Manitoba Potash Poised for Global Shipping via Port of Churchill

Potash mined in Manitoba is set to reach international markets through the Port of Churchill, following a significant collaboration between the Potash and Agri Development Corporation of Manitoba (PADCOM) and Arctic Gateway Group (AGG). The partnership aims to enhance rail and port capacity for potash shipments, paving the way for expanded market access.

The agreement involves a letter of intent signed by both parties, with plans to initiate a test shipment of potash by train to the Port of Churchill in the spring of 2024. According to Daymon Guillas, president of PADCOM, this effort showcases the potential of Manitoba’s potash industry. “This is a story about Manitoba potash by Manitoba people through a Manitoba port. It is a good Manitoba story,” Guillas stated.

The potash mine, located near Harrowby, just west of Russell and close to the Manitoba-Saskatchewan border, has been operational since December 2023. The mine’s license permits an annual production of 250,000 tonnes of potash, which is primarily used in fertilizer manufacturing. Guillas emphasized that utilizing the Port of Churchill would prove more economical than transporting the product via rail to eastern or western Canada.

“Going through Churchill significantly reduces transport time and the number of freight cars required,” Guillas noted. The company would need to own approximately 400 freight cars for east or west routes but only 50 to 100 cars to service the Churchill route, which takes about six days compared to three weeks for other destinations.

Currently, PADCOM’s clientele includes customers in Manitoba, Saskatchewan, and the United States. However, enhanced shipping capabilities through the Port of Churchill could unlock new markets in Europe, Africa, and South America.

AGG’s president and CEO, Chris Avery, expressed enthusiasm about the partnership, stating, “Our mission is to strengthen the Port of Churchill and the Hudson Bay Railway as true national assets, helping Canada diversify trade and enable industries to reach new markets.” He underscored the economic benefits this initiative could bring, particularly for Indigenous and northern communities through increased rail and port activity.

Earlier in the year, AGG completed a new storage facility that has tripled the storage capacity at the port. “These facilities are designed for critical minerals and are perfectly suited for PADCOM’s potash,” Avery explained. The expectation is to begin moving PADCOM’s potash to Churchill in 2024, with exports anticipated to commence later in the year.

Avery also highlighted the impact of climate change on shipping routes, indicating that the port may remain operational for six months each year. Investments in the railway have already doubled freight activity and reduced travel times by three hours, reinforcing Churchill’s emerging role as Canada’s next major international port.

The collaborative efforts between PADCOM and AGG signal a progressive step for Manitoba’s potash industry, with potential benefits that extend beyond financial gains to promote regional development and employment opportunities. By enhancing the capacity of the Port of Churchill, both organizations aim to significantly enhance Manitoba’s competitiveness in the global potash market.