Hay River backs GNWT in CN dispute over damaged line

The Town of Hay River is preparing to support the NWT government’s request that the Canadian Transportation Agency examine CN’s decision not repair the rail line to the community.

On Monday, the GNWT said the CTA had accepted its application for an adjudication process, which the territory likened to a legal hearing.

CN has declined to repair a section of its rail line between Enterprise and Hay River that was damaged by wildfires in 2023.

Previously, the line carried freight to Hay River’s harbour facilities for distribution by barge along the Mackenzie River. Now, freight is offloaded in Enterprise and driven either to the harbour or to its onward destination.

The loss of the rail line carries significant consequences for Hay River, which has prided itself on its “hub” status in the NWT. For decades, the town has been a key cargo distribution centre.

CN announced in May 2024 that it would not repair the line. The GNWT has previously called on the company to change its mind, and now says the adjudication process is a means by which it can force some kind of resolution.

“The GNWT will not stand by as CN Rail shirks its responsibility,” infrastructure minister Vince McKay – who is also one of Hay River’s two MLAs, alongside the premier – was quoted as saying on Monday.

“CN Rail is a multi-billion-dollar company with substantial financial resources. The estimated cost required to repair the stretch of rail is a negligible fraction of their revenue. It is especially concerning that a company of this size, with such substantial resources, has chosen to neglect its responsibilities,” McKay added.

From the CTA: How adjudication works

At a meeting of councillors on Monday evening, town manager Glenn Smith said Hay River would work to support the GNWT’s position in front of the CTA.

The town has already provided a statement that Smith understood formed part of the GNWT’s complaint. He suggested to council that the town be ready to provide another if it might help, as well as contacting “other impacted governments and industries” to ensure they are aware of the process and their ability to contribute statements of their own.

Smith said the town also plans to contact the NWT Association of Communities about the issue and the Community Rail Advocacy Alliance, which represents Hay River and Alberta communities that have some form of rail service.

“That loss of the line to Hay River puts a fair amount of financial, logistical and environmental stress on what is really an essential transportation network, especially providing fuel up the river system to communities,” said Smith.

“Not good timing, particularly when governments and industry are desperate for stability right now.”

Town meets with MTS

Separately, Smith said he had met with the new director of Marine Transportation Services, Terry Camsell.

MTS is the government-owned corporation responsible for each summer’s barge service. In recent years, MTS has found its operations deeply disrupted by drought conditions to the point where no barges could leave Hay River in the summer of 2024.

Smith said he and Camsell had informally discussed short-term operating plans and how the town could support MTS.

“It’s looking like another tough operating season,” Smith said, referring to the likelihood that low water levels persist this summer.

The town hopes to meet with MTS and Department of Infrastructure representatives later in the year as Hay River begins devising a new community economic development plan.

“It’s a vital industry,” said Smith. “We want to make sure it’s at the table.”