Port of Churchill, Hudson Bay Railway get $51M in provincial money toward improvements

Manitoba is putting up $51 million in new funding to help upgrade the Hudson Bay Railway line as federal and provincial government officials met in Winnipeg Sunday to work toward the possibility of expanding the Port of Churchill. 

Arctic Gateway Group, a partnership of dozens of First Nations and Hudson Bay communities that owns the port, said in a news release that the new money would pay for engineering work required to allow construction on the northern rail line to bring it up to Class I status, which means it could accommodate heavier loads.

The cash will also pay for new storage and loading systems to handle critical minerals, potash, and Arctic supplies at the Port of Churchill as well as additional ships and equipment to handle more marine traffic, Arctic Gateway said.

Prime Minister Mark Carney and Manitoba Premier Wab Kinew met in the premier’s office Sunday after the federal and provincial governments reaffirmed their commitment to the port expanson in a joint statement on Sunday. 

However Ottawa’s official list of major projects of “national importance” still does not include the port expansion.

In September, the Port of Churchill Plus was included under the Major Projects Office’s “transformative strategies list” while the prime minister announced five other projects would move forward. 

Carney announced six more major projects on Thursday, describing the Churchill port expansion as still requiring more development.

Standing in Kinew’s office on Sunday, Carney said the Port of Churchill opens up a “huge host of opportunities” in northern Manitoba, including possibilities for “energy, agriculture, critical minerals and beyond.”

Kinew said the expansion in Churchill remains a “major priority” for Manitoba, as he passed a football — Winnipeg is hosting the Grey Cup championship this weekend — to Carney, saying the “ball is in his hands.”

Speaking in French, Carney described the project as large, ambitious and involving many steps.

According to Kinew’s office, the project involves a port expansion of some sort, an upgraded Hudson Bay Railway, an all-weather road to Churchill and perhaps other northern Manitoba destinations, the presence of icebreakers in Hudson Bay, and an “energy corridor” that could involve the transport or transmission of liquefied natural gas, crude oil, natural gas, electricity or hydrogen, the latter most likely in the form of ammonia.

With the new $51 million in funding, the province has spent $87.5 million on the project. The federal government announced in March that it is contributing $175 million. 

Kinew said the engineering work could also result in a realignment of the railway, something he said will be discussed with the major projects office.

“We’re going to be talking about things like the potential route and what is the best way to get products to the coast. So a lot of tires being kicked, a lot of studying going on right now,” Kinew told reporters after his meeting with Carney.

Kinew said he and Carney plan to meet four times a year about the project. The premier said more detailed plans and a strategy for the port expansion are expected in the spring of 2026.