Churchill’s port will open this summer and will be operated by international grain company Louis Dreyfus.
That’s great for farmers, says the president of the Hudson Bay Route Association.
“It’s really good news,” said Arnold Grambo.
“The Louis Dreyfus link is really interesting. That has been the missing link. I’m really optimistic. We’re happy that they’ve got a marketer involved.”
Omnitrax, the company that owns the port and the rail line that leads to it, announced June 2 that it would open the port this summer after getting support from the federal and Manitoba governments and receiving a guarantee that the Canadian Wheat Board would use the port this year.
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The two governments have pledged $1.8 million to improve the port’s facilities and $400,000 to market the port as an export outlet, Omnitrax spokesperson Tom Henley said.
“We feel that working with governments and their expertise at economic development will only help us bring in new business to the port,” said Henley.
The port will be managed by Louis Dreyfus for this summer.
Ian Luff, Louis Dreyfus’ manager of country operations, would not say whether his company’s deal with Omnitrax was for longer than this shipping season. But he said part of the company’s goal is to make Churchill permanently viable.
“Long term we don’t want to have this discussion about whether Churchill is opening or not,” said Luff.
Churchill has suffered from low volumes because of back-to-back poor crop years. Omnitrax officials think the port can be viable if it moves one million tonnes of grain per year. Presently the wheat board is Churchill’s biggest customer.
The port’s advisory board said getting non-board grains and other products to flow through the port will be essential to keeping it busy.
Luff said this summer will allow Louis Dreyfus to try out the port to see its potential.
“Let’s open the port. Let’s see what we’re able to do,” said Luff.
The company will try to move grain from as much of Saskatchewan and Manitoba as it can.
“The port is open for everyone, whether it’s Sask Wheat Pool or the small shippers,” said Luff.
“Let’s get a good feel for it. If there’s the opportunity in the fall, let’s capitalize on it.”
Henley said Omnitrax hopes the partnership with two levels of government, the wheat board and Louis Dreyfus will set the port on a stable path.
“What we need to work on next is the longer term,” said Henley.
“Let’s see if we can develop a sustainable business plan.”
