Another knock-on effect of the suspension of rail service between Gillam and Churchill revealed itself Nov. 1 when the Churchill Marine Tank Farm, owned by OmniTrax, which also owns the Hudson Bay Railway (HBR) and the Port of Churchill, notified the town that gasoline prices would be increasing 30 per cent immediately.
“As you will remember, on July 15, as part of an emergency marine fuel supply operation, the Churchill Marine Tank Farm received a shipment of 300,000 litres of gasoline by vessel through the port,” said a notice from OmniTrax. “The cost of purchasing and receiving the fuel was approximately 30 per cent higher than our last fuel shipment via rail. We made a commitment at that time to keep the price of fuel at the same rates until existing inventory was consumed, and we have reached that point today. We understand that this cost increase is an additional challenge for everyone in Churchill that comes at a difficult time. Unfortunately, we are unable to delay the cost increase any further.”
Churchill Mayor Michael Spence said the town government had been in contact with the federal and provincial governments regarding possible actions that could be taken.
“The town continues to work closely with Calm Air as well as other government officials to ensure an adequate supply of fuels is in the town throughout the winter,” said Spence in a written update on social media. “We are also continuing the important discussions necessary to see a resolution that will lead to the transfer of the port, rail and fuel tank farm ownership to a new stable regional ownership group.”
Roland Hackl, vice-president of the Teamsters Canada Rail Conference, criticized OmniTrax for its response to the flooding that shut down rail operations to Churchill last May, in a Nov. 6 press release.
“Our members are proud, contributing members of the communities in The Pas and Gillam and they have been decimated by the failure of OmniTrax (HBR’s parent company) to rebuild the railway as directed by the federal government,” said Hackl. “This line has been in operation for decades with the HBR and with CN before that, it is the lifeline for Northern Manitoba bringing food, heating fuel and essentials to northern communities. A railway is not just a business, it’s a responsibility. The communities they serve, the employees that work there, and their families are all dependent on this link. Employers always say they are an essential service and limit the union’s ability to bargain with them, but faced with the costs of maintaining infrastructure, this employer has effectively shut down almost all railway operations. Trucking product and materials that were previously handled by train will further deteriorate an already burdened highway system. The railway is the most efficient way to move product, and there are communities, like Churchill, that don’t currently have highway access. It is shameful that this company was allowed to buy the property from CN, get provincial and federal subsidies for the last 20 years and then basically walk away following the flooding, something that any railway is subject to.”
About 10 per cent of the 125,000 Teamsters members in Canada work in the rail industry.
