Province shipping 2.2 million litres of propane to Churchill

Hey there, time traveller!
This article was published 20/07/2017 (2468 days ago), so information in it may no longer be current.

The Manitoba government is spending $6 million to supply Churchill by sea with enough propane to get through the coming winter.

“It’s better to be safe than sorry,” Premier Brian Pallister told reporters Friday morning. “We’re erring on the side of making sure the people of Churchill are warm for the winter.”

Pallister and Infrastructure Minister Blaine Pedersen told a news conference that they’re acting independently to ensure Churchill has sufficient propane to take the town into next summer, even if the flooded-out rail line does not get repaired.

Manitoba is contracting with Stittco Energy to ship 110 containers with 2.2 million litres of propane, enough to supply Churchill through next June. If enough work gets done converting some buildings in Churchill to electric heating, that propane could last into a second winter, Pallister said.

“We can’t assume we’re going to get that rail line in, and then be wrong,” Pallister said.

“This is a cost worth incurring,” Pedersen added.

Churchill Mayor Mike Spence learned about the propane shipment plans through the media. Repairing the flood-damaged rail line remains the issue, he stressed.

“We understand that governments want the rail line owner (Omnitrax) to live up to their obligations. They need to force that issue or step in themselves. They can’t dither while a community and northern Manitobans’ livelihoods are at stake,” Spence said.

“The provincial plan to ship propane this winter means the province appears to have given up. Even Omnitrax has stated that the rail could be fixed in 60 days. KRC (Keewatin Railway Company) said they could do it sooner.

“Which rail companies have the province met with? Why are they prepared to spend millions of dollars without seriously examining repair options? This is not leadership, and only means more losses for northern Manitoba,” he said.

“From day one, Emergency Measures officials and federal officials have met to plan and co-ordinate to ensure food, propane and fuel issues are being looked at. However, if the rail line is repaired, these issues will be solved,” Spence said by email.

It is imperative federal and provincial government officials meet immediately to determine how repair work will be initiated, Spence said, adding he can’t understand why the premier is unable to make this a priority for his ministers.

Port, rail line are federal responsibilities: Pallister

Both supply and storage have been issues for the embattled town.

Pedersen said the shipment will include “eurotainers”, stackable steel-framed containers of propane that can be loaded onto a freighter in the St. Lawrence River, then stored safely in Churchill. The shipment needs to arrive by late September before the winter freeze-up begins.

“The total cost of this undertaking is expected to be around $6 million. We’re investing money without any acknowledgement of a partnership,” the premier said.

While repeatedly saying he wasn’t there Friday morning to take shots at Ottawa, Pallister said the port and rail line are federal responsibilities.

“We will continue to urge the federal government to come forward with their plan. Ports and lines are federal,” he said.

But Ottawa wouldn’t give a direct answer Friday.

The office of federal Transport Minister Marc Garneau said Ottawa’s main priority is maintaining access to food and supplies for the people of Churchill.

“We take this matter seriously and have already taken concrete measures to help the people of Churchill,” wrote spokeswoman Delphine Denis.

The federal spokesman didn’t address the company’s calls to fund the rail line’s repairs, or the province’s request to make a plan for the future of both the rail line and port.

“Why are they prepared to spend millions of dollars without seriously examining repair options? This is not leadership.”–Churchill Mayor Mike Spence

“Omnitrax has an obligation to repair and maintain its line and maintain service to residents, and we expect Omnitrax to meet its obligations,” Denis wrote.

Pedersen said Denver-based Omnitrax made it “abundantly clear” earlier this week it doesn’t intend to fix the line, which the company estimates would cost $20 to $60 million.

“Our concern is Omnitrax is using the people of Churchill as a pawn in whatever they’re negotiating,” he said.

Pallister ‘still not addressing the real problem’: MLA

Spence demanded that federal and provincial ministers get in a room together immediately and get the rail line running again.

“The loss of Northern Manitoba’s lifeline is about more than propane. This is about the absence of leadership of federal and provincial elected representatives to this ongoing emergency,” Spence said.

“It is disappointing to hear today’s update through the media. We continue to call for governments to sit around a table and meet with us. In over eight weeks since this emergency began, federal and provincial government elected officials have not met face-to-face once to our knowledge. The (grain) elevator has been closed for an entire year.”

Pedersen noted the company’s estimate has a huge spread, but he saw no point in getting the province to hire someone else to evaluate repairs and duplicate Omnitrax’s report.

“We do roads, bridges, ditches, we don’t have the expertise to do rail lines,” he said.

There may be legal implications for Omnitrax and the contracts its signed with the province, and subsidies it’s received, Pallister said.

“I expect there are tons of them,” said Pallister, who opted not to elaborate, though he noted American firms tend to be far more litigious than Canadian companies.

“What about getting the rail line fixed?” demanded New Democrat MLA Tom Lindsey. Crews could already be fixing up the rail bed and laying in materials, he said from Flin Flon.

“Once again, he’s (Pallister) still not addressing the real problem, is he? Last week he was switching to Hydro — what’s the plan next week?”

— with files from Dylan Robertson

nick.martin@freepress.mb.ca