Dubai ports giant DP World signs memorandum of understanding to help develop Port of Churchill

Dubai-based port operator DP World Ltd. has signed a memorandum of understanding with the owner of Manitoba’s Port of Churchill to explore further development of an expanded northern shipping corridor.

The agreement announced Monday commits DP World’s Canadian subsidiary, Port of Churchill owner Arctic Gateway Group and dry port operator CentrePort Canada to work toward the “potential development of an integrated transportation corridor,” the three companies said in a news release.

The partnership could link the Port of Churchill with the Hudson Bay Railway and CentrePort’s inland facilities, and connect them to DP World’s global network.

A planned expansion of the Port of Churchill, backed by Ottawa and Manitoba’s government, is one of the projects the federal government is attempting to fast track as an initiative in the national interest. It is expected to need as much as $57-billion of capital investments to open up expanded international trade routes with Europe and Asia through Hudson Bay.

The port currently ships commodities such as critical minerals, grain and potash.

“This agreement is an opportunity to explore how the Port of Churchill, the Hudson Bay Railway and CentrePort Canada can connect more effectively with DP World’s global network and end-to-end logistics capabilities,” said Doug Smith, DP World’s chief executive officer in Canada, in a statement.

DP World’s Canadian arm already operates port facilities such as container terminals in cities such as Vancouver and Prince Rupert, B.C. And one of Canada’s largest pension funds, the Montreal-based Caisse de dépôt et placement du Québec, owns a large minority stake in DP World’s Canadian entity.

In depth: Trump’s Greenland threats give boost to Churchill port expansion

The Churchill expansion was one of a number of projects pitched to global investors at the Canada Investment Summit in Toronto in September. A large delegation of investment executives from the United Arab Emirates attended the event.

The Crown Prince of Abu Dhabi, Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, is visiting Ottawa on Monday and Tuesday.

The memorandum announced Monday is intended to strengthen supply chains and improve Canada’s access to international markets, the companies said.

“The Port of Churchill gives us a direct connection to global markets, and partnerships with CentrePort Canada and DP World will help us get more Canadian products to the world,” Manitoba Premier Wab Kinew said in a statement.

Federal Minister of Transport Steven MacKinnon said the accord is a chance to “create new opportunities for Canadian exporters.”