Port of Churchill
In most years, CWB is the only agricultural shipper through the Port of Churchill. Overall, CWB grains account for an average of 95 per cent of shipments through the Port.
Why does CWB use Churchill?
CWB moves grain through Churchill to minimize overall transportation costs and maximize returns to farmers. Because Churchill is the closest tidewater port for many Western Canadian farmers, it has a cost advantage over ports that are farther away. Churchill's proximity to the Prairie region means rail costs are reduced due to the shorter distances involved. In addition, moving grain by water is the lowest possible cost option for Canadian farmers, so the sooner grain reaches the ocean the better. These savings are somewhat reduced by higher ocean freight costs associated with picking up grain in Churchill relative to other eastern ports.
What changes are occurring that will influence shipping patterns through Churchill this year?
Earlier this year, the Government of Canada created the Churchill Port Utilisation Program, which provides up to $5 million per year to companies interested in shipping grain through the Port of Churchill. This year's economic incentive is valued at $9.00 per tonne. As a result of this development, a greater variety of companies are expected to ship grain through Churchill this year. CWB will continue to ship grain through the Port of Churchill where it makes good business sense to do so, as was the case in the past.