Manitoba, federal officials announce funding for Hudson Bay Railway, Churchill port upgrades

Yesterday, the Canadian government announced it would provide C$43 million to support rail operations and maintenance of the Hudson Bay Railway, a freight and passenger railroad owned by Arctic Gate Group (AGG).

The investment, to be delivered through Transport Canada’s Remote Passenger Rail program, will support year-round transportation to 33,000 residents in northern Manitoba, Transport Canada officials said in a press release.

In addition, the Manitoba government on Feb. 3 announced it is investing C$36.4 million over two years to AGG for rail and infrastructure investment at the Port of Churchill. The investment will support AGG's plan to expand traffic diversification and growth opportunities, as well as attract private investment partners from the agriculture, mining, fertilizer and resupply sectors, Manitoba officials said in a press release. Planned work include wharf repairs and freight warehouse upgrades. 

AGG owns and operates the Port of Churchill, Canada’s only Arctic seaport serviced by rail, on the Hudson Bay Railway, running from The Pas to Churchill, Manitoba. The AGG is a subsidiary company of OneNorth, a partnership of 41 First Nation and Bayline communities in Manitoba. 

In August 2024, AGG and Hudbay Minerals Inc. piloted a successful 10,000-tonne zinc concentrate export shipment through the port, establishing Churchill as a northern trade critical minerals supply route. The investment announced today builds on the Manitoba government’s previous commitments to restore critical rail service to Churchill and surrounding communities, government officials said.

Since 2018, the Canadian government has invested C$277 million in the railway and AGG assets.