News & Reviews News Wire Digest: Corporations exit consortium overseeing railway, port serving Churchill, Manitoba

Digest: Corporations exit consortium overseeing railway, port serving Churchill, Manitoba

By David Lassen | March 12, 2021

News Wire Digest for March 12: Genesee & Wyoming affiliate launching new Gulf rail ferries; Alaska Railroad modifies summer passenger schedule

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VIA_ChurchIll_Johnston
A Park observation car and three sleepers swell the consist of a bear-watching season VIA train ready to depart from Churchill, Man., on Oct. 11, 2016. Two major corporations have exited the consortium operating the railway to Churchill. Bob Johnston

Financier, ag firm exit consortium for Churchill, Manitoba, railway and port

Two major corporations have given away their stake in the railway and port serving remote Churchill, Manitoba, but the local group overseeing both say their region will be better served by having full control. The Winnipeg Free Press reports Toronto financing firm Fairfax and AGT Foods, a Saskatchewan grain firm, have given up a combined 50% share in Arctic Gateway Group, the consortium which took over the Hudson Bay Railway and Port of Churchill from OmniTRAX in 2018 [see “Hudson Bay Railway sale completed …,” Trains News Wire, Sept. 4, 2018]. Repairs to the railway, which suffered a washout in 2017 that cut off land transportation to Churchill, have proven more expensive than anticipated, and along with the disruption of the COVID-19 pandemic have led Arctic Gateway to ask the Canadian government for a bailout. In a statement on behalf of its two Manitoba ministers, the cabinet of Prime Minister Justin Trudeau thanked the corporations for their work as part of the consortium, saying, “The long-term viability of this important national project is stronger today because of their contributions.”

New rail ferries will increase capacity of Gulf Coast-Mexico service up to 40%

A joint venture of subsidiaries of Genesee & Wyoming and marine services firm SEACOR holdings will launch two new rail ferries operating between the U.S. Gulf Coast and Mexico. CG Railway will begin operation of the first of the two new vessels, each capable of carrying 135 railcars, in the second quarter of 2021, with the second expected to begin operation in the third quarter. They will replace two 115-car ferries which have been operating between Mobile, Ala., and Coatzacoalcos, Mexico, since 2001, transporting more than 200,000 railcars in more than 1,400 sailings. The new ferries are expected to be capable of a top speed of 14 knots, twice that of the current vesses. The current ships make the trip in five days, or half the time of a trip by rail, and the combination of increased speed and capacity is expected to increase annual carload capacity by 40%, and will also have environmental benefits, according to CG Railway President Hoffman Lijeron. ““These innovative new vessels are purpose-built to provide increased reliability, speed and fuel efficiency and will materially expand the number of annual railcar spaces we can offer customers,” Lijeron said in a press release. “Their capacity, efficient hull design, articulated rudders and modern, slow-speed engines will significantly reduce the vessels’ environmental footprint. In fact, compared with a traditional all-rail route from Mobile to Mexico City, shipping via the new CGR vessels and Ferromex is expected to provide a 44% reduction in CO2 emissions per ton-mile versus the all-rail route.”

Alaska Railroad revises summer passenger schedule, reducing operations

The Alaska Railroad has announced a revised schedule for summer passenger service, reducing frequency for one train and shortening the season for all summer toutes. The Anchorage Press reports the Denali Star, which has traditionally operated in both directions daily between Anchorage, Talkeetna, Denali, and Fairbacks), will now operate in both directions only on Sundays, with service in one direction on other days. Between May 29 and Sept. 5, the train will operate northbound only on Tuesdays, Thursdays, and Saturdays, and southbound only on Mondays, Wednesdays, and Fridays. Two other trains, the Coastal Classic between Anchorage and Seward, and the Glacier Discovery between Anchorage, Whittier, and Spencer Glacier, will make daily round trips between May 29 and Sept. 6. Visit the railroad website for more information.

10 thoughts on “Digest: Corporations exit consortium overseeing railway, port serving Churchill, Manitoba

  1. 1. Trains magazine had an article a few years back about the ferry. Or, at least, the ferry was mentioned in the article. Perhaps the article on bananas? The varieties grown, threats (fungus or something) to the whole crop, transportation, etc. I recall it was a well done article.

    2. Alaska. Living in Fairbanks, I know that many people like to take the train to Denali Park for a day trip–my family tries to do that at least once a summer season. Now that day trip is only possible on Sundays. Otherwise, an overnight is mandatory (or having someone drive to ensure a vehicle is waiting). The airlines have increased capacity and frequencies to Alaska for the summer rather markedly in the last couple of weeks. I hope the Alaska Railroad will keep the flexibility to add more departures if the independent traveler numbers continue to climb. Fingers crossed that covid numbers resume their decline.

  2. The ferry service is “between Mobile, Alabama, and Coatzacoalcos, Mexico.” I wonder about the feasibility about such a service between Mexico and Florida.

    1. @Daniel Carleton: Good point. Port of Tampa is equidistant from Coatzacoalcos, Mexico as Mobile.

  3. Sorry to hear this about Alaska RR, but also heard cruise ships may not be running, or limited to 100 passengers. These mega ships will not bother sailing with that few. Friend and I took Princess cruise/land package in 1985, and after a few days in Anchorage, we boarded AAR for Denali Park overnight and then on to Fairbanks for a few days. Awesome scenery. We were to fly from Fairbanks to Whitehorse and take a bus to meet cruise ship again at Skagway. But the ship crew went on wildcat strike , so our option was fly home or take bus all the way to Skagway. We opted to just fly home. Princess refunded the full price of our trip even though we had already been a week in AK and gave us voucher for free cruise the next year. We did that stopping at Juneau, Sitka, thru Glacier Bay and Skagway-WP&Y not running yet, so we had to miss that. But we got 2 free trips to AK thanks to Princess. Probably not many companies do that today, have read about the problems with Rocky Mountaineer cancelled trips and people want refund, not a voucher, many are older and come from all over even Australia, so not sure if they would be able to make another trip.

  4. Thanks for the info on the ferry service, which I wasn’t aware of either, so now how about some photos.

  5. RE: ferry service. You do learn something every day. I was not aware this service even existed. Thank you for the info.

    1. And that’s a long haul. I think of rail ferries like across rivers and such.

  6. “New rail ferries will increase capacity of Gulf Coast-Mexico service up to 40%” They can ferry railcars faster and cheaper from Mexico to the US than the railroads can by overland. There has been press to the fact that cross border rail capacity is busting at the seams and more is on the way, but honestly, when someone can move more cars, cheaper, faster and in a more green fashion than the Class 1’s can, it does make you wonder.

  7. “Financier, ag firm exit consortium for Churchill, Manitoba, railway and port” So OMNITrax wasn’t the devil after all when they asked for government support to repair the washout. They threw $4M CDN to the consortium (and the keys to the kingdom, the port) to fix the tracks after kicking out OMNITrax for the nerve of even asking. And OMNITrax didn’t even want to leave. Now the consortium does.

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