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.
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,” according to Transport Canada, which will provide the C$43 million through its Remote Passenger Rail Program. The funding will not only support HBRY’s annual repairs, maintenance, and operations, but also contribute to local business growth, including job creation and security, the government said. It builds on the C$277 the government has already invested over the past six years to support the restoration, operation, and maintenance of HBRY and AGG assets.
The Manitoba government reported that its C$36.4 million investment will go toward capital infrastructure projects at the Port of Churchill, and “support the AGG’s port and rail development vision and plan to expand traffic diversification and growth opportunities and attract private investment partners from the agriculture, mining, fertilizer, and resupply sectors.” Planned works include wharf repairs and freight warehouse upgrades.
“This is about keeping northern communities connected, strengthening Indigenous economic leadership and positioning Manitoba as a key player in the global critical minerals market,” said Sport Minister Terry Duguid, the minister responsible for Prairies Economic Development Canada. “Reliable affordable rail service is essential for the North and these investments will ensure it remains a lifeline for communities and businesses. At the same time, we’re creating new opportunities in mining and mineral development—helping Indigenous communities build skills, secure good jobs and drive economic growth. This is a long-term investment in Manitoba’s future and in Canada’s clean energy transition.”
“As a maritime province located in the heart of North America, Manitoba is strategically positioned to ship commodities, critical minerals and natural resources,” Manitoba Infrastructure Minister Lisa Naylor added. “Developing the Port of Churchill will advance northern Manitoba’s economy, support trade expansion with Europe, and strengthen our Arctic sovereignty as we position Manitoba as a gateway to the Arctic and to the world.”
“The Arctic Gateway Group values its ongoing partnership with the Province of Manitoba and HudBay Minerals to export Western Canada’s vast resources to international markets,” noted Chris Avery, CEO of AGG. “We’re very pleased that the upcoming shipping season will see us double the volume of critical minerals that will be shipped to internationally markets from the Port of Churchill. As a locally owned and operated Canadian organization, backed by 41 Indigenous and Bayline communities, Arctic Gateway Group will continue to step up and support working people, creating regional opportunities and diversifying the supply chain networks of this province and country.”
