The NWT government says it is “disappointed” with a recent decision by the Canadian Transportation Agency regarding a section of damaged rail line between Hay River and Enterprise.
The territorial government had sought an order from the transportation agency requiring CN Rail to repair and resume operations on the line, which was damaged by wildfire in 2023.
In a decision issued late last month, however, the agency sided with CN and dismissed the NWT government’s application.
“Compared to the rest of Canada, the Northwest Territories already faces a severe infrastructure deficit,” a GNWT spokesperson wrote on Wednesday.
“This decision only deepens that gap, leaving smaller and more remote communities, many of them Indigenous, increasingly vulnerable.”
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Before it was damaged, the rail line was used to ship fuel to Hay River for delivery by barge to communities.
Fuel is now transported by rail to Enterprise then trucked to Hay River for barging.
The NWT government has raised concerns with this method, citing increased labour, time and cost, as well as safety issues related to potential fuel spills and the increased number of trucks on the highway.
CN plans to discontinue the rail line and expects the statutory process for doing so to be completed by November 28.
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CN told Cabin Radio it “continues to advance the discontinuance process,” including sending letters offering the line for “net salvage value” to the Town of Hay River, and NWT and federal governments.
The territorial government said it is now “actively reviewing” the transportation agency’s decision and exploring options to “ensure that critical transportation infrastructure is not abandoned.”
The GNWT said a decision on next steps is “imminent.”
“We will continue to stand up for northerners and speak out when corporate decisions or regulatory outcomes fail to reflect the realities of our communities,” the spokesperson stated.
