FRANCAIS

April 30, 2003

CHURCHILL, MANITOBA – The Honourable Gary Doer, Premier of Manitoba, the Honourable Stephen Owen, Secretary of State (Western Economic Diversification) (Indian Affairs and Northern Development) and the Honourable Dr. Rey Pagtakhan, senior federal minister for Manitoba, announced today that their governments have offered a joint investment of $2.2 million toward ensuring a sustainable economic future for the Port of Churchill and the Hudson Bay Railway. The Port of Churchill is Canada’s only deep-water Arctic seaport and plays an important role in economic development and tourism activities in northern Manitoba.

The federal-provincial arrangement would target $1.8 million for necessary infrastructure improvements to the Port and the Bay Line and $400,000 for enhanced marketing efforts through a Churchill Gateway Development Initiative.

"The Port of Churchill is an extremely important economic contributor in Churchill, northern Manitoba and Saskatchewan, and other areas of Canada's north," said Doer. "It generates jobs and economic spin-offs for the region, acts as a competitive alternative shipping route for agriculture and industrial goods from the south, and is an essential trade and transportation link for northern and remote communities. Today's announcement is a key step toward achieving the long term vision of a thriving Churchill Gateway."

"Churchill is one of Canada’s most important inland ports, and the Government of Canada strongly believes in its economic and strategic importance to Manitoba – specifically as the northern terminal for the mid-continent trade corridor," said Secretary of State Owen. "Our role has been to ensure that the Port of Churchill is in a position to compete on an even field in the international marketplace. Through the Churchill Gateway Development Initiative, new marketing strategies will be developed to help ensure the short-term survival and long-term viability of the Port."

"The significance of the Port of Churchill to Manitoba’s economy cannot be underestimated," said Minister Pagtakhan. "Together with other levels of government, the private sector and industry stakeholders, the Government of Canada is committed to not only maintaining existing services and jobs in the port, but also creating new economic growth and opportunities for the entire region."

The 2002 season was a difficult one for the Churchill export gateway. Due to the drought experienced in western Canada last year, the Port exported only 279,000 tonnes of grain, compared to 478,000 and 711,000 tonnes in 2001 and 2000 respectively. Grain currently accounts for more than 90% of the Port’s volumes.

The Port of Churchill Advisory Board issued an open letter on March 18, 2003. The letter underscored the vital importance of the Port of Churchill and the Bay Line to Canada. It called on the governments of Canada, Manitoba, and Saskatchewan, and the ownership of the Port of Churchill and Hudson Bay Railway, to develop a renewed and robust public-private partnership to assure the continued short-term operation and long-term success of the Churchill Gateway. It also asked the Canadian Wheat Board, as the port’s major user, to maximize its commitment to the Port this season, to help address the immediate crisis facing the Churchill Gateway.

The Churchill Gateway Development Initiative represents a new public-private venture with OmniTRAX, the owner of the Bay Line and the Port of Churchill. The Initiative proposes to develop strategies to grow and diversify the type and quantity of goods shipped through the Port over a five-year period. A Board of Directors for the Initiative will be announced in the near future.

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