The North West Company says a company’s decision to reduce rail service to northern Manitoba will put pressure on northern food prices.
OmniTRAX Canada has cut its rail service from Winnipeg to Churchill from twice per week to a single weekly run.
North West says it will be forced to airlift highly perishable foods such as produce, fresh pastry, fresh meats and other items to its northern stores.
Derek Reimer, a spokesperson with the North West Company, told CBC that while the company will have to pay more to fly up the products, they will not increase food prices.
The company estimates that had they not absorbed these shipping costs, the price of perishable foods would have increased by an average of 13 per cent, and even more on heavier items.
Denver-based OmniTRAX’s Hudson Bay Railway is currently up for sale.