Bloomberg: Canada revives Churchill port plan to diversify trade beyond US

Canada is considering a major revival of the remote northern port of Churchill, Manitoba, aiming to transform it into a strategic export hub for natural gas, potash, canola, and critical minerals, with direct access to Europe via the Arctic Ocean.

Energy Minister Tim Hodgson said Churchill, located at the same latitude as Oslo, could help diversify Canada's trade routes, long dominated by the US. “There’s tremendous potential,” he told Bloomberg, pointing to Russian use of Arctic ports and plans for Canadian icebreakers that could extend Churchill’s short shipping season.

Western provinces such as Alberta and Saskatchewan strongly support the idea, but critics note the high cost and environmental risks. The port, historically limited by ice, was first used for grain in the 1930s but declined after 2012 when the Canadian Wheat Board lost its monopoly.

Prime Minister Mark Carney’s government, seeking to reduce reliance on the US — which received 75% of Canadian exports last year — is fast-tracking key infrastructure projects. New legislation will allow certain projects, including Churchill, to be approved within two years based on national interest criteria, including benefits to Indigenous communities.

Churchill’s port and rail line were acquired in 2018 by Arctic Gateway Group, a consortium of 41 Indigenous communities. CEO Chris Avery said the port is already shipping zinc and expects some grain exports this year. He believes that with more icebreaker support, the shipping season could stretch beyond the current four months.

Hodgson highlighted a proposal to build an all-weather road and pipeline to Churchill, which could transform regional economies and dramatically lower costs for northern Indigenous communities. Manitoba Premier Wab Kinew, who is Indigenous, is seen as a key ally in the effort.

Still, sceptics like Heather Exner-Pirot of the Macdonald-Laurier Institute question the economic viability and insurer willingness to back Arctic routes. She warned that the Arctic remains a costly and uncertain alternative to existing west or east coast ports.

Despite doubts, Avery said Churchill’s upgraded infrastructure is ready: “We just really fully need to leverage it.”

By Tamilla Hasanova