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Canada: Federal Government issues Omnitrax ultimatum to repair railway to Hudson Bay

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jamesontheroad

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Some further updates to this (now closed) thread.

In 2016, the Port of Churchill (on the Hudson Bay in northern Manitoba) in Canada announced it would be closing. While climate change had had the unforeseen effect of making this northern port accessible by ship for longer every year, the export of grain was insufficient to keep the port open.

As a result, the future of VIA Rail's weekly 3,400km Winnipeg - Churchill train (formerly known as The Hudson Bay) was uncertain. The train runs on Canadian National rails, skirting in and out of neighbouring Saskatchewan, to The Pas, Manitoba. From there it continues on the Hudson Bay Railway (owned by Omnitrax) via the remote towns of Thompson and Gillam and dozens of flag stops towards Churchill. The train is of course heavily subsidised, but provides essential service to these remote communities. It recoups some money from the tourists who head north to see polar bears in the winter or whales and other sea life in the summer.

However last spring, 2017, severe flooding washed out long sections of remote track and damaged bridges north of Gillam. This trapped a couple of VIA Rail locomotives and passenger cars in Churchill, and rendered the town completely cut off. There are no other land routes to Churchill. As a result tourism has collapsed, and many local businesses are in trouble.

VIA Rail have reportedly now retrieved the locomotives and carriages by barge. But as of a few days ago, the Canadian government has issued an ultimatum to the US company that owns the railway. They've stalled on carrying out repairs, blaming the closure of the port.

Source: https://www.nationalobserver.com/20...ues-ultimatum-over-broken-rail-line-churchill

Extract:

The federal government is threatening to sue the owner of a broken rail line that has left people in the northern Manitoba town of Churchill without a land connection to the outside world.

The government says Denver-based Omnitrax has 30 days to fix the Hudson Bay Railway to Churchill or face an $18.8-million lawsuit.

Ottawa says Omnitrax, which bought the rail line from the government in 1997, has a legal obligation to fix and maintain it under a 2008 agreement that included $18.8 million in federal support for repairs and upgrades.

...

Omnitrax responded by saying the rail line is no longer economically viable, due largely to federal government decisions that include ending the Canadian Wheat Board's monopoly on western wheat and barley. The wheat board used to ship grain along the rail line to the Port of Churchill.

...

The rail link was severely damaged by flooding last spring and Omnitrax has said it cannot afford the estimated $43 million in repairs.

For months, goods and people have had to be flown to the subarctic community at a much higher cost. The town of 900 on the coast of Hudson Bay, known for its polar bears and beluga whales, has seen a dramatic drop in tourism numbers as well.

...

Natural Resources Minister Jim Carr, who represents the Manitoba riding of Winnipeg South Centre, said in a statement Friday that the federal government is focused on "restoring rail service" and seeing "a transfer of ownership."

...

Omnitrax has been in talks to sell the rail line to a consortium of northern Manitoba communities and businesses — a move that would likely require government aid. Carr, who represents Manitoba in the federal cabinet, said Friday he is hopeful a deal may come soon.

The "transfer or ownership" would suggest a solution similar to that of the Keewatin Railway Company, a First Nations owned-and-operated rail line from The Pas to Pukatawagan. Similarly, there's Tshiuetin Railway Transportation in northern Quebec. Both provide passenger service, albeit outside the VIA Rail system.

As of a few weeks ago, VIA Rail have introduced a new schedule providing weekly service between Winnipeg, The Pas and terminating in Gillam, the last major town before the blockade.
 
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Groningen

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Go to the newspaper as the Winnepeg Free Press and search for Port Churchill and you get a lot of articles about the suspended railway. Omnitrax wants to make use of lighter trains at a cost of 5 to 10 million Canadian $ in 30 days. This damage to the tracks was in May and now 6 months later they try to have a solution. Manitoba already has spent $6 million shipping emergency propane reserves up to the town of 900.
 
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