3.10 – Introduction deck – Early discussion items: Hudson Bay Railway & Port of Churchill
The Hudson Bay Railway (HBR) and the Port of Churchill (the Port) are owned by the Arctic Gateway Group (AGG), a partnership among 29 First Nations and 12 northern communities in Northern Manitoba.
The HBR is the only affordable, year-round transportation option for passengers and freight in remote communities. HBR operations are currently dependent on federal funding.
The Port is Canada’s only deepwater port in the Arctic connected to the national railway network and has potential to enhance access to global trade routes.
PrairiesCan was instrumental in the formation of AGG and supported their acquisition of the HBR and Port from the previous American owner (OmniTRAX) in 2018.
PrairiesCan also supported the repair, maintenance, and operation of the HBR since 2018, and the remediation of the Churchill Marine Tank Farm. Total federal investment since 2018 is $320 million. This has leveraged $140 million from the Province of Manitoba since 2022.
Shipments through the Port currently include critical minerals to Europe, resupply to the Kivalliq region of Nunavut, and agricultural products to Europe and the Middle East.
In February 2025, Transport Canada and the owners of the HBR, the Arctic Gateway Group, signed a 2-year, $43.8 million contribution agreement to support the ongoing operations and maintenance of the rail line.
In March 2025, the Government announced $175 million over five years (including the $43.8 million from February 2025), starting in 2025-26, to support the operations and maintenance of the HBR through Transport Canada and pre-development activities at the Port through PrairiesCan.
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With additional time and investment, there is potential to further expand use of the HBR and Port of Churchill to grow and diversify trade opportunities.