Rival Northern Group Vying to Purchase Churchill Port

Port of Churchill Churchill, Manitoba

The Port of Churchill and Hudson Bay Railway are still up for sale by Omnitrax. Claude Daudet photo.

With negotiations between Omnitrax Canada and the Missinippi Rail Consortium, now down to just the Mathias First Nation, moving at the speed of a train on the last 100 miles to Churchill, another strong alliance has stepped up and expressed interest in acquiring the port and Hudson Bay Railway. Omnitrax does have a  memorandum of understanding to negotiate the sale of its assets with MRC though the negotiations have recently stalled.

The new alliance called One North has apparently gathered widespread representation from various First Nations of northern Manitoba and incorporated municipalities residing up and down the rail line. The Kivaliq region in Nunavut has also reportedly joined forces with the group as well.

“This is an unprecedented coalition of communities — indigenous and non-indigenous. There is a historical significance here. Never in the history of northern Manitoba have all these communities come together like this in a shared vision.” stated Christian Sinclair, chief of Opaskwayak Cree Nation, and one of the key organizers of One North.

So far around 20 communities have joined forces with One North, including The Pas   and the City of Thompson, two key, large communities on the rail line as well as all the First Nation communities served by the Hudson Bay Railway including Fox Lake, War Lake and York Factory. Many of these groups have rescinded their support letters from a year ago backing the Missinippi Rail Consortium run by Chief Arlen Dumas of Mathias Colomb First Nation and redirected them to One North Coalition.

The group has come together to not only purchase the assets of Omnitrax Canada and run the rail line and Port of Churchill but also facilitate a long term broader plan for the north and its people.

Churchill mayor Mike Spence has co-led the effort with Sinclair..

“We have a real issue here. We need to rectify it. We are putting together a model that will sustain these communities for a long, long time.” Spence said.

Omnitrax Canada place the port, rail line and assets up for sale in December 2015.  Omnitrax president Merv Tweed at that time announced the company wanted to sell its Manitoba assets and was confident the company would have a deal in place before the end of 2015. That didn’t happen.

Dumas and Omnitrax entered into negotiations in January 2016 and although initial meetings seemed to imply a done deal, nothing has seemed to progress further.

When July came around, Omnitrax shocked the community of Churchill by laying off nearly 100 port workers and abruptly closed the doors to the port and cancelled the entire shipping season. No deal with with Dumas and his group was finalized.

Dumas and Omnitrax officials claim that talks are progressing well and that a deal is imminent though no recent news has surfaced on the deal. Omnitrax officials have not been available for comment on negotiations. When reached, Dumas had no awareness of One North’s interests. He did give away a little of his hand by stating; “Well, ask them to give me a call if they want to buy the assets and the interest off us.”

Sinclair admits One North is still trying to get an audience with Omnitrax. They currently have no official standing with the company and have only assembled a team with some technical expertise including Paul Power, an international railway specialist who was a founding director of the Keewatin Railway Company, and Marv Tiller, the original CEO of the North West Company who has had a long career assisting First Nations in successful economic development projects.

“We think Omnitrax does not want to talk to us because they want to get a management contract from the buyer, Missinippi Rail Consortium, so they can make $10 to $15 million advising and managing and have someone else take on the risk as well as cash out on all the government money that has been sunk into the line.” stated Power.

One North has made it clear to the government the direction they are wanting to go in and have met with Cliff Cullen, Manitoba’s minister of growth, enterprise and trade as well as Natural Resources Minister Jim Carr and the Manitoba caucus in Ottawa. Modest funding has been received from the $4.6-million Churchill and Region Economic Development Fund, established in September by the federal government though the group has been primarily self-funded to date.

“The federal government is fully aware of where we want to go,” Mayor Spence said. “They have indicated to us that they like the model, they like where we are going. It plays into what the government wants to do to develop a new strategic plan.”

Omitrax Hit With Arson in The Pas

The Pas arson

Railroad ties owned by Omnitrax in the Pas were destroyed by arson. RCMP photo.

A $5,000 reward is being offered by Omnitrax Canada for information that helps locate an arsonist that destroyed about $1 million worth of railroad ties that were to be used this summer on the Hudson Bay rail – line.

Fire lit up the sky around 5:30 a.m. in The Pas Monday morning from the Hudson Bay Railway yard. With relations strained between local residents and Omnitrax due to their recent abandonment of the Port of Churchill, communities all along the Hudson Bay rail-line are running high on emotions.

Omnitrax will offer the bounty to someone who can supply information leading to both an arrest and conviction of the person or people responsible for the fire. Fortunately, no people were injured during the blaze.

“We are very troubled by this terrible act,” Omnitrax Canada president Merv Tweed said in a release.

The company has set up a tip line at 204-947-0033. The local RCMP number is 204-627-6204.

Train Finally Arrives in Churchill

A freight train loaded with food and supplies pulled into Churchill three weeks late on Monday afternoon. Since March 1st, trains have been unable to travel the heavily snow – drifted train tracks than wind there way to Churchill. Two massive blizzards had virtually shut down the town and depleted stores of food and other crucial necessities ..such as beer.

train in Churchill

Train with supplies finally makes it to Churchill. Rhonda Reid photo.

snowplow on train churchill

Vintage snow plow on the front of a via train. This is what connected Churchill to the outside world. Rhonda Reid photo.

Cold temperatures like Monday’s -40 C prevail thought the clearing visibility has allowed Omnitrax, owner of the rail line into Churchill, the ability to clear the tracks and allow trains to arrive from the south. Milk, fruit and vegetables were gone and meat of any variety was in short supply. Beer, in the one liquor store in town was down to a few cases.

After Churchill was hit by the third longest – lasting – blizzard in town history, residents began digging out of the massive snowfall that was accompanied by 31 hours of zero visibility and 58 long hours storm conditions.

The landscape in and around town out past the airport and beyond has been described as a moonscape by some. Purely surrealistic conditions!

Churchill blizzard

Blizzard ravished Churchill. Heidi Den – Haan photo.

 

 

Churchill Marine Observatory a Reality

Beluga whale churchill,Manitoba

Beluga whales would be adversely affected by oil spills in the Arctic. Alex De Vries – Magnifico photo.

The Province of Manitoba provided the final piece of the funding puzzle this week with a $9 million dollar pledge toward the projected $32 million Marine Observatory in Churchill. The main focus of the research carried out at the center will be on oil spills in the north and subsequent mitigation as well as prevention. Fragile Arctic and sub – Arctic wildlife and ecosystems will depend upon protection provided through this research station.

Lead scientist David Barber, a professor at University of Manitoba and Canada Research Chair in Arctic systems science, summarized the process leading up to this important announcement; “Everybody’s provided their funding, the project’s moving forward,” he stated. “We just need to finalize who’s going to build the thing. In the next 12 months we hope to get the building put together, functional and operating so it can be used for science .”

The funding will funnel through the University of Manitoba, the lead entity in this venture. A number of western Canadian universities and groups are involved in the massive coordination of budget and vision of the observatory. Manitoba’s commitment brings them all in line now.

With the recent closure of the Port of Churchill by US based Omnitrax, this announcement is a move in the right direction for the town of Churchill and prospective work – force. “This project is an important part of our vision for a strong, diversified northern economy,” stated Ian Wishart, the province’s Education and Training Minister.

Churchill Marine Observatory

Conceptual drawing of the Churchill Marine Observatory. Juliana Kusyk image.

“The Churchill Marine Observatory will create up to 21 permanent jobs, boost tourism and transportation in the region and enhance Manitoba and Canada’s reputation as a world leader in Arctic research,” added Wishart.

The project’s fundraising began in 2014 with three universities led by U of M applying to the Canadian Foundation for Innovation for almost 40 per cent of the needed $31.7 million. Manitoba, Aberta and British Columbia have contributed nearly $12 million with Manitoba being the stalwart at $9 million.

About 20 scientists will be based at the center in Churchill studying potential effects of oil and industry in the Arctic. Upon completion the Churchill Marine Observatory will provide a year – round base for new technology development and scientific research in the north. Universities from north America and Europe will utilize the center for student and faculty training and research as well.

Omnitrax Quiet on Churchill Port Closure

Port of Churchill in Churchill, Manitoba

Tank farm and Port of Churchill in Churchill, Manitoba.

With all the talk surrounding the news of Omnitrax closing the Port of Churchill prior to the heart of the 2016 grain season, thus displacing nearly 200 jobs from Churchill to The Pas, nothing has come from the mouths of the company’s spokespeople.

Two weeks have passed since Omnitrax shut the port down and issued dozens of workers in Churchill alone their pink slips. However the premier of Manitoba, Brian Pallister, has not been contacted by the company or heard anything regarding the negotiations to sell the port to a first nations group. He has portrayed the lack of communication as a “mystery” and a “challenge” in the relationship between the government and Omnitrax.

Omnitrax has not made any statements or held any press conferences regarding the move and this has many officials in Canada baffled since the closure has drastically affected lives that rely on the employment as well as those in communities that live along the Bayline, also under the companies ownership. The rail line is key in supplying northern communities with goods and food products. Many settlements are not accessible by roads and rely heavily on the train as their main supplier. Omnitrax has plans to reduce the amount of freight to be shipped along its Bayline route. Although the train line remains operable, many are anxious as to its future viability in this situation

Oil transportation and shipping through the port has been a recent, hot issue initiated by Omnitrax. However, the initiative fell apart last year as overwhelming public resistance and outcry over the idea forced the company to back down. Some, including this writer, believe Omnitrax had its profit seeking sights set on this plan since day one. Now that the oil issue seems “dead in the water”, pardon the pun, the company has hit the road and headed back to Denver, Colorado.

Omnitrax had received a three dollar per tonne subsidy last year from Manitoba’s former NDP government but with the new Progressive Conservative party lead by Pallister, now in office no such bailouts were sanctioned for this year..

“The approaches that have been taken too often in the past have been alarmist and crisis in orientation, and that is not the nature of how we are going to build a stronger northern economy and stronger communities.” stated Pallister.

The situation is intriguing and continues to develop as this story is published. Stay tuned for updates from Churchill.

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