Amid rising trade tensions with the US, the federal and Manitoba governments are pouring millions of dollars into establishing the Hudson’s Bay as a viable alternative trade route to president Donald Trump’s tariff threats.
On Monday, the Manitoba government committed $36.4 million to upgrade infrastructure at the Arctic Gateway Group (AGG)-operated Port of Churchill, while the federal government pledged $43 million to support operations and maintenance of the Hudson Bay Railway.
The announcements are part of a broader strategy to reduce reliance on US trade routes, particularly as Washington ramps up protectionist policies.
That’s because Churchill is presently the world’s only deep water Arctic port. A full-blown Hudson Bay corridor could eventually become a vital gateway for Canadian commodities, including critical minerals, fertilizer, and even oil and natural gas, to reach global markets without relying on the US.
“Churchill presents huge opportunities when it comes to mining, agriculture, and energy,”Manitoba Premier Wab Kinew
“Churchill presents huge opportunities when it comes to mining, agriculture, and energy,” said Manitoba Premier Wab Kinew, emphasizing the economic benefits of unlocking northern trade routes.
“As a maritime province located in the heart of North America, Manitoba is strategically positioned to ship commodities, critical minerals, and natural resources,” added Transportation and Infrastructure Minister Lisa Naylor.
“Developing the Port of Churchill will advance northern Manitoba’s economy, support trade expansion with Europe, and strengthen our Arctic sovereignty.”
For decades, Canada has relied heavily on US railways and ports to export goods. However, with Trump’s return to the White House and the possibility of higher tariffs on Canadian exports, there is growing urgency to establish direct links to global markets.
The Port of Churchill, the only deep-water Arctic seaport in North America, offers a direct route to Europe and beyond, bypassing US infrastructure.
One of the biggest opportunities for Churchill lies in critical minerals, which are essential for clean energy technologies and advanced manufacturing. In August 2024, AGG and Hudbay Minerals Inc. successfully exported 10,000 tonnes of zinc concentrate from Churchill, proving the port’s potential as a northern mineral hub.
“The upcoming shipping season will see us double the volume of critical minerals exported from the Port of Churchill,” said Chris Avery, CEO of Arctic Gateway Group.
Beyond minerals, the Hudson Bay corridor could also be used to export oil and natural gas, particularly as Canada faces continued challenges in securing pipeline approvals through the US. Some industry experts see Churchill as a potential outlet for liquefied natural gas (LNG) exports, given its strategic location and deep-water access.
The Arctic Gateway Group is owned by 41 indigenous communities, making the project a model of economic reconciliation.
A separate project, NeeStaNan, would see the establishment of a year-round terminal at the Port of Nelson, about 300 kilometres south of Churchill.
In 2023, the Manitoba government gave the indigenous-owned company $6.7 million to study the idea.
The Western Standard has reached out to both the Manitoba government and NeeStaNan for comment.