The funding will go to the Arctic Gateway Group (AGG), a partnership of 29 First Nations and 12 isolated communities served by HBRY in Northern Manitoba. AGG owns and operates the 627-mile railroad, which connects with CN in The Pas, running north through Manitoba to the Hudson Bay at the Port of Churchill (see map below); it also owns the Port and the Churchill Marine Tank Farm.
Transport Canada will provide C$125 million through its Remote Passenger Rail Program; this funding is to be offset by the C$43.8 million previously announced in the Fall Economic Statement 2024. Prairies Economic Development Canada will administer C$50 million for the Port of Churchill.
Service to Churchill and remote surrounding communities was cut off in May 2017 by flooding that damaged portions of HBRY. In 2018, the Canadian government committed to the railroad’s repair and maintenance. This saw the creation of AGG, and its acquisition of HBRY and Port of Churchill from Denver, Colo.-based OmniTrax, and of the tank farm.
HBRY is the only surface transportation option that is available year-round between several remote and Indigenous communities in Northern Manitoba from The Pas to Churchill. It also links the Port of Churchill, Canada’s only deep-water Arctic port, to the North American transportation network. “Maintaining this railway link is fundamental to securing our Arctic, protecting good jobs, transporting essential supplies, and ensuring [that 33,000] residents can get to where they need to go,” Transport Canada said. It added that funding for HBRY will “support nation-building infrastructure and ensure that HBRY rail services continue to meet the needs of remote northern and Indigenous communities,” and funding for the Port will help “maintain safety/security of the infrastructure and support potential increased private-sector investment and partnerships with the HBRY/Port owners.”
“Now, more than ever, it’s important to make critical investments in Canadian infrastructure to bolster economic development in Canada’s Northern regions,” said Chrystia Freeland, who earlier this month was sworn in as Minister of Transport and Internal Trade. “The Hudson Bay Railway and Port of Churchill are important transportation corridors that serve the needs of Indigenous and Northern communities, and this new funding will connect more Canadians and grow our economy.”
“The Arctic and Northern Manitoba represent a huge untapped economic potential,” Minister of Environment and Climate Change Canada Terry Duguid noted. “We’re ensuring that the Hudson Bay Railway receives reliable funding to send a strong message to the private sector that it can count on this railway and the Port of Churchill for business. This investment will help move both people and goods, ensuring supplies reach First Nations and remote communities in Northern Manitoba, while also driving our economic growth.”
“The partnership and investment in Arctic Gateway Group will expand our trade capacity, which will benefit the entire prairie region,” added Minister of Innovation, Science and Industry Anita Anand.
The total commitment of C$175 million is in addition to the separate commitments of C$43 million and C$36.4 million by the governments of Canada and Manitoba, respectively, that were announced in February to continue upgrading HBRY and the Port of Churchill.
In a related development, AGG earlier this month reported a significant expansion of its mineral export partnership with Hudbay Minerals Inc.
