Return of train to Churchill raised spirits — but mayor says fuel, food costs remain high

It's been well over a month since the first passenger trains rolled into Churchill after more than 18 months without rail, but high prices remain in the northern town.

"Our gas prices are quite high," said Churchill Mayor Mike Spence, adding some food costs also remain higher than they were before losing the rail.

"The prices have not all come down.… We're not happy about that."

The local tourism business took a hit and food and fuel prices skyrocketed after a spring 2017 snow melt washed out large swaths of train tracks to Churchill. There was an exodus that followed, which included community members who couldn't weather the harsh economic realities. 

After months of disagreement between politicians and the previous U.S.-based owner of the flooded rail line, a private-public partnership purchased the rail line and Port of Churchill in late-August. Repairs began almost immediately, and the first freight arrived by rail on Halloween.

About one month later, excited Churchill crowds gathered around the local train station to welcome the first rail passengers to the community in 560 days.

Mayor Spence said Thursday spirits have been high ever since.

"Naturally people are very happy that they can travel to see their families in other communities," he said. "People are relieved." 

But while some costs have come down, others haven't.

During the period without a rail line, fuel was flown in or shipped by sea. Gas costs hit around $2.54 per litre, said Spence. And though filling up the tank has become cheaper, Spence said as of this week residents were still paying about $2.11 per litre.

"We need to rectify that," said Spence, recalling before the rail washout, the price at the pump was nearer to $1.80 per litre. 

"We're working through these challenges that we're faced with — high freight costs and high fuel costs — and we are working towards rectifying these issues."

Spence said he believes part of the reason gas is still so high is because some of it would've been purchased at a higher price in the fall before trains arrived. He said the town is working with the Churchill Chamber of Commerce to get the prices down.

'Way more expensive than Winnipeg'

Belinda Fitzpatrick is a member of the Churchill Chamber of Commerce and co-owns the Tundra Inn in town. She agreed with Spence that some items are still higher than they should be.

"Still way more expensive than Winnipeg, for example," she said.

People are still positive and hopeful that prices will come down even further and the community will continue to grow.- Belinda Fitzpatrick

Fitzpatrick said freight and food shipment costs are up by about 200 per cent.

"It's still early, but I guess everyone had hoped that things would drop a little bit more than they have," she said.

Milk, water prices drop

But locals have also seen prices go down on a few necessities.

One benchmark indicator northerners often look to as a measure of current food prices is the cost of milk. Fitzpatrick said the going rate for a four-litre jug during the rail washout was $13-$14. Recently that droped to $5.99, she said.

"That's one of the bigger items we've seen" drop, she said.

It was also about $50 for a case of water before the rail repairs, and now it's closer to $38, said Fitzpatrick.

"Still pretty up there when you're on the water advisory," she said, referring to a boil-water advisory issued in Churchill Thursday.

She said she hopes the remaining high prices balance out soon.

Positive outlook

In the meantime, many are anticipating a successful tourism season is on the horizon. The overall mood is one of hope, said Fitzpatrick.

"People are still positive and hopeful that prices will come down even further and the community will continue to grow."

Spence hopes to see the return of some familiar faces, too.

"We're looking forward to a very busy 2019," said Spence.

"People will be back to work and tourism will continue to thrive. But we're looking forward to … community members that left the community during the trying times to come back and be back as members of our community."