After three months of inaction from Hudson Bay Railway owner OmniTrax with regard to repairs to the northern section of the rail line between Amery and Churchill, Manitoba’s Hudson Bay port town got some good news Sept. 8 when Nautral Resources Minister Jim Carr announced the federal government’s commitment to restore Churchill’s only land transportation link.
“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,” said a press release from Natural Resources Canada. “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.”
“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,” said Carr. “Time is of the essence here, and quick action from all partners is needed now.”
The federal government also announced that it was appointing Wayne Wouters as its chief negotiator in ongoing discussions with OmniTrax, interested buyers, community leaders and Manitoba’s provincial government. Wouters was Clerk of the Privy Council, secretary to cabinet and head of the public service from 2009 until 2014, after being appointed by then-Prime Minister Stephen Harper. He had spent the previous five years as secretary of the Treasury Board and was the deputy minister of Fisheries and Oceans Canada, Human Resources and Skills Development Canada and Labour Canada between 1997 and 2004. He is also an Officer of the Order of Canada.
In a community update posted on social media Sept. 8, Churchill Mayor Michael Spence said the government’s announcement was an important step.
“The federal government today announced it is prepared to work to facilitate the transfer of the rail line and port to a new owner and will work with that new owner to restore rail service,” said Spence. “This potential transfer will involve significant work, but the town is fully prepared and willing to work with any and all parties to secure a strong and stable ownership group for the rail line. We will continue to press for an immediate plan to repair the rail line as this work moves forward. The federal government announced they are prepared to commit interim funding towards the repair and restoration of rail service and the town will work diligently to do whatever it can to help facilitate a solution. We agree with their view that the provincial government needs to be part of the solution.”
Spence also said he welcomed the appointment of Wouters as the federal government’s negotiator.
“He has a strong leadership reputation and is an individual of significant stature who can bring tremendous experience to the table,” Spence said.
The federal government’s announcement was welcomed by Flin Flon NDP MLA Tom Lindsey, who said it was a sign to the provincial government to get involved in finding a solution.
“Today’s announcement by the federal government is an important first step in providing real support that the people of Churchill have needed for over a year,” said Lindsey. “What is needed now is a provincial partner. Premier [Brian] Pallister needs to stop passing the buck and come to the table with real supports for the people of Churchill. It is about time both levels of government recognized the plight of Churchill and stepped up to ensure the rail line repairs begin immediately. The situation is urgent and serious – the window to complete repairs is rapidly closing. The first step that Premier Pallister can take would be to pick up a phone and call the mayor of Churchill and the federal government so that the province assumes its rightful place in ensuring the continued viability of the town of Churchill.”
The last train to arrive in Churchill was May 23. OmniTrax announced June 9 that severe flooding between Amery, which is 28.9 rail miles northeast of Gillam, and the end of the line at Churchill meant that train service between those points is suspended indefinitely.
An Aug. 18 report on the damage caused to the Hudson Bay Railway by flooding that was prepared by AECOM for OmniTrax said there were 20 washouts and extensive damage in 130 locations in the 155-mile (250-kilometre) Herchmer subdivision north of Amery to Churchill and outlined a 60-day plan to repair the line at a cost of $43.5 million. The plan requires a mobile camp car that can be moved to locations close to worksites and AECOM estimated the camp would need to house about 38 people for the duration of the repairs. Repair crews would work up to 12 hours a day. The cost estimate includes an allowance of 15 per cent for contractor profit and a 30 per cent contingency allowance. AECOM said repairs would need to start in early September in order for essential repairs to be completed by November, at which time lightly loaded railcars would once again be able to travel the section of the Hudson Bay Railway between Amery and Churchill.
