashton said.
The Keewatin Railway Company is a potential ownership model that has some potential, he said, adding all those contacts are being passed on to OmniTrax.
Decisions about overseas ownership would have to be made in the context of geo-politics and national security, and would involve the federal government.
"If outside investment is part of the business plan and can move Churchill forward, it's certainly something we would be very open to and very supportive [of] as a province," Ashton said.
"It's not a crisis – Churchill will be operating next season but we did have a disappointing season this year. Everyone knows we need a new model and we're committed as a province to working towards that."
Garneau was not available for an interview.
A departmental spokesperson provided this statement: "The Hudson Bay Railway and the Port of Churchill are privately owned by OmniTrax and operate on a commercial basis. Transport Canada is aware that OmniTrax has put these operations up for sale. It would not be appropriate to comment on any potential commercial transaction."