WINNIPEG — A northern Manitoba grocer could see its produce, pastry and fresh meats go up in price because of high transportation costs.
The North West Company said it is anticipating rising shipping costs to its store in Chruchill, due to a recent reduction in rail services from Winnipeg.
OmniTRAX Canada, who currently runs rail service to Churchill, reduced service last week from bi-weekly shipments, to once a week.
North West said the reduction means it will have to airlift in highly perishable food in order to “ensure and meet consumer demand”, which is a much more expensive mode of transportation.
“We are disappointed in the latest news and will continue to work with the Province of Manitoba and other stakeholders to address this situation for the benefit of our customers and all Churchill residents,” said Christine Reimer, Vice President of North West in a media release on Tuesday.
The company said it won’t adjust its prices to reflect the extra shipping costs, as its hopeful that a solution will be found.
However, it also said “we estimate prices on many perishable food items could eventually increase by 13% on average and even more on heavier items as a result of this service reduction.”
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