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Port of Churchill

In most years, the 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 the CWB use Churchill?

The CWB moves grain through Churchill to minimize overall transportation costs to farmers. Because Churchill is the closet 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. Overall, the CWB estimates farmers save between $8-12 million per year by using this port.

Why aren't other grains shipped out this way?

Grain companies have little incentive to use the Port of Churchill. Large grain companies with terminals at other ports prefer to ship grain to their own terminals, as doing so maximizes handling revenue. Grain companies that do not own port terminals generally have handling agreements with those that do and prefer to ship through those terminals exclusively.

Why doesn't the CWB ship more through Churchill?

Capacity at Churchill is constrained by the fact the Port is closed for a good portion of the year during freeze-up. In addition, Churchill has limited storage capacity and vessel loading ability. However, the financial incentives to farmers are so great the CWB continues to send grain north in addition to the more traditional eastern and western corridors.