Nickel Belt News
Volume 57 Number 29
Friday, July 21, 2017
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Track repairs to Churchill rail line too expensive to undertake without government money, says OmniTrax An engineering assessment done for Hudson Bay Railway owner OmniTrax indicates that it will cost up to $60 million to repair the rail line between Amery and Churchill and that the work could be completed in as little as two months, but th the company says it needs government supneed port to proceed. “It [the rail line] is not commercially viable, so we believe it’s a public utility,” OmniTrax chief operating officer Peter Touesnard told CBC. “We believe it’s still the least expensive way to supply service to the north, in particular the community of Churchill, and we believe there is a role for the public to play in that.” At a technical briefing on the condition of the line held in Winnipeg July 18, AECOM Canada, which completed a track assessment for the rail line owners, said there was a 60-day plan to restore the line to Churchill, which has been closed since late May, to operational status. “We do have a plan – 60 days – it’s not going to be inexpensive or easy, but we have a plan,” Ron Mitchell, the AECOM engineer who led the assessment, told CBC. Briefing notes provided by OmniTrax at the briefing showed a preliminary estimate of $13 million to repair the track, not including bridge repairs, contractor labour, profit and boarding, project management, rail equipment rental or the cost of investigating and repairing unstable areas that haven’t yet been inspected, the CBC reported. AECOM has identified 13 bridges, 68 culverts and 31 washout areas that need to be repaired over about 300 kilometres between Gillam and Churchill. Churchill Mayor Michael Spence said in a July 18 press release that governments need to take action since OmniTrax has indicated it won’t. “The only reason repairs have not begun while the assessments are underway is because OmniTrax won’t spend any more money on repairs” said Spence. “OmniTrax confirmed they haven’t ordered any repair materials yet and we can’t wait any longer.” The rail line closure has resulted in 90 job losses in a town of only 900 people, said the mayor, and there are more than 200 York Factory First Nation, Fox Lake First Nation and War Lake First Nation members in Churchill who are cut
Nickel Belt News photo courtesy of Steve Green OmniTrax, owner of the Hudson Bay Railway between The Pas and Churchill, seen here in a June 14 photo by Colorado motorcyclist Steve Green, says it can restore the track to enable train service to Churchill by the end of October, but it will cost up to $60 million and it needs government money to proceed. off from their communities because of the loss of rail service. “The time has come for OmniTrax to step aside and for governments to step in,” said York Factory First Nation Chief Ted Bland in the same press release. “The rail is a lifeline for our Northern Manitoba First Nation residents and repairs need to start immediately.” Touesnard said a decision had to be made on repairs by Aug. 1 in order for the work to go ahead and be completed before the end of October. The National Farmers Union (NFU) said July 13 that the Hudson Bay Railway and the Port of Churchill, also owned by OmniTrax, which suspended grain shipments from the port last year, should be nationalized by the federal government and operated as public services. “The federal government has created a silly situation by selling an asset which has led to the present conundrum of a private company not willing to fix the damaged rail line and yet wishing to create a capital gain from selling this asset to potential Indigenous buyers who will have the same problem the private company had,” said Ian Robson, NFU Region 5 (Manitoba) co-ordinator, in a press release. “This asset needs to be kept and operated by our government. Like any highway, it creates value from being operated by the government. More private carriers could be attracted to run trains upon the line and more potential could be gained.” Provincial NDP labour critic Tom
Lindsey said July 19 that Premier Brian Pallister needs to start working with the federal government and Churchill and surrounding communities immediately to take over and repair the rail line before winter. “The people of Churchill have waited long enough for this premier to recognize his responsibility to them as fellow Manitobans,” Lindsey said. “OmniTrax is refusing to fix the line and has made it clear it wants to pull out of Manitoba. The premier should stand with the people of Northern Manitoba, not abandon them as OmniTrax has done. The premier needs to come back to Manitoba today and put all of his government’s energy into finding a solution. Time is of the essence – what is the premier waiting for? The line is an essential service and is the least expensive and most efficient way to transport people and supplies to Churchill and other isolated communities in the north. If the premier and the federal government continue to pass the buck, Churchill and other northern communities will face economic disaster and residents will face great personal hardships as supplies become increasingly expensive and difficult to get.” To cope with increased food costs, which Spence says have tripled as a result of the rail line closure, Indigenous and Northern Affairs Minister Carolyn Bennett announced July 7 that Churchill had been temporarily added to the list of communities eligible for the Nutrition North Canada program, which subsidizes the cost
of healthy food for communities without year-round surface transportation access. Perishable items qualify for a subsidy of $1.60 per kilogram, while some non-perishable items like diapers, toilet paper, toothpaste and others will receive a $1 per kilogram subsidy until after the arrival of a sealift in October, after which they will be subsidized by five cents per kilogram. “While we continue to work across government to address the situation in Churchill, extending the Nutrition North Canada program to the community will help offset the rising cost of bringing in food,” said Bennett in a press release. The provincial government announced July 18 that its Affordable Food in Remote Manitoba (AFFIRM) program would have the subsidy rate for milk, infant formula and fresh produce increased to $1.60 per kilogram for Churchill. “With the interruption in rail services to Churchill, food costs are increasing as food now has to be flown into the community,” said Health Minister Kelvin Goertzen. “This increase in the AFFIRM subsidy will help reduce the cost of food in the community and, in particular, support more affordable access to healthy foods. We know that families in Churchill have been facing a difficult challenge and we are pleased to work with the federal government to support the community. This increased subsidy will help address some of the increased costs and provide support to area residents as this situation continues to evolve.”