Dubai-based port operator DP World Ltd. has entered a memorandum of understanding (MOU) with Arctic Gateway Group (AGG), owner of Manitoba’s Port of Churchill, and dry port operator CentrePort Canada to explore the development of an expanded northern shipping corridor that could include container traffic. Announced on Monday, the agreement aims to integrate transportation infrastructure, linking the Port of Churchill and its associated Hudson Bay Railway with CentrePort’s inland freight facilities and DP World’s global network.

Located approximately 1,000 kilometers north of Winnipeg, the Port of Churchill presently operates a limited shipping window of around four months annually, due to ice conditions on Hudson Bay and northern waters. The port primarily ships commodities such as critical minerals, grain, and potash, though volumes have been relatively small. The proposed expansion is part of a broader multibillion-dollar plan supported by the federal and Manitoba governments to modernize the aging port and extend the shipping season through potential icebreaking solutions.

Chris Avery, AGG’s CEO, indicated that discussions with DP World have been ongoing for several months, with recent visits by DP World officials to Churchill to assess the site. Among the key steps being considered are upgrades to the Hudson Bay Railway to support increased traffic and heavier loads across Manitoba’s northern terrain. AGG is engaged in talks with the Canadian government and the Canada Infrastructure Bank to secure financing for these upgrades.

Doug Smith, DP World’s Canadian CEO, emphasized the potential of the MOU to create an integrated corridor that leverages DP World’s logistics capabilities and inland hubs to enhance the movement of goods. AGG, which is owned by 29 First Nations along with Manitoba and Nunavut local governments, has also signed other agreements, including one with the Port of Rotterdam, to boost trade in critical minerals and energy products between Canada and Europe.

Manitoba Premier Wab Kinew welcomed the collaboration, highlighting its alignment with Prime Minister Mark Carney’s “One Canadian Economy” vision. Kinew expressed optimism that connecting the Port of Churchill to larger networks would not only strengthen trade within Canada but also expand exports to the United States, Mexico, and Europe. He noted that while the port’s expansion was presented at the Canada Investment Summit in Toronto last month, awareness among some North American investors remains limited, underscoring the need for further engagement.

The project, which could require up to US$7 billion in capital investment, is being fast-tracked through the federal Major Projects Office as a matter of national interest. The partnership between DP World, AGG, and CentrePort Canada represents a strategic effort to diversify Canada’s trade routes, reducing dependence on the United States by opening more direct connections to European and Asian markets via Hudson Bay. The move also coincides with broader international engagement, as the Crown Prince of Abu Dhabi recently visited Ottawa to discuss economic and security cooperation, reflecting growing interest in infrastructure and trade collaborations between Canada and the United Arab Emirates.