Manitoba is sweetening the pot for investors thinking of putting their money into the proposed Port of Churchill expansion by offering an exemption on the provincial sales tax, Premier Wab Kinew announced Monday.
The tax measure would apply to the construction of a new energy corridor and liquefied natural gas facilities, upgrades to the railway and marine icebreaking capacity or ice-class ships to support year-round shipping.
Kinew, in Toronto looking to woo investors attending the first-ever Canada Investment Summit, made the pledge Monday at the Canadian Global Growth Forum.
“These new capital incentives make it easier for investors to get in on the ground floor of the largest project featured at the Canada Investment Summit,” Kinew said in a news release.
Over the next two days, Kinew will meet with multiple global investment firms to pitch the Port of Churchill, along with other mining, infrastructure and agriculture projects in the province, the release said.
A complete list of projects eligible for the PST exemption will be released at a later date, the government said.
Last month, the province released the findings of three studies it argued would bolster the hopes of extending the Port of Churchill’s shipping season from the current average of roughly 4½ months.
The studies concluded that year-round shipping is possible with the help of the third highest-rated type of icebreaking vessel, but acknowledged some ice is expected to remain in the bay and pose challenges in the coming decades under global-warming scenarios.
Kinew previously estimated it would cost $70 billion to $80 billion to expand the Port of Churchill, upgrade the Hudson Bay Railway and build an offshore liquefied natural gas terminal in Hudson Bay. The studies say the offshore terminal is needed because the mouth of the Churchill River, where the port is located, is too narrow and shallow to manoeuvre some ships.
The proposed port expansion was among several shortlisted by the federal government as “transformative” projects last year, but major improvements would be needed. The premier previously said Prime Minister Mark Carney wants to see gas shipments begin by 2030.
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Manitoba’s delegation at the Canada Investment Summit consists of Finance Minister Adrien Sala, Business, Mining, Trade and Job Creation Minister Jamie Moses, along with business and First Nations and Métis leaders.
