Manitoba farmers may have difficulties with grain transportation again this year, after it was revealed this week that grain will no longer be shipped out of the Port of Churchill.

Reports state that Denver-based OmniTrax, which operates the port, has laid off as many as 40 employees, with more pink slips possibly on the way in the coming days.

Elden Boon is the president of the Hudson Bay Route Association, an advocacy group that promotes continued shipments through the Port of Churchill.

He says he was "blindsighted" by the news.

"OmniTrax had given no indication that this kind of thing was going to take place," explained Boon. "We had met with them in early July. We had concerns with the low tonnage last year and we just wanted to make sure that wasn't a repeat this year and they assured us that the shipments were going to take place. There was actually some new customers that had been in contact with them pertaining to shipments through the port.

Boon says he hopes to meet with government officials in the coming days to address the issue.

OmniTrax had been in negotiations to sell the Port of Churchill, which had so far been unsuccessful.