Regulator says complaints required before it can investigate Omnitrax

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This article was published 09/08/2017 (2993 days ago), so information in it may no longer be current.

OTTAWA — As Churchill enters its 11th week without rail service, the federal regulator says Manitobans must file complaints before it will investigate whether Omnitrax is breaching its duty to maintain rail service.

A spokeswoman for the Canadian Transportation Agency said no one has written to the regulator about “unfulfilled service obligations” on the Hudson Bay Railway since May 24. That’s when the line became inoperable from north of Gillam to Churchill after heavy flooding washed out numerous bridges.

“We have not received any complaints against the Hudson Bay Railway to date,” Trinh Phan wrote in an email Wednesday.

On July 18, Omnitrax said it wouldn’t pay an estimated $20 million to $60 million to repair the line because it was “not economically viable.” Since then, the federal government has insisted Omnitrax has a contractual obligation to keep the rail line running, under a 2008 agreement that saw the feds and Manitoba each contribute $20 million for repairs to the line.

Last week, transportation lawyers told the Free Press Omnitrax could be legally compelled to restore service to Churchill under federal laws that prohibit companies from abandoning train lines — laws that take precedence over funding contracts.

They pointed to a February decision in which the regulator ruled that “a railway company cannot permanently relieve itself of its statutory obligations by indirect means by deciding not to rehabilitate a railway line.” The ruling said companies have to restore service within a reasonable amount of time and can be held liable for customers’ added costs after that time has passed.

But the transportation agency won’t investigate whether Omnitrax is breaching its duties until complaints are filed.

That kicks off a four-step procedure that lasts 20 to 85 business days and could see the regulator compel the company to restore service within a certain time frame.

This week, the office of Transport Minister Marc Garneau noted the law obliges all railways “to accept and carry traffic offered, and to provide suitable and adequate service.”

Spokeswoman Marie-Anyk Côté said anyone can complain to the regulator — but residents along the line have told the Free Press that no one told them they had to formally complain.

Churchill Mayor Mike Spence says he’s focused instead on Prime Minister Justin Trudeau intervening. The two spoke by phone July 29, during Trudeau’s visit to Winnipeg.

“The federal government is aware of the tight time lines required for repairing the line,” Spence said.

Last week, the Association of Manitoba Municipalities met with Spence, and pledged to “assist in keeping the issue in the spotlight and support its northernmost member in any way possible.”

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Omnitrax might soon give a more precise estimate of the cost of fixing the line. Last Friday, it received an updated engineering assessment report from AECOM Canada. “We will have more details to share once the report has been reviewed and shared with key stakeholders,” Omnitrax chief commercial officer Peter Touesnard wrote.

This week, Garneau’s office has continued to evade questions about what options it’s considering, such as bailing out Omnitrax, suing the company or nationalizing the rail line.

“The government of Canada is looking at all options to ensure that contracts and obligations are respected and fulfilled,” Côté wrote.

The spokeswoman pointed to the 2008 funding agreement, saying it obliges Omnitrax “to repair and maintain its line and maintain service to residents.”

dylan.robertson@freepress.mb.ca

2008 funding agreement for repairing the Hudson Bay Railway