WINNIPEG – The federal and Manitoba governments are putting more than $79 million into a railway and a port in the province’s north.
The money is to be used to finish work on the Hudson Bay Railway and to continue redevelopment of the Port of Churchill.
The federal government committed $43 million to completing the restoration of the rail line, while the province has allocated $36.4 million to go toward restoring and replacing old infrastructure at the port.
The rail line was shut down in 2017 by its then-owners, U.S.-based OmniTrax, after flooding washed out large sections of the tracks.
Arctic Gateway Group, a consortium of northern and First Nation communities, took over ownership of the railway and the port in 2018 and relaunched service.
Premier Wab Kinew says the project is helpful for the province’s long-term economic security as Canada’s trade relationship with the United States remains uncertain.
“We have a pathway to get to the European Union. We have a pathway for those minerals that are going to power, not just the low-carbon economy, but also a lot of the defence needs around the world,” Kinew told reporters at an announcement on Tuesday.
A 25 per cent tariff on Canadian exports was set to come into effect the same day, but U.S. President Donald Trump decided to put a pause on it.
Kinew acknowledged Canada and Manitoba have an important trading relationship with the U.S., but said this week’s events demonstrate the need to find more exporting options.
“This is about diversifying our markets,” he said. “We’re always going to be a good friend to the United States of America, and that’s going to be a really big part of our economy but going forward into the future we need to be able to place some bets on some other options at the table.”
Grain is shipped to Europe through the rail line and the port, as are supplies to some communities in Nunavut. A deal was also made to start shipping critical minerals through the port.
A shipment of critical minerals was sent out from the port last summer. The consortium expects to double the volume that will be shipped to international markets this shipping season.
Terry Duguid, the federal minister for Prairies Economic Development Canada, said the money will help to keep northern communities connected, while positioning Manitoba as a key player in the global critical minerals market.
Tuesday’s announcement comes after both levels of government provided $60 million toward the project nearly a year ago.
This report by The Canadian Press was first published Feb. 4, 2025.
