Train engine being hoisted onto the cargo ship at the Churchill Port. Katie de Meulles photo.
The Port of Churchill is minus one prospective suitor for possible acquisition. The group, iChurchill and a First Nations consortium led by Glenn Hudson, Peguis First Nations Chief has withdrawn from bidding on the Port and the Hudson Bay Line.
“We are disappointed to have put so much time, effort and money into what would have been a timely solution for the people of Churchill and the economy of Western Canada, but we have apparently run up against politics,” said Louis Dufresne , CEO of iChurchill,
“We finally met last week with the government of Canada’s negotiator on the file, Mr. Wayne Wouters, and he made it clear that the government is willing to deal only with one specific company, a Toronto-based financial firm. We can’t understand why this is, given that our partnership meets all of the government’s stated criteria to support the restoration of rail service to Churchill.”
Churchill’s mayor Mike Spence and town council said iChurchill had previously announced that they were still negotiating with Omnitrax and the Canadian government to try and reach an agreement on the sale.
Now, iChurchill states that the federal government is catering to one exclusive buyer and will only offer financial assistance for track repairs to the Hudson Bay Railway for that group exclusively. Trains have not run to Churchill since last May and it appears that the hopes of starting the repairs this summer are fading again.
“Our team believes that these assets can be operated profitably,” said Dufresne. “My head cares about the commercial interests. But my heart is with the people of Churchill and the First Nations of Northern Manitoba. It’s been a year since a flood washed out their only land link to the rest of the country. I hope they can get their railway back online this year, but without a change in position on the part of the federal government, I’m not optimistic.”
We will have to wait and see what other potential buyers and investors arise in the near future.
Tundra swans along the coast with the spring melt in full force. Katie de meulles photo.
A gyrfalcon perched in Churchill. Katie de meulles photo.
Two awesome images from Churchill photographer Katie DeMeulles.This time of year in Churchill is when birds are arriving all over the tundra and the landscape is alive. These swans and gyrfalcon are early to the spring party.We can’t wait for the progression of seasons brings more and more species to the region. Enjoy.
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.
Churchill’s Gypsy Bakery burned to the ground in the early morning Sunday. Leroy Whitmore photo.
The iconic Churchill deli and restaurant that was the most popular gathering place in Churchill was destroyed in an early morning fire early this morning..
The building, described as a total loss by Churchill mayor Mike Spence, caught fire just after midnight. Fire crews were still putting out smoldering areas at 8 am this morning, according to Churchill Fire Chief Leroy Whitmore.
“There was heavy smoke and visible flames, coming through the rear of the roof,” said Whitmore.
Crews worked tirelessly from within the building to get a handle on the blaze but were driven back each attempt. Eventually Chief Whitmore made the decision to knock the structure down in order to protect adjacent staff housing and surrounding neighborhood homes.
No information concerning the cause of the fire has been offered. With the total loss and destruction of the building there’s a good chance we will never know.
“Due to the extent of the damage and the fire suppression efforts, the cause of the blaze is pretty much impossible to determine, now,” said Whitmore.
Luckily the blaze happened at a time when no patrons or employees were inside. Eleven volunteers fought the fire through the night, said Whitmore. No injuries from the fire crew were sustained either.
“There was heavy smoke and visible flames, coming through the rear of the roof,” said Whitmore.
Crews tried about half a dozen times to put out the flames inside, but eventually were forced into a defensive position and the decision was made to knock the building down in order to protect staff housing nearby, he said.
“A dozen volunteers battled the relentless fire the during the night”, said Whitmore.
Gypsy’s Bakery has been the social center of Churchill for 25 years and the DaSilva family has been like family to all who knew them. it will be hard to replace the atmosphere they spent years creating. Social media has been filled with outpouring of grief and sadness from residents of the town all morning.
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.
