DP World in talks with Arctic Gateway on partnership for the Port of Churchill

DP World, the Dubai-based port operator, negotiated a memorandum of understanding with Arctic Gateway Group, owner and operator of the Port of Churchill and the Hudson Bay Railway, together with CentrePort Canada. The agreement targets the potential development of the port located in the province of Manitoba and of a transport corridor linking it to DP World's global logistics network.

According to the three parties, the memorandum focuses on port operations, logistics services and the future construction of an integrated transport corridor connecting the Hudson Bay Railway, CentrePort's inland logistics hub and DP World's port network. Canada's Transport Minister, Steven MacKinnon, noted that the agreement represents a significant opportunity to strengthen connections between northern, inland and global transport networks.

Churchill is a remote community in northern Manitoba located on Hudson Bay, which connects to the Atlantic via Arctic routes. The port, operated by Arctic Gateway Group, has four deep-water berths capable of receiving Panamax-type vessels, a grain terminal with storage capacity of up to 140,000 tonnes and a 30,000-tonne capacity for critical minerals. In September, the port handled its first grain shipment since 2020, around 30,000 tonnes of Canadian durum wheat supplied by Saskatchewan-based company AGT Foods bound for customers in Europe.

A prospectus shared by the Canadian government with attendees of the Canada Investment Summit put the cost of a major expansion of Churchill and its supporting infrastructure at 57 billion dollars, with preliminary investment requests of 3.9 billion dollars, aimed at turning the port into a four-season trade corridor featuring LNG exports, rail upgrades and road access. CentrePort, for its part, reported having attracted around 1.5 billion Canadian dollars in private investment and that more than 1,000 companies have set up in the region in recent years.

The progress in negotiations came amid an economic rapprochement between Canada and the United Arab Emirates driven by Prime Minister Mark Carney. Talks over the port deepened in September, during meetings between Emirati officials and Manitoba Premier Wab Kinew at the Canada Investment Summit in Toronto. DP World already operates the container port of Prince Rupert on Canada's west coast and last year was awarded the contract to operate a new terminal near Montreal, while the Caisse de Dépôt et Placement du Québec is a key investor in its Canadian unit.