Churchill Video of the Week – Murals Trailer

With the crisis in Churchill continuing to affect the everyday lives of all 800 residents, a recent art project coordinated by Kal Barteski has brought hope and promise of change to the isolated northern town. Barteski organized artists from around the world to gather and paint northern themed murals on neglected and mostly abandoned buildings around the subarctic outpost on the Hudson Bay.

Now a short documentary film has been made portraying the roots of the project and how it became a reality.

“I Know I’m Here” is a collaboration of 18 artists looking to leave a mark of reassurance and hope for this small community fighting through some very tough times. Within the past couple of years, the Port of Churchill has been shut down, the Hudson Bay Line has been washed out and inoperable for a year, and just recently the most popular restaurant, Gypsy’s Bakery, burned to the ground. The strife has been constant and the heart and resilience of the residents are being tested beyond belief.

As Churchillians deal with stresses from being shut off from the south with the only way in and out of the town being by air, Kal and her group of artists have created these massive murals have transformed the landscape and instilled some hope in the community.

China Firm Enters Ring to Buy Port

Churchill Port, Churchill , Manitoba

Port of Churchill grain shipping operation on the Churchill River. Port of Churchill photo.

Just when you thought the Port of Churchill and accompanying Hudson Bay Line were in a negotiated sale…again…another potential suitor has arisen to acquire the assets and begin shipping from the port.

Executives from Herun Group Co. Ltd., a Chinese company with massive agricultural interests as well as a wealth of port-operating experience, visited Churchill a month ago to gather more information and inspect the port facility. The company is one of the largest firms in China and seemingly has the financial clout and long-term experience in the shipping industry to offer a long-term solution to keeping the port and train line open.

Concerns that the Port of Churchill would fall into foreign hands and their primary interests would be alleviated by an agreement with the Manitoba Metis Federation and thus have that group own 51 percent of the company. Herun has also agreed to pay the $20 million price to Omnitrax without relying on any additional support from the Canadian government according to Manitoba Metis Federation president David Chartrand.

“Herun made it very clear they’re prepared to come up with a substantial amount of cash,” he said.

Herun owns and operates 11 international ports and recently closed a deal to acquire a port in Brazil, the country China trades the most with. Since Herun also processes various grains and oilseeds, interest in Churchill’s port facility is paramount.

“To me, in order to make this situation work for the railroad and Port of Churchill, you really need to have a company that is in the business,” said Joe Ng, chairman of JNE Group of professional engineers based out of Hamilton, which arranged the tour.

Port of Churchill. Claude Daudet photo.

“Otherwise, new people come in and after two years they can’t utilize the rail and port and they bail out.”

Herun’s interest stems from the fact that it imports raw materials such as soybeans and canola for its China crushing facilities.

Missinippi Rail and One North, a consortium of First Nations and Toronto-based Fairfax Financial Holdings Inc. are also in partnership to purchase the facilities. Omnitrax and Ottawa have been in negotiations with each other since late last year.

However, Omnitrax Canada President, Merv Tweed, reported that the latter group has only signed a letter of intent and Omnitrax has received inquiries from several other Canadian companies. “We are continuing discussions with a number of interested parties,” Tweed said.

A most recent inquiry and potential buyer, another First Nations group named iChurchill, appeared this past week with a comprehensive proposal that includes utilizing Churchill’s port and rail line to ship wood and possibly oil in addition to grain.

Ng conceded Herun is not first in line with their new proposal. “We’ve come in late so we have to wait until other people finish talking. It’s no different than a lineup at a counter,” said Ng, the 2016 winner of Entrepreneur of the Year awarded by the Association of Chinese Canadian Entrepreneurs.

Any new deal with the prospective buyers would include the damaged rail lines, as well as some buildings and land and in other northern towns like Gillam. The estimated $46 million in track repairs would be covered by the company that ends up purchasing the facilities. The governments annual $5 million in maintenance payments currently paid to Omnitrax would continue with the new owner.

Even though Churchill has a pretty short shipping season, Herun is looking ahead to the future according to Ng. “As far as they’re concerned, the world’s turning warmer every year, and there might be longer and longer shipping seasons as years go by,” he said.

Churchill Gas Prices Subsidized

Churchill fuel prices

The deMeulles Auto Gas Bar in Churchill reflects the price of gas prior to the rail line washout. Dale deMeulles photo.

Churchill’s gas prices have been reduced by fifty cents a litre thanks to the federal government accessing the economic stimulus fund once again. With petrol prices nearing the $10/gallon mark, this latest reprieve will keep the cost at about $8/gallon. And we complain about gas prices when they reach $3/gallon or more? Kind of puts things in perspective a little, eh?

With federal findings of a probe of Omnitrax, owner of the Port of Churchill facility and the defunct Hudson Bay Line, due to be released soon, residents are enduring rising prices and increased isolation leading to economic strife.

Last week, Natural Resources Minister Jim Carr confirmed that the Ottawa government would allocate $132,870 for Exchange Petroleum to lower gasoline prices to prior levels before the Hudson Bay Rail Line was devastated by flooding last May. Shipping on the railway was the only way to keep costs for supplies and fuel low. Now, ten months later, the pressure is causing long-time residents to move south in search of a more affordable lifestyle.

In September 2016, Ottawa approved the Churchill and Region Economic Development Fund, intended for the diversification of northern Manitoba’s economy following Omnitrax laying off most of the port’s workforce that summer. Businesses have benefitted from the money by offsetting rising shipping costs of materials shipped by barge or airplane.

Last December Carr visited Churchill and announced the government would add $2.7 million to the existing $4.6 million relief fund. After seemingly turning a blind eye to the issue the federal government now is coming to the rescue.

The new windfall of cash will be transferred to Exchange Petroleum, owner of the Calm Air fuel-storage tanks located at the Churchill airport. These tanks are being used due to issues with the port’s storage tanks related to the viability of winter storage of the fuel.

Churchill Port tank farm.

Churchill Port tank farm is unable to store fuel for the town through the winter. Churchill Tank Farm photo.

“This project is a great example of how collaboration and partnerships can help lessen Churchill’s acute economic hardships, restore a quality of life, and keep its entrepreneurs in business,” Exchange CEO Gary Bell wrote in a statement.

Churchill Mayor Mike Spence expressed thanks to Ottawa for its leadership and funding while conveying optimistic thoughts that rail line repairs would commence in the spring.

“This announcement means real savings for residents and businesses of Churchill during these difficult economic times,” Spence wrote. “It’s important to also give a great deal of credit to Exchange Petroleum who stepped in last fall.”

 

Churchill Sunday Photo – End Game

Polar bears in Churchill

Polar bears from the backside. Katie de Meulles photo.

Another classic “end of polar bear season” photo from the Churchill tundra. Katie de Meulles captured this one as another memorable season come to and end. Churchillpolarbears.org hopes that the momentum of polar bear season will continue on for Churchill and soon finds a solution to the Hudson Bay Rail line crisis. Best wishes to all Churchillians for the holiday season and impending good news surrounding the sale of the Port of Churchill!

New Player May Facilitate Port and Rail Sale

With little time to waste a new player has surfaced in the crucial sale of the Port of Churchill to two independent First Nations groups in the north. Investment firm Fairfax Financial Holdings from Toronto hopes to partner with One North and Missinippi Rail LP to wrest ownership from Denver, Colorado-based Omnitrax and set forth in motion the extensive repairs to the Hudson Bay Line damaged by severe flooding last May.

Port of Churchill

The Port of Churchill may be under new ownership soon. CBC News photo.

The new prospective partner will also bring a financially sound backing and a strong business base to the deal that Churchill officials and residents hope will secure access to the south and free them from isolation.

According to reliable sources, a negotiator for the federal government, former clerk of the Privy Council Wayne Wouters, has brokered a deal with the two potential owners.

“This development has the potential to contribute to an arrangement supported by First Nations and communities in northern Manitoba,” Natural Resources Minister Jim Carr said in a statement released Thursday.

“This would enable a sustainable business approach that results in a safe and reliable rail line.”

Paul Rivett, president of Fairfax Financial Holdings, said “we are optimistic about the prospects of northern gateways.” stated in a press release.

“The Churchill rail corridor and the Port of Churchill are important pieces of infrastructure for northern communities and to the economy of Canada. Partnering with First Nations and communities is the right model for this investment,” Rivett said.

He said Fairfax will rely on a company it has invested in, AGT Foods, to develop a plan that is “viable and profitable in the long term as a business.”

Earlier this week, Ottawa responded with an $18-million lawsuit against Omnitrax after it filed filed a claim for damages against the federal government under the rules of the North American Free Trade Agreement.

The head of the Fairfax, V. Prem Watsa, has been characterized as the “Warren Buffet of Canada” often investing in troubled companies and turning them into a positive entity. Watsa invested in BlackBerry and Fairfax has significant holdings in several other companies.

V. Prem

Fairfax Financial CEO and chair V. Prem Watsa.CBC News photo.

Omnitrax signed a memorandum of understanding with First Nations Consortium Missinippi Rail in June and then joined forces with One North to strengthen interests in purchasing Omnitrax’s Manitoba assets.

Churchill Mayor Mike Spence, in a written statement to CBC News, said transferring the port and rail line to a stable, strong northern regional ownership group is the highest priority. He is behind the efforts to find a partner to purchase the assets one hundred per cent.

“I am pleased that there are outstanding companies that also share this vision. We now need the negotiations expedited and [to] ensure our preparations for repairs to the rail line and port are ready for the 2018 season,” wrote Spence.

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