The Government of Canada has announced an investment of $117 million to the Arctic Gateway Group through the Western Diversification Program. The investment allows the recently-formed private-public partnership that blends First Nations and community ownership and Canadian private sector leadership to take over ownership of the Hudson Bay Rail Company, the Hudson Bay Port Company, and the Churchill Marine Tank Farm.
“Today’s announcement is about investing in the future of our economy and Indigenous peoples in Canada,” said Prime Minister Justin Trudeau. “With this funding, Arctic Gateway Group will provide security and economic prosperity to northern Manitobans and demonstrate the art of the possible when we work together to build a prosperous Canada.”
The Government is moving forward on its commitment to restore this critical railway line to Churchill and surrounding communities. It will create opportunities for economic prosperity in the region for years to come and for residents to once again connect with friends and family, grow businesses, and create good middle class jobs. Already, the Group has begun the much-needed restoration of the Hudson Bay Railway Line. The line is expected to grow into a key transportation and export hub. The Arctic Gateway Group has brought forward a viable business plan with a view to expand Canada’s reach to international markets.
On August 31, 2018, Arctic Gateway Group Limited Partnership and OmniTRAX Inc. signed a Share Purchase Agreement to take over ownership of the Hudson Bay Rail Company, the Hudson Bay Port Company and the Churchill Marine Tank Farm.
Arctic Gateway Group Limited Partnership, comprised of Missinippi Rail Limited Partnership and Fairfax Financial Holdings & AGT Limited Partnership, represents a strong and well-balanced buying group. The consortium brings together First Nations and community ownership and support, along with significant private sector leadership and global investment capacity, and collectively, substantial short line rail operating and shipping experience.
Missinippi Rail Limited Partnership includes community support and ownership stakes from First Nations and non-First Nations communities in Manitoba with potential for Kivalliq communities in Nunavut.
Fairfax Financial Holdings and AGT Food and Ingredients make up the other half of the partnership and bring private sector leadership and experience to the buying group. Fairfax Financial Holdings is one of the pre-eminent investment companies in Canada and AGT Food and Ingredients, headquartered in Regina, is a major supplier of pulses, staple foods, and food ingredients in the world.