LOCATION: Churchill and Northern Manitoba
Issue/Source: Hudson Bay Railway (HBR) and Port of Churchill
Date: June 2025
Suggested Responses
- Transport Canada is committed to nation-building through investments in strategic port and rail infrastructure that will serve to diversify Canada’s trade, enhance northern development, and strengthen Canada’s Arctic sovereignty.
- The Hudson Bay Railway is the only year-round surface transportation option for several remote communities in the region and continues to provide essential freight and passenger rail service and represents a critical transportation corridor to the Port of Churchill.
- Since 2018, the Government of Canada has provided over $320 million to support the acquisition, restoration, and maintenance of these two northern transportation assets, including the $43.8 million announced in the 2024 Fall Economic Statement.
IF PRESSED
- The Hudson Bay Railway and the Port of Churchill face unique challenges due to their remote location, limited Arctic shipping season, and high infrastructure maintenance needs. Continued federal support remains essential to build market confidence and attract private investment.
- Northern communities in Manitoba rely on the Hudson Bay Railway for year-round transportation, particularly where no all-season roads exist. Sustained investment will help support regional jobs, encourage long-term economic development, and advance Indigenous leadership and partnership.
BACKGROUND INFORMATION
- The Hudson Bay Railway and Port of Churchill are owned and operated by the Arctic Gateway Group , a private entity comprising 29 First Nations and 12 remote communities through the OneNorth consortium. The Port is the only deep-water Arctic port linked to the North American rail network, and the HBR spans 1,000 km, connecting these communities to Thompson, Manitoba and beyond.
- Following catastrophic flooding in 2017 that disrupted the Hudson Bay Railway, the Government of Canada facilitated the creation of the Arctic Gateway Group and supported its acquisition of the railway and Port assets. Emergency funding was provided to restore rail service and ensure continued transportation access for northern and Indigenous communities.
- Since 2018, the Government of Canada has invested over $320 million to support the Arctic Gateway Group (AGG) in maintaining and developing the Hudson Bay Railway and the Port of Churchill. These investments reflect a continued federal commitment to maintaining vital transportation infrastructure and supporting northern communities.
- Among these investments, $43.8 million announced in the 2024 Fall Economic Statement (included in the 2025-26 Main Estmates) supports Hudson Bay Railway operations and maintenance under Transport Canada’s Remote Passenger Rail Program.
- In March 2025, the Government of Canada announced a five-year, $175 million package—building on the earlier commitment—to maintain rail service and begin pre-development work at the Port of Churchill, with port funding delivered through PrairiesCan’s Western Diversification Program.
- Communities served by the Hudson Bay Railway lack year-round road access, making it the only dependable transportation mode, servicing a regional population of 33,000 in Northern Manitoba, which includes hubs like Thompson. An additional seven predominantly Inuit communities in Nunavut’s Kivalliq region with a combined population of 11,000 – Arviat, Whale Cove, Rankin Inlet, Chesterfield Inlet, Baker Lake, Naujaat, and Coral Harbour – as well as key industries such as mining and housing, are also served by northern resupply operations through the Port.
- The Port serves as a strategic gateway for exports and resupply to Nunavut and is integral to Canada's Arctic sovereignty. The Government of Manitoba has also committed $140.2 million in capital upgrades to the corridor since 2022, including transmission infrastructure to support energy reliability
- Transport Canada’s investments reflect a nation-building approach to corridor development that supports trade diversification, economic reconciliation, energy infrastructure, and critical mineral development, while upholding service to underserved communities in Northern Canada.