Company pulls out of running to takeover northern Manitoba rail line

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The railway’s owner, Denver-based Omnitrax, has said it cannot afford to repair the rail line and wants, with government help, to transfer ownership to local communities.

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Omnitrax has been in negotiations with One North, a consortium of northern Manitoba communities.

The federal government filed a lawsuit last year against Omnitrax, that says the company is obligated to maintain the rail line.

Ottawa has also announced millions of dollars in economic diversification and research money to help the Churchill region’s economy.

“We finally met last week with the government of Canada’s negotiator on the file, Mr. Wayne Wouters, and he made it clear that the government is willing to deal only with one specific company,” iChurchill CEO Louis Dufresne said in a written statement Tuesday.

“We can’t understand why this is, given that our partnership meets all of the government’s stated criteria to support the restoration of rail service to Churchill.”

The Canadian Press