Deal in principle reached to restore rail service to northern Manitoba: Feds

Port of Churchill. (Photo by Ansgar Walk, CC BY-SA 2.5)

WINNIPEG — An agreement in principle has been reached to restore rail service to Churchill and revive the northern Manitoba community’s port.

The federal government and a consortium of northern communities called One North are among the partners in the project to take over the rail line, which has been out of service since severe flooding last spring.

The current owner, Denver-based Omnitrax, has said it cannot afford the tens of millions of dollars in repairs and has been in discussions for months to sell the assets.

The rail line is the only land link to Churchill and goods and tourists have had to be flown in at much higher prices since the flood.

Churchill Mayor Mike Spence says the agreement to transfer ownership of the rail line and port on the shore of Hudson Bay is historic.

Christian Sinclair, co-chairman of One North, says details of the agreement still have to be finalized.

“By next week, those details will go out and will be shared with the public at that time,” Sinclair said Wednesday night.

“But the fact that we’re at this point is great for us because it allows us to still salvage a season (at the port) this year.”