October 20 2017

Page 1

Nickel Belt News

Volume 57 Number 42

Friday, October 20,2017

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Federal government tells OmniTrax to fix its railway in 30 days or face legal action When it comes to the inactive section of the Hudson Bay Railway (HBR) north of Gillam to the Hudson Bay port town of Churchill, which has been accessible only by air or sea since late May, the parties involved continue to favour words over action. Natural Resources Minister Jim Carr began the next round of conversation and accusations with an Oct. 13 statement that the federal government was giving railway owner OmniTrax 30 days to begin repairs before launching legal proceedings. “Since the rail service disruption in late May 2017, the government of Canada has been working towards the restoration of the rail line,” said Carr. “Despite these efforts, OmniTrax Inc., the parent company of the owner and operator responsible for restoring service to the affected communities, has not met its obligations. As such, today, Transport Canada sent OmniTrax Inc. a notice of default of its agreement, demanding that it complete all railway repairs and resume rail service within 30 days. Failing this, Transport Canada will instruct Justice Canada to file a lawsuit for breach of contract.” The federal government said in early September that a 2008 contribution agreement required OmniTrax to operate the Hudson Bay Railway until 2029, though the company says the unprecedented flooding that occurred in the spring represents a force majeure, or unforeseeable circumstance, and releases it from fulfi lling the terms of that contract. OmniTrax Canada president Merv Tweed said in a response to Carr’s statement on the company’s website that it was clear the federal government doesn’t intend to solve the problem of Churchill’s only surface transportation link being cut in any constructive way. “It appears from their collective indecisiveness, dysfunction and lack of leadership on this critical issue that both Canada

Nickel Belt News photo courtesy of Alan Spence A Via Rail train being loaded onto a ship for transport out of Churchill. The train had been stuck in the Hudson Bay port town since spring flooding washed out several sections of the Hudson Bay Railway track bed north of Gillam, prompting track owner OmniTrax, which says it does not have money to pay for repairs, to suspend service to Churchill indefinitely. and the province of Manitoba are content to leave Churchill as a remote, fly-in community for the first time in over 100 years,” said Tweed. “While this conflicts with Canada’s stated position on reconciliation with First Nations and with Arc-

tic sovereignty – Churchill is Canada’s only deep-water Arctic port – and its commitment to its more isolated northern communities, our experience since the 200year flood event on May 25 does not suggest there is an appropriate sense of ur-

gency by any governments to rebuild the railroad or transfer the ownership to the First Nations who seek to own it.” “In mid-May of this year, seeing the snow pack and threatened storm, HBR contacted everyone along

the railway and advised that we were concerned about a catastrophic flood that could compromise the railroad. When the flood came, we immediately informed our regulator of the damage and requested that they come view this dam-

age fi rst hand. Transport Canada declined to personally inspect the damage. We hired a world leading engineering firm, AECOM, to begin the difficult work of assessing the damage and putting together a repair plan. We informed our stakeholders, the government and the public that we would not be in a position fi nancially to repair or continue to operate the line, and began the process of transitioning the HBR to a First Nations consortium. In early August, we entered into an agreement with Grand Chief Dumas and a new coalition of First Nations buyers. This coalition has the capability to operate the line and ensure it can offer a sustainable link to Churchill and points north. This agreement now hinges on the federal government and its willingness to provide the requisite approvals and financial support.” Assembly of Manitoba Chiefs Grand Chief Arlen Dumas, who was chief of Mathias Colomb Cree Nation at the time that it and Missinippi Rail signed a memorandum of understanding on the transfer of OmiTrax’s Manitoba assets to a First Nations-led consortium in December 2016, said in an Oct. 18 statement that threats of legal action might jeopardize the sale of the port and rail line. “This fl ies in the face of all the good work that has been done so far,” said Dumas. “I see this as a delay tactic. If the government decides to pursue legal action against OmniTrax, it is forcing the communities serviced by the rail line to become fly-in communities if the line doesn’t get fixed. I believe OmniTrax is also using this as an excuse not to fi x the line, which further punishes our people living along the rail line. I would like to apologize to the people along the rail line that we still have other interests deciding when we can eat and when we can travel and that our governments still refuse to help.” Carr said the federal government’s chief negotiator Continued on Page 10


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October 20 2017 by Nickel Belt News - Issuu