'This location is a critical hub': Canadian government investing in rail park near Winnipeg

The federal government is investing in a new rail park near Winnipeg to help improve the transportation of goods, a project pegged to benefit Manitoba's economy.

Federal Minister of Transport Omar Alghabra announced Wednesday the federal government will be investing $18 million in the project, which will be taken on by CentrePort Canada.

The rail park will be located just outside Winnipeg and will include a second mainline switch, several kilometres of track, a lift station and connections to access roads.

Alghabra said this project will help repair the supply chain, which has been affected by the pandemic and other global events over the past few years.

"The city and this location is a critical hub in a strong supply chain and that's something that Canadian exporters rely on," said Alghabra.

"We know that a strong supply chain contributes to growing an economy that works for all Canadians, while making life more affordable for its citizens."

The money for this project comes from the National Trade Corridors Fund and the federal government is providing half of the $36 million price tag.

"Not only will this project create well-paying jobs in the region, but it will make it easier to move goods between the different modes of transportation. For instance, from rail to truck or from air to rail," the minister said. "It's really about making a supply chain more fluid, more adaptable and more easily able to get goods from point A to point B."

Alghabra said this project will benefit Manitoba's economy. He noted the quality of infrastructure and efficiency of trade corridors are crucial to the economic success of Manitoba.

On top of the economic benefits, Alghabra said the project is expected to reduce congestion on highways and in turn reduce pollution.

Chris Lorenc, the director of CentrePort Canada's Board of Directors, said this rail park will help grow the company's trade profile.

"This investment in the CentrePort Canada Rail Park development enhances intermodal connectivity in the Winnipeg capital region and helps to fully realize the vision for the largest trimodal inland port in the heart of North America," Lorenc said in a news release.

The trade corridor that this rail park will support runs from Churchill down through the United States and into Mexico.