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UPDATE: CTA says Hudson Bay Railway has until Aug. 27 to show compliance with repair order

The Canadian Transportation Agency (CTA) has informed the Hudson Bay Railway (HBR) that it has until Aug.
hudson bay railway
The Canadian Transportation Agency has directed the Hudson Bay Railway to show by Aug. 27 that it is complying with an order to repair its rail line to Churchill.

The Canadian Transportation Agency (CTA) has informed the Hudson Bay Railway (HBR) that it has until Aug. 27 to demonstrate that it is complying with a repair order issued in June or the agency will establish specific deadlines for compliance steps and take orders to enforce those deadlines.

“HBR’s contention that a tendering process constitutes compliance with the Agency’s order to ‘initiate the repair of the railway line by July 3, 2018’ is questionable, particularly in the absence of a concrete plan on how HBR will meet the requirement ‘to complete the repair and resume operation of the railway as expeditiously as possible,’” the CTA wrote in a direction to show cause issued Aug. 21. “The Agency is of the preliminary view that HBR has failed to comply with the order and that the Agency should establish specific deadlines for compliance steps – taking into account the importance of rail service over the winter period and limited construction season – and take action to enforce those deadlines.”

HBR president Sergio Sabatinitold the CTA Aug. 1 that his company has begun soliciting bids to repair the section of the line between Gillam and Churchillbut doesn’t have the money to pay for the repairs itself.

A report to the CTA, which ordered HBR to begin repairs by July 3, said that the process began with an inspection of the track June 11 and June 12 by AECOM, which was retained by HBR to prepare a request for proposals (RFP). The RFP was issued June 28 to six pre-screened contractors with the necessary experience to perform the repairs and four of those contractors sent representatives to a mandatory site visit July 12 and 13. Bids were due Aug. 3 and AECOM said it was “confident there will be multiple bids and methodologies to consider. “

HBR says it believes a substantial amount of the work to repair the line can be done this year and the rest by mid-2019. Its goal is to restore limited service sometime this winter and full services after the repairs are complete.

“As the agency is aware HBR does not have the financial capability to undertake the full repairs of the damage to the railway caused by the spring 2017 flood,” Sabatini wrote.

“This is in direct contravention of the Agency’s order which explicitly required repairs to be undertaken and operation of the railway line to be resumed ‘as expeditiously as possible,’” the CTA wrote Aug. 21. “HBR’s response ignores the fact that in the Decision, the Agency made it clear that financial circumstances do not release a railway company from its service obligations, including the obligations established by the Decision. Any activities related to a sale of a railway line will not relieve HBR of its service obligation until the line has a new owner. While HBR negotiates for a potential transfer, HBR continues to be responsible for restoring service on the railway line.”

The Thompson Chamber of Commerce is urging the federal government to restore rail service between Gillam and Churchill before the upcoming polar bear tourism season to avoid further economic harm to the Hudson Bay port town and Northern Manitoba at large.

“The lack of train service is a detriment to the north, with the town of Churchill being affected the most,” said an Aug. 21 press release from the chamber. “Jobs have been lost from The Pas to Thompson to Churchill and numerous businesses and many families are suffering economically. The constant negative media coverage about Churchill’s plight will harm their tourism business for years to come, which also affects the entire province of Manitoba. Lack of rail service to Canada’s only deep water port in the Arctic for 18 months or more is unacceptable.”

The chamber has approved a resolution on the matter to be forwarded to the federal government.

“It is incumbent on the federal government to resolve this matter immediately so the communities affected can plan their recovery in 2018,” said the Thompson chamber press release. “We also encourage the Manitoba government to place all its effort to expedite the process for the benefit of all Manitobans.”

Manitoba NDP leader Wab Kinew told the Thompson Citizen Aug. 15 that he had sent a letter to the federal Transport Minister Marc Garneau asking for more action to be taken on the CTA order for HBR to begin repairs immediately.

“We haven’t seen shovels in the ground yet to fix the rail line so with only a few weeks to go before construction really has to begin if this rail line’s going to get fixed before winter, we appealed to the federal minister to take some action, to put some teeth in this order so it really forces OmniTrax to get moving on repairing the rail line,” said Kinew.

The NDP leader also said he’d like to see the provincial government do more to help Churchill and the North.    

“We know the province is not going to act,” said Kinew. “They’ve completely abandoned their responsibility to help Manitobans living in Churchill and along the rail line.”

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