Some new brightness for the long-beleaguered port of Churchill may melt some icebergs of doubt about its economic viability.
When the port opens in mid-July, it will be run by new owners: OmniTrax, a U.S. company that manages 11 short lines south of the border.
For the first time, the port will be able to handle hopper cars following tests on the track and modifications at the port. Gone is the clumsy boxcar fleet that limited the port to handling wheat.
And marketers of the port are buoyed by positive financial results last year.
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The port posted its first operating profit in a decade, partly from handling 305,000 tonnes of wheat, the most grain it has seen in five years.
The president of Gateway North International said the port made $90,000. The previous year, it incurred a $300,000 deficit.
“The losses in some previous years have been in the millions of dollars,” said Terry Duguid, head of the marketing agency set up by government to find users for the port.
Duguid said the modest profit is only the tip of the iceberg for the port.
“That’s only scratching the surface of Churchill’s potential.
“The port will do much better than that under new ownership, which we expect quite soon.”
Duguid said staff watched costs closely, and avoided spending money on fixing infrastructure, helping the bottom line.
The Canadian Wheat Board also ended up paying for some storage at the port after a potential late shipment from the port did not pan out.
Duguid expects the port will handle more grain this year, with some special crops going up the line in the now-available hopper cars. He said if the port handles 500,000 to 600,000 tonnes of grain, the new owner will see profits and the community will see jobs.
