Dubai-based port operator DP World has signed a memorandum of understanding with Arctic Gateway Group, the owner of the Port of Churchill in the Canadian province of Manitoba, to explore developing a transportation corridor linking the Arctic port to global markets, the companies said on Monday.
The agreement, which also includes inland logistics hub CentrePort Canada, covers port operations, logistics services and the potential development of an integrated corridor connecting the Port of Churchill, the Hudson Bay Railway, CentrePort and DP World’s global network. No investment commitments were announced, CBC News reported, citing The Canadian Press.
The parties are also examining opportunities for container cargo, Arctic Gateway Group President and Chief Executive Officer Chris Avery told The Globe and Mail. He said the two companies had been in talks for several months and that DP World officials had recently toured Churchill, about 1,000 kilometers north of Winnipeg.
“This agreement is an opportunity to explore how the Port of Churchill, the Hudson Bay Railway and CentrePort Canada can connect more effectively with DP World’s global network and end-to-end logistics capabilities,” said Doug Smith, chief executive officer of DP World in Canada.
DP World handles more than 1 million twenty-foot equivalent units (TEUs) a year in Canada, according to the companies’ statement. Its Canadian business operates container terminals in cities including Vancouver and Prince Rupert.
The Port of Churchill, owned by Arctic Gateway Group, ships critical minerals, grain and potash. It has four deep-sea berths able to handle Panamax-size vessels, a grain terminal with storage for up to 140,000 tonnes and 30,000 tonnes of critical minerals storage, Reuters reported.
Arctic Gateway Group is owned by 29 First Nations and local governments in Manitoba and Nunavut. Canada’s federal government is seeking to fast-track an expansion of the port through its Major Projects Office, a plan expected to need as much as $57 billion of capital investment, The Globe and Mail reported. The port currently operates for about four months a year, when Hudson Bay and waters farther north are free of ice.
“By better integrating Churchill with Manitoba’s inland transportation and trade infrastructure, we can create a truly unified trade corridor, connecting Western Canadian resources to new markets and diversifying Canadian trade for a stronger future,” Avery said.
Manitoba Premier Wab Kinew said the partnership would help get more Canadian products to world markets. Canada’s Minister of Transport Steven MacKinnon called the agreement an important opportunity to strengthen connections between northern, inland and global transportation networks.
The agreement comes as Canada seeks to diversify its trade routes and reduce its reliance on the United States.
