HALIFAX -- Two major Canadian Gateways at Halifax and Churchill have signed an agreement that would make it easier to ship grain via water from Northern Manitoba to the Atlantic coast.

Lloyd Axworthy, Chairman of the Board of the Churchill Gateway Development Corp. and Stephen Dempsey, Chair of the Halifax Gateway Council, announced the signing of a Memorandum of Understanding (MOU), which establishes trade-related opportunities for companies in Atlantic Canada and the northern Prairie Provinces.

"This is a partnership of national economic significance," Mr. Dempsey said. "A business and export bridge between Churchill and Halifax holds great potential to benefit the economies of both regions and the viability of our ports."

The MOU will provide a framework for the organizations to build a reliable and cost-effective grain pipeline between the two ports.

OmniTRAX is the private operator of the Port of Churchill
as well as the railway line that serves it, the Hudson Bay Railway.

The first-ever transfer of wheat between Churchill and Halifax occurred in 2007, demonstrating the potential for new grain transfer alternatives.

Bill Drew, Executive Director of the Churchill Gateway Development Corporation, said that "the two parties will continue to identify other trade and short sea transport opportunities".

Added Ian White, president and CEO of the Canadian Wheat Board: "Prairie farmers face enormous challenges in moving their grain vast distances to market," he said. "The more flexibility we can build into our transportation systems, the better for grain producers. This is why we have always strongly supported the ongoing viability of Churchill."