Federal government has ‘formally demanded’ Omnitrax to repair rail

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This article was published 01/09/2017 (2958 days ago), so information in it may no longer be current.

Late Friday afternoon, Minister of Natural Resources Jim Carr issued the federal government’s most forceful public statement yet directed at the operator of the northern rail line.

Shortly after Manitoba Premier Brian Pallister called out the federal government over its inaction on addressing the Churchill file, Carr’s statement said Omnitrax is legally obliged to fix the flood damaged line that has been out of service since May.

“To this end, we have formally demanded the Hudson Bay Rail Company (now known as Omnitrax Inc.) that it must repair the rail line in line with the terms of its 2008 contribution agreement with the Government of Canada, which requires the company to operate, maintain and repair the entire Hudson Bay Railway Line in a diligent and timely manner until March 31, 2029.”

A source in the federal government said Transport Canada recently sent a letter to Omnitrax noting its legal obligation under the 2008 agreement with respect to its requirement to fix the line.

In the statement it said the government is willing to look at all options, including exploring the possibility of working with a new owner to repair the rail line.

Negotiations have allegedly been going on for more than a year with a group that was led by Arlen Dumas, newly elected grand chief of Assembly of Manitoba Chiefs, to acquire the rail line from Omnitrax. There has been no indication any progress has been made in those talks. Another coalition of Northern Manitoba First Nations and communities has also been working on tabling a proposal.

Carr said in the statement, “The government shares the concerns of the citizens of Churchill, and northern Manitoba, where the loss of the rail link has had significant impacts to businesses and families. We remain committed to the people of northern Manitoba and are currently exploring ways in which we can speed up the repairs of the rail line, while keeping in mind the immediate needs of the communities.”

While the statement continues to be unclear as to what action will be taken, it concludes by saying that the Trudeau government will continue to look at all options including “enforcing its rights under its agreement to seek repayment of the $18.8 million contributed to the Hudson Bay Railway Line in 2008.”

martin.cash@freepress.mb.ca