The company that owns the Port of Churchill said the loss of the Canadian Wheat Board’s monopoly on western Canadian grain sales will present challenges but nothing that can’t be overcome through discussions between stakeholders.
Mike Ogborn, managing director of OmniTrax, said his company is preparing for what it considers an inevitable end to single-desk marketing in Western Canada.
“But we’re looking for every opportunity we can to negate that impact.”
OmniTrax, which owns both the Churchill port facility and the Hudson Bay Railway Company (HBRC) that serves the port, moves 500,000- 600,000 tonnes of grain through the port each year.
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About 85 percent of that is CWB grain.
Ogborn said the elimination of single desk marketing will present challenges but his company sees a strong future for the port and the railway.
The company will focus on diversifying its business base, maintaining grain volumes and working with government on assessing and mitigating economic damages.
“Today, a great deal of the volume that moves up the railway and through the port is Canadian Wheat Board product,” Ogborn said.
“We want to make sure that those consequences are known to the government, both provincially and federally, and then work with the federal government on potential mitigations of that adverse effect.”
Ogborn said OmniTrax officials are hopeful that the wheat board will continue to operate in an open market system and are encouraging open dialogue between all stakeholders.
“I think it’s important that the wheat board remains in business,” he said.
“From a selfish standpoint, it gives us another company to work with, but from a Canadian perspective, it (the CWB) is well-versed in the market and well-positioned because of the reputation that is has around the world ….”
Ogborn said the company will also be looking to expand business relationships with private grain handling companies.
Although many of Canada’s largest grain companies own their own port facilities, OmniTrax officials hope they can attract new business by presenting a sound business case for using the Churchill route.
“For those companies that have (their own port) facilities, it will require having a business-like discussion and convincing them that moving a portion of their grain through the Port of Churchill is viable for them and is a good business decision,” Ogborn said.
“And there are certainly other grain companies that don’t have those kinds of facilities that would also be potentially good partners for us. We’re exploring all of those avenues with all grain companies.”
To offset potential reductions in grain movement, OmniTrax is hoping to increase shipments of inbound and outbound fertilizers, outbound wood pellets and pre-fabricated modules used in Canada’s oilsands refining industry.
Movement of dry freight items such as automobiles, appliances, machinery and other consumer goods is also increasing in the North, as is the transportation of fuel destined for mines, remote communities and other customers.
Ogborn said Ottawa’s decision to end the single desk will have no impact on the company’s decision to spend $60 million on rail and port upgrades.
