‘Important first step’: Arctic Gateway, CentrePort sign MOU with Dubai ports giant

The Port of Churchill owners say they’re working with Dubai-based logistics giant DP World Inc. to potentially boost traffic to North America’s only deep water Arctic seaport.

Arctic Gateway Group says the memorandum of understanding it has signed with DP World focuses on port operations and possibly creating a transportation corridor linking Manitoba to global markets.

The supply chain memorandum also includes CentrePort Canada (the inland shipping hub based in Winnipeg and the Rural Municipality of Rosser), as well as the Hudson Bay Railway that links it to the Port of Churchill.

The agreement recognizes current geopolitical realities and Canada’s desire to build its trade capabilities outside of the United States, said Chris Avery, chief executive at Arctic Gateway, which is owned by a partnership of 41 Indigenous and bayside communities, including 29 First Nations.

“We absolutely need to invest in ports and trade-enabling infrastructure that are non-U.S. directed, so we think this is a great opportunity,” Avery said Monday. “We also think this is a great opportunity for Arctic Gateway Group as an Indigenous-owned organization, a northern community-owned organization, to partner with a major terminal operator such as DP World.”

“We absolutely need to invest in ports and trade-enabling infrastructure that are non-U.S. directed.”

Formed in 2005 by the merger of Dubai Ports Authority and Dubai Ports International, DP World specializes in cargo logistics, port terminal operations and maritime services. The company operates across six continents with a team of more than 125,000 employees.

DP World has operated in Canada since 2006, investing $1.7 billion in port and logistics infrastructure over the last 20 years. The company has five marine terminals across B.C. and New Brunswick, with a sixth in the works at the Port of Montreal. DP World does not have operations in Manitoba.

Doug Smith, CEO of DP World in Canada, was not available for an interview Monday.

A spokesperson for the company said in a text message its agreement with Arctic Gateway and CentrePort Canada “represents an important first step toward exploring potential business opportunities in the province, rather than a formal market entry.”

“DP World signed this MOU to explore opportunities to strengthen Canada’s trade infrastructure, diversify trade routes and improve access to international markets,” the spokesperson added. “Manitoba’s strategic location and transportation assets, including the Port of Churchill, Hudson Bay Railway and CentrePort Canada, present an opportunity to develop a more connected and resilient trade corridor.”

Arctic Gateway’s announcement noted the Port of Churchill is shipping the most diverse range of commodities in its nearly 100-year history, including critical minerals, grain, potash and northern supply runs to Nunavut.

“We expect to have a larger range of commodities going forward … in partnership with DP World and CentrePort,” Avery told the Free Press.

Meanwhile, CentrePort Canada has attracted approximately $1.5 billion in private investment and is home to more than 1,000 companies. In the past eight years alone, there has been more than 3.5 million square feet of industrial space built or under construction.

“It feels like we’re at the start of a new chapter in Manitoba’s trade and transportation history,” said Carly Edmundson, president and CEO at CentrePort Canada.

“Signing that MOU was a great day, (with) everyone believing in what the future could look like and … what a big role we could play not just for Manitoba, but for Canada and the world when it comes to connecting to other markets.”

The agreement is a positive development, according to Barry Prentice, a University of Manitoba supply chain management professor.

Shipping containers bound for Western Canada that would otherwise arrive at the Port of Montreal will have a shorter rail distance to travel if they’re sent to the Port of Churchill instead.

“It’s obviously an encouragement, the mere fact that they’re (DP World) taking a look at us,” Prentice said.

“It’s obviously an encouragement, the mere fact that they’re (DP World) taking a look at us.”

Representatives from Arctic Gateway, CentrePort Canada and DP World signed the memorandum of understanding at Winnipeg’s Fort Garry Hotel on Sept. 29.

The agreement was made public on Monday to coincide with a visit to Ottawa by Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, the crown prince of Abu Dhabi, a spokesperson for CentrePort Canada said.

— with files from The Canadian Press

aaron.epp@winnipegfreepress.com