Global port operator DP World Ltd. is poised to announce a partnership agreement supporting the potential development of Canada’s port of Churchill, a strategic northern outpost that Prime Minister Mark Carney’s administration aims to expand to facilitate exports to Europe and other international markets.
According to sources familiar with the negotiations, DP World has finalized a memorandum of understanding with two Canadian entities, including the Arctic Gateway Group, which owns and operates both the Churchill port and its associated railway. The proposed pact centers on enhancing port operations and establishing a transportation corridor designed to connect Churchill directly to DP World’s worldwide logistics network, alongside inland port facilities managed by CentrePort Canada Inc.
Located in a remote town within the northern reaches of Manitoba on Hudson Bay, Churchill connects to the Atlantic Ocean through Arctic waterways. Proponents envision the location eventually serving as a vital shipping gateway for Canadian resources, including liquefied natural gas, grain, potash, and critical minerals, destined for buyers in Europe and the Middle East. However, realizing this long-term vision would require tens of billions of dollars in infrastructure investment.
The discussions follow a deepening of economic relations between Canada and the United Arab Emirates. Prime Minister Carney assumed office with an agenda focused on broadening his nation’s global trade and investment connections, particularly following trade tensions initiated by U.S. President Donald Trump. In connection with these stronger diplomatic and economic ties, Sheikh Khaled bin Mohamed Al Nahyan, the Crown Prince of Abu Dhabi, scheduled an official visit to Ottawa. Last year, the UAE pledged a C$70 billion, equivalent to $49.9 billion, investment commitment in Canada.
“At a time of profound global transformation, Canada and the UAE are working to deepen their partnership and build greater economic strength, shared security, and long-term prosperity for people in both countries,” the prime minister’s office stated.
Canadian Energy Minister Tim Hodgson previously highlighted the location’s significant potential as an expanded export hub. While the bay remains frozen for the majority of the year, officials suggest that extended shipping seasons could be achieved through the deployment of icebreakers. Canada secured an agreement for the acquisition of new ice-breaking vessels in August.
Momentum for the port project accelerated during high-level meetings in September between United Arab Emirates officials and Manitoba Premier Wab Kinew, which coincided with the Canada Investment Summit in Toronto.
A promotional prospectus distributed by the federal government during the summit estimated the total cost for a major modernization of Churchill and its supporting infrastructure at $57 billion, with preliminary investment requests pegged at $3.9 billion. The official pitchbook outlines plans to transform Churchill into an operational four-season trade corridor featuring liquefied natural gas exports, railway upgrades, port modernization, and the construction of all-weather road access.
DP World already maintains a substantial operational footprint in Canada. The company currently manages the container port located in Prince Rupert on the country’s west coast, and secured a contract last year to operate a new terminal situated near Montreal. Additionally, one of Canada’s premier pension funds, the Caisse de Dépôt et Placement du Québec, serves as a major equity investor in DP World’s Canadian division.
