Three municipalities in Southeast are banding together to develop trade corridor

Three municipalities in the Southeast have come together to establish a committee for economic development along Highway 75, which they hope to make into a trade corridor.

The RMs of Emerson-Franklin and Montcalm and the Town of Morris have come together to encourage private-sector growth, strengthen their local economies, and build long-term partnerships, while at the same time developing the provincial economy.

“It’s creating jobs and economic opportunities in our area, and it’s creating a world-class trade corridor so we can do that through economic hubs at Emerson, in Montcalm,…the Mid-Canada Transload…and then Morris…We just want to bring more economic opportunities and things to the area, and we need the jobs because we need the population. We need people using our amenities,” said David Carlson, reeve of Emerson-Franklin and chair of the PTH 75 Caucus.

The combined population of the three municipalities has steadily increased over the past 10 years with a total population of 5,690 in 2021, representing a 2.6 percent increase from 2011 (largely due to people moving to Morris), according to a 47-page report paid for by the province in 2024. The report examined the feasibility of creating a regional planning district (RPD), something Carlson said was a goal for the three municipalities.

The report also looked at the development of Highway 75 as a trade corridor, as roughly 65 percent of goods that Manitoba exports to the U.S. and Mexico are shipped via commercial trucks through the Pembina-Emerson port.

Between 2018 and 2022, the Pembina-Emerson border crossing has consistently ranked seventh busiest in Canada for commercial trucks, with more than 1,000 crossing the port of entry daily, and 19th for cars and other personal vehicles. Roughly two-thirds of Manitoba’s exports travel through the port annually, totaling about $70 million to $80 million daily.

Considering the economic importance of the corridor and the Pembina-Emerson port, the caucus has formed a group to discuss the details regarding the development of Highway 75 as a trade corridor.

The collective consists of the three municipalities, the Manitoba Trucking Association, CentrePort Canada Inland Port, Manitoba Heavy Construction Association, World Trade Centre Winnipeg, Canadian Manufacturers and Exporters, Economic Development Council for Manitoba Bilingual Municipalities (CDEM), and commercial realtor Cushman Wakefield.

“We meet semi-regularly and discuss ways of engaging the province to help create a world-class trade corridor, and a lot of that does involve – that will involve the province as part of the greater Manitoba trade network. So, there’s a lot of moving parts right now,” said Carlson.

The previous PC government signed an MOU with the caucus, but the current NDP government has yet to do so. Montcalm Reeve Paul Gilmore said the government is responsive with Carlson noting the caucus is in contact with Minister of Business, Mining, Trade, and Job Creation Jamie Moses and Minister of Transportation and Infrastructure Lisa Naylor, each of whom the caucus has meetings planned for the new year.

Carlson admitted there are some delays due to the trade challenges with the United States, but he hoped they would be resolved soon.

“There would be more of a solid foundation to go off of (once the trade issues are dealt with) and more good news stories. But it kind of hasn’t happened. So, we’re now forging ahead anyway. We are confident there will be a deal done in some way, shape, or form,” he said.

“But in the meantime, we still have a ton of trade going down the highway. And we want to make sure that we have the infrastructure to be able to help our businesses along the way with access and egress and doing proper planning. We see this as being economical trade hubs along the corridor. Our hopes are to bring prosperity to the area – economic prosperity.”

The 2024 report found that the first three years of an RDP would likely result in expenditures for the municipalities as the RDP establishes itself and begins to implement services. Years four and five would see a profit, assuming certain key initiatives are implemented such as the hiring of a building inspector, re-allocating administrative duties to tasks such as grant writing and economic development initiatives, and implementing a regional economic development office to drive economic growth.

The report estimates the operational fixed net costs during the five years will be $144,500 for the first year and $104,200 annually in the following years, to be shared amongst the three municipalities.

“When considering the combined operating budgets of the three municipalities, the new operating costs of an RPD present a relatively low financial risk with high potential for future benefits, but not without any impact on local taxpayers,” read the report, which estimated the tax increase for residents could range from 1.14 percent in year one to -0.83 percent in year five.

Currently, the caucus is in the process of legally formalizing itself, after which it will begin branding, such as building a website.

One of the major players in the development of the trade corridor is Mid-Canada Transload Services, which opened operations in 2020. It’s a 250-acre rail and truck port primarily transloading agricultural products, food grade products, organic products, and industrial or manufactured products. It is located one hour south from Winnipeg and one hour north from Grand Forks, North Dakota, near the town of Letellier. It services the rail lines of Canadian National Railway and the Burlington Northern Santa Fe Railway.

“Mid-Canada is a perfect location for any business that needs to transload goods that are going down or coming up by rail or by truck. Of course, they’ve got rail access and they’ve got access to the highway also, so they’re perfect for what’s required for transloading,” said Gilmore.

Mid-Canada owner Real Tetrault said he is not involved with the Highway 75 Caucus and its plans to develop the trade corridor.

“Nobody’s invited us to any meetings. I don’t know a whole lot about it, I’ll be quite honest… We’ve been in the dark all along,” he said.

Tetrault agreed Highway 75 as a trade corridor is important as it connects to U.S. Interstate Highway 29, which then links to Interstate 35 to Kansas City and Mexico.

One of the competitors to Mid-Canada and the Highway 75 Caucus is a proposed rail port to be located in the RM of Ritchot between Howden and St Adolph (along Andrechuk Road).

The project is being spearheaded by John Q Public, a board of 12 municipalities who work collaboratively to build infrastructure projects within their boundaries for economic gain.

Stretching more than 1,000 acres, the Winnipeg Region Rail Port (WRRP) is set to be a state-of-the-art, multi-modal rail hub containing Manitoba’s first eco-industrial park, according to John Q’s website.

The port is designed to drive economic growth for Manitoba businesses to global markets through potential connections to three Class I railways, roads, and highways connecting the East and West coasts, the Arctic Gateway, and key North American markets. Agriculture and manufacturing are some of the economic sectors that would benefit from the port.

The project received a one-time $18 million grant in 2023 by the previous PC government to secure the land in Ritchot, conduct studies, and select a development partner. The funding is currently under review by the NDP government with findings to be released this month, according to media reports.

In 2020, the land in Ritchot was identified as the perfect site for the WRRP. In 2024, Ritchot approved a bylaw allowing for eco-industrial zones within its boundaries, but according to a spokesperson for the municipality, no applications by John Q to develop in an eco-industrial zone have been received by the RM.

“The Winnipeg Region Rail Port project represents a major economic opportunity for our region. It would help attract new businesses, drive industrial expansion, and increase municipal revenues, which would allow for greater support of community services. As jobs and investment grow, this development could also bring new families to the area as people seek homes near emerging economic opportunities,” said a statement from Ritchot CAO Shane Ray.

John Q did not return requests for an interview.

Carlson and Gilmore are not too concerned by the development of the WRRP in Ritchot as they see it as a project that hasn’t got off the ground and one that sits on a flood plain. The provincial funding that the project received from the PC government, Gilmore describes as “a blow.” Both Gilmore and Carlson agree that their endeavour needs some funding.

Carlson said while there is a need for seed money from the province, it’s the intention of the caucus to be self-sufficient and not dependent on the province in the long-term.

“We would actually like to be self-sufficient, you know, money through development fees, money through potential partnerships or memberships in the corridor, things of that nature.”

Carlson said the caucus is lobbying the province to join it and it has already set up meetings. He said things should be formalized in February as the government has a vision of a Manitoba trade network that spans from the U.S. border up to the Port of Churchill.