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Under the Agridome
Philip Shaw 3/06 6:04 AM

Canada finds itself in a pretty difficult spot. We all know what has been going on over the last year with the demise of the Canada/United States relationship. Regardless of what is going on in the political realm, it's become increasingly obvious that Canadians had to find a different way versus relying on what we've always thought would be OK. Of course, solutions to that problem are always fluid and that continues to this day. I don't know the answer, but I'm certainly giving it a lot of consideration.

Canadian agriculture will have to fit into that maze as well. We have certainly had our trade problems during the last few years whether that being canola going to China or myriad other issues across the U.S./Canadian border. Innovative solutions need to be found which will help us survive long into the future. Technology will certainly be part of that equation. Thinking differently will be part of it, too.

When Prime Minister Mark Carney was elected, he started a policy initiative for Canadians to come up with big ideas to help the Canadian economy in the future. We've heard about a proposed pipeline to the Pacific Northwest, and Ontario Premier Doug Ford has his ideas about the Ring of Fire critical mineral area. It's all interesting stuff, but the one that I find particularly interesting is the Port of Churchill on Hudson's Bay in Canada. It has a checkered history but from afar it is fascinating to think about that location shipping agricultural commodities around the world.

There are problems for sure and there have been in the past. Talk to Western Canadian farmers and they would talk about the problems of capacity and the short shipping season, as well as the problems with the railroad going to Churchill. That's probably why good things at Churchill haven't already happened. However, in the current geopolitical environment, Churchill is getting a renewed look. There is something to be said for a saltwater port shipping to the world from Manitoba.

I have never been there, but I have a friend who lives there who has worked in numerous jobs at Churchill, including at the grain elevator. I've asked him before what people do with their leisure time in Churchill in the summertime. He told me that they play baseball just like a lot of Canadians. He also told me you have to be careful in certain areas because of the polar bears.

Close your eyes and think about it for a minute: Imagine Prime Minister Carney choosing the Port of Churchill as a priority. It would likely take railroad improvements, as well as port improvements to increase capacity to a level that makes economic sense. Basis values for grain in Manitoba and even Saskatchewan would have to make sense to get to Churchill versus Vancouver and other points south. I'm no expert here, just trying to imagine if it ever happened. Then there is the ice, the Canadian winter, and the Arctic gateway to Europe and beyond.

Arctic Gateway Group, (Operator of the Port of Churchill) which is owned by 29 First Nations groups as well as local governments to Manitoba and Nunavut, are working towards solutions to modernize the port. Recently they have partnered with another company to do a study about year-round navigation for the Port of Churchill. For instance, they will look at the operational considerations of using ice breakers to lengthen what is now a four-month shipping season. It's almost hard to imagine but then again, it's almost fascinating to consider. If we could ship grain through Churchill in the 12-month window complete with ice breakers, it would truly be a game changer for much of the country. Of course, there are issues -- lots, and lots of issues -- mostly due to the cold geography.

Cold geography will certainly be a challenge to get that project moving. This is no secret compared to our U.S. friends who have so many advantages with the Mississippi River system moving grain down to the Gulf. Sure, from time to time they have problems, but they don't have problems of minus 50 degree Celsius (-58 degrees Fahrenheit) and Arctic winds blowing. The same could be said for the Port of Montreal to some extent, and the Port of Vancouver, and all the other smaller ports like Hamilton, Ontario. We still have Canadian winter, but not to the extent of a place like Churchill.

Our Canadian Prime Minister Carney has told Canadians to think big -- and it is something to consider.

When considering that, remember what Carney said in Davos. If you're not at the table, then you're on the menu. It's been pretty obvious, for the last year, we are on somebody's menu and that's not a place we want to be. For Canadian agriculture, that means continuing to be innovative and bold and dynamic in our vision. That means finding a way to keep more value-added agricultural solutions here at home and maybe even a place like the Port of Churchill. The polar bears will just be a bonus.

**

The views expressed are those of the individual author and not necessarily those of DTN, its management or employees.

Philip Shaw can be reached at philip@philipshaw.ca

Follow him on social platform X @Agridome

 
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