Canadian Shipper


Feds commit to restoring rail service to Churchill

Ottawa, ON — The Government of Canada confirmed its commitment to the residents of northern Manitoba and to the restoration of rail service to Churchill, Manitoba.

“The Government of Canada remains committed to the people of Churchill and Northern Manitoba and is ready to do its part to restore rail service,” stated Jim Carr, Minister of Natural Resources, and Member of Parliament for Winnipeg South Centre. “Time is of the essence here, and quick action from all partners is needed now.”

The Government is deeply concerned that OmniTRAX Inc. has not yet commenced repairs and that further delay may jeopardize the ability to complete repairs before winter. As per its 2008 agreement, the Government of Canada committed to provide financial support to Hudson Bay Railway Company in exchange for their agreement to repair, maintain and operate the rail service through to Churchill until 2029.

In the event that OmniTRAX Inc. is not willing to satisfy its contractual obligations, the Government will work to facilitate discussion for the transfer of the rail line to a new owner and will work with that new owner to restore rail service. Canada is fully prepared to act quickly to provide such support, provided that:

  • The assets are transferred at a reasonable price taking into account OmniTRAX Inc’s obligations.
  • The new owner has support from First Nations and other communities along the route.
  • The new owner has a viable business plan to operate the rail line safely, reliably and cost-effectively.
  • The Government will also engage with the Province of Manitoba as a partner in supporting service restoration and go-forward operations.

Given the urgency, Canada is willing to explore any other options, including interim funding to enable restoration of rail service, should there be material progress on the conditions outlined above. Canada is willing to do its part to support a speedy solution with all partners.

Canada is furthering its commitment by appointing The Honourable Wayne Wouters, who is currently Strategic and Policy Advisor with McCarthy Tétrault LLP, as the Government’s chief negotiator to represent Canada’s interests in delivering a successful outcome for the people and communities in northern Manitoba. As chief negotiator, Mr. Wouters will play a key role in the ongoing discussions with OmniTrax Inc., interested buyers, community leaders, and the Province of Manitoba. His experience as the former Clerk of the Privy Council and Secretary of the Treasury Board as well as previous negotiations position him well to accelerate progress.

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