Arctic Gateway Group

ARCTIC GATEWAY GROUP SUPPLY CHAIN

THE ARCTIC A DVA N TAG E Canada is home to many seaports shipping goods across the world.

We speak to Sheldon Affleck, CEO of Arctic Gateway Group, about the company opening the Arctic region to European trade Writer: Marcus Kääpä | Project Manager: Tom Cullum

E

ven today, Canada and the Arctic circle remain the wild frontiers of North America.

The region’s geography comprises alpine forests, freshwater lakes and strings of dramatic mountains that make up the country’s iconic skyline.

This rough and varied terrain makes transport and connection vital for those who live in the region, both when it comes to livelihood and work.

Strategically located on the west coast of Hudson Bay, the Arctic Gateway is the front door to Western Canada, linking Canadian resource exports to the global marketplace.

The Arctic Gateway Group (AGG) owns and operates the Port of Churchill, Canada’s only Arctic seaport serviced by rail, on the Hudson Bay Railway, running from The Pas to Churchill, Manitoba.

“AGG is a lifeline to the communities of Northern Manitoba, and a supply line that feeds the Arctic and the world,” introduces Sheldon Affleck,

Sheldon Affleck, CEO of Arctic Gateway Group

CEO of the organization. “These Canadian communities rely on the Hudson Bay Railway (HBR) as their lifeline, and through the efforts of those who work the railway and port, the world is supplied by all the necessary resources Canada has to offer.”

When it comes to such resources, Canada is increasingly becoming a focus on the global stage. AGG is building a natural resources corridor through the Arctic to connect the region to the rest of the world.

“The Arctic is home port to a great deal of varied resources, from minerals to grain and energy products such as oil and natural gas. It is slowly being recognized as one of the globe’s growing areas, especially with improvements to infrastructure, logistics and shipping.

“We are in a very strategic position because Canada’s Arctic exists on the top of our round world, meaning that moving goods from Churchill to anywhere in Europe is as close as moving goods from Montreal, for example. Therefore, we are saving thousands of miles of rail travel by opening up multiple hubs of trade in Canada and interconnecting the world.

“We also have many opportunities shipping from the Port of Churchill.

While the key product has for a long time been grain, I see a lot of potential when it comes to alternative products North America Outlook issue 09 | 3

ARCTIC GATEWAY GROUP SUPPLY CHAIN

such as Canapux, which is an environmentally friendly, innovative and safe way to transport extra-heavy crude, also known as bitumen. Canada alone has around 52 percent of the world’s heavy oil, and this is used to make

ARCTIC GATEWAY GROUP – OFFERS AT A GLANCE ARCTIC GATEWAY FREIGHT SERVICES Shipping supplies or goods? With regular freight rail service from The Pas to Churchill and back, stopping at dozens of communities along the way, AGG provides a low-cost supply route for vital commodities.

Goods are also shipped from the Port of Churchill to mines and communities in Nunavut.

HUDSON BAY RAILWAY Hudson Bay Railway is ideal for hauling perishables, automobiles, frac sand, heavy equipment, scrap, construction or hazardous materials, kraft paper, concentrates, containers, wood pellets, wheat and other grain products, as well as energy commodities. Hudson Bay Railway connects with CN in The Pas, running north through Manitoba to the Hudson Bay at the Port of Churchill.

PORT OF CHURCHILL Whether you’re looking to import or export, the Port of Churchill creates a vital tidewater connection to port facilities worldwide. The Port of Churchill is Canada’s only Arctic seaport serviced by rail.

CHURCHILL MARINE TANK FARM The Churchill Marine Tank Farm handles storage of fuel for distribution to northern communities, the Town of Churchill, and the Churchill Airport.

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pavement, carbon fiber for manufacturing, textiles, and waterproofing products.”

CONNECTING PORTS AGG prides itself on connecting Canadian business to the rest of the world, delivering resources and products across vast stretches of wilderness to the many global areas that they are destined for.

“70 percent of our employees are indigenous, and so it is a massive source of employment and economic activity for the area; the ownership group itself is also indigenous and community owned,” Affleck tells us.

“On a personal level, it’s been great to see our people work with optimism, driven by the knowledge that they are an essential part in creating a new frontier in Canada.

“There are no new ports being created in Canada anymore, as all the potential locations are already utilized. Because of this, freight connections to Churchill are more important than ever, with the strategic advantage of Churchill’s close proximity to Canada’s resources, and an uncongested transportation corridor to move goods on.

“With the global changes that we are currently undergoing, such as the rising cost of fuel, no form of freight will be cheaper than that of the ocean. Maintaining and improving rail connections to this Arctic seaport is therefore critical to continued growth, and it is our focus right now.

“We are currently improving the under structure of railroads by replacing the existing sand railbed with more stable crushed rock. This restructuring of the railroad will make port connections more viable and durable.”

SMOOK Contractors Smook Contractors Ltd. is a community-oriented provider of heavy civil construction services in both the public and private sectors.

We are committed to being an industry leader through our quality of work, standard of safety, employee satisfaction, and the protection of the environment.

As the leading provider of heavy civil construction services in northern Manitoba Smook Contractors Ltd. is strategically located to partner with Arctic Gateway Group to supply large quantities of railway ballast and other support items to assist in the operation and maintenance of their critical rail infrastructure line.

THE LATEST AND BEST This focus on rail improvement will go hand-in-hand with AGG’s technological investments for its railway fleet.

www.smook.ca

Delivering Excellence in Workmanship “We are committed to being an industry leader through our quality of work, standard of safety, employee satisfaction and the protection of the environment.”

• • • • • • • • • • • •

Machine control/ surveying/ GPS technology Aggregate production; crushing and screening Road construction Clearing and landscaping Drilling and blasting Earth and rock excavation Earthwork on lagoons, tailings ponds and waste contamination Sewer and water projects Environmental clean-up and soil remediation Oversized and heavy hauling Mine construction and site restoration Open pit operations

www.smook.ca

Hudson Bay Port

Hudson Bay Railway

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ARCTIC GATEWAY GROUP SUPPLY CHAIN

“We will be properly revamping the railroad track between Gillam and Churchill, the 180-mile network, and if everything goes to plan, we will have this completed by August of 2023,” Affleck explains. “We have a fleet of 12 locomotives that will be new to the railway, that have been refurbished with the latest electronics so that we can remotely monitor and control them.

“Running a railway in the Arctic is difficult. Everything is very remote and there are often adverse conditions, and the only communication system has been through satellite radio. We are changing this by adding the SpaceX’s Starlink system to each of these locomotives to provide high speed internet for these trains anywhere in the Arctic.”

AGG’s use of Starlink systems will allow the company complete remote monitoring capabilities across its fleet, which will both help to reinforce

“A G G I S A L I F E L I N E T O T H E C O M M U N I T I E S O F N O R T H E R N M A N I T O B A , A N D A S U P P LY L I N E T H AT F E E D S T H E A R C T I C A N D T H E W O R L D ” – S H E L D O N A F F L E C K , C E O , A R C T I C G AT E WAY G R O U P

the performance, reliability and reputation of AGG for its new and long-standing customers.

“Last year we also deployed a new technology called Toughcel geocel,” Affleck adds. “It’s very innovative.

Basically, you can use it to build a road, highway or railway in complete muskeg, and it will support the heavy loads without stability issues.

“It is very useful for when a weak area of the original track or road requires maintenance, or simply providing support for such existing infrastructure. Using this Toughcel technology, heavy loaded railcars will be transported without safety concerns.”

AGG is moving forward with technology as the central driving force behind its investments. Through increased monitoring capabilities and tools to streamline rail performance and repairs, the company is set to grow as one of Canada’s primary seaport rail services, bringing the region’s goods and resources to the global market into the future.

ARCTIC GATEWAY GROUP info@arcticgateway.com www.arcticgateway.com North America Outlook issue 09 | 7

ARCTIC GATEWAY GROUP 728 Bignell Ave. The Pas, MB R9A 1L8 info@arcticgateway.com www.arcticgateway.com

PRODUCED BY NORTH AMERICA OUTLOOK MAGAZINE