Manitoba grain elevator shutdown could mean more port business locally

THUNDER BAY – Tim Heney says the unexpected shutdown of grain delivery in Churchill, Man. could mean more shipping business in Thunder Bay.

Heney, the chief executive officer at the Thunder Bay Port Authority, said the two communities serve the same market.

“Manitoba is the second-largest shipper through the Port of Thunder Bay. About 56 per cent of their exports go through our port. It’s really likely that some of those shipments will come through the Port of Thunder Bay,” said Heney, adding he takes no delight in the news.

“We have a lot of empathy for the people in Churchill. We know what it’s like lose industrial jobs. I’m hoping they can diversify their cargo through the port in future years and re-establish themselves.”

Omnitrax, the privately owned company that runs the port in Churchill, laid off about 70 workers on Monday.

According to the Winnipeg Free Press, the move comes seven months after the company announced it planned to leave Manitoba and sell the rail line that connects Churchill to Las Pas, Man. as well as the Port of Churchill itself.

However, few anticipated the layoffs were coming.

Heney said Thunder Bay’s port is set up much differently than Churchill’s, which makes it unlikely something similar could happen here.

“The grain companies in Canada own the facilities here in Thunder Bay. Churchill is not owned by them. The route has lots of challenges. The rail line is built on permafrost, which cause a lot of problems in warmer weather,” Heney said.

“It’s a short shipping season in Churchill, only 14 weeks. There’s a lot more challenges there than there is in Thunder Bay.”

Capacity was another issue in the northern Manitoba community, situated on the shores of Hudson Bay.

Thunder Bay elevators handle between eight and nine million tonnes of grain each year, with the heavily subsidized Churchill port averaging about 500,000 – less in recent years.

“It’s a different scale,” Heney said.

He added the privatization of the Canadian Wheat Board last year marked the beginning of the end for Churchill.

The government-formed organization mandated shipment quotas through Churchill, Heney said, an advantage lost with the sale to G3 Global Grain Group. 

Heney said it’s been a slow shipping season to date in Thunder Bay, but shippers are anticipating a bumper grain crop this fall.