Commodity News Service Canada – Ownership of the Hudson Bay rail line and shuttered Port of Churchill may change soon, as the port’s current owners and a collection of northern First Nations have inked a formal agreement, according to a company press release.
Omnitrax, the rail company that currently owns the northern Manitoban port, has signed a memorandum of understanding regarding the potential sale and ownership transfer to the Missinippi Rail Consortium, a group of Manitoba First Nations.
This next step comes after a year of due diligence and the signal from the consortium that it intends to move forward, a statement from Omnitrax said.
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The consortium is now able to negotiate with vendors ahead of the 2017 grain season.
The deal is non-binding and the sale remains subject to scrutiny from the federal government.
The federal government is still looking at supporting this transaction, but in the meantime the 2017 grain season hangs in the balance as does the continued shipment of freight through the North, the statement said.
It’s not yet clear how many, or which, First Nations are part of the consortium, but Mathias Colomb First Nation made an offer to buy the port in the past. The consortium is still open to other members.
“We are grateful that Omnitrax Canada believes in our process and our people and is willing to get started now. Ensuring First Nations ownership in these assets is a vital part of ensuring long term viability in the North. Now we need the Government of Canada to complete their review so that this process can be concluded as soon as possible,” Mathias Colomb Chief Arlen Dumas said in a press release.
Omnitrax has owned the port for nearly 15 years, but laid off a number of staff and closed the port ahead of the 2016 grain handling season. The rail line now provides freight service to Churchill once a week, compared with twice a week previously.
The Port of Churchill is Canada’s only deep-water Arctic seaport.
Information regarding finances and operations have not yet been released to the public.
