Ottawa will hold Omnitrax to contract: innovation minister

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One of Prime Minister Justin Trudeau’s lieutenants vows the federal government will not turn its back on Churchill in the face of resistance from Omnitrax to repair the badly damaged rail line leading to the northern port.

Innovation, Science and Economic Development Minister Navdeep Bains was reacting to a statement by Denver-based Omnitrax to the Free Press Monday rejecting federal pressure to fix the line.

A 2008 agreement involving Omnitrax, the province and the federal government compels the company to maintain the line.

“They’re obligated to fulfil those commitments and we will look at all options to make sure that they pursue that,” Bains said in an interview Tuesday.

During a weekend stop in Winnipeg, Trudeau said Ottawa would enforce the 2008 deal. “Omnitrax has legal obligations to clean up and to repair the tracks,” the prime minister said Saturday.

According to initial estimates, spring flooding caused anywhere from $20 million to $60 million in damages to the rail bed and bridges. A more precise estimate of the damages is expected by Friday.

Bains wouldn’t speculate on what measures Ottawa might take to force the company to fulfil its commitments. He sidestepped a direct question on whether the feds might take over the port and rail line. The minister also suggested it was premature for the feds to commit to any financial assistance at this time to repair the line.

“I think the ball is in their court,” he said of Omnitrax. “They need to honour their commitment and demonstrate what they’re going to do. And we’ll look at what options exist going forward. But right now the onus is 100 per cent with them because they have to honour that contract.

“They have to show leadership. They have to take this initiative seriously, and they have to realize that this is really important to people in that community and they have a responsibility to honour their commitment.”

Bains met with Manitoba Growth, Enterprise and Trade Minister Cliff Cullen on Tuesday and was to participate in a roundtable organized by the Winnipeg Chamber of Commerce. He is scheduled to make an announcement at Red River College today.

larry.kusch@freepress.mb.ca