Omnitrax says gas-price spike a mistake

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This article was published 20/07/2017 (3013 days ago), so information in it may no longer be current.

OTTAWA — Churchill’s mayor is inviting the prime minister to visit the cut-off northern community after gas prices jumped to $2.33 a litre Thursday and further enraged town residents.

Omnitrax, which owns the town’s port and rail line, later said the price hike was a mistake.

Rail service to the town was shut down May 24, cutting off ground transportation in and out of Churchill, whose 900 residents must now rely on costly air shipments of food and supplies.

Omnitrax shut down the port a year ago, cancelling grain shipments and laying off 100 workers.

But Churchill’s biggest price hike happened Thursday morning, as gas prices soared 63 cents a litre.

Mayor Michael Spence said it was “mind-boggling” given that Omnitrax said last week it still had 200,000 litres of fuel inventory in Churchill.

Omnitrax said the price jump was an error. It released a statement through a Toronto public relations firm, Edelman, Thursday afternoon.

“The notification of the new price, which was determined based upon the current methodology of pricing new fuel received into inventory, was released automatically. This was an error, and we apologize for any confusion and frustration it may have caused the people of Churchill. The price increase has been reversed,” the statement said.

The company said it received 300,000 litres of fuel July 13 through an “emergency marine fuel supply operation” that cost roughly 30 per cent more than its last rail shipment.

While the price was corrected by Thursday afternoon, Spence said it speaks to how the company has treated the town. On Tuesday, Omnitrax said it wouldn’t fund the $20 million to $60 million in repairs needed on the rail line because it’s not economically viable.

“We can’t continue to be the hostage of Omnitrax. This is not acceptable, and it shouldn’t be happening in Canada,” he said.

Churchill resident Joe Stover worked his last shift at the port in October 2015. With no full-time work, he’s watched living costs rise, and was alarmed last month when grocery shelves started to become empty.

“If they had to raise the price because it costs more to ship in, I suppose I understand,” he said. “But it doesn’t make it easier on people… they’re sick and tired of paying ridiculous prices.”

Stover said the price jump sparked rumours gas will hit $4 per litre. “Everything that has to do with this company seems to be confusing. You never know with them.”

Manitoba Premier Brian Pallister said Wednesday the federal government needs a plan for the rail line and port, before Manitoba decides whether to chip in for repairs.

The federal Conservatives echoed Pallister’s remarks Thursday, and noted that both levels of government have already given Omnitrax millions of dollars to maintain the line.

“I know that it can be a bit difficult, because this can’t just be sustained through taxpayers’ dollars; it has to be a sustainable track,” said Manitoba Tory MP Candice Bergen.

Tory Leader Andrew Scheer said remote, northern communities usually need extra government help, but “there has to be a sustainable path where it’s not a long-term burden on the taxpayer to assist a private company.”

Spence said both governments should copy Quebec’s Plan Nord, a multi-year economic plan for mining, tourism and energy.

He plans to invite Prime Minister Justin Trudeau to Churchill to see the plight of its residents and the potential of the Arctic gateway.

There has been speculation Trudeau will visit Winnipeg during the Canada Summer Games in Winnipeg, which take place from July 28 to Aug. 13.

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Trudeau’s spokesman said Thursday he “can’t confirm the prime minister’s schedule for next week.”

As for Stover, he said friends who live in southern Manitoba often express sympathy for the town’s troubles, but he said they’re also losing their northern gateway.

“Churchill… belongs to all Manitobans.”

dylan.robertson@freepress.mb.ca