The proprietor of a privately operated rail port located in the southern region of Manitoba’s Red River Valley is questioning the rationale behind the provincial government’s decision to offer an $18 million grant for the establishment of a competing rail port situated further down the valley.
Mid-Canada Transload Service manages two grain elevators spanning five kilometers of private track adjacent to Highway 75 and CN’s Letellier subdivision, just south of Letellier, Manitoba, within the rural municipality of Montcalm. The company ships various commodities, including oats, flax, and soybeans, globally through connections to seaports in the Atlantic, Pacific, and Gulf of Mexico via the U.S. rail network of Burlington Northern Santa Fe and Canadian National rail lines.
Before the 2023 provincial election, the then Progressive Conservative government of Manitoba granted $18 million to facilitate the purchase of land and conduct feasibility studies for a separate rail port located 70 kilometers north, in the RM of Ritchot. This initiative is spearheaded by JohnQ Public, a corporation collectively owned by 11 Manitoba municipalities. Real Tetrault, the founder of Mid-Canada Transload, expressed surprise upon learning about this grant from CBC News reports, questioning the government’s support for a new venture that competes directly with his established business.
The NDP government of Manitoba, which assumed office in October 2023, has initiated a review of the grant allocated for the rail port project known as the Winnipeg Region Rail Port by JohnQ Public. The grant facilitated the acquisition of land west of Highway 75 and supported engineering and environmental assessments for the proposed rail port. A progress report submitted by JohnQ Public to the NDP government in July 2024 revealed ongoing negotiations with Burlington Northern Santa Fe to serve as the primary tenant and rail operator at the new rail port.
Barry Prentice, the director of the Transport Institute at the University of Manitoba’s Asper School of Business, believes that the establishment of a rail port in Ritchot is unlikely to pose a significant threat to Mid-Canada’s operations in Montcalm, given the additional distance trucks would need to cover to reach the new facility.
The provincial review, expected to conclude by the year-end, aims to evaluate the decision-making process behind the pre-election grant and assess the potential impact of the proposed Ritchot rail port on existing rail and transportation sectors, including Mid-Canada Transload and CentrePort, an established trade area straddling Winnipeg and the RM of Rosser. Winnipeg Mayor Scott Gillingham emphasized the importance of regional planning to foster economic growth collaboratively rather than fostering internal competition.
Mid-Canada Transload expressed readiness to handle increased shipping activities, including those proposed for Ritchot, without requiring government subsidies. Tetrault and Firlotte emphasized the significance of government resources being allocated to essential services like infrastructure and healthcare rather than supporting competitive ventures against existing businesses.
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