The Northwest Territories government says it is is hoping to resolve its dispute with CN Rail over a section of damaged rail line between Enterprise and Hay River through adjudication.
The rail line connecting the territory to southern Canada was severely damaged by wildfires in the summer of 2023.
While CN Rail repaired the track from Alberta to Enterprise, the company has said it will not repair remaining damage between Enterprise and Hay River unless it is provided funding by the NWT government or another source.
In a statement to Cabin Radio, CN Rail said it communicated its formal decision to discontinue its line from Enterprise to Hay River to all levels of government on May 23, 2024.
The territory has called on CN Rail to change its mind. It alleges the company has failed to fulfill its obligations under the Canada Transportation Act arguing that, as a common carrier, CN Rail has a duty to maintain the rail line and ensure the continued flow of goods to the NWT.
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In a Monday news release, communities and infrastructure minister Vince McKay announced that the NWT government’s application for adjudication with the Canadian Transportation Agency had been accepted.
“This rail line is not just a part of our transportation network; it is a lifeline for our territory, critical in ensuring the timely delivery of fuel to remote communities, particularly those reliant on barging services,” he stated.
“CN’s refusal to act leaves the NWT in an even more precarious situation deepening an already severe infrastructure deficit.”
The Canadian Transportation Agency adjudicates disputes about federal transporation.
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Adjudication is a structured process similar to court where each party presents arguments and evidence to a panel of agency members. Decisions of the panel are final and legally binding.
Since the rail line has been damaged, fuel has been trucked from Enterprise to Hay River for barging. McKay said that has placed unnecessary strain on the territory’s economy and is less efficient than using the rail system.
“The GNWT will not stand by as CN Rail shirks its responsibility,” he stated, adding that the cost of repair is “a negligible fraction” of CN Rail’s revenue.
“I assure NWT residents that the GNWT will continue to advocate for the repair of this critical rail line and ensure that the infrastructure needs of the North are not ignored.”
CN Rail said in a statement that because the matter is before the Canadian Transportation Agency it will not be commenting further at this time.
