Feds announce $175M for the Hudson Bay Railway and Port of Churchill

The Government of Canada announced an investment of $175 million over five years to support operations and maintenance of the Hudson Bay Railway (HBR) and pre-development activities at the Port of Churchill, owned by Arctic Gateway Group (AGG).

“We need to make the most of all of Canada’s infrastructure and ports to build a stronger, more resilient Canadian economy. The Arctic and Northern Manitoba represent a huge untapped economic potential. We’re ensuring that the Hudson’s Bay Railway receives reliable funding to send a strong message to the private sector that it can count on this railway and the Port of Churchill for business. This investment will help move both people and goods, ensuring supplies reach First Nations and remote communities in Northern Manitoba, while also driving our economic growth,” said Terry Duguid, Minister of Environment and Climate Change Canada

AGG is a partnership of 29 First Nations and 12 isolated communities served by HBR in Northern Manitoba. The Hudson Bay Railway is critical to Indigenous reconciliation, connecting communities, and economic development, including the development of critical minerals and tourism, in northern Manitoba. Both the HBR and the Port of Churchill play an important role in ensuring supplies reach northern Manitoba and Nunavut.

“Now, more than ever, it’s important to make critical investments in Canadian infrastructure to bolster economic development in Canada’s Northern regions. The Hudson Bay Railway and Port of Churchill are important transportation corridors that serve the needs of Indigenous and Northern communities, and this new funding will connect more Canadians and grow our economy,” said Chrystia Freeland, Minister of Transport and Internal Trade.

The following funding starting in 2025-26 will be shared between Transport Canada and Prairies Economic Development Canada:

• In total, $125 million will go towards the continued operations and maintenance of the Hudson Bay Railway over five years through Transport Canada’s Remote Passenger Rail Program. This funding is to be offset by $43.8 million previously announced in the Fall Economic Statement 2024.
• $50 million for the pre-development activities at the Port of Churchill over five years will be administered by Prairies Economic Development Canada.

“Canadian products are among the world’s very best. To secure our prosperity, we need to invest in Canada and enhance our ability to get our products to global markets. The partnership and investment in Arctic Gateway Group will expand our trade capacity, which will benefit the entire prairie region,” said Anita Anand, Minister of Innovation, Science and Industry.

Featured image: Port of Churchill (Arctic Gateway Group)