Hey there, time traveller!
This article was published 11/7/2018 (227 days ago), so information in it may no longer be current.
OTTAWA — The Manitoba government is planning a third shipment of propane to Churchill this fall, the Free Press has learned, as talks aimed at transferring Omnitrax’s washed-out railway and mothballed port into local hands resume.
On July 3, federal officials gathered on a coastuard icebreaker docked at the northern Manitoba town, for a summit exploring Canada’s nascent Arctic strategy and Churchill’s role in the region. During a lunch break, Omnitrax’s subsidiary, the Hudson Bay Railway Co., issued a release, claiming the negotiations “have broken down.”
That sudden news had Natural Resources Minister Jim Carr and town officials leave the icebreaker, to get briefed by officials, and craft media responses.
On Tuesday morning, HBRC issued a news release saying “active discussions to finalize the sale” had resumed the day before.
Get the full story.
No credit card required. Cancel anytime.
Join free for 30 days
After that, pay as little as $0.99 per month for the best local news coverage in Manitoba.
Already a subscriber?
Log in

Already a subscriber?
Log in
Subscribers Log in below to continue reading,
not a subscriber? Create an account to start a 30 day free trial.
Log in Create your account
Your free trial has come to an end.
We hope you have enjoyed your trial! To continue reading, we recommend our Read Now Pay Later membership. Simply add a form of payment and pay only 27¢ per article.
For unlimited access to the best local, national, and international news and much more, try an All Access Digital subscription:
Thank you for supporting the journalism that our community needs!
Your free trial has come to an end.
We hope you have enjoyed your trial! To continue reading, we recommend our Read Now Pay Later membership. Simply add a form of payment and pay only 27¢ per article.
For unlimited access to the best local, national, and international news and much more, try an All Access Digital subscription:
Thank you for supporting the journalism that our community needs!
We hope you have enjoyed your free trial!
To continue reading, select a plan below:
All Access Digital
Introductory pricing*
99¢
per month
- Unlimited online reading and commenting
- Daily newspaper replica e-Edition
- News Break - our award-winning iOS app
- Exclusive perks & discounts
Continue
Read Now Pay Later
Pay
27¢
per article
- Commitment-free
- Cancel anytime
- Only pay for what you read
- Refunds available
Continue
*Introductory pricing schedule for 12 month: $0.99/month plus tax for first 3 months, $5.99/month for months 4 - 6, $10.99/month for months 7 - 9, $13.99/month for months 10 - 12. Standard All Access Digital rate of $16.99/month begins after first year.
We hope you have enjoyed your free trial!
To continue reading, select a plan below:
Read Now Pay Later
Pay
27¢
per article
- Commitment-free
- Cancel anytime
- Only pay for what you read
- Refunds available
Continue
All Access Digital
Introductory pricing*
99¢
per month
- Unlimited online reading and commenting
- Daily newspaper replica e-Edition
- News Break - our award-winning iOS app
- Exclusive perks & discounts
Continue
Mon to Sat Delivery
Pay
$34.36
per month
- Includes all benefits of All Access Digital
- 6-day delivery of our award-winning newspaper
Continue
*Introductory pricing schedule for 12 month: $0.99/month plus tax for first 3 months, $5.99/month for months 4 - 6, $10.99/month for months 7 - 9, $13.99/month for months 10 - 12. Standard All Access Digital rate of $16.99/month begins after first year.
We hope you have enjoyed your free trial!
To continue reading, select a plan below:
All Access Digital
Introductory pricing*
99¢
per month
- Unlimited online reading and commenting
- Daily newspaper replica e-Edition
- News Break - our award-winning iOS app
- Exclusive perks & discounts
Continue
Read Now Pay Later
Pay
27¢
per article
- Commitment-free
- Cancel anytime
- Only pay for what you read
- Refunds available
Continue
*Introductory pricing schedule for 12 month: $0.99/month plus tax for first 3 months, $5.99/month for months 4 - 6, $10.99/month for months 7 - 9, $13.99/month for months 10 - 12. Standard All Access Digital rate of $16.99/month begins after first year.
We hope you have enjoyed your free trial!
To continue reading, select a plan below:
Read Now Pay Later
Pay
27¢
per article
- Commitment-free
- Cancel anytime
- Only pay for what you read
- Refunds available
Continue
All Access Digital
Introductory pricing*
99¢
per month
- Unlimited online reading and commenting
- Daily newspaper replica e-Edition
- News Break - our award-winning iOS app
- Exclusive perks & discounts
Continue
*Introductory pricing schedule for 12 month: $0.99/month plus tax for first 3 months, $5.99/month for months 4 - 6, $10.99/month for months 7 - 9, $13.99/month for months 10 - 12. Standard All Access Digital rate of $16.99/month begins after first year.
Your free trial has come to an end.
We hope you have enjoyed your trial! To continue reading, we recommend our Read Now Pay Later membership. Simply add a form of payment and pay only 27¢ per article.
For unlimited access to the best local, national, and international news and much more, try an All Access Digital subscription:
Thank you for supporting the journalism that our community needs!
Hey there, time traveller!
This article was published 11/7/2018 (227 days ago), so information in it may no longer be current.
OTTAWA — The Manitoba government is planning a third shipment of propane to Churchill this fall, the Free Press has learned, as talks aimed at transferring Omnitrax’s washed-out railway and mothballed port into local hands resume.
On July 3, federal officials gathered on a coastuard icebreaker docked at the northern Manitoba town, for a summit exploring Canada’s nascent Arctic strategy and Churchill’s role in the region. During a lunch break, Omnitrax’s subsidiary, the Hudson Bay Railway Co., issued a release, claiming the negotiations "have broken down."
That sudden news had Natural Resources Minister Jim Carr and town officials leave the icebreaker, to get briefed by officials, and craft media responses.
On Tuesday morning, HBRC issued a news release saying "active discussions to finalize the sale" had resumed the day before.
The company would not elaborate on what happened, but those close to the talks say the about-face has stalled negotiations that need to end soon in order to ensure the community’s lone land link is repaired before winter.
Sources who were not authorized to speak with media say there has been substantial disagreement about the value of Churchill’s railway and port. Ottawa believes Denver-based Omnitrax has to pay back $18.8 million in subsidies given under a 2008 contract (and likely $20 million of provincial funds contributed through a similar agreement). The company valued its assets at $20 million in a January 2017 deal that had fallen through, while sources say it has valued its assets as high as $35 million in closed-door talks.
Meanwhile, the engineering firm AECOM estimated the cost of repairing the line last summer at $43.5 million and said repairs would have to start by early September in order to finish before the November freeze-up.
AECOM has since reassessed the line and started a confidential tendering process for repairs. It would not say Tuesday whether the timeline and cost of repairs had changed.
Omnitrax chief operating officer Sergio Sabatini wrote Tuesday the company will start repairs along the line "so that we are in the best position to complete a transaction." Last Friday, the Canadian Transportation Agency asked the Federal Court to enforce a regulatory order to start repairs on July 3.
HBRC added Tuesday AECOM "will be co-ordinating site visits with six interested contractors later this week, each of whom will have the opportunity to conduct an inspection of the line via helicopter before finalizing their bids."
With no clear repair date in site, the province says its second shipment of propane heating fuel to Churchill, which arrived last week, will not be its last.
Want to get a head start on your day?
Get the day’s breaking stories, weather forecast, and more sent straight to your inbox every morning.
Subscribe to Head Start
"The shipment received on Friday will carry the community through to the fall, at which time another shipment will arrive for winter," a Manitoba government spokesman wrote Tuesday.
The province would not say how much either shipment will cost nor how many litres it involved, citing the media blackout for the St. Boniface byelection. It cited the same reason to not explain how its 2.2-million-litre sealift of propane that arrived last October almost ran out last week — prompting the town of 900 to order emergency rationing before the second shipment arrived a week earlier than expected.
Instead, the province said it’s "in constant contact" with its supplier, Superior Propane, "to ensure that the community has the resources it requires in a timely manner."
Propane shipments take months to arrange, between locating and leasing climate-resilient propane containers, seeking dangerous-goods transportation permits and getting the propane on the month-long journey from Montreal.
The province earmarked $6 million for last fall’s propane shipment, most of which covers the cost of renting Eurotainer units.
dylan.robertson@freepress.mb.ca
You can comment on most stories on The Winnipeg Free Press website. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or digital subscriber to join the conversation and give your feedback.
Have Your Say
New to commenting? Check out our Frequently Asked Questions.
Have Your Say
Comments are open to The Winnipeg Free Press print or digital subscribers only. why?
Log in SubscribeHave Your Say
Comments are open to The Winnipeg Free Press Subscribers only. why?
SubscribeThe Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective January 2015.