REPORTS that the Port of Churchill is facing financial difficulties are nothing new.
But this time they come on the heels of great optimism that surrounded the port after private owners Omnitrax took over the rail line serving the facility and the port in 1997.
The company upgraded the rail line, dredged the port and modernized the grain-handling facilities.
It spoke of plans to boost the volume of product shipped through the port. That had many heralding a bright future for the northern Manitoba port on Hudson’s Bay.
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But after a near record year in 2000 with 710,000 tonnes of grain shipped through the port, poor crops in the last two years conspired to slow grain exports to 279,000 tonnes last year and 478,000 in 2001.
More must be done to ensure the long-term viability of the cheapest route for northeastern and east-central prairie farmers to ship their grain.
Tom Henley, a spokesperson for Omnitrax, points out that prairie farmers can save $20 per tonne on freight by shipping through Churchill instead of Thunder Bay.
Trouble is, Omnitrax says it requires a million tonnes of grain per year to remain profitable. Its best year was 1976 when 735,000 tonnes went through the port.
The Canadian Wheat Board, the port’s best customer, cannot pick up the slack on its own.
Private shippers have a role to play in identifying more opportunities to use Churchill, be it for feed peas to Europe or pulses or canola to Mexico and other Central and South American destinations.
Buyers in these regions could find moving product through Churchill to be an attractive option.
And there is more that can be done.
Henley said Omnitrax has commitments from the governments of Canada, Manitoba and Saskatchewan for financial and other types of aid as part of a plan to stabilize the port for at least the next five years.
The plan is in its early stages, according to Henley, so additional details are not available.
But a key component is a push to diversify Churchill into a port that is less dependent on grain.
That could offer a solution to the seemingly perennial Churchill problem. Shipping other products should cushion the blow during years of scant prairie crops.
Time is running short. Last week, Omnitrax said it has not yet decided whether to open Churchill for 2003. This may be a pressure tactic, but the concept of diversifying the port makes sense regardless.
The upgrades Omnitrax has done must be given time and every reasonable opportunity to work. A few normal crop years wouldn’t hurt either.
Financially, farmers require the best options available for their exports.
