Nearly a year after the Hudson Bay Railway said last June that it could no longer provide rail service between Gillam and Churchill due to damage to tracks caused by flooding, the company that bought the rail line from CN back in 1997 has an agreement in principle to sell it, the Port of Churchill and the Churchill Marine Tank Farm, according to a federal government press release.
The federal government said May 30 that OmniTrax, which owns the line, either directly or indirectly, though it has said in response to a complaint filed with the Canadian Transportation Agency that it is not a federally regulated railway company, has reached an agreement in principle with Fairfax Financial Holdings and Missinippi Rail Partners to restore Churchill’s only land transportation link and transfer ownership of the port, though the timeline on when that might take place is not clear.
The agreement includes the active participation of 30 First Nations and 11 non-First Nations communities in Northern Manitoba, seven Kivalliq communities in western Nunavut, as well as Fairfax, AGT Food and Ingredients along with Missinippi Rail Limited Partnership and OneNorth, operating as Missinippi Rail Partners.
"I am happy that Missinippi Rail Partners and Fairfax Financial Holdings have signed an agreement in principle with OmniTrax,” said Minister of Innovation, Science and Economic Development Navdeep Bains, whose portfolion includes Western Economic Diversification Canada. “Many of us believed that this was possible and the time has come to make it happen."
Minister of Natural Resources Jim Carr, Liberal MP for Winnipeg South Centre, said participation of First Nations and other Manitobans in the deal was important. "
The people of Northern Manitoba have long understood the value of the rail line,” Carr said. “This agreement in principle allows those most affected to have a direct stake in the future and long-term interests of their communities."
“We have long recognized the vital role the Hudson Bay Railway plays in connecting Canada’s north, and we are very pleased to see an agreement in place that will ensure the long-term operations of the rail line,” said OmniTrax Canada president Merv Tweed in a written statement. “We believe this is the best outcome for all stakeholders and look forward to working with Fairfax Financial and [Assembly of Manitoba Chiefs] Grand Chief [Arlen] Dumas to facilitate a smooth transition of ownership.”
The Town of Churchill said in a statement posted on its Twitter and Facebook pages that it welcomed news of the agreement, which it said includes a commitment for fast-track restoration of rail service to the Hudson Bay port town.
“This is an historic day for Churchill and those who now have a stake in this partnership,” said the statement. “We believe this firmly positions our region for a bright future and Canada’s only deep water Arctic seaport can take its rightful place as a strategic national Arctic gateway. Northern leaders have been working towards this goal for a long time and we have long believed with shrinking sea ice and longer shipping seasons, new opportunities are available for the Port of Churchill. The residents and businesses of Churchill have shown tremendous patience and resiliency during this very difficult time during the loss of rail service and reduced port operations. The town is pleased the federal government has recognized the importance and value of the port and rail line which are truly strategic assets of Canada. The town recognizes that important work remains to finalize ownership transfer details. The town will continue to update residents on those efforts in the coming weeks.”
