The Future Of Hudson Bay: Port Development And Economic Growth

Interesting things are happening along Hudson Bay’s rim — the coastal areas of mainland Canada that form Hudson Bay, and which are critical to the economic success of the region.

From the NeeStaNan proposal, which aims to link the Canadian Prairies to Hudson Bay, to the La Grande Alliance seeking accelerated development of Cree lands throughout Nord-du-Quebec, and even the opening of the Northwest Passage through Canadian Internal Waters, Hudson Bay’s rim is suddenly garnering a lot of interest for port construction and railway building. These separate and independent initiatives are nonetheless complementary and point to much broader economic opportunities for Canadians of every province and territory.

Key takeaways

• Hudson Bay is under intense economic scrutiny due to experiencing rapid changes related to increased shipping activity enabled by climate change.
• Several initiatives are being undertaken by different provinces and territories to study building or expanding ports and railways to and through communities along the Hudson Bay rim.
• Development of the Hudson Bay rim offers many opportunities for trade, transportation, and skilled labour, but also faces significant challenges such as environmental impacts, infrastructure gaps, and territorial disputes.

Geographical background

Hudson Bay is a large inland sea located in northeastern Canada, situated in the Arctic region. The rim of Hudson Bay includes the province of Quebec to the east, Ontario to the south, and Manitoba and Nunavut to the west. The bay itself is connected to the Atlantic Ocean by the Hudson Strait, and to the Pacific Ocean by the Northwest Passage through Canadian Internal Waters.

Hudson Bay covers an area of about 1.23 million square kilometers (474,000 square miles). Its shape is roughly triangular, with the base along the southern coast and the apex extending northward.

The bay experiences extreme seasonal variations in temperature due to its high latitude. During winter, the bay freezes over, forming a thick layer of sea ice that lasts for several months. In summer, the ice melts, allowing for a brief period of open water.

Climate change is significantly impacting the Hudson Bay region. The marine waters of Hudson Bay, James Bay, Hudson Strait, and Foxe Basin are covered by sea ice for 5 to 10 months of the year. However, due to climate change, the seasonal duration of sea ice in this area is declining. The warming climate has already added a month to the shipping season in Hudson Bay compared to 30 years ago, with the number of ice-free days increasing every year by an average of about 1.14 days.

This has led to an increase in commercial shipping activity in recent years. The earlier melting and later formation of Arctic sea ice has even opened up previously impassable routes, making navigation between Hudson Bay and the the Pacific more feasible. As ice continues to retreat, there is increased interest in using these routes for shipping. The increased shipping season has serious economic and geopolitical implications for Canada, as provinces and territories vie for control and access to this strategic waterway.

There aren’t many ports on Hudson Bay, largely due to the bay being closed by ice for much of the year. The largest ports along the Hudson Bay rim are Churchill, Manitoba; Rankin Inlet, Nunavut; Moosonee, Ontario; and Inukjuak, Quebec.

Deep intel on the Hudson Bay rim

Quebec

Every Quebec town or village along the Hudson Bay rim is situated within the administrative region of Nord-du-Quebec. The administrative structure of Nord-du-Québec is divided between three equivalent territories to a regional county municipality: Kativik, Eeyou Istchee, and Jamesie.

The largest Nord-du-Quebec port is currently Inukjuak, Quebec, an Inuit village that is part of the Kativik equivalent territory. Although it’s less than 2 km lower than Churchill latitudinally, there is a total lack of rail and road connection from Inukjuak to any other part of the province.

The Quebec government has previously considered developing the area, with particular focus on building a deep sea port near the Eeyou Istchee towns of Kuujjuarapik and Whapmagoostui, Quebec, but has flip-flopped on the idea.

More recently, Cree leaders have been undertaking a feasibility study for a multi-billion dollar development plan outlined by the La Grande Alliance Memorandum of Understanding. La Grande Alliance proposes to build a seaport in Whapmagoostui, and further add a rail line from the province’s southernmost Cree lands to Billy Diamond Highway (formerly James Bay Road) to it’s intersection with the Rupert River. This intersection, known as KM257, is being investigated as a site for a trans-shipment hub. Both the Billy Diamond Highway and Rupert River are within the Eeyou Istchee and Jamesie equivalent territories, respectively.

The Rupert River flows westward from Lake Mistassini into Hudson Bay — specifically, into Rupert Bay. Rupert Bay is part of James Bay, which is itself part of Hudson Bay.

Ontario

Moosonee, located on Ontario’s northern coast at the mouth of Moose River, is the province’s only saltwater port. It plays a vital role in the flow of people and goods between Central Canada and Canada’s northern communities. Moosonee is connected to the town of Cochrane via rail — namely, the Polar Express operated by Ontario Northern Railway. Cochrane will be connected to Toronto via the Northlander, a route slated to be restored in 2026 after having been closed in 2012. Once the Northlander route is restored, the Hudson Bay region will be connected to the Saint Lawrence Seaway by rail.

The Port of Moosonee doesn’t currently support intermodal cargo, but some experts believe it’s an idea site for a seaport that can.

A rail line used to connect Cochrane, Ontario to La Sarre, Quebec but was abandoned in September 1991.

No road network connects Moosonee to the rest of Ontario, Manitoba, or Quebec.

Manitoba

Churchill, Manitoba has the distinction of being the largest port on Hudson Bay, but is also the least populated. It sits at the mouth of the Churchill River, which flows north and drains into Hudson Bay. Although the port isn’t currently capable of handling intermodal cargo containers, supply chain expert Professor Barry Prentice of the University of Manitoba believes the port to be a prime candidate for investment into expansion of that nature.

The Hudson Bay Railway (HBR) connects Churchill to The Pas. The Pas is connected to the rest of Manitoba by rail and road, giving Churchill access to the wider province. Meanwhile, multiple other railways and roads connect the province to neighbouring Saskatchewan and the rest of the Canadian Prairies.

Churchill experienced a brief economic downturn when a section of the HBR was washed out. The previous owners of the HBR — American company OmniTrax — had to be forced by federal regulators to repair the track.

Since August 2018, the Hudson Bay Railway has been owned and operated by Arctic Gateway Group LP. Arctic Gateway Group LP is a public-private partnership. Half of the Group is owned by Manitoba communities and First Nations, and half is owned by Fairfax Financial Holdings (TSX:$FFH) and AGT Food and Ingredients.

The Port of Churchill has by far benefitted the most from increased commercial shipping activity, with Arctic Gateway Group — which also owns the Port of Churchill — and Hudbay Minerals (TSX:$HBM) having recently come to an agreement to ship zinc concentrate through the port.

Meanwhile, a proposal called the NeeStaNan Utility Corridor (NUC) seeks to link the rest of the Canadian Prairies to Hudson Bay and the wider global market by building a seaport at Port Nelson. The intention is to enable more affordable access to the global market for Canada’s oil, wheat, potash, and canola oil resources.

Port Nelson is approximately 212 km south of Churchill. It’s positioned at the mouth of the Nelson River, which flows north-northeastward from Lake Winnipeg and discharges into Hudson Bay. If the NUC were to be built as proposed, Port Nelson and Churchill would likely share a junction through Amery, Manitoba.

Nunavut

Rankin Inlet is Nunavut’s largest port on Hudson Bay, and the northernmost port on the Hudson Bay rim, and the most populated. It serves as the region’s leading transportation and business center. Rankin Inlet is not accessible by road or rail, but it does have an airport and an expansive regional road network. The latter in particular, combined with its proximity to the Northwest Passage, justifies at least studying Rankin Inlet as a site for a potential intermodal seaport.

The entirety of Hudson Bay’s waters fall under the political control of Nunavut. This causes an interesting political situation, as most settlements along the Hudson Bay rim that stand to benefit from increased shipping are not part of Nunavut. The ownership of several islands, such as the Belcher Islands and Ottawa Islands, is already the subject of multiple disputes with the Eastern Cree of Quebec.

Hudson Bay is a sea of opportunity

In this article, we’ve explored the Hudson Bay region, a strategic coastal area that offers many opportunities for Canada’s economic development. We’ve also learned about efforts that are being undertaken in an effort to harness the economic potential of the Hudson Bay area.

Initiatives like Nord-du-Quebec’s La Grande Alliance, the reestablishment of the Ontario’s Northlander route to Moosonee, Arctic Gateway Group’s purchase of the Hudson Bay Railway in Manitoba, and Western Canada’s interest in the NeeStaNan Utility Corridor telegraph that the region’s immense potential for trade and transportation is under intense scrutiny from both the private and public sectors.

Although these initiatives face significant challenges such as environmental impacts, substantial infrastructure gaps, and even territorial disputes, it’s clear that there’s no stopping the rapid changes that the Hudson Bay rim is experiencing. But how can the Hudson Bay area balance its development goals with its environmental and social responsibilities? How can the Hudson Bay area leverage its strengths and overcome its weaknesses to become a more prosperous and sustainable region? What are the implications of the Hudson Bay area’s development for the rest of Canada, the United States, and the world?

These are some of the questions that I’ll address in the next article, where I’ll analyze the information presented here and provide a critical assessment of the Hudson Bay area’s current and future prospects. Stay tuned for the second article in this three-article series on the Hudson Bay area.

Originally published at https://openintel.substack.com.