OmniTrax selling Port of Churchill, Hudson Bay rail line

The Port of Churchill and accompanying Hudson Bay Rail line are upfor sale.

Denver-basedOmniTraxhas operated the Port of Churchill and the rail linesince 1997, but a slump in grain shipments has put a strain on the operation and its 80 employees.

"They've got it on the block and they're wanting to dispose of both assets," Churchill Mayor Mike Spence told CBC News. "My understanding ...was they wouldn't separate the port and the rail theywould sell it as an integrated system."

The port has taken in 186,000tonnesof grain this yeardown from an annual average of 550,000tonnesin annual grain shipments to the northern terminal,Spencesaid.

OmniTraxis expected to release details of plansto sellon Wednesday.

Spence said there have been expressions of interestandhe's hopefulOmniTrax'sdecision to put it up for sale will turn things around for the port and the rail line, which he calls a vital link to northern communities.

"It plays a critical role in maintaining the rail line ...the importanceof tourism in the community, the importance of local residents travelling to places like Thompson and Winnipeg," hesaid.

"Naturally, if there's new ownership you'll look at the model that needs to be successful, so I believe that it can be accomplished by working with other companies to make it happen."

• Churchill residents frustrated OmniTraxshuts down 'lifeline'

Government support for port

OmniTraxpresidentMerv Tweedhas told thefederal and provincial governments that the companyneeds financial help to operate in the northandrefuses to continue to operate at a loss.

"If we're seen as a social service to the north,which I think we are to some degree,than Ithinkgovernmentsneed to be prepared to support that," Tweed told CBC News in an interview last week. "Ihope that they see the value of the port and the value of the services provided to the other communities that we service. We service a lot of First Nations communities and we are their only source of transportation to a centre.

"If governments want that to continue, which I believe they do, then I believe they should be a participant in the costs of that and we've explained that very clearly to them. We've shown them the costs of doing business in the north and we hope they respond," Tweed said adding "the clock is ticking."

Track renovations

In light of challenges faced this year, Tweed said the company took the opportunity to make some upgrades.

"When you have a slow season, it doesn't mean you stop working, it means you do other things," he said. "We've improved our performances on the track, upgraded our track and made some major investments in the port as well.

"Our tracks are, I'm told, in as good as shape as they've ever been."

The company typically invests between $5 million and $6 million in rail line repairs annually, Tweed said.

Tweed said the company has always had its struggles associated with operating in the north.

"It's been a challenge every year, regardless of who the producers or suppliers of the product are," Tweed said."Ithink in the last couple of years, we've shone a hard light on it and said, 'We can't do this anymore.'"

Despite the low volume of available grain this year, Tweed said the company expects harvest amounts will grow next year and lead to northern shipmentswithin the 500,000-tonnerange again in 2016.